Morgan Stanley First Quarter 2024 Earnings Results
Morgan Stanley Reports Net Revenues of $15.1 Billion, EPS of $2.02 and ROTCE of 19.7%
NEW YORK, April 16, 2024 – Morgan Stanley (NYSE: MS) today reported net revenues of $15.1 billion for the firstquarter ended March 31, 2024 compared with $14.5 billion a year ago. Net income applicable to Morgan Stanley was$3.4 billion, or $2.02 per diluted share,1 compared with net income of $3.0 billion, or $1.70 per diluted share,1 for thesame period a year ago.
Ted Pick, Chief Executive Officer, said, “In the first quarter of 2024 Morgan Stanley generated net revenues of $15
billion and earnings of $2.02 per share for a 20% return on tangible equity. As a result of strong net new asset
growth, the Firm has reached $7 trillion of client assets across Wealth and Investment Management. Institutional
Securities also saw strength across the markets and underwriting businesses. The Morgan Stanley Integrated Firmmodel is delivering durable results.”

Highlights

Financial Summary2,3
Firm ($ millions, except per share data)

1Q 2024

1Q 2023

Net revenues$15,136$14,517

Provision for credit losses

$(6)

$234

Compensation expense$6,696$6,410Non-compensation expenses$4,051$4,113Pre-tax income6$4,395$3,760Net income app. to MS$3,412$2,980

71%

72%

$2.02

$1.70

$55.60$55.13$41.07$40.68

14.5%

12.4%

19.7%

16.9%

Expense efficiency ratio8
1

Earnings per diluted share
Book value per share

4

Tangible book value per share
Return on equity

4

Return on tangible common equity• The Firm reported net revenues of $15.1 billion and net

income of $3.4 billion with contributions across each of ourbusinesses.
• The Firm delivered strong ROTCE of 19.7%.2,4• The Firm expense efficiency ratio was 71% demonstrating

operating leverage in an improving market environment.3,8• Standardized Common Equity Tier 1 capital ratio was
15.1%.17• Institutional Securities net revenues of $7.0 billion reflect

Institutional Securities
Net revenues$7,016$6,797

Investment Banking$1,447$1,247

Equity$2,842$2,729Fixed Income$2,485$2,576$6,880$6,559Fee-based client assets ($ billions)9$2,124$1,769

10

$26.2

$22.4

Net new assets ($ billions)$94.9$109.6Loans ($ billions)$147.4$143.7

Wealth Management
Net revenues

Fee-based asset flows ($ billions)
11

Investment Management
Net revenues
12

AUM ($ billions)13

Long-term net flows ($ billions)$1,377$1,289$1,505$1,362$7.6$(2.4)Media Relations: Wesley McDade 212-761-2430

strong performance across the broad franchise, withparticular strength in Equity as well as underwriting
revenues, partially offset by lower results in Advisory.

• Wealth Management delivered a pre-tax margin of 26.3%
for the quarter.7 Net revenues were $6.9 billion, on record
asset management revenues driven by the positive market
environment. Net new assets for the quarter were $95
billion.11• Investment Management results reflect net revenues of$1.4 billion on higher average AUM of $1.5 trillion.12 The
quarter included positive long-term net flows of $7.6
billion.13

Investor Relations: Leslie Bazos 212-761-5352

First Quarter Results
Institutional Securities
Institutional Securities reported net revenues for the current quarter of $7.0 billion compared with $6.8 billion a year
ago. Pre-tax income was $2.4 billion compared with $1.9 billion a year ago.6

Investment Banking revenues up 16% from a year ago:

• Advisory revenues decreased from a year ago on lower($ millions)

1Q 2024

1Q 2023

Net Revenues$7,016$6,797

Investment Banking$1,447$1,247Advisory

$461

$638

Equity underwriting

$430

$202

Fixed income underwriting

$556

$407

Equity$2,842$2,729Fixed Income$2,485$2,576

Other

$242

$245

$2

$189

Total Expenses$4,663$4,716Compensation$2,343$2,365

Non-compensation$2,320$2,351completed M&A transactions.

• Equity underwriting revenues increased significantly from a year
ago reflecting higher revenues from IPOs and follow-ons.

• Fixed income underwriting revenues increased from a year ago
primarily driven by higher bond issuances.
Equity net revenues up 4% from a year ago:

• Equity net revenues increased from a year ago reflecting solid
results across business lines and regions, with notable strength
in derivatives against a constructive market backdrop.
Fixed Income net revenues down 4% from a year ago:

• Fixed Income net revenues decreased from a year ago on
lower client activity in macro and credit, partially offset by higher
revenues in commodities.

Provision for credit losses

Other:• Other revenues for the quarter were relatively unchanged froma year ago. Results were primarily driven by revenues from
corporate loans net of the impact of hedges and our Japanese
securities joint venture.
Provision for credit losses:• Provision for credit losses decreased on improvements in themacroeconomic outlook from a year ago.
Total Expenses:• Compensation expense was relatively unchanged from a year ago on lower expenses related to stock-based
compensation and reduced headcount, offset by increased discretionary compensation on higher revenues.
• Non-compensation expenses were relatively unchanged from a year ago primarily driven by lower legal expenses,
partially offset by higher transaction-related expenses and technology costs.

2

Wealth Management
Wealth Management reported net revenues of $6.9 billion in the current quarter compared with $6.6 billion a year ago.
Pre-tax income of $1.8 billion6 in the current quarter resulted in a pre-tax margin of 26.3%.7 Net new assets for thequarter were $95 billion of which a little more than half represented inflows from our family office offering.11
Net revenues up 5% from a year ago:•

Asset management revenues increased from a year ago
reflecting higher asset levels and the cumulative impact ofpositive fee-based flows.

• Transactional revenues increased 9% excluding the impact ofmark-to-market on investments associated with DCP.5,15 The
increase was driven by increased volumes in structured
products commensurate with equity markets.

•

Net interest income decreased from a year ago driven bychanges in deposit mix, partially offset by the impact ofinterest rates.

($ millions)

1Q 2024

1Q 2023

Net Revenues$6,880$6,559Asset management$3,829$3,382

Transactional15$1,033$921

Net interest$1,856$2,158

Other

$162

$98

Provision for credit losses

$(8)

$45

Total Expenses$5,082$4,802Compensation$3,788$3,477

Non-compensation$1,294$1,325

Provision for credit losses:•

Provision for credit losses decreased on improvements in themacroeconomic outlook from a year ago.

Total Expenses:•

Compensation expense increased from a year ago on higher
compensable revenues and higher expenses related to
outstanding deferred compensation.

•

Non-compensation expenses decreased from a year ago on
lower legal, marketing and business development costs,
partially offset by the incremental FDIC special assessment.14

Investment Management
Investment Management net revenues were $1.4 billion compared with $1.3 billion a year ago. Pre-tax income was$241 million compared with $166 million a year ago.6
Net revenues up 7% from a year ago:($ millions)

1Q 2024

1Q 2023• Asset management and related fees increased from a

Net Revenues$1,377$1,289Asset management and related fees

$1,346$1,248Performance-based income and other

$31

$41

Total Expenses$1,136$1,123Compensation

$565

$568

Non-compensation

$571

$555

year ago on higher average AUM driven by higher
market levels.

• Performance-based income and other revenues
decreased from a year ago primarily due to reductionsin accrued carried interest in our private funds, primarilyin Asia.
Total Expenses:• Non-compensation expenses increased from a year
ago, primarily driven by higher distribution expenses onhigher average AUM.

3

Other Matters• The Firm repurchased $1.0 billion of its
outstanding common stock during the quarteras part of its Share Repurchase Program.

1Q 2024

1Q 2023$1,000$1,50012

16$86.79$95.16

Period End Shares (MM)

1,627

1,670

Tax Rate

21.2%

19.3%

CET1 capital17

15.1%

15.1%

Tier 1 capital17

17.0%

17.0%

CET1 capital17

15.3%

15.6%

Tier 1 capital17

17.2%

17.5%

6.7%

6.7%

5.4%

5.5%

Common Stock Repurchases
Repurchases ($MM)
Number of Shares (MM)• The Board of Directors declared a $0.85
quarterly dividend per share, payable on May
15, 2024 to common shareholders of recordon April 30, 2024.
• The effective tax rate for the current quarterwas 21.2%, reflecting a lower benefit
associated with employee share-based
payments compared to a year ago.

Average Price

Capital16Standardized Approach

Advanced Approach

Leverage-based capital
Tier 1 leverage18
19

SLR

4

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking,securities, wealth management and investment management services. With offices in 42 countries, the Firm’s
employees serve clients worldwide including corporations, governments, institutions and individuals. For further
information about Morgan Stanley, please visit www.morganstanley.com.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding
business and segment trends, is included in the financial supplement. Both the earnings release and the financial
supplement are available online in the Investor Relations section at www.morganstanley.com.

NOTICE:The information provided herein and in the financial supplement, including information provided on the Firm’s earnings
conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliationof such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial
supplement, both of which are available on www.morganstanley.com.
This earnings release may contain forward-looking statements, including the attainment of certain financial and othertargets, objectives and goals. Readers are cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date on which they are made, which reflect management’s current estimates, projections,
expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may cause
actual results to differ materially. For a discussion of risks and uncertainties that may affect the future results of theFirm, please see “Forward-Looking Statements” preceding Part I, Item 1, “Competition” and “Supervision andRegulation” in Part I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative andQualitative Disclosures about Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year ended
December 31, 2023 and other items throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and the
Firm’s Current Reports on Form 8-K, including any amendments thereto.

5

1Includes preferred dividends related to the calculation of earnings per share for the first quarter of 2024 and 2023 of
approximately $146 million and $144 million, respectively.
2

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the UnitedStates (U.S. GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the courseof its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange
Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance,
financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the mostdirectly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures
disclosed by Morgan Stanley are provided as additional information to analysts, investors and other stakeholders in order toprovide them with greater transparency about, or an alternative method for assessing our financial condition, operating
results, or capital adequacy. These measures are not in accordance with, or a substitute for U.S. GAAP, and may bedifferent from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a nonGAAP financial measure, we will also generally define it or present the most directly comparable financial measurecalculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the nonGAAP financial measure we reference and such comparable U.S. GAAP financial measure.
3

Our earnings releases, earnings conference calls, financial presentations and other communications may also include
certain metrics which we believe to be useful to us, analysts, investors, and other stakeholders by providing furthertransparency about, or an additional means of assessing, our financial condition and operating results.
4

Tangible common equity is a non-GAAP financial measure that the Firm considers useful for analysts, investors and otherstakeholders to allow comparability of period-to-period operating performance and capital adequacy. Tangible common
equity represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction.
The calculation of return on average tangible common equity, also a non-GAAP financial measure, represents full year or
annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common
equity. The calculation of tangible book value per common share, also a non-GAAP financial measure, represents tangible
common shareholder’s equity divided by common shares outstanding.
5“DCP” refers to certain employee deferred cash-based compensation programs. Please refer to "Management’s
Discussion and Analysis of Financial Condition and Results of Operations – Other Matters – Deferred Cash-Based
Compensation” in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2023.
6

Pre-tax income represents income before provision for income taxes.

7

Pre-tax margin represents income before provision for income taxes divided by net revenues.

8

The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues.

9

Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment
for services is a fee calculated on those assets.
10

Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net accounttransfers, dividends, interest, and client fees, and exclude institutional cash management related activity.
11

Wealth Management net new assets represent client asset inflows, inclusive of interest, dividends and asset acquisitions,less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees andcommissions.
12

AUM is defined as assets under management or supervision.

13

Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes theLiquidity and Overlay Services asset class.
14

Following the failures of certain banks and resulting losses to the FDIC’s Deposit Insurance Fund in the first half of 2023,
the FDIC adopted a final rule on November, 16 2023 to implement a special assessment to recover the cost associated withprotecting uninsured depositors. We recorded the cost of the special assessment of $286 million in the fourth quarter of2023. We recorded an additional estimated cost of $42 million during the current quarter based on the February notification
received from the FDIC which contained revised estimated losses as well as the estimated recoveries from its receivershipresidual interest from those bank failures.
15

Transactional revenues include investment banking, trading, and commissions and fee revenues.

16

Capital ratios are estimates as of the press release date, April 16, 2024.

6

17

CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each ofthe (i) standardized approaches for calculating credit risk and market risk risk-weighted assets (RWAs) (the “Standardized
Approach”) and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the“Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory
requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations –Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s Annual Report on Form 10-K for the year ended
December 31, 2023.
18

The Tier 1 leverage ratio is a leverage-based capital requirement that measures the Firm’s leverage. Tier 1 leverage ratio
utilizes Tier 1 capital as the numerator and average adjusted assets as the denominator.
19

The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $79.1 billion and$77.9 billion, and supplementary leverage exposure denominator of approximately $1.46 trillion and $1.42 trillion, for the firstquarter of 2024 and 2023, respectively.

7

Consolidated Income Statement Information(unaudited, dollars in millions)

Quarter Ended
Dec 31, 2023

Mar 31, 2024
Revenues:
Investment banking
Trading
Investments
Commissions and fees
Asset management
Other
Total non-interest revenues

$

1,589
4,852
137
1,227
5,269
266
13,340Interest income
Interest expense
Net interest
Net revenues$

Mar 31, 2023

1,415
3,305
189
1,110
5,041
(61)
10,999$Percentage Change From:
Dec 31, 2023
Mar 31, 2023

1,330
4,477
145
1,239
4,728
252
12,171

12%
47%
(28%)
11%
5%
*
21%

19%
8%
(6%)
(1%)
11%
6%
10%

12,930
11,134
1,796
15,136

12,83010,933
1,897
12,896

9,980
7,634
2,346
14,517

1%
2%
(5%)
17%

30%
46%
(23%)
4%

(6)

3

234

*

*

Non-interest expenses:
Compensation and benefits

6,696

5,951

6,410

13%

4%

Non-compensation expenses:
Brokerage, clearing and exchange fees
Information processing and communications
Professional services
Occupancy and equipment
Marketing and business development
Other
Total non-compensation expenses

921
976
639
441
217
857
4,051

865
987
822
528
224
1,420
4,846

881
915
710
440
247
920
4,113

6%
(1%)
(22%)
(16%)
(3%)
(40%)
(16%)

5%
7%
(10%)
—%
(12%)
(7%)
(2%)

10,747

10,797

10,523

—%

2%

4,395
933
3,462
50
3,412
146
3,266

2,096
555
1,541
24
1,517
134
1,383

3,760
727
3,033
53
2,980
144
2,836

110%
68%
125%
108%
125%
9%
136%

17%
28%
14%
(6%)
14%
1%
15%

Provision for credit losses

Total non-interest expenses
Income before provision for income taxes
Provision for income taxes
Net income
Net income applicable to nonredeemable noncontrolling interests
Net income applicable to Morgan Stanley
Preferred stock dividend
Earnings applicable to Morgan Stanley common shareholders

$

$

$

$

$

$

Notes:– In the first quarter of 2024, the Firm implemented certain presentation changes that impacted interest income and interest expense but had no effect on net interest income. These changes were made to align theaccounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related customer receivables andpayables that are currently accounted for as a single unit of account on the balance sheet. The current and previous presentation of these interest income and interest expense amounts are acceptable and the change
does not represent a change in accounting principle. These changes were applied retrospectively to the income statement in 2023 and accordingly, prior period amounts were adjusted to conform with the current
presentation.
– Firm net revenues excluding mark-to-market gains and losses on deferred cash-based compensation plans (DCP) were: 1Q24: $14,949 million, 4Q23: $12,527 million, 1Q23: $14,364 million.
– Firm compensation expenses excluding DCP were: 1Q24: $6,447 million, 4Q23: $5,597 million, 1Q23: $6,217 million.
– The End Notes are an integral part of this presentation. Refer to pages 12 - 17 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms,
Supplemental Quantitative Details and Calculations, and Legal Notice.

8

Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Quarter Ended
Mar 31, 2024

Percentage Change From:

Dec 31, 2023

Mar 31, 2023

Dec 31, 2023

Mar 31, 2023

Financial Metrics:
Earnings per basic share
Earnings per diluted share$$

Return on average common equity
Return on average tangible common equity
Book value per common share
Tangible book value per common share

2.04
2.02

$
$

14.5%
19.7%
$
$

55.60
41.07

0.86
0.85

$
$

6.2%
8.4%
$
$

55.50
40.89

1.72
1.70

137%
138%

19%
19%

12.4%
16.9%
$
$

55.13
40.68

Financial Ratios:
Pre-tax profit margin
Compensation and benefits as a % of net revenues
Non-compensation expenses as a % of net revenues
Firm expense efficiency ratio
Effective tax rate

29%
44%
27%
71%
21.2%

16%
46%
38%
84%
26.5%

26%
44%
28%
72%
19.3%

Period end common shares outstanding (millions)Average common shares outstanding (millions)
Basic
Diluted

1,627

1,627

1,670

—%

(3%)

1,601
1,616

1,606
1,627

1,645
1,663

—%
(1%)

(3%)
(3%)

Worldwide employees

79,61080,00682,266—%(3%)

Statistical Data:

The End Notes are an integral part of this presentation. Refer to pages 12 - 17 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental
Quantitative Details and Calculations, and Legal Notice.

9