Morgan Stanley Reports $2.60 Earnings Per Share in Q1 2025, as Return on Tangible Up 23% From Previous Year
Company’s Revenue Increases to $17.7 Billion for Quarter Ended Mar 31, 2025
Morgan Stanley [MS] posted net revenues of $17.7 billion for the quarter ended March 31, 2025, up from $15.1 billion a year earlier. The company reported diluted earnings per share of $2.60, up from $2.02 in Q1 of 2024. The firm’s return on tangible common equity rose to 23 %, compared with 19.7% in the previous year.
Record Net Revenues and EPS
Net income applicable to Morgan Stanley common shareholders was $4.16 billion, or $2.60 per diluted share, compared to $3.27 billion, or $2.02 per diluted share, in Q1 2024. Provision for credit losses increased to $135 million from a $6 million release a year ago, while the expense efficiency ratio improved to 68 % from 71% .
Institutional Securities Growth
Institutional Securities revenues reached a record $9 billion, up from $7 billion in Q1 2024, driven by a 45% jump in Equity revenues to $4.13 billion and an 8% rise in Investment Banking fees to $1.56 billion. Pre-tax income in this segment climbed to $3.30 billion from $2.40 billion a year earlier.
Wealth Management Asset Flows
Wealth Management net revenues increased 6% to $7.33 billion, compared with $6.88 billion in the year-ago quarter. Fee-based client assets rose to $2.35 trillion from $2.12 trillion, and net new asset inflows totaled $93.8 billion, just below $94.9 billion a year ago.
Investment Management Revenues
Investment Management net revenues were $1.60 billion, up 16 % from $1.38 billion in Q1 2024, supported by higher average assets under management of $1.65 trillion versus $1.51 trillion and positive long-term net flows of $5.4 billion.
Capital Return and Dividends
During the quarter, the firm repurchased $1.0 billion of common stock and declared a quarterly dividend of $0.925 per share, payable May 15, 2025, to shareholders of record April 30, 2025. Common Equity Tier 1 capital ratio stood at 15.3 % under the standardized approach.
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