Morgan Stanley Posts Record Q1 Profit Driven by Wealth Management and Institutional Strength

Morgan Stanley (MS) delivered a powerhouse first-quarter performance, reporting a net profit of $5.41 billion, a 30% increase compared to the same period last year. The firm's success was underpinned by a 16% rise in net revenues, which climbed to $20.58 billion. The results highlight the firm's ability to capitalize on market volatility and maintain strong client engagement. CEO Ted Pick characterized the period as a record quarter, noting a Return on Tangible Common Equity (ROTCE) of 27.1% and earnings per share (EPS) of $3.43. Institutional Securities led the charge with record revenues of $10.72 billion, up 19%, driven by robust activity in markets and advisory services. Simultaneously, the Wealth Management arm hit a record $8.53 billion in revenue, supported by $118 billion in net new assets and $54 billion in fee-based asset flows. While Investment Management saw a slight revenue dip of 4% to $1.54 billion, the firm benefited from a significant reduction in credit loss provisions, which fell 27% to $98 million. Total non-interest expenses rose 12% to $13.47 billion. Following the announcement, shares of Morgan Stanley rose 2.78% in pre-market trading to $188.39. The board also declared a quarterly dividend of $1.00 per share, payable on May 15, 2026.