Morgan Stanley(MS) - 2025 Q1 - Quarterly Results

Financial Performance - Firm net revenues for Q1 2025 were $17,888 million, up 10% from Q4 2024 and 19% from Q1 2024[3] - Net income applicable to Morgan Stanley for Q1 2025 was $4,315 million, a 16% increase from Q4 2024 and 26% from Q1 2024[5] - Earnings per diluted share for Q1 2025 were $2.60, up 17% from Q4 2024 and 29% from Q1 2024[6] - Net revenues for Q1 2025 were $17,739 million, an increase from $16,223 million in Q4 2024 and $15,136 million in Q1 2024[33] - Adjusted net revenues (non-GAAP) for Q1 2025 were $17,888 million, compared to $16,232 million in Q4 2024 and $14,949 million in Q1 2024[33] Revenue Breakdown - Institutional Securities net revenues reached $8,983 million, reflecting a 24% increase from Q1 2024[5] - Wealth Management net revenues were $7,327 million, a slight decrease of 2% from Q4 2024 but up 6% from Q1 2024[5] - Investment Management net revenues totaled $1,602 million, down 2% from Q4 2024 but up 16% from Q1 2024[5] - Net revenues for Institutional Securities reached $8,983 million, a 24% increase from $7,267 million in the previous quarter and a 28% increase from $7,016 million year-over-year[12] - Wealth Management net revenues were $7,327 million, down 2% from $7,478 million in the previous quarter but up 6% from $6,880 million year-over-year[14] - Investment Management net revenues totaled $1,602 million, a decrease of 2% from $1,643 million in the previous quarter but an increase of 16% from $1,377 million year-over-year[19] Expenses and Compensation - Compensation expenses for Q1 2025 were $7,523 million, an increase of 21% from Q4 2024 and 16% from Q1 2024[4] - Total non-interest expenses for Investment Management were $1,279 million, a 4% increase from $1,229 million in the previous quarter and a 13% increase from $1,136 million year-over-year[19] - Compensation and benefits as a percentage of net revenues for Wealth Management was 55%, up from 53% in the previous quarter and consistent with the previous year[14] - Compensation and benefits expenses for Q1 2025 were $7,521 million, an increase from $6,289 million in Q4 2024 and $6,696 million in Q1 2024[35] - The firm recognized severance costs of $144 million in Q1 2025 due to a reduction in force impacting approximately 2% of the global workforce[35] Assets and Capital - Total assets increased to $1,300,296 million, a 7% rise from Q4 2024 and 6% from Q1 2024[8] - Common equity rose to $97,062 million, a 2% increase from Q4 2024 and 7% from Q1 2024[8] - The Common Equity Tier 1 capital ratio was 15.3%, down from 15.9% in Q4 2024 but up from 15.0% in Q1 2024[10] - Wealth Management's average tangible common equity for Q1 2025 was $13,088 million, down from $13,582 million in Q4 2024[41] Loans and Lending Commitments - Total consolidated loans and lending commitments increased to $438.8 billion as of March 31, 2025, up 4% from $423.1 billion in the previous quarter and up 14% from $384.4 billion a year ago[23] - Institutional Securities total loans reached $256.9 billion, reflecting a 5% increase from $244.3 billion in the previous quarter and an 18% increase from $218.1 billion year-over-year[23] - Wealth Management total loans amounted to $181.9 billion, a 2% increase from $178.8 billion in the previous quarter and a 9% increase from $166.3 billion year-over-year[23] - Corporate loans increased by 23% to $19.5 billion compared to $15.9 billion in the previous quarter and 17% from $16.6 billion year-over-year[23] - Secured lending facilities rose to $54.9 billion, a 7% increase from $51.2 billion in the previous quarter and a 30% increase from $42.1 billion year-over-year[23] - Commercial and residential real estate loans increased by 7% to $11.9 billion compared to $11.1 billion in the previous quarter, but decreased by 8% from $12.9 billion year-over-year[23] - Securities-based lending and other loans grew by 11% to $9.9 billion from $8.9 billion in the previous quarter and 29% from $7.7 billion year-over-year[23] - Lending commitments for Institutional Securities increased by 2% to $160.7 billion from $157.2 billion in the previous quarter and 16% from $138.8 billion year-over-year[23] - Wealth Management lending commitments rose by 1% to $19.4 billion compared to $19.3 billion in the previous quarter and 3% from $18.9 billion year-over-year[23] Credit Losses and Provisions - The allowance for credit losses (ACL) for loans held for investment was $1.133 billion, representing 0.5% of total loans of $259.847 billion[25] - The allowance for credit losses (ACL) for loans and lending commitments at the end of Q1 2025 was $1,851 million, up from $1,722 million at the end of Q4 2024[44] - The firm reported a net charge-off of $23 million for loans in Q1 2025[44] Other Financial Metrics - Total client assets in Wealth Management were $6,015 billion, a 3% decrease from $6,194 billion in the previous quarter but a 9% increase from $5,495 billion year-over-year[17] - The net new assets in Wealth Management amounted to $93.8 billion, a 66% increase from $56.5 billion in the previous quarter but a slight decrease of 1% from $94.9 billion year-over-year[17] - The total assets under management or supervision in Investment Management were $1,647 billion, a 1% decrease from $1,666 billion in the previous quarter but a 9% increase from $1,505 billion year-over-year[21] - The investment securities portfolio included held to maturity investment securities of $47.2 billion as of March 31, 2025[38] - The firm incurred an FDIC Special Assessment of $3 million in Q1 2025, compared to $(4) million in Q4 2024 and $42 million in Q1 2024[36]