Analytics recurring sales hit a Q2 record, driven mainly by equity risk models.
Equity index ETF AUM linked to MSCI indices surpassed $2 trillion, with total index ETF and non-ETF AUM at $6 trillion.
Fixed income index ETF AUM linked to MSCI indices reached $84 billion, contributing to the highest quarterly ABF revenue ever.
MSCI Inc. delivered strong Q2 2025 financial results with revenue growth over 9%, adjusted EBITDA growth over 10%, adjusted EPS growth nearly 15%, and free cash flow exceeding $300 million.
Private capital solutions run rate grew nearly 13%, with new product launches and strong client interest.
Retention rates remained stable overall but showed softness in analytics, sustainability, and hedge funds segments.
Subscription run rate growth was double-digit across banks, broker-dealers, wealth managers, hedge funds, and asset owners, with active asset managers holding steady at 6%.
Sustainability and climate subscription run rate grew 11%, with climate solutions growing nearly 20%.
Total run rate growth was 11%, driven by record ETF AUM linked to MSCI indices, with asset-based fee (ABF) run rate growth of 17%.
Year-to-date, MSCI repurchased $286 million of shares at an average price of $557, reflecting confidence in the franchise.
Strategic Investment in Technology and AI for Client Engagement
Ameriprise is investing heavily in technology, digital capabilities, advanced analytics, and AI to enhance client experience and adviser productivity.
Investments include intelligence dashboards, automation analytics, and a new Signature Wealth platform launched in June to manage client assets more holistically.
Management emphasizes these investments as key to maintaining competitive advantage and adviser engagement, with productivity up 11% to $1.1 million per adviser.
CET1 capital ratio was 10.7%, with adjusted CET1 including AOCI at 8.9%.
Credit quality remained stable with nonperforming assets ratio at 0.44%, net charge-off ratio at 0.59%, and allowance for credit losses at 2.07% of loans.
Generated 250 basis points of positive operating leverage year-over-year, marking the fourth consecutive quarter of revenue growth outpacing expense growth.
Net interest margin declined 6 basis points sequentially, partly due to strategic loan sales and deposit pricing pressures.
Reported Q2 2025 EPS of $1.11 on net income of $1.8 billion, with adjusted EPS growth of approximately 13% year-over-year.
Return on tangible common equity was 18%, return on average assets was 1.08%, and efficiency ratio improved to the high-50s.
Total average deposits decreased 0.7% linked quarter, average loans decreased 0.1% linked quarter due to loan sales, but C&I and credit card loans grew 7.1% and 4.4% year-over-year respectively.
Total fee revenue grew 4.6% year-over-year, driven by diversified fee income businesses and organic growth.
Dafinchi