Morgan Stanley delivered a blockbuster second-quarter performance, easily surpassing Wall Street expectations and setting multiple records. The bank posted adjusted earnings per share of $3.46, up 62% year-over-year and well above the analyst consensus of $2.93. Net revenue climbed to an all-time high of $21.35 billion, a 27% increase from the prior year and ahead of the $19.58 billion forecast.
The surge was driven by exceptional strength in both institutional securities and wealth management. The Institutional Securities unit generated a record $11 billion in revenue, a 44.7% jump. Within that segment, investment banking revenue soared to $2.44 billion, up from $1.54 billion a year earlier, as Morgan Stanley played a key role in landmark deals such as the SpaceX IPO—the largest in history—and acted as joint book-runner on Alphabet’s equity raise. Equities trading revenue skyrocketed 69% to $6.3 billion, boosted by volatile macro conditions and elevated client hedging activity tied to geopolitical tensions like the US-Iran standoff.
Wealth management also set new benchmarks, pulling in a record $148 billion in net new assets, more than double some analyst forecasts. Fee-based client assets rose 22% to $3 trillion, and total client assets across wealth and investment management hit the $10 trillion milestone—a long-term target for the bank. Deposits in the wealth unit grew 14% to $436 billion, while self-directed assets through E*Trade rose 25% to $1.8 trillion.
Bottom-line net income reached $5.58 billion, or $3.46 per share, compared to $3.54 billion ($2.13 per share) a year ago. Chairman and CEO Ted Pick credited “active markets and consistent execution.” In a nod to shareholder confidence, the bank raised its quarterly dividend by 15% to $1.15 per share and authorized a new $20 billion share repurchase program. MS stock was trading 1.5% higher in the premarket at $231.15, extending a 29% year-to-date gain.
