Morgan Stanley reported first-quarter earnings that surpassed analyst expectations, driven by record equity trading revenue amid heightened market volatility. The bank's earnings per share increased 29% year-over-year to $2.60, exceeding estimates ranging from $2.20 to $2.26. Net revenue for the quarter reached $17.7 billion, up 17% year-over-year and above the consensus estimate of approximately $16.6 billion. Net income rose 26% to $4.32 billion. The impressive performance was bolstered by a 45% surge in equities trading revenue, which climbed to $4.13 billion, surpassing analysts' expectations of $3.42 billion. The Wealth Management division reported net revenue of $7.3 billion, slightly below the estimated $7.44 billion. Return on tangible common equity improved to 23.0%, compared to 19.7% in the same period last year. Total client assets increased to $7.7 trillion, supported by $94 billion in net new assets. Morgan Stanley's strong results reflect its robust institutional securities performance and highlight the bank's ability to capitalize on market volatility. The record-breaking equity trading revenues contributed significantly to the firm's profitability in the first quarter of 2025.