Morgan Stanley trumps Q2 forecasts amid strong trading activity

Published 16/07/2025, 12:56
© Reuters.

Investing.com -- Morgan Stanley (NYSE:MS) reported stronger-than-expected second-quarter results, with earnings per share (EPS) and revenue exceeding analysts’ estimates.

The Wall Street giant reported EPS of $2.13, ahead of the consensus estimate of $1.98. Revenue rose to $16.8 billion, above the $16.01 billion expected by analysts.

Institutional Securities generated $7.6 billion in revenue, driven by elevated client activity and particularly strong performance in Equities.

Wealth Management delivered $7.8 billion in net revenue, with a pre-tax margin of 28.3%, supported by robust asset management income and higher client engagement.

Investment Management posted $1.6 billion in net revenue, largely from asset management fees on higher average AUM. The unit also recorded $11 billion in positive long-term net flows.

In trading, equities revenue soared 23%, and rose 9% in fixed income, the report revealed. 

Return on tangible common equity (ROTCE) stood at 18.2% for the quarter and 20.6% for the first half of the year. The bank’s expense efficiency ratio was 70%, supported by scale and disciplined cost controls.

Its standardized CET1 capital ratio was reported at 15.0%.

Chairman and CEO Ted Pick noted the firm’s consistent earnings delivery across different market conditions, highlighting a six-quarter streak of solid performance. “Morgan Stanley delivered another strong quarter,” Pick said.

“Institutional Securities saw strength and balance across businesses and geographies. Wealth continues to deliver, adding $59 billion of net new assets and $43 billion of fee-based flows.”

The firm announced an increase in its quarterly dividend, raising it to $1.00 per share.

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