Morgan Stanley (MS) Q3 2025 Financial Results Summary
· Stocks · QuoteReporter
Morgan Stanley (MS) Q3 2025 Financial Results Summary
Release Date: October 15, 2025
Morgan Stanley (NYSE: MS) reported its financial results for the third quarter ended September 30, 2025. Below is a summary of key highlights and metrics from the report:
Financial Overview
- Net Revenues: $18.2 billion, up 18% from $15.4 billion in Q3 2024.
- Net Income: $4.6 billion, or $2.80 per diluted share, compared to $3.2 billion or $1.88 per diluted share in the same period last year.
- Return on Tangible Common Equity (ROTCE): 23.5%, an increase from 17.5% in Q3 2024.
- Pre-tax Income: Increased to $6.0 billion, up from $4.2 billion (a rise of 43%).
- Expense Efficiency Ratio: Improved to 67% from 72% in the previous year.
- Effective Tax Rate: 22.8%, decreased from 23.6% in Q3 2024.
- Common Equity Tier 1 Capital Ratio: 15.2%.
Segment Performance
Institutional Securities
- Net Revenues: $8.5 billion, up 25% from $6.8 billion in Q3 2024.
- Investment Banking Revenues: Increased by 44% to $2.1 billion, from $1.5 billion a year ago.
- Equity Revenues: Grew 35% to $4.1 billion, from $3.0 billion in Q3 2024.
- Fixed Income Revenues: Rose by 8% to $2.2 billion.
Wealth Management
- Net Revenues: $8.2 billion, a 13% increase from $7.3 billion in the prior year.
- Pre-tax Margin: Improved to 30.3%.
- Net New Assets: An increase from $63.9 billion in Q3 2024 to $81 billion this quarter.
- Asset Management Fee-Based Client Assets: Rose to $2.653 trillion from $2.302 trillion.
Investment Management
- Net Revenues: Increased by 13% to $1.7 billion from $1.5 billion.
- Pre-tax Income: Grew to $364 million from $260 million.
Expense Analysis
- Compensation Expense: Increased to $7.4 billion from $6.7 billion in Q3 2024.
- Non-compensation Expenses: Increased to $4.8 billion compared to $4.4 billion last year.
Shareholder Returns
- Quarterly Dividend: The Board of Directors declared a dividend of $1.00 per share, payable on November 14, 2025, to shareholders of record on October 31, 2025.
- Share Repurchase Program: Morgan Stanley repurchased $1.1 billion of outstanding common stock during the quarter.
Other Highlights
- Total Client Assets across Wealth and Investment Management: Increased significantly to $8.9 trillion.
- Fee-based Asset Flows: Increased significantly, reported at $42 billion for the quarter, up from the previous year.
- Loans: Increased from $155.2 billion to $173.9 billion year-over-year.
Summary of Key Metrics
| Metric | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Net Revenues | $18.2 billion | $15.4 billion | +18% |
| Net Income per Diluted Share | $2.80 | $1.88 | +49% |
| ROTCE | 23.5% | 17.5% | +34% |
| Pre-tax Income | $6.0 billion | $4.2 billion | +43% |
| Expense Efficiency Ratio | 67% | 72% | Improvement |
| Wealth Management Net New Assets | $81 billion | $63.9 billion | +27% |
| Investment Management Net Revenues | $1.7 billion | $1.5 billion | +13% |
| Compensation Expense | $7.4 billion | $6.7 billion | +11% |
Morgan Stanley’s third-quarter results showcase a robust performance across all business areas, reflecting strong revenue growth and improved operational metrics compared to the previous year.
Based on the provided press release, here are the extracted tables in Markdown format:
Condensed Consolidated Statements of Income (in millions)
| Financial Summary | 3Q 2025 | 3Q 2024 |
|---|---|---|
| Net revenues | $18,224 | $15,383 |
| Provision for credit losses | $0 | $79 |
| Compensation expense | $7,442 | $6,733 |
| Non-compensation expenses | $4,754 | $4,350 |
| Pre-tax income | $6,028 | $4,221 |
| Net income app. to MS | $4,610 | $3,188 |
| Expense efficiency ratio | 67% | 72% |
| Earnings per diluted share | $2.80 | $1.88 |
| Book value per share | $62.98 | $58.25 |
| Tangible book value per share | $48.64 | $43.76 |
| Return on equity | 18.0% | 13.1% |
| Return on tangible common equity | 23.5% | 17.5% |
Condensed Consolidated Balance Sheets (in millions)
| 3Q 2025 | 3Q 2024 | |
|---|---|---|
| Common Stock Repurchases | $1,085 | $750 |
| Number of Shares (MM) | 7 | 8 |
| Average Price | $145.77 | $99.94 |
| Period End Shares (MM) | 1,591 | 1,612 |
| Tax Rate | 22.8% | 23.6% |
| CET1 capital | 15.2% | 15.1% |
| Tier 1 capital | 17.0% | 17.1% |
| Advanced CET1 capital | 15.7% | 14.9% |
| Advanced Tier 1 capital | 17.6% | 16.9% |
| Tier 1 leverage | 6.8% | 6.9% |
| SLR | 5.5% | 5.5% |
These tables are presented in their original form without any alterations, as per your instructions.