Morgan Stanley(US:MS)2026-01-15 13:33Financial Performance - Net revenues for the fourth quarter of 2025 were $17,890 million, a decrease of 2% from $18,224 million in the previous quarter, but an increase of 10% from $16,223 million in the same quarter last year [3]. - Institutional Securities segment reported net revenues of $7,931 million, down 7% from $8,523 million quarter-over-quarter, but up 9% year-over-year from $7,267 million [3]. - Wealth Management segment achieved net revenues of $8,429 million, reflecting a 2% increase from $8,234 million in the previous quarter and a 13% increase from $7,478 million year-over-year [3]. - Investment Management segment reported net revenues of $1,720 million, a 4% increase from $1,651 million quarter-over-quarter and a 5% increase from $1,643 million year-over-year [3]. - Consolidated net revenues for Q4 2025 were $17,890 million, down 2% from Q3 2025 but up 10% compared to the same quarter last year [7]. - The firm’s total net revenues for the twelve months ended December 31, 2025, were $70,645 million, representing a 14% increase from $61,761 million for the same period last year [3]. Income and Earnings - Income before provision for income taxes was $5,760 million, down 4% from $6,028 million quarter-over-quarter, but up 17% from $4,906 million year-over-year [3]. - Net income applicable to Morgan Stanley was $4,397 million, a decrease of 5% from $4,610 million in the previous quarter, but an increase of 18% from $3,714 million year-over-year [3]. - Earnings applicable to Morgan Stanley common shareholders were $4,250 million, down 4% from $4,450 million quarter-over-quarter, and up 19% from $3,564 million year-over-year [3]. - Net income applicable to Morgan Stanley for the quarter was $2,049 million, down 17% from $2,468 million in the previous quarter but up 30% year-over-year from $1,891 million [11]. Expenses - Non-interest expenses totaled $12,112 million, a slight decrease of 1% from $12,196 million in the previous quarter, but an increase of 10% from $11,202 million year-over-year [3]. - Compensation and benefits as a percentage of net revenues in Wealth Management was 52%, down from 53% in the previous quarter and year [13]. - Compensation expense for Q4 2025 was $7.06 billion, up from $6.29 billion in Q4 2024, indicating a year-over-year increase of 12.3% [33]. - Total non-interest expenses for Q4 2025 were $12.112 billion, a slight decrease from $12.196 billion in Q3 2025 and an increase from $11.202 billion in Q4 2024 [35]. Assets and Capital - Total assets increased to $1,420,270 million, representing a 4% increase from Q3 2025 and a 17% increase year-over-year [7]. - Average common equity for the firm was $100.9 billion, a 2% increase from Q3 2025 and a 7% increase year-over-year [9]. - Common Equity Tier 1 capital ratio stood at 15.0%, down from 15.1% in Q3 2025 [9]. - Total assets under management or supervision reached $1,895 billion, a 5% increase from $1,807 billion in the previous quarter [21]. Wealth Management - Total client assets in Wealth Management grew to $7,381 billion, reflecting a 5% increase from $7,054 billion in the previous quarter and a 19% increase year-over-year from $6,194 billion [17]. - Net new assets in Wealth Management were $122.3 billion, a 51% increase from $81.0 billion in the previous quarter and a 116% increase year-over-year from $56.5 billion [17]. - The pre-tax margin for Wealth Management improved to 31%, compared to 30% in the previous quarter and 27% a year ago [13]. - The return on average common equity for Wealth Management was 27%, up from 25% in the previous quarter and 20% year-over-year [13]. Credit Losses and Loans - Provision for credit losses was $18 million, a significant decrease of 84% from $115 million in the previous quarter, and an increase of 32% from $264 million year-over-year [3]. - The allowance for credit losses (ACL) for total loans was $1,132 million, representing 0.4% of gross loans [25]. - Total loans increased by 4% to $107.7 billion from $103.4 billion in the previous quarter [23]. - Consolidated loans and lending commitments totaled $499.3 billion, a 4% increase from $479.4 billion in the previous quarter [23]. Employee Metrics - Worldwide employees increased to 82,992, a 1% increase from the previous quarter and a 3% increase year-over-year [6]. - The number of stock plan participants declined slightly in the second half of 2025 due to the disposition of the Firm's EMEA stock plan business [42].