Capital Allocation Priorities
Q: How are you thinking about capital deployment amid Basel III uncertainty?
A: We maintain a 15.1% CET1 ratio, with a buffer of 160 basis points above the new requirement of 13.5%. " This buffer allows us to balance financial strength with investing in our businesses across Wealth Management, Investment Management, and the Investment Bank globally. " While Basel III uncertainty may last through the election, we continue to prioritize dividends, invest opportunistically, and execute share buybacks. "

Net Interest Income Outlook
Q: Is NII close to bottoming, and could it grow next year?
A: Deposit trends are encouraging, especially since the Fed began cutting rates. " While NII may be modestly down quarter-over-quarter, we're seeing positive momentum in asset growth and sweeps. " Future NII growth will depend on the Fed's rate path, but we're witnessing growth in lending opportunities and client activities, which could support NII growth next year. "

Margin Sustainability
Q: How sustainable are the higher incremental margins achieved?
A: We've focused on driving efficiency with a long-term lens, examining 2- to 3-year outlooks to find efficiencies and consolidate investments. " For example, occupancy costs increased only $11 million year-to-date, despite investments in space optimization and new technology. " We're self-funding investments in growth areas while maintaining declines in areas like professional services. "

IPO Market Outlook
Q: What's the outlook for the IPO pipeline and sponsor activity?
A: Sponsors have $1.3 trillion of dry powder and $3–4 trillion in portfolio companies. " We expect the IPO market to slowly return, with larger, mature companies going public globally. " These companies will need the full-service suite of a global investment bank, and we're well-positioned to advise them. "

Wealth Management Growth
Q: What's driving growth in net new assets and new clients?
A: We've invested in technology to better match clients with financial advisors using AI and human referrals. " Human referrals have doubled, surpassing 100,000 year-to-date. " This approach allows new clients to experience the value of advice, supporting continued momentum in asset growth. "

Wealth Lending Growth
Q: Can loan growth in wealth reaccelerate to pre-COVID levels?
A: We believe there's significant upside in lending growth, as financial advisor penetration with lending products is increasing but still has room to grow. " As rates come down, we expect increased activity in mortgages and securities-based loans. "

AI Initiatives with OpenAI
Q: How is Morgan Stanley leveraging AI and the OpenAI partnership?
A: Our partnership with OpenAI is progressing well, enhancing tools for financial advisors by using AI to access research and summarize meetings. " For example, advisors can use AI to query our research portal and receive summarized insights, saving time and increasing productivity. "

Global Investment Banking Activity
Q: How is international activity contributing to investment banking recovery?
A: We're seeing strong growth outside the U.S., with revenue increases of nearly 25% in EMEA and over 30% in Asia year-over-year. " Our local commitments in Europe and Asia position us to capitalize on global investment banking opportunities as markets recover. "

Fee-Based Asset Growth
Q: Are fee-based asset inflows sustainable, and how might they impact fees?
A: We continue to see assets migrating from brokerage to fee-based accounts, including in equities, fixed income, and alternatives. " As we offer more products under the fee-based model, we expect durable revenue growth despite potential fee rate pressures. "