Morgan Stanley (NYSE: MS) reported second-quarter 2025 earnings of $2.13, beating the consensus of $2.02. Net earnings increased to $3.54 billion from $3.08 billion. Revenue was $16.79 billion, up 12% year over year, exceeding the consensus of $16.11 billion. Provision for credit losses rose to $196 million due to a weaker macroeconomic outlook.

The firm’s expense efficiency ratio improved to 71% from 72% a year ago. Return on Tangible Common Equity was 18.2%, up from 17.5% in the previous year. Institutional Securities reported net revenues of $7.6 billion, driven by higher client activity, especially in Equity markets. Investment Management net revenues increased to $1.6 billion due to higher asset management fees.

Wealth management net revenues grew to $7.76 billion with total client assets reaching $6.49 trillion, up 8% year-over-year. Net new assets totaled $59 billion with fee-based asset flows of $43 billion. Equity net revenues rose 23% to $3.72 billion, while Fixed Income net revenues increased 9% to $2.18 billion.

Chairman and CEO Ted Pick stated Morgan Stanley had a strong quarter, marking six consecutive quarters of consistent earnings. Institutional Securities showed strength and balance across businesses and geographies. MS stock is down 1.38% at $139.64 during the premarket session.

Read more at Yahoo Finance: Morgan Stanley’s Wealth Management Adds $59 Billion In Net New Assets, Total Client Assets Grow To $6.5 Trillion (UPDATED)