Morgan Stanley Tops Q2 Estimates as Trading and Wealth Units Drive Strong Results

Morgan Stanley (NYSE:MS) reported better-than-expected second-quarter earnings, with strength across trading, wealth management, and investment management pushing results ahead of Wall Street forecasts.

The firm posted earnings per share of $2.13, surpassing the consensus estimate of $1.98. Revenue totaled $16.8 billion, topping the $16.01 billion expected by analysts.

Institutional Securities revenue reached $7.6 billion, fueled by elevated client activity and standout performance in equities trading. Equities revenue jumped 23% from the prior year, while fixed income trading also rose 9%, contributing to the solid trading quarter.

Wealth Management generated $7.8 billion in revenue with a pre-tax margin of 28.3%, supported by strong asset management income and increased client engagement. The division continues to be a steady contributor to the bank’s overall growth profile.

Investment Management delivered $1.6 billion in net revenue, primarily from asset management fees tied to higher average assets under management. The segment also recorded $11 billion in long-term net inflows, reflecting solid demand for its investment products.

Return on tangible common equity stood at 18.2% for the quarter and 20.6% for the first half of the year, highlighting the bank’s strong profitability. The expense efficiency ratio came in at 70%, underscoring disciplined cost control.

Morgan Stanley reported a CET1 capital ratio of 15.0%, reinforcing its solid balance sheet as it continues to benefit from diverse revenue streams and scale advantages.