Morgan Stanley (NYSE:MS) on Thursday reported a fourth-quarter 2025 earnings of $2.68, up from $2.22 a year ago and beating the consensus of $2.41. Net earnings increased 18% year over year to $4.397 billion.
“Morgan Stanley delivered outstanding performance in 2025,” Morgan Stanley’s CEO and chairman, Ted Pick, said in a statement on Thursday. “Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm.”
The U.S. bank reported revenue of $17.89 billion, up 10% year over year, beating the consensus of $17.77 billion.
The firm’s 2025 expense efficiency ratio was 68% compared to 71% a year ago, demonstrating operating leverage while continuing to invest in businesses.
The firm delivered a strong ROTCE of 21.6% in 2025 compared to 18.8% a year ago. The Standardized Common Equity Tier 1 capital ratio was 15.0% at year-end.
Institutional Securities reported fourth quarter revenues of $7.9 billion compared with $7.3 billion a year ago.
Investment banking sales jumped 47% to $2.4 billion on higher completed M&A transactions and IPO activities.
Equity net revenues increased 10% to $3.7 billion, on strong client activity across businesses and regions, and financing revenues from higher client balances in prime brokerage.
Fixed Income net revenues decreased 9% to $1.76 billion from a year ago, primarily due to lower results in commodities on fewer structured transactions and in foreign exchange on lower volatility.
Wealth Management revenues of $8.4 billion reflect the company’s asset management revenues, robust client activity levels, and higher net interest income.
The business demonstrated continued growth with net new assets of $122.3 billion and fee-based asset flows of $45.6 billion for the quarter. Bloomberg noted net new assets were far above expectations.
Investment Management results reflect net revenues of $1.72 billion, primarily driven by asset management fees on higher average AUM.
Total client assets across Wealth and Investment Management reached $9.3 trillion, supported by more than $350 billion in net new assets.
The firm returned significant capital to shareholders, repurchasing $1.5 billion of common stock during the quarter and $4.6 billion over the full year under its share repurchase program.
In addition, the board declared a $1.00 per share quarterly dividend, payable on February 13, 2026, to shareholders of record as of January 30, 2026.
“All of our investments are working,” CFO Sharon Yeshaya said in an interview with Bloomberg, pointing to share gains in both advisory and debt capital markets. As for data centers specifically, “the hyperscalers are looking for access to capital markets, and we’re there to provide those structured solutions.”
In a Reuters interview, Yeshaya said dealmaking activity is broadening, with strong pipelines supporting momentum.
Yeshaya expects a higher volume of IPOs in 2026 alongside continued M&A activity, with deal acceleration in healthcare, industrials, and sponsor-led transactions.
He added that investment banking introductions are helping attract more net new assets to the wealth business and said he sees no change in the favorable regulatory environment.
MS Price Action: Morgan Stanley shares were down 2.23% at $178.68 during premarket trading on Thursday, according to Benzinga Pro data.
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