Morgan Stanley (MS) Q2 2024 earnings summary

Executive summary

• Net revenues for Q2 2024 were $15.0B, up 12% year-over-year, with EPS of $1.82 and ROTCE of 17.5%.

• Net income for Q2 2024 was $3.1B, a 41% increase year-over-year; diluted EPS rose 47% year-over-year.

• Return on equity reached 13.0% and return on tangible common equity was 17.5% for the quarter.

• Wealth Management client assets grew to $7.2T, progressing toward a $10T+ target.

• Expense efficiency ratio improved to 72% from 78% in the prior year quarter.

Financial highlights

• Q2 2024 net revenues: $15.0B (+12% YoY); net income: $3.1B (+41% YoY); diluted EPS: $1.82 (+47% YoY).

• YTD 2024 net revenues: $30.2B (+8% YoY); net income: $6.5B (+26% YoY); diluted EPS: $3.85 (+31% YoY).

• Book value per common share was $56.80; tangible book value per share: $42.30.

• CET1 capital ratio (Standardized) was 15.2% at quarter end.

• Pre-tax margin improved to 27% from 21% a year ago.

Outlook and guidance

• Management remains confident in the business model's durability and is focused on executing its growth strategy.

• NII expected to decline modestly in Q3 due to sweep rate changes, but should inflect higher in 2025 as rate cuts and portfolio repricing take effect.

• ROTCE goal remains at 20% in a normal market environment.

• Ongoing focus on expense management and capital actions to support growth and regulatory requirements.

• Investment banking rebound seen as early-stage, with healthy pipelines and expectations for multi-year growth.