Morgan Stanley(US:MS)2025-11-03 21:09Financial Performance - The company reported net revenues of $18.2 billion for Q3 2025, an increase of 18% compared to $15.4 billion in Q3 2024[26]. - Net income applicable to the company was $4.6 billion in Q3 2025, reflecting a 45% increase from $3.2 billion in the prior year quarter[26]. - Diluted earnings per common share rose to $2.80 in Q3 2025, up 49% from $1.88 in Q3 2024[26]. - For the nine months ended September 30, 2025, net revenues totaled $52.8 billion, a 16% increase from $45.5 billion in the same period of 2024[27]. - Net revenues for Q3 2025 reached $18,224 million, a 18% increase from $15,383 million in Q3 2024[46]. - Earnings applicable to common shareholders for Q3 2025 were $4,450 million, up 47% from $3,028 million in Q3 2024[46]. - Earnings per diluted common share increased to $2.80 in Q3 2025 from $1.88 in Q3 2024, representing a 49% growth[46]. Segment Performance - Institutional Securities segment reported net revenues of $8.5 billion, driven by strong performance in Equity and a rebound in Investment Banking[28]. - Wealth Management delivered a pre-tax margin of 30.3%, with net revenues of $8.2 billion, reflecting higher asset management and transactional revenues[28]. - The company added net new assets of $81 billion in Wealth Management, with fee-based asset flows of $42 billion[28]. - Investment Management results included net revenues of $1.7 billion, primarily from asset management fees on higher average assets under management (AUM)[28]. - Institutional Securities net revenues increased by 25% to $8,523 million in Q3 2025 compared to the prior year[47]. - Wealth Management net revenues rose 13% to $8,234 million in Q3 2025, driven by higher asset management revenues[47]. - Investment Management net revenues grew 13% to $1,651 million in Q3 2025, reflecting higher asset management fees[47]. Assets and Liquidity - Total assets as of September 30, 2025, were $1,364,806 million, up from $1,215,071 million at the end of 2024[46]. - Client assets reached $8,861 billion as of September 30, 2025, compared to $7,860 billion at the end of 2024[46]. - Average liquidity resources increased to $368,090 million in Q3 2025 from $345,440 million in Q3 2024[46]. - Total liquidity resources as of September 30, 2025, were $368,090 million, compared to $363,389 million at June 30, 2025, showing a marginal increase of 1.9%[155]. - The Liquidity Coverage Ratio (LCR) was reported at 129% for the three months ended September 30, 2025, down from 134% for the previous quarter, indicating a decrease in liquidity resilience[158]. Expenses - Non-compensation expenses increased by 9% in Q3 2025 compared to the prior year quarter, primarily due to higher execution-related expenses and increased technology spending[31]. - Non-interest expenses for the current quarter were $5,736 million, reflecting a 10% increase compared to the prior year quarter, primarily due to higher compensation and benefits expenses[110]. - Compensation and benefits expenses for the current quarter were $4,388 million, reflecting a 13% increase compared to the prior year quarter, driven by higher discretionary incentive compensation[93]. - Non-interest expenses for the three months ended September 30, 2025, totaled $1,287 million, an 8% increase from $1,195 million in the prior year[125]. Capital and Ratios - The CET1 capital ratio was 15.1% as of September 30, 2025, compared to 15.9% at December 31, 2024, exceeding the required minimum of 13.5%[192]. - The company maintained a Tier 1 capital ratio of 16.9% as of September 30, 2025, above the required minimum of 15.0%[192]. - Risk-weighted assets (RWA) totaled $539,296 million as of September 30, 2025, compared to $471,834 million at December 31, 2024[196]. - The Tier 1 leverage ratio slightly decreased to 6.8% from 6.9% as of December 31, 2024, while the Supplementary Leverage Ratio (SLR) also decreased to 5.5% from 5.6%[197]. Shareholder Returns - The company repurchased 7 million shares in Q3 2025 at an average price of $145.77, totaling $1,085 million, compared to 8 million shares at an average price of $99.94 in Q3 2024[179]. - A common stock dividend of $1.00 per share was announced on October 15, 2025, to be paid on November 14, 2025, for shareholders of record as of October 31, 2025[181].