Morgan Stanley Posts Record Q2 Revenues Amid Trading Surge

Morgan Stanley reported robust Q2 2025 earnings driven by strong performance in equities and fixed-income trading, with trading revenues rising 18% to nearly $6 billion, offsetting weaker investment banking fees. The bank posted earnings per share of $2.13 on net revenues of $16.8 billion, exceeding analyst expectations and reflecting a 12% year-over-year revenue increase. Wealth management revenues grew 14%, contributing to $59 billion in net new assets and $43 billion in fee-based flows, with total client assets reaching $8.2 trillion. Despite higher expenses and increased provisions for credit losses compared to peers, Morgan Stanley maintained strong pre-tax margins and repurchased $1 billion of common stock during the quarter. CEO Ted Pick highlighted the firm’s consistent earnings growth across diverse market conditions and emphasized a focus on durable growth and long-term shareholder returns. Competition for talent remains intense, with banks investing heavily in compensation and technology, including artificial intelligence, to maintain trading and wealth management strength.