Morgan Stanley reported record second-quarter results on Wednesday, with net revenues of $21.35 billion, earnings per share of $3.46 and a return on tangible common equity of 26.6%, as institutional trading and wealth management delivered fresh highs for the New York-based firm.
Revenues climbed 27% from $16.8 billion in the same quarter a year earlier, while net income rose 58% year on year. Earnings beat analysts' estimates on strong trading and dealmaking, Reuters reported.
TRADING AND WEALTH POWER THE BEAT
Institutional Securities reported record net revenues of $11.0 billion, up from $7.6 billion a year earlier, with equity net revenues up 69% and investment banking net revenues up 58%. Wealth Management delivered record net revenues of $8.9 billion and added a record $148 billion in net new assets.
Net income applicable to Morgan Stanley rose to $5.6 billion from $3.5 billion, and the firm said its 65% expense efficiency ratio for the first half demonstrated operating leverage. Return on tangible common equity rose to 26.6% from 18.2% a year earlier.
Total client assets across Wealth and Investment Management reached $10 trillion, the firm said.
REPORTING SEASON
The results landed in the middle of a bumper reporting season for large US lenders, a day after Goldman Sachs reported a jump in second-quarter profit on trading and dealmaking. With the top line up more than a quarter and profits up close to 60%, Morgan Stanley has entered the second half of 2026 with Chairman and CEO Ted Pick saying the firm continues to accrete capital.
In the earnings release, Pick said active markets and consistent execution across all three regions "drove exceptional results for our Integrated Firm".
Pick said the firm's capital accretion gives it "incremental flexibility to invest in our core businesses while generating strong returns for shareholders".