01—Abstract
Summary
Summary of the 10-Q filed November 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Morgan Stanley reported strong financial results for the third quarter of 2025, with net revenues of $18.2 billiona, 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%b 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 billionc 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 $1.00d 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.
02—Key points
Key Highlights
- Net 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.
- Institutional 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.
- Wealth 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.
- Investment Management saw a 13% rise in net revenues, attributed to higher average assets under management and increased performance-based income.
- The 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.
- Compensation 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.
- Provision 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.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 3, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Net Income | $4.61B$3.19B | +44.6% |
| EPS (Basic) | $2.83$1.91 | +48.2% |
| EPS (Diluted) | $2.80$1.88 | +48.9% |
| Shares Outstanding (Basic) | 1.57B1.59B | −1.1% |
| Shares Outstanding (Diluted) | 1.59B1.61B | −1.2% |
05—Questions
Frequently Asked Questions
What were Morgan Stanley's key financial drivers in Q3 2025?
Morgan Stanley's strong performance in Q3 2025 was driven by broad-based growth across its segments. The Institutional Securities segment benefited from higher client activity in Equities and a recovery in Investment Banking, particularly underwriting. Wealth Management saw increased revenues from asset management, transactional activities, and net interest income, alongside significant net new asset inflows. Investment Management also contributed positively with higher revenues driven by increased assets under management and performance fees.
How did Morgan Stanley's capital position fare in Q3 2025?
Morgan Stanley maintained a strong capital position. The Common Equity Tier 1 (CET1) capital ratio was 15.1% under the standardized approach, and the Supplementary Leverage Ratio (SLR) was 5.5%. These ratios remain well above regulatory minimums, indicating a solid capital base.
What is the outlook for expenses, particularly compensation and benefits?
Compensation and benefits expenses increased by 11% year-over-year to $7.4 billion. This rise is attributed to higher revenue-driven formulaic payouts to Wealth Management advisors, increased expenses related to deferred compensation, higher salary expenses, and increased discretionary incentive compensation within Institutional Securities due to improved performance.
How did the Provision for Credit Losses trend in Q3 2025?
The Provision for Credit Losses was minimal at $1 million for the quarter, a significant decrease from $79 million in the prior year quarter. This reduction reflects an improved macroeconomic outlook, offset slightly by portfolio growth and specific provisions for commercial real estate loans.
06—Continue