Morgan Stanley (NYSE:MS) outperformed Wall Street forecasts for the second quarter, posting stronger-than-expected earnings and revenue as client activity surged across multiple business lines.
The firm reported earnings per share of $2.13, outpacing the consensus estimate of $1.98. Revenue climbed to $16.8 billion, surpassing analyst projections of $16.01 billion.
Revenue from Institutional Securities came in at $7.6 billion, benefiting from heightened client engagement and especially robust results in the equities segment.
Wealth Management brought in $7.8 billion in net revenue, with a pre-tax margin of 28.3%. The performance was supported by strong asset management income and increased client participation.
Investment Management contributed $1.6 billion in net revenue, mainly through asset management fees tied to higher average assets under management (AUM). The division also recorded $11 billion in long-term net inflows.
In trading, the firm reported a 23% jump in equities revenue and a 9% gain in fixed income, underscoring broad-based strength across capital markets.
Return on tangible common equity (ROTCE) was 18.2% for the second quarter and 20.6% for the first half of 2025. The expense efficiency ratio held at 70%, supported by the firm’s scale and effective cost management. Morgan Stanley reported a standardized CET1 capital ratio of 15.0%.
“Morgan Stanley delivered another strong quarter,” said Chairman and CEO Ted Pick. “Institutional Securities saw strength and balance across businesses and geographies. Wealth continues to deliver, adding $59 billion of net new assets and $43 billion of fee-based flows.”
Pick also highlighted the firm’s resilience in various market conditions, noting it has now posted six consecutive quarters of consistent earnings performance.
In addition, the company raised its quarterly dividend to $1.00 per share.
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