Morgan Stanley net income applicable to the firm reached $5.5 billion in Q1, up 29% year-over-year, while net revenue rose 16% to $20.58 billion. The bank delivered a return on tangible common equity of 27.1% and maintained a 65% expense efficiency ratio.

Wealth management revenue climbed to $8.5 billion from $7.3 billion a year earlier, driven by asset management income, client activity and net interest income. The unit recorded $118 billion in net new assets, $54 billion in fee-based asset flows and increased total client assets to $7.35 trillion.

Investment management revenue was $1.5 billion, with long-term net flows of $3.3 billion boosting assets under management or supervision to $1.87 trillion. Institutional securities revenue grew to $10.7 billion from $9.0 billion, reflecting stronger markets operations and gains in advisory work.

The firm repurchased $1.75 billion of common stock and declared a $1 per share quarterly dividend. Credit loss provisions rose due to assessments on commercial real estate loans and greater uncertainty, while compensation expenses increased following higher revenue and stock-based awards. Morgan Stanley plans to eliminate about 2,500 roles.