NEW YORK, Oct. 15 (Xinhua) -- Morgan Stanley on Wednesday reported third-quarter earnings that topped expectations by the widest margin in almost five years, lifted by strong performance in equities trading, investment banking and wealth management.
The bank posted record net revenues of 18.2 billion U.S. dollars for the third quarter that ended Sept. 30, 2025, up from 15.4 billion dollars a year earlier.
Net income applicable to Morgan Stanley rose about 45 percent to 4.6 billion dollars, or 2.8 dollars per diluted share, compared with 3.2 billion dollars, or 1.88 dollars per diluted share, in the same period last year.
Institutional securities net revenues climbed to 8.5 billion dollars from 6.8 billion dollars a year ago, driven by a rebound in deal-making and continued strength in equities trading. Investment banking revenues jumped to 2.1 billion dollars, while equity revenues surged to 4.1 billion dollars. Fixed income contributed 2.17 billion dollars.
Wealth management delivered record net revenues of 8.2 billion dollars, up from 7.3 billion dollars in the prior-year quarter, with a pre-tax margin of 30.3 percent. The division attracted 81 billion dollars in net new assets and 42 billion dollars in fee-based asset flows. Fee-based client assets totaled 2.65 trillion dollars, and loans expanded to 173.9 billion dollars.
Investment management posted net revenues of 1.7 billion dollars, primarily driven by higher asset management fees. Assets under management rose to 1.81 trillion dollars, supported by 16.5 billion dollars in long-term net inflows.
"Our Integrated Firm delivered an outstanding quarter with strong performance in each of our businesses globally ... Institutional Securities results were driven by our Equity business and a rebound in Investment Banking activity ... Across our global footprint, we remain committed to generating durable growth to drive long-term value for our shareholders," said Ted Pick, Chairman and Chief Executive Officer of Morgan Stanley.
Morgan Stanley shares jumped 7 percent in Wednesday trading following the results. ■
