Morgan Stanley Reports Strong Q1 2025 Results With Record Revenues and Robust ROTCE

Morgan Stanley posted a strong start to 2025, reporting record net revenues of $17.7 billion for the first quarter, a 17% increase year-over-year. Net income applicable to the firm reached $4.3 billion, or $2.60 per diluted share, compared to $3.4 billion and $2.02 in the prior-year quarter. The return on tangible common equity (ROTCE) came in at 23.0%, up from 19.7% a year ago.

Institutional Securities led the performance with $9.0 billion in net revenues, driven by record equity trading revenues of $4.1 billion and solid results in fixed income and investment banking. Pre-tax income for the segment rose to $3.3 billion. Advisory revenues rose due to higher M&A activity, while fixed income underwriting also improved, helped by strong demand for non-investment grade loan issuances.

Wealth Management delivered $7.3 billion in net revenues, with a pre-tax margin of 26.6%. The segment benefited from higher asset management fees and net new assets totaling $94 billion. Fee-based flows were also strong at $30 billion. Compensation expenses increased slightly due to higher revenue levels, while non-compensation expenses remained flat.

Investment Management posted $1.6 billion in net revenues, a 16% increase over the previous year. Growth was attributed to higher average assets under management and increased carried interest in infrastructure funds. Pre-tax income for the segment reached $323 million.

During the quarter, Morgan Stanley repurchased $1.0 billion of common stock and declared a quarterly dividend of $0.925 per share. The firm ended the quarter with a CET1 capital ratio of 15.3% under the standardized approach.

Total expenses were $12.1 billion, including $144 million in severance costs due to a workforce reduction of about 2%. The firm’s expense efficiency ratio improved to 68% from 71% a year ago. Book value per share rose to $60.41, and tangible book value per share reached $46.08.

Morgan Stanley Direct Lending Fund to Report Q1 2025 Results on May 8


Morgan Stanley Direct Lending Fund (NYSE: MSDL) announced that it will release its financial results for the first quarter ended March 31, 2025, after market close on Thursday, May 8.

The company will host an earnings conference call the following morning, Friday, May 9, at 10:00 a.m. Eastern Time to discuss the results with analysts and investors.

Further details regarding access to the call and accompanying materials will be made available through the company’s official communication channels.

Morgan Stanley Announces Departure of Deputy CFO and Chief Accounting Officer Raja Akram

Morgan Stanley disclosed in a regulatory filing that Raja Akram has informed the firm of his intent to resign from his roles as Deputy Chief Financial Officer, Chief Accounting Officer, and Controller. The decision was communicated on March 26, 2025, and his departure will take effect following the completion of his required notice period.

Akram is leaving the firm to pursue another opportunity. No further details on his next position or successor at Morgan Stanley have been announced at this time.

The resignation was not due to any disagreement with the company’s operations, policies, or practices.

Morgan Stanley Capital I Issues $834 Million in CMBS Certificates under Trust 2025-5C1

New York, NY – March 20, 2025 – Morgan Stanley Capital I Inc. announced the issuance of Commercial Mortgage Pass-Through Certificates, Series 2025-5C1, backed by a pool of 40 commercial, multifamily, and manufactured housing mortgage loans.

The offering includes $834.1 million in Publicly Offered Certificates sold to underwriters and $100.5 million in Privately Offered Certificates placed in exempt transactions. The Certificates were issued under a Pooling and Servicing Agreement dated March 1, 2025. Key parties include Midland Loan Services (master servicer), Argentic Services Company (special servicer), and Computershare Trust Company (trustee and administrator).

A credit risk retention interest valued at $23.1 million (approximately 2.42% of all ABS interests) was retained by the sponsor to meet Regulation RR requirements. The transaction was registered under SEC file no. 333-282944 and became effective on January 3, 2025.

Morgan Stanley Research predicts that revenue from Generative AI could reach $1.1 trillion by 2028, up from $45 billion in 2024. Software and internet companies are expected to see a positive return on investment by 2025, with a projected 34% contribution margin. AI adoption is accelerating as businesses integrate automation, particularly in call centers, leading to significant cost savings. Corporate spending on GenAI software is estimated to reach $400 billion, while consumer platforms may generate $680 billion in revenue. Hardware investments remain crucial, with GenAI semiconductor spending expected to grow from $115 billion in 2024 to $280 billion in 2028. Despite initial uncertainties, analysts believe GenAI’s economic impact is sustainable, driving long-term business transformation.

Morgan Stanley reported strong financial results for the fourth quarter and full year 2024, achieving record net revenues of $16.2 billion and $61.8 billion, respectively. Fourth-quarter earnings per share (EPS) were $2.22, up from $0.85 in Q4 2023, while full-year EPS increased to $7.95 from $5.18 in 2023. The firm's return on tangible common equity (ROTCE) was 20.2% for Q4 and 18.8% for the year.

Institutional Securities saw a 47% revenue increase in Q4, driven by strong equity and fixed-income performance. Wealth Management achieved record asset management revenues and substantial net new asset flows, with total client assets reaching $7.9 trillion. Investment Management experienced a 12% revenue growth in Q4, bolstered by higher average assets under management (AUM) and performance-based gains.

Morgan Stanley's efficiency ratio improved to 69% in Q4, reflecting disciplined expense management. The firm returned $3.3 billion to shareholders through share repurchases and maintained a strong Common Equity Tier 1 (CET1) capital ratio of 15.9%. CEO Ted Pick highlighted the firm's consistent execution and integrated strategy, positioning it for sustained growth and shareholder value creation.