Why Morgan Stanley Offers A Compelling Long-Term Investor Story

Morgan Stanley (NYSE:MS) on Wednesday reported a second-quarter 2025 earnings of $2.13, up from $1.82 a year ago and beating the consensus of $2.02.

Net earnings increased to $3.54 billion from $3.08 billion. The U.S. bank reported revenue of $16.79 billion, up 12% year over year, beating the consensus of $16.11 billion.

Despite the positive headline figures, Morgan Stanley’s stock reacted negatively after the earnings release, according to Bank of America (BofA) Securities.

Also Read: JPMorgan’s Q2 Outperformance Bolsters Confidence In Its 2025 Outlook

Morgan Stanley’s provision for credit losses jumped to $196 million, primarily due to growth in the corporate loan portfolio and secured lending facilities, and the impact of a moderately weaker macroeconomic outlook.

BofA noted that while Morgan Stanley’s markets and wealth management divisions had a strong quarter, the stock likely faced pressure due to already high expectations following robust year-to-date gains. Furthermore, its investment banking performance fell short compared to rival JPMorgan (NYSE:JPM).

Meanwhile, JPMorgan, ...