MW Morgan Stanley earnings boosted by record equity trading

Ciara Linnane

Bank's stock trading rose 45% to $4.1 billion in latest quarter

Morgan Stanley's stock rose 1.2% early Friday, after the bank's first-quarter earnings topped consensus estimates, boosted by a record performance in stock trading.

The stock has been volatile in recent sessions as President Donald Trump's tariffs have created unprecedented U.S. market turmoil and has fallen 15% in 2025, while the S&P 500 SPX has fallen 10%.

Morgan Stanley $(MS)$ had net income of $4.3 billion, or $2.60 a share, for the quarter, up from $3.4 billion, or $2.02 a share, in the year-earlier period. Revenue rose to $17.7 billion from $15.1 billion a year ago.

The FactSet consensus was for EPS of $2.21 and revenue of $16.537 billion.

"Institutional Securities strong performance was led by our Markets business with Equity reporting a record $4.1 billion in revenues," Chief Executive Ted Pick said in prepared remarks.

Revenue at the institutional securities business rose to $8.9 billion from $7 billion a year ago, ahead of the $7.8 billion FactSet consensus. Equity trading rose 45% from $2.8 billion a year ago, boosted by strength in Asia.

Fixed-income net revenue rose to $2.6 billion from $2.5 billion a year ago, boosted by foreign-exchange gains in a more volatile trading environment.

Investment-banking revenue rose to $1.6 billion from $1.4 billion a year ago, matching the FactSet consensus. Revenue was boosted by strong fixed-income underwriting that offset a decline in equity underwriting owing to a dearth of deals.

In wealth management, revenue rose to $7.3 billion from $6.9 billion a year ago, reflecting strength in asset management and higher levels of client activity. The FactSet consensus was for revenue of $7.4 billion.

The business added $94 billion in net new assets, while fee-based asset flows rose to $29.8 billion from $26.2 billion a year ago.

In investment management, revenue rose to $1.6 billion from $1.4 billion, ahead of the $1.5 billion FactSet consensus, as average assets under management rose to $1.7 trillion from $1.5 trillion a year ago.

The bank set aside $135 million in loan-loss reserves, after a drawdown of $6 million a year ago.

-Ciara Linnane

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April 11, 2025 08:22 ET (12:22 GMT)

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