Morgan Stanley Stock Earnings Reports

Morgan Stanley reported record second-quarter results with revenues of $21.3 billion and EPS (ex-CVA) of $3.46, driving a very strong first half (H1 revenues $42 billion; EPS $6.90) and a 27% return on tangible equity. Key business highlights: Institutional Securities achieved a record quarter ($11.0B revenue) led by an exceptional equities performance ($6.3B) and strong investment banking (IB) activity; Wealth Management delivered record revenues of $8.9B, record organic net new assets (NNA) of $148B and total client assets in Wealth & Investment Management of $10 trillion (Wealth standalone assets cited at $8–$10 trillion); Investment Management reached record AUM of $2 trillion with continued inflows into alternatives and Parametric. Balance sheet and capital: standardized CET1 at 14.8%, ~300+ bps of excess CET1 accumulated over the last 10 quarters, $1.5B of buybacks in the quarter and a 15% increase in the quarterly dividend to $1.15. Expense/investment posture: operating leverage offset higher execution and technology investments (including AI-related spend); YTD efficiency ratio 65%. Near-term operating notes: net interest income increased to $2.3B with deposits at $436B and loan growth; Q3 NII expected to rise modestly sequentially; annual tax rate expected 22–23%. Management emphasized strategic priorities — continued investment in the integrated firm, disciplined capital deployment (bias to organic growth while staying open to high-quality bolt-ons), focus on AI adoption and the implications of geopolitics — and signaled constructive IB pipelines and sustained client engagement. Risks/uncertainty noted: market and macro/ geopolitical dynamics, vesting/timing of workplace-driven flows, and the early/uncertain nature of the AI investment cycle.