Morgan Stanley

Latest Results (03.09.2025):

Morgan Stanley reported strong financial results for the second quarter of 2025, showcasing significant growth in net revenues, earnings per share, and return on tangible common equity. The firm demonstrated robust performance across its Institutional Securities, Wealth Management, and Investment Management segments, accompanied by strategic initiatives such as increasing dividends and expanding share repurchases.

Revenue Growth

Net revenues for Morgan Stanley's second quarter of 2025 reached $16.8 billion, up from $15.0 billion in the same period last year. This growth was driven by strong performances across various business segments, including a notable increase in Institutional Securities and Wealth Management revenues.

Earnings Performance

The firm reported an earnings per diluted share (EPS) of $2.13, compared to $1.82 a year ago. Net income applicable to Morgan Stanley was $3.5 billion, reflecting a solid increase from $3.1 billion in the second quarter of 2024. Return on tangible common equity (ROTCE) stood at 18.2%, up from 17.5% in the previous year.

Segment Highlights

Institutional Securities generated net revenues of $7.6 billion, benefiting from higher client activity in Equity and Fixed Income underwriting. Wealth Management saw revenues of $7.8 billion, supported by $59 billion in net new assets and $43 billion in fee-based flows. Investment Management reported $1.6 billion in net revenues, driven by higher asset management fees and positive long-term net flows.

Shareholder Returns

Morgan Stanley announced an increase in its quarterly common stock dividend to $1.00 per share and repurchased $1.0 billion of its outstanding common stock during the quarter. Additionally, the Board of Directors reauthorized a multi-year share repurchase program of up to $20 billion, enhancing shareholder value through strategic capital deployment.

Operational Efficiency

The firm's expense efficiency ratio improved to 70% for the first half of the year, aided by scale and disciplined expense management. Non-compensation expenses rose moderately due to higher execution-related costs, while compensation expenses increased in line with revenue growth and strategic investments.