Morgan Stanley (NYSE:MS) reported a third-quarter 2025 earnings of $2.80, up from $1.88 a year ago and beating the consensus of $2.08. Net earnings increased to $4.61 billion from $3.19 billion.
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The U.S. bank reported revenue of $18.22 billion, up 18% year over year, beating the consensus of $16.70 billion.
Provisions for credit losses decreased from a year ago primarily due to the greater benefit of the improved macroeconomic scenario in the quarter and lower provisions related to portfolio growth.
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The firm’s expense efficiency ratio was 67% compared to 72% a year ago. The expense efficiency ratio was 69% year-to-date, demonstrating operating leverage in a constructive market environment.
Morgan Stanley’s third-quarter return on tangible common equity was 23.5%, compared to 17.5% a year ago.
Institutional Securities reported net revenues of $8.5 billion, reflecting robust performance in Equity and a rebound in Investment Banking activity.
Wealth Management revenues of $8.2 billion reflect the company’s highest asset management revenues, robust client activity levels, and higher net interest income.
The business demonstrated continued growth with net new assets of $81 billion and fee-based asset flows of $42 billion for the quarter.
Investment Management results reflect net revenues of $1.7 billion, primarily driven by asset management fees on higher average AUM. The quarter included positive long-term net flows of $16.5 billion.
Total client assets across Wealth and Investment Management reached $8.9 trillion.
Equity net revenues increased 35% to $4.1 billion, reflecting increases from a year ago across business lines and regions on robust client activity, with record results in prime brokerage.
Fixed Income net revenues increased 8% to $2.17 billion from a year ago, primarily driven by credit on higher client activity and lending growth, and commodities on increased structured transactions, partially offset by lower results in foreign exchange.
In an interview with Reuters, Morgan Stanley CFO Sharon Yeshaya said the bank’s investment banking pipeline is at an all-time high, with 2026 potentially shaping up as another record year.
The executive noted strong IPO activity driven by financial sponsors and highlighted encouraging discussions with regulators on capital requirements.
Yeshaya added that Morgan Stanley has no exposure to recent bankruptcies and remains insulated from consumer credit risks. The firm has regained the top spot in equities trading, gaining market share across the Americas and Asia.
Morgan Stanley stock recently reached a new all-time high of $164.00, a milestone supported by robust financial health metrics, according to data from Benzinga Pro.
Price Action: MS stock was trading higher by 6.89% to $166.04 at last check Wednesday.
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