Morgan Stanley experiences a growth in its quarterly income and revenue during the second quarter of 2025.
Morgan Stanley Reports Q2 2025 Earnings: Revenue and Net Income Grow by 12% and 17%, Respectively
Morgan Stanley has announced its Q2 2025 earnings, showcasing a 12% year-over-year increase in net revenues and a 17% profit increase. The New York-based financial services company reported net revenues of $16.8 billion, marking a significant growth from $15.0 billion in the same quarter the previous year [1][3]. The net income applicable to Morgan Stanley was $3.5 billion, translating to $2.13 per diluted share, compared to $3.1 billion, or $1.82 per share, a year earlier [1][3].
The firm's Wealth Management segment showed strong expansion with net revenues of $7.8 billion, up 14% from the prior year. This growth was driven by the addition of $59 billion in net new client assets and $43 billion in fee-based flows [2][3]. Total client assets across Wealth and Investment Management reached $8.2 trillion, approaching the firm's $10 trillion long-term goal [2]. Wealth Management also reported record client assets of $6.5 trillion, up 14% year-over-year, supported by strong client acquisition and fee-based asset growth [2].
Institutional Securities experienced balanced strength across its businesses and geographies, contributing to the overall revenue and earnings growth despite some challenges such as pockets of weakness in investment banking and higher credit costs [1][3]. The pre-tax income for Institutional Securities rose to $2.1 billion from $2 billion [4]. The net revenues for Institutional Securities in Q2 2025 were $7.6 billion, an increase from $7 billion in the same quarter of the previous year [4].
In addition to top-line growth, Morgan Stanley increased shareholder returns by raising its quarterly dividend to $1.00 per share and authorizing a $20 billion share repurchase program [3]. During the quarter, Morgan Stanley repurchased $1 billion of its common stock as part of its share repurchase program [5]. The board of directors has reauthorized a multi-year common equity share repurchase program of up to $20 billion, to commence in Q3 2025 with no set expiration date [6].
Morgan Stanley's chairman and CEO, Ted Pick, stated that the company delivered six sequential quarters of consistent earnings [7]. The new Southeast Asia headquarters in Singapore's prestigious downtown business district, launched in November 2024, is a testament to the company's commitment to its Asian expansion [8].
In conclusion, Morgan Stanley's Q2 2025 performance reflects both revenue growth and business expansion driven primarily by wealth and investment management asset growth, balanced institutional business strength, and continued focus on shareholder capital returns [1][2][3].
[1] Morgan Stanley Reports Second Quarter 2025 Results [2] Morgan Stanley Wealth Management Reports Second Quarter 2025 Results [3] Morgan Stanley Announces Second Quarter 2025 Dividend and Share Repurchase Authorization [4] Morgan Stanley Institutional Securities Reports Second Quarter 2025 Results [5] Morgan Stanley Repurchases Common Stock Under Share Repurchase Program [6] Morgan Stanley Announces Reauthorization of Multi-Year Common Equity Share Repurchase Program [7] Morgan Stanley Reports Sixth Consecutive Quarter of Consistent Earnings [8] Morgan Stanley Opens New Southeast Asia Headquarters in Singapore's Downtown Business District
- The Wealth Management segment of Morgan Stanley, which experienced a 14% year-over-year growth, is leveraging AI and finance expertise to manage clients' wealth more effectively, thus contributing to the overall profitability of the company.
- As part of its ongoing commitment to business expansion, Morgan Stanley is investigating the use of AI in Investing to optimize portfolio management and enhance its competitive edge in the finance industry.
