10-QPeriod: Q2 FY2025

MORGAN STANLEY Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 4, 2025For Securities:MSMS-PKMS-POMS-PQMS-PAMS-PFMS-PIMS-PLMS-PPMS-PEMSTLW

Summary

Morgan Stanley's second quarter 2025 results show robust performance across its key business segments, with net revenues increasing by 12% year-over-year to $16.8 billion and net income applicable to Morgan Stanley up 15% to $3.5 billion. This growth was driven by strong contributions from the Institutional Securities segment, particularly its Markets business, and solid revenue generation in Wealth Management, supported by increased asset and transactional revenues. The firm also saw improved performance in its Investment Management segment, benefiting from higher average Assets Under Management (AUM) and positive net flows. Key financial metrics highlight the firm's operational strength, with Return on Equity (ROE) at 13.9% and Return on Tangible Common Equity (ROTCE) at 18.2%. The firm maintained a solid Common Equity Tier 1 (CET1) capital ratio of 15.0% under the standardized approach, indicating strong capital adequacy. Despite an increase in expenses, partly due to higher compensation-related costs and technology investments, the firm's expense efficiency ratio remained disciplined at 71%. The provision for credit losses saw an increase, reflecting portfolio growth and a cautious macroeconomic outlook, particularly impacting corporate and commercial real estate loans.

Financial Highlights

33 data points
Beta

Net Income

$3.54B

EPS (Diluted)

$2.13

Total Assets

$1.35T

Cash & Equivalents

$109.13B

Free Cash Flow

$11.83B

Financial Statements
Beta
Net Income$3.54B
EPS (Basic)$2.15
EPS (Diluted)$2.13
Shares Outstanding (Basic)1.58B
Shares Outstanding (Diluted)1.59B

Key Highlights

  • 1Net revenues increased by 12% to $16.8 billion in Q2 2025 compared to Q2 2024.
  • 2Net income applicable to Morgan Stanley increased by 15% to $3.5 billion in Q2 2025.
  • 3Diluted earnings per common share rose 17% to $2.13 in Q2 2025.
  • 4Institutional Securities segment net revenues grew 9% year-over-year, driven by strong performance in the Equity Markets business.
  • 5Wealth Management segment net revenues increased 14% year-over-year, with significant growth in transactional and asset management revenues.
  • 6Investment Management segment net revenues increased 12% year-over-year, supported by higher average AUM and positive net flows.
  • 7The firm maintained a strong Common Equity Tier 1 (CET1) capital ratio of 15.0% under the standardized approach.

Frequently Asked Questions

Morgan Stanley's net revenues increased by 12% year-over-year to $16.8 billion in Q2 2025. This growth was primarily driven by strong performance in the Institutional Securities segment's Markets business (particularly Equity), higher asset management and transactional revenues in Wealth Management, and increased average AUM and positive net flows in Investment Management.

Profitability improved significantly, with net income applicable to Morgan Stanley rising 15% to $3.5 billion in Q2 2025 compared to the same period in 2024. Diluted earnings per common share also saw a substantial increase, growing 17% to $2.13.

Morgan Stanley maintains a strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 15.0% under the standardized approach as of June 30, 2025. The firm is compliant with all regulatory capital requirements, including Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) requirements.

The provision for credit losses increased in Q2 2025 compared to the prior year, primarily due to portfolio growth in corporate loans and secured lending facilities, and a macroeconomic outlook that anticipates slower GDP growth. Specific provisions were also noted for certain commercial real estate loans, particularly in the office sector.