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.
Adjusted compensation expenses were $372 million, up from $316 million last year, maintaining an adjusted compensation expense ratio of 61.5%.
Adjusted earnings per share were $2.14, up 75% compared to the same quarter last year.
Adjusted effective tax rate was negative 0.8% compared to 31.2% last year, due to a policy change excluding stock-based compensation vesting impact.
Adjusted non-compensation expenses increased to $94 million from $80 million, with a non-compensation expense ratio steady at 15.6%.
Corporate Finance revenues were $399 million, a 21% increase over last year's first quarter, with 125 transactions closed versus 116 last year.
Financial and Valuation Advisory revenues were $79 million, a 16% increase from the prior year, with 957 fee events versus 847 last year.
Financial Restructuring revenues were $128 million, a 9% increase year-over-year, with 35 transactions closed compared to 33 last year.
Houlihan Lokey reported revenues of $605 million for the first quarter of fiscal year 2026, an 18% increase year-over-year.
Other income and expense produced income of approximately $8 million versus $5 million last year, driven by increased interest and other income from investment securities.
Private Market revenue increased 11% year-over-year to $148 million.
Private markets revenue showed strong growth, led by private credit within Ratings.
Ratings revenue increased 1% year-over-year, with transaction revenue down 4% and non-transaction revenue up 8%.
Ratings revenue increased 1% year-over-year, with transaction revenue down 4% but non-transaction revenue up 8%.
Revenue increased 6% year-over-year in the second quarter, with subscription revenue increasing 7%.
S&P Dow Jones Indices revenue increased 15%, driven by Asset-Linked Fees up 17% and Exchange-Traded Derivatives revenue up 15%.
S&P Dow Jones Indices revenue increased 15%, driven by Asset-Linked Fees up 17% and Exchange-Traded Derivatives revenue up 15%; operating margin improved 60 basis points to 71.3%.
S&P Global reported 6% year-over-year revenue growth in Q2 2025, with subscription revenue up 7%.
Trailing 12-month margin expanded by 150 basis points driven by disciplined expense management and strategic investments.
Trailing 12-month margin expansion of 150 basis points was delivered through strategic investments and disciplined expense management.
Dafinchi