Morgan Stanley reported strong financial performance for the third quarter of 2025, with net revenues reaching $18.2 billion, an 18% increase from $15.4 billion in the same quarter of the previous year. The firm’s net income applicable to Morgan Stanley was $4.6 billion, reflecting a 45% rise compared to $3.2 billion in the prior year quarter. This resulted in diluted earnings per share of $2.80, up 49% from $1.88 a year earlier. For the nine months ending September 30, 2025, net revenues totaled $52.8 billion, a 16% increase from $45.5 billion in the same period of 2024, while net income rose 29% to $12.5 billion.
The firm’s business segments showed significant growth, particularly in Institutional Securities, which reported net revenues of $8.5 billion, a 25% increase year-over-year, driven by higher client activity and a rebound in investment banking. Wealth Management also performed well, generating $8.2 billion in net revenues, up 13% from the previous year, with a pre-tax margin of 30.3%. Investment Management contributed $1.7 billion in net revenues, reflecting a 13% increase, primarily due to higher asset management fees.
Morgan Stanley's operational metrics indicated a positive trend, with total client assets in Wealth Management increasing to $7.1 trillion, up from $6.2 trillion at the end of 2024. The firm added $81 billion in net new assets during the quarter, with fee-based asset flows of $42 billion. The firm’s employee headcount rose to 82,000, up from 80,000 at the end of 2024, reflecting ongoing investments in talent and resources.
The filing also highlighted the firm’s strategic focus on maintaining a strong capital position, with a Common Equity Tier 1 capital ratio of 15.1% and a Supplementary Leverage Ratio of 5.5% as of September 30, 2025. The firm’s expense efficiency ratio improved to 67% for the quarter, down from 72% in the prior year. Looking ahead, Morgan Stanley anticipates continued momentum in capital markets activity, although it remains cautious about potential economic uncertainties and regulatory changes that could impact its operations.
About MORGAN STANLEY
Morgan Stanley is a leading global financial services firm providing advisory, trading, asset management, and wealth management services. It serves corporations, governments, financial institutions, and individuals through its core segments: Institutional Securities, Wealth Management, and Investment Management. The company offers investment banking, trading, asset management, and brokerage services, leveraging its reputation, innovation, and extensive regulatory expertise to maintain competitive advantages in diverse markets worldwide.
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