Morgan Stanley News: Client Assets Reach $10 Trillion in Q2

NEW YORK — Morgan Stanley said on July 15, 2026, that total client assets had reached $10 trillion, a milestone that led the firm’s second-quarter Morgan Stanley news alongside record net revenues of $21.3 billion and record diluted earnings per share of $3.46.

Net revenues rose 27% from $16.8 billion a year earlier. Net income applicable to Morgan Stanley climbed 58% to $5.6 billion, and EPS rose 62% from $2.13. Return on tangible common equity was 26.6%, up from 18.2%, and the expense efficiency ratio improved to 65% from 71%.

Institutional Securities surges

Institutional Securities generated net revenues of $11.0 billion, up 44%. Investment banking revenues rose 58% to $2.4 billion, with advisory at $798 million, up 57%; equity underwriting at $851 million, up 70%; and fixed income underwriting at $788 million, up 48%.

Equity revenues reached $6.3 billion, up 69%, while fixed income revenues rose 13% to $2.5 billion.

The breadth of the investment banking gains is notable. All three lines grew by roughly half or more, suggesting that the recovery in deal activity extended across mergers, stock issuance and debt issuance rather than resting on a single category.

Wealth Management and the $10 trillion mark

Wealth Management produced net revenues of $8.9 billion, up 14%, with a pretax margin of 30.5%. Net new assets were $148.1 billion, compared with $59.2 billion in the second quarter of 2025.

Total client assets across the firm crossed $10 trillion. The milestone gives the wealth franchise a larger base from which to earn recurring fees, and the quarter’s net new assets show that the base was still expanding quickly.

Investment Management net revenues were $1.6 billion, up 6%, a return to growth after a decline in the first quarter.

Capital and shareholder returns

The standardized CET1 ratio was 14.8%. The firm repurchased $1.5 billion of stock during the quarter and declared a dividend of $1.15 per share, up $0.15, following its announcement after the Federal Reserve’s June stress test.

First-half results

For the first six months of 2026, Morgan Stanley reported net revenues of $41.9 billion, up 21%; net income of $11.1 billion, up 42%; and EPS of $6.90, up 46%. Return on tangible common equity for the half was 26.8%, and the efficiency ratio was 65%.

The release highlighted “record revenues over $21 billion and record EPS of $3.46.”

What the Morgan Stanley news means

Morgan Stanley’s second quarter followed the pattern set by its peers: strong trading, a sharp rebound in investment banking and steady wealth management growth. The firm’s distinctive feature is the size of its wealth business, which generated more than 40% of net revenues and brought in more than twice as much net new money as a year earlier.

The improvement in return on tangible common equity, up more than eight percentage points, shows the effect of rising revenue on a cost base that grew more slowly.

Comparing the first and second quarters

Against the first quarter, the second quarter showed acceleration in the institutional business. Equity revenues rose from $5.1 billion to $6.3 billion and investment banking from $2.3 billion to $2.4 billion, while fixed income revenues fell from $3.4 billion to $2.5 billion. Wealth Management revenues edged up from $8.5 billion to $8.9 billion, and net new assets increased from $118.4 billion to $148.1 billion. The CET1 ratio slipped slightly, from 15.1% to 14.8%, which is consistent with a firm deploying capital into its businesses and returning it to shareholders.

What to watch

The key questions for the second half are whether investment banking activity sustains its pace, whether net new assets stay elevated, and how quickly the firm uses its newly reauthorized buyback program. The CET1 ratio of 14.8% against an 11.8% requirement leaves room for capital return, and third-quarter results will show how much of it is used.