Morgan Stanley (MS) investor relations material

Executive summary

• Achieved record quarterly revenues of $20.6 billion, up 16% year-over-year, and EPS of $3.43, with net income of $5.6 billion, up 29% year-over-year; ROTCE reached 27.1%.

• Demonstrated strong operating leverage and efficiency, with a 65% efficiency ratio despite $178 million in severance charges.

• Wealth Management and Institutional Securities both delivered record revenues, supported by robust client engagement and diversified business mix.

• Closed the acquisition of EquityZen and launched a digital asset pilot with Zerohash, expanding capabilities in private markets and digital assets.

Financial highlights

• Revenues reached $20.6 billion, up year-over-year, with EPS ex-CVA at $3.43 and pre-tax income of $7.0 billion, up 26%.

• Institutional Securities posted record revenues of $10.7 billion, with Equities at $5.1 billion and Fixed Income at $3.4 billion.

• Wealth Management revenues hit $8.5 billion, with net new assets of $118 billion and fee-based flows of $54 billion.

• Asset Management revenues grew to $5.1 billion, and Investment Management revenues were $1.5 billion; AUM rose to $1.87 trillion.

• Book value per share grew to $66.18; tangible book value per share rose to $51.58.

Outlook and guidance

• Expect net interest income to build over the year, with a modest increase in Q2.

• Investment Banking pipelines remain steady, supported by ongoing strategic activity and capital formation needs.

• Reaffirmed Wealth Management pre-tax margin target at 30%, with potential for organic margin improvement.

• Anticipate continued growth in client assets, with a long-term goal of exceeding $10 trillion.

• Focus remains on operational efficiency and delivering higher operating performance.