- Total Client Assets: Surpassed $9.3 trillion in 2025, reflecting robust asset growth across wealth and investment management divisions.
- Earnings Performance: Delivered $10.21 EPS in 2025, with a strong 21.6% ROTCE and $70.6 billion in record revenues.
- Capital Position: Maintained a CET1 ratio of 15% with over 300 basis points of excess capital, enabling $4.6 billion in share buybacks for the year.
- Investment Management Growth: Achieved $6.5 billion in total revenues and scaled AUM to $1.9 trillion, driven by secular demand for alternatives and solutions.
- Efficiency Gains: Improved efficiency ratio to 68.4% in 2025, with a target of 70% in 2026, supported by AI and technology investments.
Business Performance
The wealth management business exited the year with $9.3 trillion in total client assets, a significant achievement. The institutional trading business is expected to continue growing, driven by secular tailwinds such as the equitization of markets and consolidation. The firm's leadership, Ted Pick and Sharon Yeshaya, discussed the firm's performance and strategy, citing opportunities in capital markets and structuring expertise, particularly with the rise of AI.
Financial Position and Capital Management
The company has a strong financial position, with a CET1 ratio of 15% and over 300 basis points of excess capital. The quarterly dividend was raised by 7.5 cents for the fourth consecutive year to $1 per share. The firm will continue to invest in clients and technology, and opportunistically buy back stock, having bought back $4.6 billion of common stock for the full year.
Outlook and Valuation
Looking ahead to 2026, the outlook is positive, with healthy investment banking pipelines and a reopening IPO market. The company expects net interest income to trend higher in 2026. With a P/TBV ratio of 2.73, investors are pricing in a certain level of growth. Given the firm's strong performance and growth prospects, the current valuation appears reasonable. Analysts estimate next year's revenue growth at 5.8%, which, combined with the expected improvement in net interest income, could drive further growth.
Key Drivers of Future Growth
The firm's investment management franchise is well-positioned for growth, with a record $1.9 trillion in assets under management. The institutional trading business is also expected to continue growing, driven by secular tailwinds. The wealth management business is expected to expand margins, particularly in areas such as secured lending, and is investing in digital assets and alternatives.