Morgan Stanley

Latest Results (12.12.2025):

Morgan Stanley’s third quarter 2025 results show a strong quarter: the Firm reported record net revenues of $18.2 billion for the quarter ended September 30, 2025, net income applicable to Morgan Stanley of $4.6 billion (diluted EPS $2.80) and a return on tangible common equity (ROTCE) of 23.5%, driven by broad-based strength across Institutional Securities, Wealth Management and Investment Management.

Record revenue and profitability

Net revenues: $18.224 billion (record for 3Q). Net income applicable to Morgan Stanley: $4.610 billion; diluted EPS: $2.80. Pre-tax income: $6.028 billion. ROTCE 23.5% and return on equity 18.0%.

Institutional Securities

Institutional Securities net revenues: $8.523 billion (up from $6.815B a year ago). Pre-tax income: $3.2 billion. Investment Banking net revenues rose ~44% with stronger advisory and equity underwriting; Equity revenues up 35%; Fixed Income up 8% driven by credit and commodities activity.

Wealth Management

Wealth Management net revenues: $8.234 billion (up 13% YoY) and pre-tax margin 30.3%. Net new assets: $81.0 billion for the quarter; fee‑based client assets $2.653 trillion and fee‑based asset flows $41.9 billion. Loans: $173.9 billion. Net interest income and asset management fees were notable contributors.

Investment Management

Investment Management net revenues: $1.651 billion (up 13% YoY); pre-tax income $364 million. AUM $1.807 trillion and positive long-term net flows of $16.5 billion; higher asset management fees and carried interest supported results.

Expenses, efficiency and credit

Total compensation expense: $7.442 billion; total non-compensation expense: $4.754 billion. Firm expense efficiency ratio: 67% for the quarter (69% year-to-date). Provision for credit losses was essentially nil for the quarter ($0 reported). Effective tax rate: 22.8%.

Capital and shareholder returns

Standardized CET1 ratio: 15.2%. The Fed reduced Morgan Stanley’s SCB from 5.1% to 4.3% effective Oct 1, 2025. Book value per share: $62.98; tangible book value per share: $48.64. The Firm repurchased $1.085 billion of common stock in the quarter and the Board declared a $1.00 quarterly dividend payable Nov 14, 2025.