Morgan Stanley Q3 FY2025 earnings call

• Morgan Stanley generated record revenues of $18.2 billion and EPS of $2.80 in Q3 2025. Total client assets across wealth and investment management reached $8.9 trillion. - Wealth management saw 30% margins, added $81 billion net new assets and $42 billion fee-based flows. - Investment management scaled capabilities with Parametric, total AUM at $1.8 trillion. - Institutional securities had strong equities performance, investment banking rebound with industry-leading underwriting, and early AI use cases for productivity improvement.

Wealth Management: Record revenues over $8 billion, margins at 30%, added $81 billion of net new assets and $42 billion in fee-based flows, with total client assets reaching $7 trillion. Investment Management: Total AUM reached $1.8 trillion, with long-term net inflows of $16.5 billion in the quarter. Institutional Securities: Revenues were $8.5 billion, investment banking revenues increased to $2.1 billion with industry-leading equity underwriting, equities business affirmed number one position, and fixed income underwriting strong; equities franchise generated $4.1 billion in revenue.

• Focus on maintaining earnings durability and driving growth through execution. - Expect continued strength in wealth, investment management, and institutional securities. - Optimism about investment banking pipeline with pent-up supply of product and supportive regulatory environment.

• Economic and geopolitical uncertainty. - Regulatory changes impacting competitive landscape. - Dependence on capital markets performance for institutional securities and investment banking results.

Q: Dan Fannon asked about the sustainability of investment banking trends and backlog.

A: Ted Pick responded that the investment banking flywheel is taking hold across industries and regions with favorable regulatory backdrop, but geopolitical uncertainty could cause pauses.

Q: Dan Fannon asked about NNA growth in wealth channel.

A: Sharon Yeshaya said all channels are strong, workplace is a contributor with $60B migration per year, and IPO market supports results.

Q: Ebrahim Poonawala asked about 30% pretax margin sustainability.

A: Ted Pick said investment dollars in wealth business drive growth, with continued operating leverage potential.

Q: Christian Bolu asked about wealth management outlook and AI influence.

A: Sharon Yeshaya said private markets and technology are growth opportunities, but take time.

Q: Brennan Hawken asked about Carta relationship.

A: Sharon Yeshaya explained multipronged approach with Carta for private market services.

Q: Glenn Schorr asked about capital deployment.

A: Ted Pick said organic growth is priority, but inorganic considered if fits strategy, culture, timing, price.

Q: Erika Najarian asked about investment banking pipeline into 2026.

A: Sharon Yeshaya and Ted Pick said IPOs and M&A provide exits and advisory opportunities.

Q: Devin Ryan asked about wealth management NII and equities trading.

A: Sharon Yeshaya discussed NII growth with lending balances and equities trading mix, Ted Pick added on equities trading complexity.

Q: Mike Mayo asked about capital market cycle inning.

A: Ted Pick said pent-up supply and regulatory changes are tailwinds, but geopolitical and economic uncertainty exist.

Q: Chris McGratty asked about excess capital buffer.

A: Sharon Yeshaya and Ted Pick discussed risk-based capital framework and buffer evolution.

Q: Saul Martinez asked about institutional securities profitability sustainability.

A: Ted Pick said results depend on economic and market conditions, with focus on durability and prudent business management.