Morgan Stanley (MS) delivered a strong set of results in Q2 2025, showcasing broad-based strength across its core business segments. Net revenues rose 12% year-over-year to $16.8 billion, while net income climbed 15% to $3.5 billion, underscoring the firm's ability to capitalize on client activity and market opportunities despite a mixed backdrop. Earnings per share came in at $2.13, up from $1.82 a year ago, while return on tangible common equity (ROTCE) remained solid at 18.2%. Effective cost control contributed to an expense efficiency ratio of 71%, and the firm maintained a robust CET1 capital ratio of 15.0%, reflecting continued capital strength.
Segment performance was notably balanced. Institutional Securities reported $7.6 billion in revenues, a 9% increase, with standout performance in Equities, which surged 23% to $3.7 billion on the back of elevated client activity and strong prime brokerage. Fixed Income revenues also grew 9% to $2.2 billion, while Investment Banking saw a modest decline, falling 5% to $1.5 billion, reflecting softness in M&A advisory. Despite a rise in credit loss provisions to $168 million, the segment delivered $2.1 billion in pre-tax income and $1.6 billion in net income, up 6% year-over-year.
Wealth Management continued to be a growth engine, with revenues up 14% to $7.8 billion and net income climbing 21% to $1.7 billion. The division attracted $59.2 billion in net new assets, including $42.8 billion in fee-based flows, pushing total client assets to $8.2 trillion. Strong client engagement fueled 62% growth in transactional revenues and steady net interest income of $1.9 billion. Pre-tax margin held firm at 28.3%, reflecting scale and efficiency gains.
In Investment Management, net revenues rose 12% to $1.6 billion, with net income increasing 48% to $245 million. The turnaround in long-term net flows, which swung from a $(1.2) billion outflow to $10.8 billion in inflows, was a standout highlight. Average AUM reached $1.7 trillion, helping lift asset management fees, while higher carried interest and mark-to-market gains contributed to a rise in performance-based income.
CEO Ted Pick emphasized the firm’s “six straight quarters of consistent earnings,” citing resilience across all divisions. Strategic actions reinforced that confidence: Morgan Stanley raised its quarterly dividend to $1.00 per share, and authorized a new $20 billion share repurchase program, of which $1.0 billion was executed in Q2.
Overall, Morgan Stanley’s results reflect a resilient, well-diversified business model thriving in a complex environment. With double-digit revenue growth, strong asset flows, and continued operational discipline, the firm remains well-positioned to drive durable returns and shareholder value.