Net interest income reached $2.254 billion, up 4 per cent from the first quarter of 2026 – an increase of 18 per cent from the previous year, the bank said in a note. Profit before taxes reached $2.697 billion, up 4 per cent from the first quarter of 2026 and a rise of 23 per cent from 2025. There was also a pretax margin of 30 per cent, against 30 per cent in the first quarter of 2026 and 28 per cent in 2025.

The business added record net new assets of $148.4 billion, and fee-based assets of $39 billion for the quarter. Over half of the NNA represented inflows related to IPOs of certain clients in the workplace channel, the bank said.

Overall, Morgan Stanley beat expectations, reporting net revenues of $21.3 billion for the second quarter compared with $16.8 billion a year ago. Net income was $5.6 billion, or $3.46 per diluted share, compared with $3.5 billion, or $2.13 per diluted share, for the same period a year ago.

“Active markets and consistent execution across all three regions drove exceptional results for our integrated firm, delivering record revenues of over $21 billion. Wealth management added a record $148 billion in net new assets, with total client assets across wealth and investment management reaching the $10 trillion milestone,” Ted Pick, chairman and chief executive officer at Morgan Stanley, said.