Morgan Stanley Q1 2025 Earnings Surpass Street Expectations, Bank Reports Strong Equity Performance
Synopsis
Revenue rose 17% year-over-year to $17.74 billion during the quarter, surpassing a Wall Street estimate of $16.55 billion. Earnings per share stood at $2.6 versus an estimated $2.21.
Morgan Stanley (MS) on Friday reported upbeat first-quarter earnings, which were aided by a strong performance by the bank’s Equity division.
Revenue rose 17% year-over-year (YoY) to $17.74 billion during the quarter, surpassing a Wall Street estimate of $16.55 billion. Earnings per share (EPS) stood at $2.6 versus an estimated $2.21.
The bank’s net income jumped 26% YoY to $4.32 billion during the quarter.
CEO Ted Pick highlighted that Institutional Securities’ strong performance was led by the Markets business, with Equity reporting a record $4.1 billion in revenues.
“Total client assets of $7.7 trillion across Wealth and Investment Management were supported by $94 billion in net new assets,” he said.
Institutional Securities reported record net revenues of $9 billion, led by a record performance in the Equity division and strong Investment Banking results on higher fixed-income underwriting.
Equity revenues jumped 45% to $4.13 billion during the quarter, aided by strong asset management revenues and higher levels of client activity. The business added net new assets of $94 billion, while fee-based asset flows were $30 billion for the quarter.
The bank’s Wealth Management division reported net revenues of $7.3 billion, driven by strong asset management revenues and higher levels of client activity.
Asset management revenues increased to $4.39 billion from $3.83 billion, on higher asset levels and the cumulative impact of positive fee-based flows.
On Friday, JPMorgan Chase, Wells Fargo, and The Bank of New York Mellon also reported their first-quarter earnings.
Morgan Stanley shares have lost over 15% in 2025 but have gained over 21% in the past 12 months.
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