Q1 2025 Morgan Stanley Earnings Call Transcript
Key Points
- Morgan Stanley (MS) reported a strong quarter with $17.7 billion in revenue and $2.60 in EPS, achieving a 23% return on tangible equity.
- The firm added $94 billion in net new assets, bringing total assets to $7.7 trillion, demonstrating strong client engagement and asset growth.
- Equities had a record quarter with over $4 billion in revenue, showcasing the strength of Morgan Stanley's institutional securities division.
- Morgan Stanley's CET1 ratio of 15.3% indicates a strong capital position, providing flexibility to support clients and shareholders.
- The wealth management division delivered robust results with $7.3 billion in revenue and a 27% margin, highlighting the firm's strong advisory capabilities.
- The economic outlook remains uncertain, with increased risks of recession and unpredictable trade policies affecting market conditions.
- Inflation continues to fluctuate, creating uncertainty in pricing along the supply chain, which could impact future financial performance.
- Some clients are deferring strategic activities due to geopolitical and trade uncertainties, potentially affecting future deal flow.
- The investment banking pipeline remains sensitive to market conditions, with potential delays in deal execution due to volatility.
- Morgan Stanley incurred $144 million in severance charges related to performance management and business alignment, impacting overall efficiency.
Good morning. Welcome to Morgan Stanley's first-quarter 2025 earnings call. On behalf of Morgan Stanley, I will begin the call with the following information and disclaimers. This call is being recorded. During today's presentation, we will refer to our earnings release and financial supplement, copies of which are available at morganstanley.com.
Today's presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Morgan Stanley does not undertake to update the forward-looking statements in this discussion. Please refer to our notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release. This presentation may not be duplicated or reproduced without our consent.
I will now turn the call over to Chairman and Chief Executive Officer, Ted Pick.
Good morning. Thank you for joining us.
The firm delivered a very strong quarter with $17.7 billion in
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