Morgan Stanley (NYSE MS) Second Quarter 2025 Earnings Results Summary

# Morgan Stanley (NYSE: MS) Second Quarter 2025 Earnings Results

**Release Date:** July 16, 2025

Morgan Stanley has reported its earnings for the second quarter ending June 30, 2025, showcasing solid financial performance compared to the same period last year. Here’s a summary of the key financial metrics and developments:

### Financial Highlights

– **Net Revenues:**
– $16.8 billion for Q2 2025, up **11.8%** compared to $15.0 billion in Q2 2024.

– **Net Income:**
– $3.5 billion, or $2.13 per diluted share, compared to $3.1 billion, or $1.82 per diluted share, from the same quarter a year prior. This reflects an increase of **12.9%** in net income and **17.0%** in earnings per share (EPS).

– **Return on Tangible Common Equity (ROTCE):**
– 18.2%, an increase from 17.5% in Q2 2024.

– **Expense Efficiency Ratio:**
– 71% for Q2 2025 versus 72% in Q2 2024, indicating improved cost management.

– **Total Expenses:**
– Increased to $11.9 billion from $10.9 billion, a **9%** rise year-over-year.

### Business Segment Performance

– **Institutional Securities:**
– Net revenues of $7.6 billion, a **9.5%** increase from $6.98 billion in Q2 2024.
– Pre-tax income reaches $2.1 billion, slightly up from $2.0 billion a year ago.

– **Investment Banking:**
– Revenues dropped **5%** year-over-year.
– Advisory revenues declined due to fewer M&A transactions.
– Equity underwriting revenue increased due to higher activity.
– Fixed income underwriting saw a decrease.

– **Equity:**
– Net revenues increased by **23%** due to stronger client activity.

– **Fixed Income:**
– Revenues up **9%**, primarily from macro products.

– **Wealth Management:**
– Reported net revenues of $7.8 billion, a **14%** increase from $6.8 billion in the same period last year.
– Pre-tax income of $2.2 billion reflects a pre-tax margin of **28.3%**.
– Fee-based client assets increased by **13.2%** to $2.478 trillion.
– Net new assets gained totaled $59.2 billion, versus $36.4 billion the previous year.

– **Investment Management:**
– Net revenues of $1.6 billion, up **12%** from $1.4 billion in Q2 2024.
– Pre-tax income rose to $323 million from $222 million, indicating strong growth in asset management fees.

### Dividends and Share Repurchase

– **Quarterly Dividend:**
– The Board declared a **$1.00** per share dividend, reflecting an increase of **7.5 cents** compared to the previous quarter. The dividend is payable on August 15, 2025, to shareholders of record as of July 31, 2025.

– **Share Repurchase:**
– The firm repurchased **$1.0 billion** of outstanding common stock during the quarter.
– A multi-year share repurchase program of up to **$20 billion** has been reauthorized by the Board of Directors.

### Capital and Other Metrics

– **Standardized Common Equity Tier 1 Capital Ratio:**
– Reported at **15.0%**, down from **15.2%** a year ago.

– **Effective Tax Rate:**
– The effective tax rate for the quarter was **22.7%**, a decrease from **23.5%** in Q2 2024.

– **Total Earnings:**
– The firm reported net income applicable to Morgan Stanley of **$3.539 billion**, which is **18%** lower compared to $4.315 billion in Q2 2024.

### Summary

Morgan Stanley’s second quarter results reflect a robust performance across its businesses, highlighting significant increases in net revenues and net income. With strong growth in Wealth Management and Institutional Securities, as well as a strategic focus on share repurchase and dividends, the firm continues to adapt effectively to market conditions while providing value to its shareholders.

Here are the extracted tables from the press release:

### CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions)

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