- Adjusted noninterest expense decreased $12 million versus prior year to $521 million, reflecting seasonality and lower technology costs, but increased 3% year-over-year due to higher incentive compensation.
- Average loans grew 5.6% annualized quarter-over-quarter and 3.7% year-over-year, with average deposits up 0.5% year-over-year but down 1.4% annualized quarter-over-quarter.
- Common Equity Tier 1 ratio was 11%, with tangible book value per share growing 20% year-over-year.
- Credit quality remained strong with net charge-offs at $10 million (7 bps annualized), nonperforming assets at 0.51% of loans, and allowance for credit losses at 1.2% of loans.
- Diluted earnings per share was $1.63, up from $1.13 in the prior period and $1.28 year-over-year, including a $0.05 per share benefit from an SBIC portfolio investment.
- Net earnings for Q2 2025 were $243 million, a 28% increase year-over-year and 44% increase quarter-over-quarter.
- Net interest margin expanded for the sixth consecutive quarter to 3.17%, driven by lower funding costs and improved earning asset mix.
- Noninterest income increased 4% quarter-over-quarter and 7% year-over-year, led by capital markets activity and customer-related fees.
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- Adjusted EBITDA was $53 million and adjusted EPS was $0.36 based on 118 million diluted shares.
- Auto business grew 87% sequentially and Home business grew 67% sequentially, both accelerating from Q1 growth rates.
- Contribution margin improved to 58%, up 3 percentage points from the prior quarter and exceeding guidance.
- GAAP net income was positive $6 million, achieving profitability a quarter earlier than expected.
- GAAP operating expenses were $252 million, up 16% sequentially, driven by variable costs increasing 21% relative to a 55% increase in loan volume.
- Loans held on balance sheet increased to $1.02 billion from $815 million in Q1, mainly due to growth in new products.
- Originations on the platform reached $2.8 billion, the highest volume in three years, with 373,000 loan transactions representing over 250,000 new borrowers.
- Small dollar loans grew 40% sequentially and crossed $100 million in quarterly originations alongside Auto.
- Upstart reported exceptional Q2 2025 results with total revenue of approximately $257 million, up 102% year-on-year.
- Bank lending balances rose sequentially to $174 billion, supporting net interest income growth to $2 billion.
- Institutional Securities revenues were $8.5 billion, driven by strong investment banking and equities performance.
- Investment Management reached a record $1.8 trillion in assets under management (AUM) with $1.7 billion in revenues.
- Morgan Stanley reported record revenues of $18.2 billion and EPS of $2.80 for Q3 2025.
- Net new assets totaled $81 billion, with fee-based flows exceeding $40 billion for the second consecutive quarter.
- Return on tangible common equity (ROTCE) was strong at 23.5%, reflecting operating leverage.
- Total client assets increased by $1.3 trillion year-over-year to $8.9 trillion.
- Wealth Management achieved record revenues over $8 billion with a 30.3% margin.
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