Morgan Stanley Reports 12% Revenue Growth to $16.8 Billion in Q2 2025

Morgan Stanley reported strong financial results for the second quarter of 2025, with net revenues reaching $16.8 billion, a 12% increase from $15.0 billion in the same quarter of the previous year. The firm’s net income applicable to Morgan Stanley was $3.5 billion, reflecting a 15% rise compared to $3.1 billion in the prior year quarter. Earnings per diluted common share also saw a significant increase, rising to $2.13 from $1.82 year-over-year. For the first half of 2025, net revenues totaled $34.5 billion, up 15% from $30.2 billion in the first half of 2024, while net income increased by 21% to $7.9 billion.

The firm’s performance was bolstered by its Institutional Securities segment, which generated $7.6 billion in net revenues, primarily driven by heightened client activity in the equity markets. Wealth Management also contributed significantly, with net revenues of $7.8 billion, up 14% year-over-year, aided by increased asset management and transactional revenues. The Investment Management segment reported net revenues of $1.6 billion, a 12% increase, largely due to higher asset management fees and positive long-term net flows.

Morgan Stanley's operational metrics showed positive trends, with the Wealth Management segment adding $59 billion in net new assets during the quarter, and fee-based asset flows reaching $43 billion. The firm’s total client assets increased to $8.2 trillion, up from $7.9 trillion at the end of 2024. The firm maintained a Standardized Common Equity Tier 1 capital ratio of 15.0% as of June 30, 2025, reflecting a disciplined approach to capital management.

In terms of expenses, total non-interest expenses for the quarter were $12.0 billion, a 10% increase from the prior year, driven by higher compensation and benefits expenses, which rose by 11% to $7.2 billion. The provision for credit losses was $196 million, up from $76 million in the prior year quarter, primarily due to portfolio growth in corporate loans and a cautious macroeconomic outlook.

Looking ahead, Morgan Stanley anticipates continued growth in its business segments, supported by a favorable economic environment and strategic initiatives. The firm has reauthorized a multi-year share repurchase program of up to $20 billion, indicating confidence in its financial position and commitment to returning capital to shareholders.