Morgan Stanley (MS) Q1 FY25 earnings call

Earnings call· Mar 2025 (Q1 FY25)· Financials· Apr 11, 2025

Source: earnings call transcript

Morgan Stanley delivered record Q1 FY25 results, demonstrating resilience and strength across its integrated firm despite an uncertain macro backdrop marked by geopolitical and trade policy shifts. The firm's diversified model, particularly strong performance in Institutional Securities and Wealth Management, enabled it to navigate market volatility and continue client engagement, while maintaining a robust capital position and focusing on long-term strategic investments.

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MS operating KPIs by quarter

MS operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	This call Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Return on tangible common equity (ROTCE)	20.2% For the fourth quarter, ROTCE was 20.2% and EPS was $2.22. Source: earnings call transcript	23% The Firm delivered a very strong quarter with $17.7 billion in revenue, $260 in EPS and a 23% return on tangible. Source: earnings call transcript	18.2% For the quarter, the Firm delivered $16.8 billion in revenue, $2.13 in EPS and an 18.2% return on tangible, completing a very strong first half of 2025, $34.5 billion in revenue, $4.73 in EPS and a 20.6% return on tangible. Source: earnings call transcript	23.5% Robust returns on tangible of 23.5% reflect the operating leverage of the integrated firm. Source: earnings call transcript	21.8% Alongside fourth quarter ROTCE and EPS of 21.8% and $2.68, respectively. Source: earnings call transcript	—	26.6% Our ROTCE was 26.6%. Source: earnings call transcript	22.6% In the third quarter, Morgan Stanley delivered strong performance on the top and bottom lines with Firm net revenue of $20.3 billion and earnings per share of $3.03, with a return on tangible equity of 22.6%, this quarter marks our fifth consecutive quarter above 20%, speaking to the consistent strength of our global franchise. Source: earnings call transcript	-4 pt
Net new assets Wealth Management	$57B Net new assets for the quarter were $57 billion. Source: earnings call transcript	$94B Wealth added $94 billion of net new assets, bringing the Firm total to $7.7 trillion. Source: earnings call transcript	$59B Net new assets of $59 billion were strong despite higher seasonal tax payments. Source: earnings call transcript	$81B We added $81 billion of net new assets and $42 billion in fee-based flows in the quarter. Source: earnings call transcript	$122B Additionally, net new assets for the quarter were robust at $122 billion with contributions across all channels. Source: earnings call transcript	$118B Our client acquisition funnel remains unrivaled in driving industry-leading growth with $118 billion of net new assets and $54 billion of fee-based flows. Source: earnings call transcript	$148B Wealth Management added a record $148 billion in organic net new assets. Source: earnings call transcript	$232B Wealth had a record quarter with revenues of over $9 billion with milestone levels of net new assets of $232 billion and fee-based flows of $80 billion. Source: earnings call transcript	+56.8%
Long-term net inflows Investment Management	$4.3B Long-term net inflows were $4.3 billion in the quarter, driven by continued demand for our fixed income strategies and Parametric customized portfolios. Source: earnings call transcript	$5.4B Long-term net inflows were $5.4 billion in the quarter. Source: earnings call transcript	$11B In Investment Management, our leading -- industry-leading Parametric platform as well as strong fixed income strategies have successfully positioned this business to achieve consistent long-term inflows, generating a positive $11 billion in the second quarter. Source: earnings call transcript	$16.5B Long-term net inflows were $16.5 billion in the quarter. Source: earnings call transcript	~$2B Long-term net inflows were approximately $2 billion in the quarter. Source: earnings call transcript	$3.3B Long-term net flows were $3.3 billion, driven by ongoing demand for our Parametric solutions and fixed income strategies, which help offset equity flows. Source: earnings call transcript	$7.7B Long-term net inflows were $7.7 billion for the quarter, driven by ongoing demand for alternatives and solutions, including Parametric as well as our fixed income strategies. Source: earnings call transcript	$15.8B Consistent strength from parametric and fixed income contributed to long-term inflows of $15.8 billion. Source: earnings call transcript	+105.2%
Common equity tier 1 ratio (CET1)	15.9% During the year, we accreted over $5.5 billion of Common Equity Tier 1 capital and our standardized CET1 ratio ended the year at 15.9%. Source: earnings call transcript	15.3% With a CET1 ratio of 15.3%, our excess capital position and financial strength give us ongoing flexibility in support of clients and shareholders. Source: earnings call transcript	15% With a CET1 ratio of 15%, we are 200 basis points plus above our forward capital requirement, which affords us ongoing flexibility to deploy capital. Source: earnings call transcript	15.2% Our standardized CET1 ratio stands at 15.2%. Source: earnings call transcript	15% Our standardized CET1 ratio ended the year at 15%. Source: earnings call transcript	15.1% Our reported CET1 ratio of 15.1% against the capital requirement of 11.8% translates into a capital buffer of over 300 basis points. Source: earnings call transcript	14.8% We repurchased $1.5 billion of common stock, and our standardized CET1 ratio ended the quarter at 14.8%. Source: earnings call transcript	14.9% We repurchased $1.5 billion of common stock in the quarter and our standardized CET1 ratio ended at 14.9%. Source: earnings call transcript	+0.1 pt
Efficiency ratio	—	68% The first quarter efficiency ratio was 68% and strong revenues and a continued focus on creating capacity to invest in longer-term initiatives contributed to results. Source: earnings call transcript	—	—	—	65% For the quarter, our efficiency ratio was 65% reflecting strong operating leverage and disciplined execution as we continue to invest strategically across the firm. Source: earnings call transcript	—	—	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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