Morgan Stanley Delivers Solid Financial Results for Q2 2023

Morgan Stanley published its financial result for the second quarter ended June 30, 2023 (Q2 2023), posting a stable capital position for the period.

Financial highlights:

• Net revenue totaled $13.46 billion, increasing 2.5% compared to $13.13 billion in Q2 2022 and decreasing 7.3% compared to $14.42 billion in Q1 2023. Net revenue of Institutional Securities was $5.65 billion, down 7.6% compared to $6.12 billion in Q2 2022; net revenue of Wealth Management was $6.66 billion, up 16.1% compared to $5.74 billion in Q2 2022; net revenue of Investment Management was $1.28 billion, down 9.2% compared to $1.41 billion in last Q2.

• Net income applicable to Morgan Stanley was $2.18 billion, or $1.24 per diluted share, compared with net income of $2.50 billion, or $1.39 per diluted share, for the same period of last year.

• Expense efficiency ratio stood at 78%, compared to 74% a year ago.

• The Firm delivered ROTCE of 12.1%, compared to 13.8% in Q2 2022.

James P. Gorman, Chairman and CEO at Morgan Stanley, commented: "The Firm delivered solid results in a challenging market environment. The quarter started with macroeconomic uncertainties and subdued client activity, but ended with a more constructive tone. Consistent with our strategy, we continued to attract client assets – Wealth and Investment Management added $100 billion in net new assets, bringing in over $200 billion year-to-date.

"Our Institutional businesses navigated the markets well through macro uncertainties. We finished the quarter in a strong capital position and raised our quarterly common dividend by 7.5 cents for the second year in a row. We remain confident in our ability to grow in various market environments while maintaining a strong capital position."