Morgan Stanley Q1 Credit Loss Provision Jumps To $135 Million On 'Weakening Macroeconomic Forecast,' Equity Revenue Jumps 45%

On Friday, Morgan Stanley (NYSE:MS) reported a first-quarter 2025 EPS of $2.60, up from $2.02 a twelvemonth agone and beating the statement of $2.21. Net net accrued to $4.16 cardinal from $3.14 billion.

The U.S. bank reported first-quarter gross of $17.74 billion, up 17% twelvemonth implicit year, beating the consensus of $16.57 billion.

Morgan Stanley’s proviso for recognition losses jumped to $135 million, chiefly driven by maturation successful secured lending facilities and successful the firm indebtedness portfolio and the interaction of a weakening macroeconomic forecast.

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The firm’s disbursal ratio ratio was 68% successful Q1 of 2025 compared to 71% a twelvemonth ago. Expenses for the 4th included $144 cardinal of severance costs related to a March worker enactment crossed concern segments.

Morgan Stanley delivered a Return connected Tangible Common Equity of 23% during the archetypal 4th and 19.7% a twelvemonth ago.

Institutional Securities reported nett revenues of $9.0 billion, reflecting grounds show successful Equity and beardown Investment Banking results connected higher fixed-income underwriting.

Investment Management results bespeak nett revenues of $1.6 billion, chiefly driven by plus absorption fees connected higher mean assets nether absorption (AUM) of $1.7 trillion. The 4th included affirmative semipermanent nett flows of $5.4 billion.

Equity nett revenues accrued 45% to $4.13 billion. The institution said, “Record Equity nett revenues bespeak increases crossed concern lines and regions, peculiarly successful Asia, with outperformance successful premier brokerage and derivatives driven by beardown lawsuit enactment amid a much volatile trading environment.”

Wealth Management reported nett revenues of $7.3 cardinal successful the existent 4th compared with $6.9 cardinal a twelvemonth ago. The concern added nett caller assets of $94 billion, and fee-based plus flows were $30 cardinal for the quarter.

Asset absorption revenues accrued 15% to $4.39 cardinal connected higher plus levels and the cumulative interaction of affirmative fee-based flows.

Ted Pick, Chairman and Chief Executive Officer, said, “The Integrated Firm delivered a precise beardown 4th with grounds nett revenues of $17.7 cardinal and EPS of $2.60, and an ROTCE of 23.0%. Institutional Securities beardown show was led by our Markets concern with Equity reporting a grounds $4.1 cardinal successful revenues. Total lawsuit assets of $7.7 trillion crossed Wealth and Investment Management were supported by $94 cardinal successful nett caller assets. These results show the accordant execution of our wide strategy to thrust durable maturation crossed our planetary footprint.”