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Morgan Stanley capped off 2025 with a robust fourth-quarter performance, beating market expectations on both revenue and profit as investment banking activity rebounded sharply.
The U.S. investment bank reported net revenues of $17.9 billion for the quarter, ahead of analysts’ forecasts of $17.72 billion. Earnings per share came in at $2.68, comfortably above the consensus estimate of $2.41. Shares rose 1.3% following the results.
Quarterly revenue increased by 10.3% from $16.2 billion a year earlier, supported by broad-based momentum across core divisions. Investment banking was the standout performer, with revenues surging 47% year-on-year to $2.41 billion, reflecting a recovery in deal-making and capital markets activity. Equity trading also delivered solid growth, rising 10% to $3.67 billion.
These gains were partially offset by a softer showing in fixed income, where revenues declined 9% to $1.76 billion amid more subdued bond market activity.
For the full year, Morgan Stanley posted record net revenues of $70.6 billion, up 14.3% from $61.8 billion in 2024. Net income reached $16.9 billion, equivalent to $10.21 per diluted share, while return on tangible equity climbed to a strong 21.6%.
The bank’s wealth management franchise continued to anchor performance, generating $8.43 billion in quarterly revenue, up 13% year-on-year. Investment management also expanded, with revenues rising 5% to $1.72 billion.
Morgan Stanley ended the year with a solid capital position, reporting a Standardized Common Equity Tier 1 ratio of 15.0%. The board declared a quarterly dividend of $1.00 per share, underscoring confidence in the firm’s earnings power and balance sheet strength.
