Morgan Stanley ( MS ) reported a second-quarter 2025 earnings of $2.13, up from $1.82 a year ago and beating the consensus of $2.02. Net earnings increased to $3.54 billion from $3.08 billion.

The U.S. bank reported revenue of $16.79 billion, up 12% year over year, beating the consensus of $16.11 billion.

Morgan Stanley's ( MS ) provision for credit losses jumped to $196 million, primarily driven by growth in the corporate loan portfolio and

secured lending facilities, and the impact of a moderately weaker macroeconomic outlook.

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The firm's expense efficiency ratio was 71% compared to 72% a year ago.

Morgan Stanley's ( MS ) second-quarter Return on Tangible Common Equity was 18.2%, compared to 17.5% a year ago.

Institutional Securities reported net revenues of $7.6 billion, propelled by

Markets businesses on higher client activity, with notable strength in Equity.

Investment Management results reflect net revenues of $1.6 billion, primarily driven by asset management fees on higher average assets under management (AUM) of $1.71 trillion (up 13%). The quarter included positive long-term net flows of $11 billion.

Wealth management delivered net revenues of $7.76 billion on higher asset management revenues, compared to $6.79 billion a year ago.

The business demonstrated continued strength with net new assets of $59 billion and fee-based asset flows of $43 billion for the quarter.

Equity net revenues increased 23% to $3.72 billion, reflecting increases from a year ago across business lines and regions on higher client activity, with robust results in prime brokerage.

Fixed Income net revenues increased 9% from a year ago to $2.18 billion, primarily driven by higher results in macro products and higher client activity in a more volatile market environment. Lower results in commodities partially offset the increase.

On Wednesday, Chairman and Chief Executive Officer Ted Pick said, "Morgan Stanley ( MS ) delivered another strong quarter. Six sequential quarters of consistent earnings…reflect higher levels of performance in different market environments. Institutional Securities saw strength and balance across businesses and geographies."

Price Action: MS stock is down 1.38% at $139.64 during the premarket session at the last check Wednesday.

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