📊 Morgan Stanley confirms its position with strong results!
Morgan Stanley is a global investment bank and asset manager based in New York. The giant has once again shown why it is among the elite of the US financial sector. Q2 2025 results exceeded market expectations!
🔵 Key numbers to watch:
Revenues: $16.8 billion (+12% YoY)
Net Profit: $3.5 billion (+13% YoY)
Earnings per share (EPS): $2.13 (vs. expectations of $1.96, +17% y/y)
ROE: 13.9% | ROTCE: 18.2%
Dividend: increased 8% to $1.00/share
New buyback program: up to $20 billion, no time limit
These numbers demonstrate confidence in the company's growth and sound strategy!
🏛 Institutional Securities (funds, insurance companies, banks, ...)
Here, the importance of a robust client base in a volatile market environment is demonstrated:
Revenues: USD 7.6 billion (+9% y/y)
Significant growth in equity trading: +23% (USD 3.7 billion) - thanks to higher client activity
Fixed income +9% (USD 2.2 billion)
📌This segment also proves that Morgan Stanley can handle volatility and capitalize on it.
💼 Wealth Management
A real driver of profitability and long-term stability.
Revenues: USD 7.8 billion (+14% y/y)
Net asset inflows: USD 59 billion, of which USD 43 billion in "fee-based" services (recurring wealth management fee)
Slight increase in loan loss provisions due to higher individual risk.
📈 Investment Management (investment management)
Smaller but healthy growing segment.
Revenues: USD 1.55 billion (+12% y/y)
Positive capital inflows: USD 11 billion
Despite results that beat estimates, the stock weakens slightly after the announcement.
Morgan Stanley is a quality player that can generate consistent earnings in a variety of market environments.
Does anyone have Morgan Stanley stock? What is your opinion of the investment banking industry?
I'm not very interested in these classic banks, so I'm mainly focusing on $SOFI and $NU.
The results were not bad, but I find $JPM or $BAC more interesting from this sector.