Summary
Morgan Stanley reported strong financial results for the third quarter of 2025, with net revenues of $18.2 billion, a 18% increase year-over-year, and net income applicable to Morgan Stanley of $4.6 billion, up 45% from the prior year quarter. This growth was driven by robust performance across all key business segments. Institutional Securities saw a significant 25% increase in net revenues, largely due to strong equity performance and a rebound in investment banking, particularly underwriting. Wealth Management also demonstrated impressive growth, with net revenues up 13% year-over-year, supported by higher asset management and transactional revenues, alongside an increase in net interest income. The segment added $81 billion in net new assets, with $42 billion in fee-based asset flows, indicating continued client engagement. Investment Management also experienced a 13% increase in net revenues, driven by higher assets under management due to favorable market levels and increased performance-based income. The firm maintained a strong capital position, with a Common Equity Tier 1 capital ratio of 15.1% and a Supplementary Leverage Ratio of 5.5%. The company also announced a common stock dividend of $1.00 per share, payable in November 2025, and continued its share repurchase program, demonstrating a commitment to returning capital to shareholders while investing in its growth initiatives.
Financial Highlights
33 data points| Net Income | $4.61B |
| EPS (Basic) | $2.83 |
| EPS (Diluted) | $2.80 |
| Shares Outstanding (Basic) | 1.57B |
| Shares Outstanding (Diluted) | 1.59B |
Key Highlights
- 1Net revenues increased by 18% to $18.2 billion, and net income applicable to Morgan Stanley rose by 45% to $4.6 billion compared to the prior year quarter.
- 2Institutional Securities delivered a 25% increase in net revenues, primarily driven by strong performance in Equity trading and a rebound in Investment Banking, especially underwriting activities.
- 3Wealth Management reported a 13% increase in net revenues, benefiting from higher asset management fees, transactional revenues, and net interest income, while adding $81 billion in net new assets.
- 4Investment Management saw a 13% rise in net revenues, attributed to higher average assets under management and increased performance-based income.
- 5The firm's Common Equity Tier 1 capital ratio stood at a robust 15.1%, and its Supplementary Leverage Ratio was 5.5% at the end of the quarter.
- 6Compensation and benefits expenses increased by 11% year-over-year, largely due to higher advisor payouts in Wealth Management and increased incentive compensation in Institutional Securities tied to higher revenues.
- 7Provision for credit losses was minimal at $1 million for the quarter, reflecting an improved macroeconomic outlook, a significant decrease from $79 million in the prior year quarter.