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SEC filingMorgan Stanley reported record net revenues of $70.64 billion for FY 2025, up 14% from $61.76 billion in 2024, driven by strong performance across all segments. Net income applicable to Morgan Stanley reached $16.86 billion, a 26% increase from $13.39 billion, with diluted EPS of $10.21 versus $7.95. Institutional Securities net revenues grew 18% to $33.08 billion, fueled by 28% higher Equity revenues and 23% increase in Investment Banking. Wealth Management delivered 12% revenue growth to $31.75 billion, with pre-tax margin expanding to 29.3% on higher asset management fees from elevated markets and fee-based flows. Investment Management revenues rose 11% to $6.53 billion on higher AUM. Total non-interest expenses increased 10% to $48.34 billion, with compensation up 12% and non-compensation up 8%, yielding an expense efficiency ratio of 68% (vs. 71%). Balance sheet expanded to $1,420.27 billion, with total equity at $112.65 billion. CET1 ratio stood at 15.0% (Standardized), SLR at 5.4%. Strong results reflect resilient markets, client activity, and operating leverage, positioning the Firm well amid economic uncertainty.
Morgan Stanley achieved record FY 2025 results with net revenues of $70.64 billion (+14% YoY from $61.76 billion) and net income applicable to Morgan Stanley of $16.86 billion (+26% YoY from $13.39 billion). Diluted EPS rose 28% to $10.21 from $7.95. All segments contributed: Institutional Securities up 18% to $33.08 billion, Wealth Management up 12% to $31.75 billion (pre-tax margin 29.3%), and Investment Management up 11% to $6.53 billion. Expense efficiency improved to 68% from 71%, reflecting operating leverage. Balance sheet grew to $1,420.27 billion with CET1 at 15.0% (Standardized) and SLR at 5.4%.
Non-interest revenues reached $60.60 billion (+14% YoY), led by Institutional Securities' Equity (+28%) and Investment Banking (+23%). Wealth Management asset management fees grew on higher markets and $160 billion fee-based flows, adding $356 billion net new assets. Investment Management fees rose on elevated AUM. Net interest income increased to $10.05 billion (+17% YoY). Geographically, Americas +13%, EMEA +16%, Asia +23%.
Pre-tax margin expanded to 31% from 28%, with Institutional Securities at 34% (+3 pts), Wealth Management at 29% (+2 pts), and Investment Management at 23% (+4 pts). Compensation rose 12% to $29.22 billion on higher revenues; non-compensation up 8% to $19.12 billion on execution costs and technology. ROTCE reached 21.6% vs. 18.8%.
Operating cash used $17.89 billion; investing used $46.78 billion (loan growth); financing provided $67.76 billion (borrowings, deposits). Net cash increase $6.31 billion. Total assets $1,420.27 billion (+17%), loans $289.04 billion (+17%), deposits $415.52 billion (+11%), borrowings $348.94 billion (+21%). Total equity $112.65 billion.
Management highlights resilient markets, client activity, and leverage. ROTCE goal of 20% achieved. Capital plan supports $20B share repurchase authorization. Risks include market volatility, credit losses, regulatory changes.