**Morgan Stanley Reports Strong 2025 Financial Results**
Morgan Stanley (MS) reported net revenues of $70.6 billion for the year ended December 31, 2025, a 14% increase compared to $61.8 billion in 2024. Net income applicable to Morgan Stanley was $16.9 billion, up 26% from $13.4 billion in the previous year. Diluted earnings per common share increased by 28% to $10.21, compared to $7.95 in 2024. The firm's expense efficiency ratio improved to 68% from 71% in the prior year, reflecting operating leverage.
The Institutional Securities segment reported net revenues of $33.1 billion, an 18% increase year-over-year, driven by strong performance in Equity trading and higher underwriting and advisory revenues within Investment Banking. Wealth Management net revenues reached $31.8 billion, a 12% increase, primarily due to higher asset management revenues from increased market levels and positive fee-based flows. Investment Management net revenues were $6.5 billion, up 11% from the prior year, reflecting higher asset management fees due to increased average AUM driven by higher market levels.
Key operational developments included Wealth Management fee-based asset flows of $160 billion and net new assets of $356 billion. The firm's Standardized Common Equity Tier 1 capital ratio was 15.0% and its Supplementary Leverage Ratio was 5.4% as of December 31, 2025. The firm's global employee headcount was approximately 83,000 as of December 31, 2025.
Looking ahead, Morgan Stanley's performance is subject to various market risks, including fluctuations in equity, fixed income, and commodity markets, as well as changes in interest rates and investor sentiment. The firm also faces credit risk, operational risk, and legal and regulatory risks, all of which could impact future financial results. The firm's ROTCE goal is 20%, which is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors.
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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