Morgan Stanley (MS) reported Wealth Management net revenues of a record $9.07 billion in the third quarter of 2026, up from $8.86 billion in the second quarter, as the franchise added $232.4 billion of net new assets and lifted asset-management fees.

Firm net interest income rose to $3.25 billion from $2.78 billion in the prior quarter, a 17% sequential increase. Wealth Management net interest income was $2.23 billion, down from $2.25 billion in the second quarter; the firm attributed the year-over-year increase to the cumulative impact of lending growth and higher average sweep deposits. Wealth Management loans stood at $201.1 billion at period-end, up from $195.7 billion at the end of the second quarter.

Institutional Securities net revenues fell to $10.0 billion from $11.0 billion in the second quarter, with Equity at $5.80 billion versus $6.30 billion and Fixed Income at $2.01 billion versus $2.46 billion. Investment Banking net revenues were $2.16 billion, down 11% from $2.44 billion in the second quarter, with Advisory at $887 million versus $798 million and equity underwriting at $525 million versus $851 million. The firm said Equity net revenues increased on strong performance across businesses and regions driven by client engagement and strength in Asia, while Fixed Income declined primarily due to lower credit in securitized products and lower commodities on lower structured activity.

Wealth Management asset management revenues were $5.54 billion, versus $5.26 billion in the second quarter, on asset growth primarily driven by higher market levels and the cumulative impact of strong fee-based flows. Fee-based flows were $80 billion, including a new corporate retirement mandate; just over half of net new assets were associated with IPO-related flows. Transactional revenues were $1.17 billion.

Investment Management net revenues declined to $1.46 billion from $1.65 billion in the second quarter, with pre-tax income of $259 million. Asset management and related fees increased on higher average AUM of $2.05 trillion, while performance-based income and other revenues were negative $106 million after a reversal of accrued carried interest related primarily to certain investments in one of the firm’s private funds. Long-term net flows were $15.8 billion.

Firm provision for credit losses was $148 million, up 51% from $98 million in the second quarter. Institutional Securities provision was $141 million; the segment separately reported $105 million of charge-offs on certain corporate and commercial real estate loans that had been largely provisioned for in prior quarters. Wealth Management provision was $7 million.

Net income applicable to Morgan Stanley was $4.9 billion, or $3.03 a share, versus $5.6 billion, or $3.46 a share, in the second quarter. Return on tangible common equity was 22.6%. The expense efficiency ratio was 67%.

Standardized CET1 was 14.9% at the end of the third quarter, versus 14.8% at the end of the second quarter. The firm repurchased $1.54 billion of common stock in the third quarter, versus $1.50 billion in the second quarter, and declared a $1.15 quarterly dividend per share, unchanged from the second-quarter declaration. Period-end common shares outstanding were 1,565 million.