ec7901dbb771c9196dbbc7ffc55079da8696fdd6837e51d7f374d4354885bf9a

| Metric (in billions/millions/%) | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------------------|---------|---------|---------|---------|---------|
| Separately Managed (billions) | $578  **[0000895421-23-000441_ms-20230930.htm:17]**  | $631  **[0000895421-24-000322_ms-20240331.htm:14]**  | $631  **[0000895421-24-000322_ms-20240331.htm:14]**  | $663  **[0000895421-24-000403_ms-20240630.htm:19]**  | $683  **[0000895421-24-000491_ms-20240930.htm:19]**  |
| Unified Managed (billions)    | $449  **[0000895421-23-000441_ms-20230930.htm:17]**  | $545  **[0000895421-24-000322_ms-20240331.htm:14]**  | $545  **[0000895421-24-000322_ms-20240331.htm:14]**  | $561  **[0000895421-24-000403_ms-20240630.htm:19]**  | $605  **[0000895421-24-000491_ms-20240930.htm:19]**  |
| Advisor (billions)            | $175  **[0000895421-23-000441_ms-20230930.htm:17]**  | $199  **[0000895421-24-000322_ms-20240331.htm:14]**  | $199  **[0000895421-24-000322_ms-20240331.htm:14]**  | $199  **[0000895421-24-000403_ms-20240630.htm:19]**  | $209  **[0000895421-24-000491_ms-20240930.htm:19]**  |
| Portfolio Manager (billions)  | $597  **[0000895421-23-000441_ms-20230930.htm:17]**  | $688  **[0000895421-24-000322_ms-20240331.htm:14]**  | $688  **[0000895421-24-000322_ms-20240331.htm:14]**  | $704  **[0000895421-24-000403_ms-20240630.htm:19]**  | $745  **[0000895421-24-000491_ms-20240930.htm:19]**  |
| Subtotal (billions)           | $1,799  **[0000895421-23-000441_ms-20230930.htm:17]**  | $2,062  **[0000895421-24-000322_ms-20240331.htm:14]**  | $2,062  **[0000895421-24-000322_ms-20240331.htm:14]**  | $2,127  **[0000895421-24-000403_ms-20240630.htm:19]**  | $2,242  **[0000895421-24-000491_ms-20240930.htm:19]**  |
| Cash Management (billions)    | $58  **[0000895421-23-000441_ms-20230930.htm:17]**  | $62  **[0000895421-24-000322_ms-20240331.htm:14]**  | $62  **[0000895421-24-000322_ms-20240331.htm:14]**  | $61  **[0000895421-24-000403_ms-20240630.htm:19]**  | $60  **[0000895421-24-000491_ms-20240930.htm:19]**  |
| Total Fee-Based Client Assets (billions) | $1,857  **[0000895421-23-000441_ms-20230930.htm:17]**  | $2,124  **[0000895421-24-000322_ms-20240331.htm:14]**  | $2,124  **[0000895421-24-000322_ms-20240331.htm:14]**  | $2,188  **[0000895421-24-000403_ms-20240630.htm:19]**  | $2,302  **[0000895421-24-000491_ms-20240930.htm:19]**  |
| Physical Commodities (millions) | $2,381  **[0000895421-23-000441_ms-20230930.htm:60]**  | $736  **[0000895421-24-000300_ms-20231231.htm:162]**  | $1,322  **[0000895421-24-000322_ms-20240331.htm:54]**  | $575  **[0000895421-24-000403_ms-20240630.htm:61]**  | $603  **[0000895421-24-000491_ms-20240930.htm:63]**  |
| One-notch downgrade (millions) | $562  **[0000895421-23-000441_ms-20230930.htm:77]**  | $450  **[0000895421-24-000300_ms-20231231.htm:191]**  | $359  **[0000895421-24-000322_ms-20240331.htm:70]**  | $532  **[0000895421-24-000403_ms-20240630.htm:78]**  | $213  **[0000895421-24-000491_ms-20240930.htm:80]**  |
| Two-notch downgrade (millions) | $375  **[0000895421-23-000441_ms-20230930.htm:77]**  | $394  **[0000895421-24-000300_ms-20231231.htm:191]**  | $411  **[0000895421-24-000322_ms-20240331.htm:70]**  | $429  **[0000895421-24-000403_ms-20240630.htm:78]**  | $458  **[0000895421-24-000491_ms-20240930.htm:80]**  |
| Bilateral downgrade agreements (millions) | $811  **[0000895421-23-000441_ms-20230930.htm:77]**  | $692  **[0000895421-24-000300_ms-20231231.htm:191]**  | $624  **[0000895421-24-000322_ms-20240331.htm:70]**  | $840  **[0000895421-24-000403_ms-20240630.htm:78]**  | $543  **[0000895421-24-000491_ms-20240930.htm:80]**  |
| Total CDS Sold (billions)     | $377  **[0000895421-23-000441_ms-20230930.htm:77]**  | N/A | $358  **[0000895421-24-000322_ms-20240331.htm:70]**  | N/A | $428  **[0000895421-24-000491_ms-20240930.htm:80]**  |
| Other Credit Contracts (billions) | $3  **[0000895421-23-000441_ms-20230930.htm:77]**  | N/A | $3  **[0000895421-24-000322_ms-20240331.htm:70]**  | N/A | $3  **[0000895421-24-000491_ms-20240930.htm:80]**  |
| Total Credit Protection Sold (billions) | $380  **[0000895421-23-000441_ms-20230930.htm:77]**  | $389  **[0000895421-24-000300_ms-20231231.htm:191]**  | $361  **[0000895421-24-000322_ms-20240331.htm:70]**  | $364  **[0000895421-24-000403_ms-20240630.htm:78]**  | $431  **[0000895421-24-000491_ms-20240930.htm:80]**  |
| Corporate Net Charge-off Ratio (%) | 0.43  **[0000895421-23-000441_ms-20230930.htm:43]**  | 0.47  **[0000895421-24-000300_ms-20231231.htm:118]**  | N/A | 0.00  **[0000895421-24-000403_ms-20240630.htm:44]**  | 0.56  **[0000895421-24-000491_ms-20240930.htm:45]**  |
| Secured Lending Facilities Net Charge-off Ratio (%) | 0.00  **[0000895421-23-000441_ms-20230930.htm:43]**  | 0.00  **[0000895421-24-000300_ms-20231231.htm:118]**  | N/A | 0.03  **[0000895421-24-000403_ms-20240630.htm:44]**  | 0.03  **[0000895421-24-000491_ms-20240930.htm:45]**  |
| Commercial Real Estate Net Charge-off Ratio (%) | 1.25  **[0000895421-23-000441_ms-20230930.htm:43]**  | 1.50  **[0000895421-24-000300_ms-20231231.htm:118]**  | N/A | 0.43  **[0000895421-24-000403_ms-20240630.htm:44]**  | 1.14  **[0000895421-24-000491_ms-20240930.htm:45]**  |
| Total Net Charge-off Ratio (%) | 0.07  **[0000895421-23-000441_ms-20230930.htm:43]**  | 0.08  **[0000895421-24-000300_ms-20231231.htm:118]**  | N/A | 0.02  **[0000895421-24-000403_ms-20240630.htm:44]**  | 0.07  **[0000895421-24-000491_ms-20240930.htm:45]**  |
| MABS Assets (millions)        | $526  **[0000895421-23-000441_ms-20230930.htm:98]**  | $597  **[0000895421-24-000300_ms-20231231.htm:230]**  | $741  **[0000895421-24-000322_ms-20240331.htm:97]**  | $711  **[0000895421-24-000403_ms-20240630.htm:105]**  | $759  **[0000895421-24-000491_ms-20240930.htm:109]**  |
| MABS Liabilities (millions)   | $156  **[0000895421-23-000441_ms-20230930.htm:98]**  | $256  **[0000895421-24-000300_ms-20231231.htm:230]**  | $258  **[0000895421-24-000322_ms-20240331.htm:97]**  | $258  **[0000895421-24-000403_ms-20240630.htm:105]**  | $265  **[0000895421-24-000491_ms-20240930.htm:109]**  |
| Investment Vehicles Assets (millions) | $856  **[0000895421-23-000441_ms-20230930.htm:98]**  | $753  **[0000895421-24-000300_ms-20231231.htm:230]**  | $807  **[0000895421-24-000322_ms-20240331.htm:97]**  | $817  **[0000895421-24-000403_ms-20240630.htm:105]**  | $775  **[0000895421-24-000491_ms-20240930.htm:109]**  |
| Investment Vehicles Liabilities (millions) | $508  **[0000895421-23-000441_ms-20230930.htm:98]**  | $502  **[0000895421-24-000300_ms-20231231.htm:230]**  | $508  **[0000895421-24-000322_ms-20240331.htm:97]**  | $539  **[0000895421-24-000403_ms-20240630.htm:105]**  | $573  **[0000895421-24-000491_ms-20240930.htm:109]**  |
| MTOB Assets (millions)        | $406  **[0000895421-23-000441_ms-20230930.htm:98]**  | $582  **[0000895421-24-000300_ms-20231231.htm:230]**  | $525  **[0000895421-24-000322_ms-20240331.htm:97]**  | $667  **[0000895421-24-000403_ms-20240630.htm:105]**  | $681  **[0000895421-24-000491_ms-20240930.htm:109]**  |
| MTOB Liabilities (millions)   | $402  **[0000895421-23-000441_ms-20230930.htm:98]**  | $520  **[0000895421-24-000300_ms-20231231.htm:230]**  | $483  **[0000895421-24-000322_ms-20240331.htm:97]**  | $619  **[0000895421-24-000403_ms-20240630.htm:105]**  | $630  **[0000895421-24-000491_ms-20240930.htm:109]**  |
| Other Assets (millions)       | $508  **[0000895421-23-000441_ms-20230930.htm:98]**  | $378  **[0000895421-24-000300_ms-20231231.htm:230]**  | $442  **[0000895421-24-000322_ms-20240331.htm:97]**  | $389  **[0000895421-24-000403_ms-20240630.htm:105]**  | $292  **[0000895421-24-000491_ms-20240930.htm:109]**  |
| Other Liabilities (millions)  | $202  **[0000895421-23-000441_ms-20230930.htm:98]**  | $97  **[0000895421-24-000300_ms-20231231.htm:230]**   | $124  **[0000895421-24-000322_ms-20240331.htm:97]**  | $96  **[0000895421-24-000403_ms-20240630.htm:105]**   | $98  **[0000895421-24-000491_ms-20240930.htm:109]**   |
| External TLAC as a % of RWA (%) | 56.0  **[0000895421-23-000441_ms-20230930.htm:33]**  | 55.0  **[0000895421-24-000322_ms-20240331.htm:29]**  | 55.0  **[0000895421-24-000322_ms-20240331.htm:29]**  | 55.3  **[0000895421-24-000403_ms-20240630.htm:35]**  | 53.7  **[0000895421-24-000491_ms-20240930.htm:36]**  |

379a5ac8c109a9036157c62504b133138f4bd4b6b9b3e33b0c40bb2c15b27388

2eaff7abbfb99caaa7f8f9ea91d6cef13f605fa7bdc4f25b548f1c2daa40597b

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas             | N/A     | **10,791**  **[0000895421-23-000315_ms-20230331.htm:6]** **[0000895421-23-000315_ms-20230331.htm:100]**  | **10,394**  **[0000895421-23-000374_ms-20230630.htm:117]**  | **10,268**  **[0000895421-23-000441_ms-20230930.htm:114]**  | N/A     | **11,567**  **[0000895421-24-000322_ms-20240331.htm:109]**  | **11,268**  **[0000895421-24-000403_ms-20240630.htm:121]**  | **11,557**  **[0000895421-24-000491_ms-20240930.htm:126]**  |
| EMEA                 | N/A     | **1,737**  **[0000895421-23-000315_ms-20230331.htm:6]** **[0000895421-23-000315_ms-20230331.htm:100]**   | **1,500**  **[0000895421-23-000374_ms-20230630.htm:117]**   | **1,479**  **[0000895421-23-000441_ms-20230930.htm:114]**   | N/A     | **1,826**  **[0000895421-24-000322_ms-20240331.htm:109]**   | **1,871**  **[0000895421-24-000403_ms-20240630.htm:121]**  | **1,828**  **[0000895421-24-000491_ms-20240930.htm:126]**  |
| Asia                 | N/A     | **1,989**  **[0000895421-23-000315_ms-20230331.htm:6]** **[0000895421-23-000315_ms-20230331.htm:100]**   | **1,563**  **[0000895421-23-000374_ms-20230630.htm:117]**   | **1,526**  **[0000895421-23-000441_ms-20230930.htm:114]**   | N/A     | **1,743**  **[0000895421-24-000322_ms-20240331.htm:109]**   | **1,880**  **[0000895421-24-000403_ms-20240630.htm:121]**  | **1,998**  **[0000895421-24-000491_ms-20240930.htm:126]**  |

08a31173dfaf6ce69d6b58202644a6bed7fd9b1838094022a5952102d4bc7476

Morgan Stanley is a global financial services firm that holds significant market positions in three main business segments: Institutional Securities, Wealth Management, and Investment Management. The company provides a wide range of financial products and services, including investment banking, brokerage, and asset management, catering to corporations, governments, financial institutions, and individual investors **[0000895421-24-000322_ms-20240331.htm:4]** **[0000895421-24-000491_ms-20240930.htm:5]** **[0000895421-24-000300_ms-20231231.htm:54]** **[0000895421-24-000300_ms-20231231.htm:141]**. Morgan Stanley generates revenue primarily through contracts with customers across these segments, with Institutional Securities being a major contributor due to its extensive trading and market-making activities **[0000895421-24-000403_ms-20240630.htm:120]** **[0000895421-24-000491_ms-20240930.htm:125]** **[0000895421-24-000300_ms-20231231.htm:62]** **[0000895421-24-000491_ms-20240930.htm:13]** **[0000895421-24-000322_ms-20240331.htm:10]**.

1. **Institutional Securities** - Offers investment banking services such as capital raising and financial advisory, along with equity and fixed income sales, financing, and market-making activities for corporations, governments, financial institutions, and ultra-high net worth clients **[0000895421-24-000322_ms-20240331.htm:4]** **[0000895421-24-000491_ms-20240930.htm:5]** **[0000895421-24-000300_ms-20231231.htm:54]** **[0000895421-24-000300_ms-20231231.htm:141]**.
2. **Wealth Management** - Provides financial services and solutions to individual investors and small to medium-sized businesses, including brokerage, investment advisory, banking, and retirement plan services **[0000895421-24-000322_ms-20240331.htm:4]** **[0000895421-24-000491_ms-20240930.htm:5]** **[0000895421-24-000300_ms-20231231.htm:54]** **[0000895421-24-000300_ms-20231231.htm:141]**.
3. **Investment Management** - Delivers a broad range of investment strategies and products across geographies and asset classes, serving institutional and individual clients through various investment vehicles **[0000895421-24-000322_ms-20240331.htm:4]** **[0000895421-24-000491_ms-20240930.htm:5]** **[0000895421-24-000300_ms-20231231.htm:54]** **[0000895421-24-000300_ms-20231231.htm:141]**.

1d2581f459cc139c5101b3344ac51903b8762186ca4f17579b82915d3541d3b7

0c29d92b82aa02e5e06b50a7738c71473f998d6d7580a7c8566fcbd14e378b65

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Institutional Securities | N/A  **[0000895421-23-000284_ms-20221231.htm:235]**  | **6,797**  **[0000895421-23-000315_ms-20230331.htm:6]** **[0000895421-23-000315_ms-20230331.htm:99]**  | **5,654**  **[0000895421-23-000374_ms-20230630.htm:11]** **[0000895421-23-000374_ms-20230630.htm:114]**  | **5,669**  **[0001157523-23-001495_a53609042ex99_1.htm:0]**  | **4,940**  **[0001157523-24-000060_a53881916_ex991.htm:1]**  | **7,016**  **[0000895421-24-000322_ms-20240331.htm:10]**  | **6,982**  **[0000895421-24-000403_ms-20240630.htm:7]**  | **6,815**  **[0000895421-24-000491_ms-20240930.htm:8]** **[0000895421-24-000484_a3q24msearningsrelease.htm:0]**  |
| Wealth Management | N/A  **[0000895421-23-000284_ms-20221231.htm:235]**  | **6,559**  **[0000895421-23-000315_ms-20230331.htm:6]** **[0000895421-23-000315_ms-20230331.htm:99]**  | **6,660**  **[0000895421-23-000374_ms-20230630.htm:7]** **[0000895421-23-000374_ms-20230630.htm:114]**  | **6,404**  **[0001157523-23-001495_a53609042ex99_1.htm:0]**  | **6,645**  **[0001157523-24-000060_a53881916_ex991.htm:1]**  | **6,880**  **[0000895421-24-000322_ms-20240331.htm:6]**  | **6,792**  **[0000895421-24-000403_ms-20240630.htm:7]**  | **7,270**  **[0000895421-24-000491_ms-20240930.htm:8]** **[0000895421-24-000484_a3q24msearningsrelease.htm:0]**  |
| Investment Management | N/A  **[0000895421-23-000284_ms-20221231.htm:235]**  | **1,289**  **[0000895421-23-000315_ms-20230331.htm:6]** **[0000895421-23-000315_ms-20230331.htm:99]**  | **1,281**  **[0000895421-23-000374_ms-20230630.htm:7]** **[0000895421-23-000374_ms-20230630.htm:114]**  | **1,336**  **[0001157523-23-001495_a53609042ex99_1.htm:0]**  | **1,464**  **[0001157523-24-000060_a53881916_ex991.htm:1]**  | **1,377**  **[0000895421-24-000322_ms-20240331.htm:6]**  | **1,386**  **[0000895421-24-000403_ms-20240630.htm:7]**  | **1,455**  **[0000895421-24-000491_ms-20240930.htm:8]** **[0000895421-24-000484_a3q24msearningsrelease.htm:0]**  |

4cc877a13a8dceadaf60d534e611b5ddb445fa34d92651dbe15abdb6f9a3f176

1. With the Fed's recent rate cuts and shifting expectations around future monetary policy, how do you plan to sustain or grow Net Interest Income in Wealth Management next year given pressures on deposit betas and uncertainty in the rate environment?

2. Given the strong fee-based asset flows into fixed income and alternative products, how sustainable are these trends if interest rates rise or markets become less constructive, and what impact could that have on your fee rates and overall asset flows?

3. With potential changes from upcoming Basel III regulations and the associated capital uncertainties, how are you balancing capital allocation between maintaining strong capital ratios, investing in global growth opportunities, and returning capital to shareholders through buybacks, especially considering possible capital constraints?

4. You have achieved significant operating leverage through disciplined expense management, but as you continue to invest in growth and infrastructure, how realistic is it to maintain or improve your efficiency ratio, and where do you see further opportunities for cost savings without compromising growth?

5. Considering your significant investments in Europe and Asia and the benefits you've cited from your global integrated investment bank model, how do you assess the risks and rewards of these international expansions, particularly in regions with economic or political volatility, and how does this impact your overall growth strategy?

1b39ccf5ac5c72f5bf290593fceeeba30a0c9780da20f6d102ee883d9a96d521

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

43f4179f978c003141aa4194847cb139d42c0b2a68a53a149d1c54e7e5438793

Separately Managed (billions)

Unified Managed (billions)

Advisor (billions)

Portfolio Manager (billions)

Cash Management (billions)

Physical Commodities (millions)

One-notch downgrade (millions)

Two-notch downgrade (millions)

Bilateral downgrade agreements (millions)

Other Credit Contracts (billions)

Corporate Net Charge-off Ratio (%)

Secured Lending Facilities Net Charge-off Ratio (%)

Commercial Real Estate Net Charge-off Ratio (%)

MABS Assets (millions)

MABS Liabilities (millions)

Investment Vehicles Assets (millions)

Investment Vehicles Liabilities (millions)

MTOB Assets (millions)

MTOB Liabilities (millions)

Other Assets (millions)

Other Liabilities (millions)

External TLAC as a % of RWA (%)

9170d8850480ce504481186a39159ed10ee0693abb33617a5b075e9ae4ec05ab

Morgan Stanley’s Q4 shows M&A pipelines at 7-year highs and robust wealth momentum—assets jumped from $6.6T to $7.9T, nearing the $10T goal. With 70% of deposits from WM clients and only 16% of households borrowing, deeper bank-wealth integration could unlock further upside.

18d14e972f988f87ea94272cdcf883a86a931b0aba92fc3acd04f391cd164af9

Americas

EMEA

Asia

Asia-Pacific

Total Revenue

10a88812a062556625a2cfa6568e918cef65de74f589fe3bef6168bb96f6c2d0

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Net Interest Income (NII)**: Expected to be modestly down from Q3 results due to lower rate expectations  **[MS_3402886_2]** .
  2. **Deposit Trends**: Stabilization in deposits is encouraging as the Federal Reserve cuts rates  **[MS_3402886_2]** .
  3. **Loan Growth**: Continued growth expected, driven by mortgages and other lending products  **[MS_3402886_2]** .
  4. **Efficiency and Operating Leverage**: Focus on maintaining efficiency with a year-to-date efficiency ratio of 72%  **[MS_3402886_1]** .
  5. **Capital Allocation**: Continued investment in all segments and a planned buyback of over $3 billion for the year  **[MS_3402886_6]** .
  6. **Asset Management Fee-Based Revenues**: Expected to continue rising  **[MS_3402886_7]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2025
- **Guidance**:
  1. **Net Interest Income (NII)**: Potential decline in Q3 due to changes in advisory sweep rates, but expected to increase next year  **[MS_3393375_4]** **[MS_3393375_7]** .
  2. **Wealth Management Pretax Margin**: Targeting a 30% pretax margin over time, with a reported margin of 27% in Q2  **[MS_3393375_0]** **[MS_3393375_8]** .
  3. **Efficiency Ratio**: Aim to run at or below a 70% efficiency ratio  **[MS_3393375_16]** .
  4. **Return on Tangible Common Equity (ROTCE)**: Reported 17.5% for Q2 and 18.6% year-to-date  **[MS_3393375_1]** **[MS_3393375_0]** .
  5. **Dividend**: Increased quarterly dividend by $0.075 to $0.925  **[MS_3393375_0]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  1. **Net Interest Income (NII)**: Expected to be roughly in line with Q1  **[MS_3379862_3]** .
  2. **Client Assets**: Path to achieving $10 trillion in client assets  **[MS_3379862_3]** .
  3. **Pretax Profit Margin**: Aim for sustainable 30% pretax profits in Wealth Management  **[MS_3379862_3]** .
  4. **Tax Rate**: Expected to be approximately 23%  **[MS_3379862_3]** .
  5. **Efficiency Ratio**: Goal of maintaining a 70% efficiency ratio  **[MS_3379862_7]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information about the guidance provided in the Q4 2023 earnings call. Therefore, I cannot provide an exhaustive list of metrics guided for in that specific earnings call.

6e0c7b5f3f7bf055b746e71b11a3570a4ac125267c80ef0dce7fe96674d7c711

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                      | Start Date          | Short Bio                                                                                                                                                                                                                       |
|-----------------------|-----------------------------------------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Edward Pick           | Chief Executive Officer                       | January 2024        | Edward Pick has been serving as the **Chief Executive Officer of Morgan Stanley since January 2024**. He was Co-President and Co-Head of Corporate Strategy from June 2021 to December 2023, and Head of Institutional Securities from July 2018 to December 2023  **[0000895421-24-000300_ms-20231231.htm:23]** **[0001140361-24-018302_ny20020759x1_def14a.htm:19]** . |
| James P. Gorman       | Executive Chairman of the Board of Directors  | January 2012        | James P. Gorman, aged 65, has been serving as the **Executive Chairman of the Board of Directors at Morgan Stanley since January 2012**. He was the Chief Executive Officer from January 2012 to December 2023  **[0000895421-24-000300_ms-20231231.htm:23]** **[0001140361-24-018302_ny20020759x1_def14a.htm:15]** **[0001140361-23-016930_ny20005681x1_def14a.htm:14]** .                                             |
| Mandell L. Crawley    | Executive Vice President and Chief HR Officer | February 2021       | Mandell L. Crawley is the **Executive Vice President and Chief Human Resources Officer** at Morgan Stanley, a position he has held since **February 2021**. He was previously the Head of Private Wealth Management  **[0000895421-24-000300_ms-20231231.htm:23]** **[0000895421-23-000284_ms-20221231.htm:23]** .                                           |
| Eric F. Grossman      | Executive Vice President and Chief Legal Officer | January 2012     | Eric F. Grossman is the **Executive Vice President and Chief Legal Officer** of Morgan Stanley, a position he has held since **January 2012**. He also serves as the Chief Administrative Officer since July 2022  **[0000895421-24-000300_ms-20231231.htm:23]** **[0000895421-23-000284_ms-20221231.htm:23]** .                                              |
| Andrew M. Saperstein  | Co-President                                  | June 2021           | Andrew M. Saperstein, aged **57**, has been serving as Co-President of Morgan Stanley since **June 2021**. He was previously the Head of Wealth Management from April 2019 to December 2023  **[0000895421-24-000300_ms-20231231.htm:23]** .                                                                        |
| Daniel A. Simkowitz   | Co-President                                  | January 2024        | Daniel A. Simkowitz, aged 58, has been serving as Co-President of Morgan Stanley since January 2024. He was the Head of Investment Management from October 2015 to December 2023  **[0000895421-24-000300_ms-20231231.htm:23]** .                                                                                   |
| Charles A. Smith      | Executive Vice President and Chief Risk Officer | May 2023          | Charles A. Smith is the **Executive Vice President and Chief Risk Officer** of Morgan Stanley, a position he has held since **May 2023**. He was previously the Head of Institutional Securities Business Development  **[0000895421-24-000300_ms-20231231.htm:23]** .                                             |
| Sharon Yeshaya        | Executive Vice President and Chief Financial Officer | June 2021       | Sharon Yeshaya is the **Executive Vice President and Chief Financial Officer** of Morgan Stanley, a position she has held since **June 2021**. She was previously the Head of Investor Relations  **[0000895421-24-000300_ms-20231231.htm:23]** **[0000895421-23-000284_ms-20221231.htm:23]** .                                                               |
| Edward (Ted) Pick     | Chairman of the Board of Directors            | January 1, 2025     | Edward (Ted) Pick has been serving as the **Chief Executive Officer of Morgan Stanley since January 1, 2024** and will become Chairman of the Board of Directors effective January 1, 2025  **[0000950103-24-015350_dp219753_ex9901.htm:0]** **[0000950103-24-015350_dp219753_8k.htm:2]** **[0001140361-24-018302_ny20020759x1_def14a.htm:57]** .                                                                   |
| James Gorman          | Chairman Emeritus                             | January 1, 2025     | James P. Gorman will be named **Chairman Emeritus** effective January 1, 2025, as he steps down from his role as Chairman. He served as Chairman of the Board and Chief Executive Officer from January 2012 to December 2023  **[0000950103-24-015350_dp219753_8k.htm:2]** **[0000950103-24-015350_dp219753_ex9901.htm:0]** .                                    |

3b65fcbb5a4dad358fa5ff0692462e557d7a841068dbdea1df8efb14759617ab

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **June 28, 2024**  **[0000895421-24-000491_ms-20240930.htm:135]**  |
| End Date/Duration        | No set expiration date  **[0000895421-24-000491_ms-20240930.htm:135]**  |
| Total additional amount  | **$20 billion**  **[0000895421-24-000491_ms-20240930.htm:135]**  |
| Remaining authorization amount | **$19,250 million**  **[0000895421-24-000491_ms-20240930.htm:135]**  |
| Details                  | Multi-year repurchase program for capital management, considering business segment capital needs, stock-based compensation, and benefit plan requirements. Repurchases may be through open market purchases or privately negotiated transactions and can be suspended at any time.  **[0000895421-24-000491_ms-20240930.htm:135]** **[0000895421-24-000300_ms-20231231.htm:243]** **[0000895421-24-000300_ms-20231231.htm:279]** **[0000895421-23-000441_ms-20230930.htm:107]**  |

e33e6feb4a753ee2e0a413d9d916887b3c6909f72507df0192235d3895c03033

ef4e3c46c8da1503b253540e6a3b570260ca2137c55bd15283ce7d21e2a0f31d

**Quarterly guidance for Q1 2025:**
- **Net Interest Income (NII)**: Expected to remain stable at $1.9 billion  **[MS_3412704_6]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **M&A Pipelines**: Anticipated to be healthy and diversified  **[MS_3412704_4]**  (no prior guidance)  
- **Tax Rate**: Approximately 24%  **[MS_3412704_6]**  (no prior guidance)  
- **Efficiency Ratio**: Long-term goal of 70%  **[MS_3412704_18]**  (no prior guidance)  
- **Wealth Management Net New Assets (NNA)**: On track for $10 trillion+ total client assets  **[MS_3412704_1]**  (no prior guidance)  
- **Dividend Growth**: Raised to $0.925 per share  **[MS_3412704_2]**  (no prior guidance)  
- **Investments in Growth**: Continued investments in key business areas  **[MS_3412704_1]**  (no prior guidance)  
- **Channel Migration (Wealth Management)**: $300 billion migrated since 2020  **[MS_3412704_20]**  (no prior guidance)  

a44ad1d74c089679968e6b56ed02e5d392673c9a4bdb5a0bc8c19d334047b597

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1997  **[0000895421-24-000300_ms-20231231.htm:137]**  | Present  | Current auditor   |

b13da342232132dbf913c86006baeed50e96648dac4239f2f1858ac8bd0390cf

Annualized weighted average cost of deposits (Period End) (percent)

Annualized weighted average cost of deposits (Period Average for three months ended) (percent)

Net new assets (billions of USD)

Fee-based asset flows (billions of USD)

Daily average revenue trades (thousands)

Self-directed households (millions)

Self-directed client assets (billions of USD)

Stock plan participants (millions)

Stock plan unvested assets (billions of USD)

Fee-based client assets (billions of USD)

6c849067ebdd1ce6977ad6c9dc656d698c360390e4a010562864b727f801d794

947718386f1e3a6ed51133cfdf04ca1a7f65d5731d86520cdde31c0ec750a25e

- **Incomplete Integration of the Bank and Wealth Businesses:** Morgan Stanley's integration of its bank and wealth management businesses is still a work in progress. The executive stated they are "**definitely not there yet**" and "**still have a lot to do when we think about the bank**." This lag behind peers may hinder the firm's ability to fully realize growth opportunities from deposit growth and client servicing.  **[MS_3412704_10]**
- **Margin Pressure Due to Ongoing Investments in Wealth Management:** Despite strong revenue growth in Wealth Management, ongoing investments in technology, marketing, and expansion efforts may prevent the firm from achieving its **30% pretax margin** target in the near term. The executive emphasizes the importance of making necessary investments even if they are "**margin dilutive**," suggesting that margin expansion might be delayed.  **[MS_3412704_15]**
- **Potential Regulatory Compliance Challenges in Wealth Management:** Questions about Morgan Stanley's investments in AML/BSA systems indicate potential concerns regarding regulatory compliance in Wealth Management. Addressing these compliance requirements is critical for pursuing growth opportunities in international wealth, and any delays or shortcomings could impede expansion.  **[MS_3412704_9]**

cdcda25fd6501bbddab568a9a2541e8fb772e3689b37c9a7325319f86626783c

1. **M&A Pipeline Strength**  
   **Q:** Are your M&A backlogs at record levels?  
   **A:** Yes, our M&A pipelines are at their **highest in 7 years** globally.  **[MS_3412704_13]**  We're seeing pent-up activity starting to release, with increased demand for transactions, including IPOs and capital raises.  **[MS_3412704_13]**  If markets remain constructive, we expect increasing activity throughout **2025**.  **[MS_3412704_13]** 

2. **Wealth Management Margin Target**  
   **Q:** Why not exceed a 30% Wealth Management margin?  
   **A:** While we're already at a **29%** margin on a core basis, we aim for **durable growth** and continue to invest in areas like workplace and technology.  **[MS_3412704_15]**  We don't want to sacrifice long-term growth by pulling back on investments to meet short-term targets.  **[MS_3412704_15]** 

3. **Loan Growth Momentum**  
   **Q:** What's driving recent loan growth and are capabilities sufficient?  
   **A:** We've seen a decline in loan paydowns and increased line usage, especially in securities-based lending as markets rise.  **[MS_3412704_11]**  We believe we have the necessary capabilities and are well-positioned to benefit from the changing environment to further increase loan growth.  **[MS_3412704_11]** 

4. **Bank Integration and Deposits**  
   **Q:** Where do you stand on integrating the bank with wealth business?  
   **A:** We're **not fully there yet** but see the bank as a significant growth engine.  **[MS_3412704_10]**  Over **70%** of our deposits come from Wealth Management clients, mainly from sweeps and savings accounts.  **[MS_3412704_10]**  There's much more we can do to grow the deposit base and expand lending to wealth clients.  **[MS_3412704_10]** 

5. **Risk Management Focus**  
   **Q:** What risks are you monitoring beyond geopolitical concerns?  
   **A:** We're actively managing risks related to interest rate regime changes and potential stagflation.  **[MS_3412704_21]**  We also focus on geopolitical uncertainties affecting our global business.  **[MS_3412704_21]**  Continuous stress testing helps us prepare for unforeseen events and maintain balance sheet flexibility.  **[MS_3412704_21]** 

6. **Client Cash Trends**  
   **Q:** When will clients shift cash back into markets?  
   **A:** We're seeing encouraging signs as clients move cash from sweep accounts into market investments.  **[MS_3412704_12]**  There's a strong increase in flows from sweeps into asset-level products, indicating changing retail investor sentiment.  **[MS_3412704_12]** 

7. **Wealth Management Organic Growth**  
   **Q:** Can you accelerate organic growth to meet the $1 trillion target?  
   **A:** Despite recent headwinds, we've grown combined Wealth and Investment Management assets from **$6.6 trillion** to **$7.9 trillion** in a year.  **[MS_3412704_17]**  We see significant opportunities, especially as market conditions improve and monetization events increase.  **[MS_3412704_17]** 

8. **Investment Management in Private Markets**  
   **Q:** Will you expand more into private equity and credit?  
   **A:** We're building a diversified platform and benefiting from synergies with the Eaton Vance acquisition.  **[MS_3412704_19]**  There's much more to do in private credit, private equity, and infrastructure, and we'll continue to participate in these growth areas.  **[MS_3412704_19]** 

9. **AML/BSA Investments**  
   **Q:** Are your AML/BSA systems ready for international wealth growth?  
   **A:** Yes, we've been investing across all processes and systems to ensure robust infrastructure.  **[MS_3412704_9]**  This includes meeting higher regulatory compliance standards to support our growth objectives.  **[MS_3412704_9]** 

10. **Advisor Retention and Companion Accounts**  
    **Q:** What's the update on advisor retention and companion accounts?  
    **A:** The integration of E*TRADE and Morgan Stanley platforms is largely complete.  **[MS_3412704_20]**  We're focusing on channel migration, with **$300 billion** moving from Workplace to advisor-led channels since **2020**.  **[MS_3412704_20]** 

11. **ISG Compensation Ratio**  
    **Q:** Is the 31% ISG comp ratio sustainable?  
    **A:** We manage expenses holistically and focus on overall efficiency rather than giving specific guidance on one expense line.  **[MS_3412704_18]**  Our goal is to maintain a **70% efficiency ratio** over the long term.  **[MS_3412704_18]** 

12. **Partnership with Carta**  
    **Q:** How will the Carta partnership boost growth?  
    **A:** The exclusive partnership with Carta will refer private companies to us as they go public.  **[MS_3412704_16]**  This offers exciting opportunities on the wealth side and strengthens relationships as companies transition.  **[MS_3412704_16]** 

13. **Trading Performance Drivers**  
    **Q:** How do you differentiate environment vs. actions in trading gains?  
    **A:** Our focus on the integrated investment bank has allowed us to deliver a full product set across equities, fixed income, and capital markets.  **[MS_3412704_8]**  By mobilizing teams and prudently deploying risk-weighted assets, we've achieved durable share gains.  **[MS_3412704_8]** 

15294daa6ca6e36055acba7004c267a83d07d02151f8f220c9dd8159dd66f7df

5ec2f38bdbf77599c17b31f19724a7a9adb0ec2f67b8e8943b07ae3409894e79

- **Net Interest Income is expected to decline modestly in the fourth quarter**, primarily due to lower rate expectations, potentially impacting revenues in the Wealth Management segment.  **[MS_3402886_7]**
- The **shift towards lower-fee products in Investment Management**, such as parametric strategies and fixed income, may **pressure profitability** over the long term due to lower fees.  **[MS_3402886_12]**
- The **sustainability of operating leverage improvements** is uncertain, as continued investments required for growth and infrastructure may limit further efficiency gains despite prior cost-cutting measures.  **[MS_3402886_4]**

976a5fd9dc1a0e4221d6814413e018f7ec51df46ddaf84bda6380015daa76c95

- **Declining Net Interest Income (NII) in Wealth Management is expected to continue**, with management indicating that NII will be lower next quarter due to deposit rate trends, posing a headwind to revenues and margins.  **[MS_3337637_20]** ,  **[MS_3337637_16]**
- **Challenges in achieving the 30% pretax margin target in Wealth Management without NII tailwinds**, as the company balances investment in growth with margin improvement, potentially affecting profitability targets.  **[MS_3337637_17]** ,  **[MS_3337637_16]**
- **Increased expenses due to competition for talent and severance costs** could pressure margins and overall profitability, requiring careful expense management amidst investments for future growth.  **[MS_3337637_12]**

d4282388e6f98670f986e5a6a62e3026dbc627613327a2ce24a50d98ccaa816a

- **Morgan Stanley's Institutional Securities Group (ISG) has improved its Fixed Income trading performance**, demonstrating resilience even in traditionally slow quarters due to business restructuring and effectively capturing market volatility.  **[MS_3337637_19]**
- **The Wealth Management division is close to achieving its 30% pretax margin target**, with margins currently at 28% excluding integration costs. Management is confident in reaching this goal through an asset-led strategy focused on growing asset management and transactional revenues, leveraging technology investments, and attracting new clients and advisers.  **[MS_3337637_17]** **[MS_3337637_4]** **[MS_3337637_10]**
- **Morgan Stanley's Investment Banking backlog continues to rise**, with diversified opportunities across sectors such as financial sector consolidation, energy transitions, and technology (including AI). The firm is investing in talent and international expansion, particularly in regions like Asia, the Middle East, and India, positioning itself for future growth.  **[MS_3337637_11]** **[MS_3337637_9]** **[MS_3337637_20]**

be129f5eee7e5db83be93a41edd599c1b6f5f839f92a319e42050585c002289e

1. **ROTCE Target of 20%**  
   **Q:** How will you achieve the 20% ROTCE target?  
   **A:** Management emphasized that reaching the **20% ROTCE** is achievable and not a remarkable feat, given past performance. They plan to bridge the gap by focusing on expense management, expecting banking revenues to recover, and benefiting from assets moving into annuitized products. Despite the current ROTCE of **14%**, they are confident that improvements in the market environment will help them achieve the target.  **[MS_3337637_5]** 

2. **Wealth Management Revenue Growth**  
   **Q:** Why hasn't asset growth translated into revenue growth in Wealth Management?  
   **A:** Management is impressed with the resiliency of the Wealth Management business, highlighting the capture of **$235 billion** in assets over the past year. They noted increased fee-based flows and believe their strategy to grow asset management revenues is working. With **23%** of retail client assets in cash—higher than historical averages—they expect clients to deploy this cash into markets as conditions improve, boosting revenues.  **[MS_3337637_4]** 

3. **Impact of High Rates on NII**  
   **Q:** Are high interest rates a structural challenge for Wealth Management NII?  
   **A:** Management does not view high rates as a structural issue. They explained that when clients can earn **4% to 5%** returns by holding cash, they are less inclined to trade, impacting transactional revenues. As rates eventually come down, they expect clients to re-enter the markets, reducing cash levels and increasing activity. They anticipate that NII may be impacted over the next **12 months** but are optimistic about future growth as rates normalize.  **[MS_3337637_6]** 

4. **International Expansion and M&A Strategy**  
   **Q:** What are your plans for international expansion and M&A?  
   **A:** Management sees significant opportunities for international growth, particularly in regions like Japan, India, the Middle East, and Europe. They plan to pursue strategic transactions in Wealth and Asset Management over the next **three years** and are investing in partnerships like the **MUFG 2.0** collaboration in Japan. They are strategically planning potential acquisitions to drive growth.  **[MS_3337637_9]** 

5. **CEO Transition Timing**  
   **Q:** Is the CEO transition causing strain on the organization?  
   **A:** Management does not believe the CEO transition is causing strain. The Board is conducting a thorough process, and the transition will occur at an appropriate time. They emphasized that the team is performing well and are focused on ensuring a smooth handover without distractions.  **[MS_3337637_7]** 

98aad38cc64bee6f9f2cec9fddf66cd8c9aa628b97a361965b93de03ecb29beb

- **Morgan Stanley expects Net Interest Income (NII) in Wealth Management to decline modestly in the third quarter**, mainly due to changes in advisory sweep rates and ongoing client behavior, potentially putting pressure on near-term revenues.  **[MS_3393375_7]**
- **Increased spending by high-net-worth clients is leading to higher cash outflows**, which may negatively impact net new assets and flows in the Wealth Management segment.  **[MS_3393375_14]**
- **Regulatory uncertainties, including potential impacts from Basel III and CCAR stress tests, could constrain Morgan Stanley's capital position**, affecting its ability to pursue growth opportunities and potentially limiting returns in the Institutional Securities Group.  **[MS_3393375_21]** **[MS_3393375_19]**

7dae3b00662876d05bd8abd6c58c6857b8f77284af3ea1c898f82856784e122d

- **Morgan Stanley's M&A pipelines are at their highest in 7 years**, indicating strong potential for revenue growth in investment banking. The pent-up activity is starting to release, and increasing demand for IPOs and capital raises suggests that **increasing activity is expected as the year goes on**.  **[MS_3412704_13]**
- **Wealth Management assets grew from $6.6 trillion to $7.9 trillion in one year**, showing strong momentum towards the firm's **$10 trillion asset goal**. Fee-based flows increased from **$109 billion to $123 billion in 2024**, reflecting robust organic growth and client acquisition.  **[MS_3412704_17]**
- The integration of the bank with Wealth Management presents significant growth opportunities. **Over 70% of deposits come from Wealth Management clients**, and there is potential to **expand lending**, as Morgan Stanley currently lends to only **16% of its households**, compared to best-in-class peers at mid-20%. This indicates room for **growing both deposits and loans in a smart way over the next 5 to 10 years**.  **[MS_3412704_10]**

4fe19de2742607458eea8c5a5c839db4b330c5332cd656252addcbf19174cd0c

1. **Investment Banking Rebound**  
   **Q:** Why is the investment banking rebound real this time?  
   **A:** Ted Pick explained that despite past delays, they are now seeing signs of an investment banking rebound due to tempering inflation, rate normalization, and market broadening.  **[MS_3393375_9]**  Early indicators include significant increases in global convertible activity, which typically precedes IPOs and M&A.  **[MS_3393375_9]**  They are witnessing bake-offs running at **triple-plus year-over-year rates**, the launch of traditional IPOs, and an active M&A pipeline.  **[MS_3393375_9]**  He is confident they are in the early stages of a multi-year investment banking-led cycle.  **[MS_3393375_9]** 

2. **Net Interest Income Outlook**  
   **Q:** What is the outlook for Net Interest Income (NII)?  
   **A:** Sharon Yeshaya expects an inflection in NII over the next year.  **[MS_3393375_7]**  As rate cuts occur, they anticipate sweep deposit balances to stabilize and potentially increase.  **[MS_3393375_7]**  Additionally, portfolio repricing and lending growth will contribute positively to NII.  **[MS_3393375_7]**  They have seen encouraging signs, such as lending growth this quarter for the first time since interest rate hikes began.  **[MS_3393375_7]** 

3. **30% Pre-Tax Margin Target**  
   **Q:** Is the 30% pre-tax margin target achievable, and when?  
   **A:** Ted Pick expressed high confidence in reaching the **30% pre-tax margin** target over time.  **[MS_3393375_8]**  He noted that asset management fees are up **4% sequentially and 16% year-over-year**.  **[MS_3393375_8]**  While transactional revenues have been weak due to capital markets activity, NII is expected to inflect.  **[MS_3393375_8]**  By continuing to grow assets and scale the business, they intend to achieve operating leverage and reach the target in the coming quarters.  **[MS_3393375_8]** 

4. **Capital Allocation and Acquisitions**  
   **Q:** Are there plans for acquisitions given capital levels?  
   **A:** Ted Pick stated that their priority for capital use is dividend policy, increasing the dividend to **$0.925**.  **[MS_3393375_19]**  They are also investing in clients and have returned over **$2 billion** through dividends and buybacks this past quarter.  **[MS_3393375_19]**  While external inorganic opportunities may be considered in the future, they are not focusing on acquisitions in the short term and are satisfied with their past acquisitions.  **[MS_3393375_19]** 

5. **Trading Revenue Outlook**  
   **Q:** Can trading revenues grow from current levels?  
   **A:** Ted Pick believes they can grow durable market share in trading businesses connected to their core client base.  **[MS_3393375_20]**  By offering products to global asset managers and alternative asset managers, they aim to incrementally increase revenues responsibly over time.  **[MS_3393375_20]**  With their global footprint and potential asset price momentum broadening, they see opportunities for growth.  **[MS_3393375_20]** 

6. **Deposit Repricing Impact**  
   **Q:** How will deposit repricing impact NII?  
   **A:** Sharon Yeshaya indicated that changes to deposit pricing will occur in the **third quarter** and are based on competitive dynamics.  **[MS_3393375_12]**  The increased pricing on a small portion of adviser-led sweep balances is expected to be offset by the repricing of the investment portfolio as it matures.  **[MS_3393375_6]** 

7. **Client Spending Effects**  
   **Q:** Is increased client spending affecting flows?  
   **A:** Sharon Yeshaya noted increased spending by higher-net-worth clients, which is influencing flows.  **[MS_3393375_14]**  They observe higher spending in purchases of homes and various tailored investments.  **[MS_3393375_14]**  This trend could continue as part of client behavior.  **[MS_3393375_14]** 

8. **Workplace Channel Growth**  
   **Q:** Will capital markets rebound boost the workplace channel?  
   **A:** Sharon Yeshaya affirmed that as workplace assets rise with new corporations issuing stock and growing employee bases, it will add participants and net flows.  **[MS_3393375_18]**  The integration of Solium, E*TRADE, and the workplace platforms allows clients to transact, enhancing the ecosystem.  **[MS_3393375_18]** 

9. **Operating Leverage in ISG**  
   **Q:** What is the expected operating leverage in ISG?  
   **A:** Sharon Yeshaya emphasized focusing on the firm's efficiency ratio target of **70%** over time.  **[MS_3393375_16]**  While operating leverage depends on revenue mix, achieving a **30% margin** across the enterprise is the goal.  **[MS_3393375_16]** 

10. **Regulatory Feedback on Deposits**  
    **Q:** Did regulators prompt deposit pricing changes?  
    **A:** Sharon Yeshaya declined to comment on regulatory matters.  **[MS_3393375_17]** 

dfeecfbe4819faa5ca00ee8058596f993314ed6b6b12bf8deac5c9c5d85d7867

1. **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%**.  **[MS_3402886_6]**  This buffer allows us to balance financial strength with investing in our businesses across Wealth Management, Investment Management, and the Investment Bank globally.  **[MS_3402886_6]**  While Basel III uncertainty may last through the election, we continue to prioritize dividends, invest opportunistically, and execute share buybacks.  **[MS_3402886_6]** 

2. **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.  **[MS_3402886_7]**  While NII may be modestly down quarter-over-quarter, we're seeing positive momentum in asset growth and sweeps.  **[MS_3402886_7]**  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.  **[MS_3402886_13]** 

3. **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.  **[MS_3402886_4]**  For example, occupancy costs increased only **$11 million** year-to-date, despite investments in space optimization and new technology.  **[MS_3402886_4]**  We're self-funding investments in growth areas while maintaining declines in areas like professional services.  **[MS_3402886_4]** 

4. **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.  **[MS_3402886_14]**  We expect the IPO market to slowly return, with larger, mature companies going public globally.  **[MS_3402886_14]**  These companies will need the full-service suite of a global investment bank, and we're well-positioned to advise them.  **[MS_3402886_14]** 

5. **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.  **[MS_3402886_10]**  Human referrals have doubled, surpassing **100,000 year-to-date**.  **[MS_3402886_10]**  This approach allows new clients to experience the value of advice, supporting continued momentum in asset growth.  **[MS_3402886_10]** 

6. **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.  **[MS_3402886_15]**  As rates come down, we expect increased activity in mortgages and securities-based loans.  **[MS_3402886_15]** 

7. **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.  **[MS_3402886_19]**  For example, advisors can use AI to query our research portal and receive summarized insights, saving time and increasing productivity.  **[MS_3402886_19]** 

8. **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.  **[MS_3402886_11]**  Our local commitments in Europe and Asia position us to capitalize on global investment banking opportunities as markets recover.  **[MS_3402886_11]** 

9. **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.  **[MS_3402886_20]**  As we offer more products under the fee-based model, we expect durable revenue growth despite potential fee rate pressures.  **[MS_3402886_20]** 

4e68860779f4d1b53f15753c78ec1483911604266e99f8246b9a0f9a7ac46384

1. **M&A Outlook**  
   **Q:** How strong is the M&A pipeline ahead?  
   **A:** Ted Pick notes that the **pipeline is clearly growing across sectors and on a cross-border basis**.  **[MS_3379862_5]**  He believes they are in the **early innings of a multiyear M&A cycle**  **[MS_3379862_5]** , with activity expected from both financial sponsors and corporate clients bidding for assets.

2. **Competition from Private Credit**  
   **Q:** How is private credit impacting your leveraged finance business?  
   **A:** Ted Pick acknowledges that the **competition is real**  **[MS_3379862_17]** , but he believes global investment banks will continue to have a **large role in underwriting securities**.  **[MS_3379862_17]**  He asserts there's ample room in the ecosystem for both private credit and investment banks.

3. **Expense Management**  
   **Q:** How are you optimizing expenses and margins?  
   **A:** Sharon Yeshaya discusses efforts to **rationalize the expense base** by consolidating marketing dollars, professional services, and making big-picture decisions on space and resources.  **[MS_3379862_7]**  They are focused on achieving a **70% efficiency ratio**  **[MS_3379862_7]** , with an emphasis on strategic investments and delivering earnings growth. Ted Pick adds that they are **actively talking about the income statement** and aiming to **generate operating leverage**.  **[MS_3379862_7]** 

4. **Wealth NII Stability**  
   **Q:** Is NII in wealth management stabilizing?  
   **A:** Sharon Yeshaya notes that they are **reaching the frictional level of cash**  **[MS_3379862_6]** , and client behavior is following expectations. She states there are **no large changes or movements in real client behavior**, suggesting NII is stabilizing.  **[MS_3379862_6]** 

5. **Wealth Assets vs. Revenue**  
   **Q:** Why is wealth management revenue growing less than client assets?  
   **A:** Sharon Yeshaya explains that different assets have different fees, and as assets **move from brokerage to advice-based accounts**, revenues will grow over time.  **[MS_3379862_11]**  The focus is on **growing the funnel** and deepening client relationships, with **record high asset management revenues** demonstrating the model is working.  **[MS_3379862_11]** 

6. **Client Cash Deployment**  
   **Q:** What's the opportunity as client cash is redeployed?  
   **A:** Sharon Yeshaya says client cash levels are **high relative to pre-COVID levels**, currently at **20-21%** compared to historical **17-18%**.  **[MS_3379862_13]**  There is room for **deployment of cash over time into the market**, which could enhance revenues as clients invest.  **[MS_3379862_13]** 

7. **Trading Growth Opportunities**  
   **Q:** How can trading results continue to improve?  
   **A:** Sharon Yeshaya mentions growth opportunities in **corporate solutions**, **financing**, and offering **private credit**.  **[MS_3379862_15]**  Ted Pick adds they're focusing on expanding in **credit**, **prime brokerage**, and **derivatives**, working closely with **financial sponsors** and **alternative asset managers**.  **[MS_3379862_15]** 

8. **Institutional NII Decline**  
   **Q:** Why is firm-wide NII declining despite stability in wealth NII?  
   **A:** Sharon Yeshaya explains that **trading NII depends on products and funding sources** and differs from business-driven wealth management NII.  **[MS_3379862_9]**  The decline in firm-wide NII is due to the nature of **trading activities**, which are managed differently.  **[MS_3379862_9]** 

9. **Family Office Flows**  
   **Q:** Can you provide context on family office flows?  
   **A:** Sharon Yeshaya highlights that **half of the flows came from the family office offering**.  **[MS_3379862_14]**  This reflects efforts to offer institutional-style products to ultra-high-net-worth clients, leveraging capabilities from both institutional and wealth management divisions.  **[MS_3379862_14]**  Ted Pick adds that this integrated approach helps **keep funds in-house** and provides clients with **institutional-style capabilities**.  **[MS_3379862_14]** 

10. **Impact of Higher Rates**  
    **Q:** Do higher rates affect your optimistic outlook?  
    **A:** Ted Pick says it depends on why rates are higher. If rates are elevated due to **sustained growth in the U.S. economy**, it supports their optimism.  **[MS_3379862_18]**  He believes companies need to act after being **quiet for 3-4 years**, and higher rates can be absorbed within a growing economy.  **[MS_3379862_18]** 

ababdbf221d01b7c8a5607c4d58ce28903bdde4d910131d2baf173816c173198

- **Morgan Stanley expects a resurgence in IPOs and M&A activity globally**, particularly with larger private companies going public, which will benefit their **strong Equity Capital Markets franchise**.  **[MS_3402886_14]**
- **The firm is leveraging AI technology, including a partnership with OpenAI**, to enhance productivity and provide advanced tools for financial advisors, positioning them for growth and efficiency gains in their **Wealth Management business**.  **[MS_3402886_19]**
- **Morgan Stanley's global presence and investments outside the U.S. are paying off**, allowing them to **capture growth opportunities in Europe and Asia** as activity in these markets increases.  **[MS_3402886_11]**

3e0a3fe317ef4c5e2ca15fe439abc89f11715d623fb3e39892d2fae580040e67

- Morgan Stanley's Wealth Management business is confidently progressing towards its **30% pretax margin target**, having achieved **27% GAAP margin** and **28% core** in the recent quarter, driven by **asset management fees up 4% sequentially and 16% year-over-year**, with **$26 billion** in net new fee-based assets last quarter.  **[MS_3393375_8]**
- The firm is experiencing **real operating leverage in the Investment Bank**, with expectations of continued growth as the **investment banking cycle picks up**, supported by their **world-class equities business**, which reached **$3 billion** in revenues, maintaining a **#1 or #2 position** globally for over a decade.  **[MS_3393375_21]** **[MS_3393375_15]**
- Morgan Stanley expects **Net Interest Income (NII)** to **inflect higher over the next year**, due to stabilization of balances, portfolio repricing, and lending growth, signaling an encouraging outlook for the Wealth Management segment's profitability.  **[MS_3393375_7]**

5832e1872bd08e6472e127152b58b83bb22e54b847887a3f94aa3df284adabd7

- Morgan Stanley faces **regulatory scrutiny** over its client onboarding and monitoring processes in the wealth management division, which could impact its ability to grow and onboard clients in the future.  **[MS_3379862_4]**
- Despite a **20% year-over-year growth** in wealth management client assets, wealth management revenues increased by only **5%**, indicating a disconnect and potential challenges in monetizing client assets.  **[MS_3379862_11]**
- The firm-wide net interest income (**NII**) declined for the **fourth consecutive quarter**, suggesting potential headwinds in the firm's interest income outside of wealth management.  **[MS_3379862_9]**

e126efbbbbe62573966fbfd77f3625c5812220966114dc3f54785373214df5d6

- **Morgan Stanley's investment banking pipeline is growing across sectors and geographies, indicating the early innings of a multiyear M&A cycle.**  **[MS_3379862_12]** **[MS_3379862_5]**
- **The Wealth Management division reported record revenues and strong margins, with asset management revenues at a record high, demonstrating the effectiveness of their growth model.**  **[MS_3379862_4]** **[MS_3379862_11]** **[MS_3379862_8]**
- **Morgan Stanley sees significant opportunities for growth in trading and financing activities, positioning themselves as a partner of choice for asset managers and corporate clients, especially in areas like private credit and derivatives.**  **[MS_3379862_15]**

7b51a087c839c1ea41645bed4de7d4ab8ea6acb136a4a1453fd1d2e004ea4980

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