Morgan Stanley Fourth Quarter and Full Year 2022 Earnings Results
Morgan Stanley Reports Fourth Quarter Net Revenues of $12.7 Billion, EPS of $1.26 and ROTCE of 12.6%; Full Year Net
Revenues of $53.7 Billion, EPS of $6.15 and ROTCE of 15.3%
NEW YORK, January 17, 2023 – Morgan Stanley (NYSE: MS) today reported net revenues of $12.7 billion for the fourth quarter ended
December 31, 2022 compared with $14.5 billion a year ago. Net income applicable to Morgan Stanley was $2.2 billion, or $1.26 per diluted
share,1 compared with $3.7 billion, or $2.01 per diluted share,1 for the same period a year ago. Excluding integration-related expenses,
earnings per diluted share in the fourth quarter was $1.31 versus $2.08 in the prior year quarter. 1,6 The fourth quarter of 2022 was also
impacted by severance costs of $133 million associated with a December employee action,2 partially offset by a net discrete tax benefit of $89
million.
Full year net revenues were $53.7 billion compared with $59.8 billion in the prior year. Net income applicable to Morgan Stanley was $11.0
billion, or $6.15 per diluted share,1 compared with $15.0 billion, or $8.03 per diluted share,1 in the prior year. Excluding integration-related
expenses, earnings per diluted share in the current year was $6.36 and $8.22 in the prior year.1,6 Comparisons of current year results to theprior year were impacted by the acquisition of Eaton Vance Corp. (“Eaton Vance”) prospectively from the March 1, 2021 acquisition date.
James P. Gorman, Chairman and Chief Executive Officer, said, “We reported solid fourth quarter results amidst a difficult market
environment. Overall, 2022 was a strong year for the Firm as our clear strategy and balanced business model enabled us to deliver an
ROTCE of 16% despite the complex macro backdrop. Wealth Management provided stability with record revenues and over $310 billion in
net new assets, Investment Management benefited from diversification, and within Institutional Securities our Equity and Fixed Income
revenues were strong, offset by Investment Banking. Our strong capital position allowed us to repurchase $10 billion of shares this year and
we distributed a healthy dividend.”

Financial Summary3,4

Full Year Highlights

Firm ($MM, except per share data)

4Q 2022

4Q 2021

FY 2022

FY 2021

Net revenues$12,749$14,524$53,668$59,755

Provision for credit losses

$87

$5

$280

$4

Compensation expense$5,615$5,487$23,053$24,628

Non-compensation expenses$4,253$4,148$16,246$15,455

Pre-tax income8$2,794$4,884$14,089$19,668

Net income app. to MS$2,236$3,696$11,029$15,034

77%

66%

73%

67%

$1.26

$2.01

$6.15

$8.03

Book value per share$54.55$55.12$54.55$55.12

Tangible book value per share$40.06$40.91$40.06$40.91

9.2%

14.7%

11.2%

15.0%

12.6%

19.8%

15.3%

19.8%

Net revenues$4,800$6,669$24,393$29,833

Investment Banking$1,252$2,434$5,235$10,272

Equity$2,176$2,857$10,769$11,435

Fixed Income$1,418$1,228$9,022$7,516

Net revenues$6,626$6,254$24,417$24,243

Fee-based client assets ($Bn)10$1,678$1,839$1,678$1,839Fee-based asset flows ($Bn)11

$20.4

$37.8

$162.8$179.3

Net new assets ($Bn)12$51.6$127.1$311.3$437.7Loans ($Bn)$146.1$129.2$146.1$129.2

Net revenues$1,461$1,751$5,375$6,220AUM ($Bn)13$1,305$1,565$1,305$1,565Long-term net flows ($Bn)14$(6.0)$(1.1)$(25.8)$26.4

Expense efficiency ratio9
Earnings per diluted share

1

Return on equity
Return on tangible equity

5• The Firm reported full year net revenues of $53.7 billion
and net income of $11.0 billion as our businesses
navigated a challenging market environment.

• The Firm delivered full year ROTCE of 15.3%, or 15.7%
excluding the impact of integration-related expenses.5,6• The full year Firm expense efficiency ratio was 73%, or
72% excluding integration-related expenses.6,9• Standardized Common Equity Tier 1 capital ratio was
15.3%.17

Institutional Securities

Wealth Management

Investment Management

Media Relations: Wesley McDade 212-761-2430• Institutional Securities reported full year net revenues of$24.4 billion reflecting lower activity in Investment Banking
driven by the uncertain macroeconomic environment,
partially offset by strong performance in Fixed Income.

• Wealth Management delivered record full year net
revenues of $24.4 billion and a pre-tax margin of 27.0% or
28.4% excluding integration-related expenses.6,7 The
business added net new assets of $311 billion,
representing a full year 6% annualized growth rate frombeginning period assets.

• Investment Management reported full year net revenues of$5.4 billion and AUM of $1.3 trillion in a challenging
market environment.

Investor Relations: Leslie Bazos 212-761-5352

Fourth Quarter Results
Institutional Securities
Institutional Securities reported net revenues for the current quarter of $4.8 billion compared with $6.7 billion a year
ago. Pre-tax income was $748 million compared with $3.0 billion a year ago.8
Investment Banking revenues down 49% from a year ago:
• Advisory revenues decreased from a year ago driven bylower completed M&A transactions.
• Equity underwriting revenues decreased significantly froma year ago across products reflecting the substantial
decline in global equity underwriting volumes.
• Fixed income underwriting revenues decreased from ayear ago as macroeconomic conditions contributed tolower bond and loan issuances.
Equity net revenues down 24% from a year ago:
• Equity net revenues decreased from a year ago primarily
driven by markdowns on certain strategic investments
versus a significant mark-to-market gain in the prior year
and lower prime brokerage results due to a decline inaverage client balances.

($ millions)

4Q 2022

4Q 2021

Net Revenues$4,800$6,669Investment Banking$1,252$2,434Advisory$711$1,071Equity underwriting

$227

$853

Fixed income underwriting

$314

$510

Equity$2,176$2,857

Fixed Income$1,418$1,228

Other

$(46)

$150

Provision for credit losses

$61

$(8)

Total Expenses$3,991$3,705Compensation$1,644$1,370Non-compensation$2,347$2,335

Fixed Income net revenues up 15% from a year ago:
• Fixed Income net revenues increased from a year ago
reflecting stronger results in macro and credit products onhigher client engagement, partially offset by significantly
lower results in commodities.
Other:• Other revenues include $356 million of mark-to-market
losses on corporate loans held for sale and loan hedges.
These losses were substantially offset by net interest
income and fees of $287 million.
Provision for credit losses• Provision for credit losses increased from a year ago
primarily driven by the current macroeconomic
environment, portfolio growth and the prior year quarterreflecting a release in the allowance for credit losses.
Total Expenses:• Compensation expense increased from a year ago
reflecting higher salary expenses and severance costs
associated with the December employee action of $88
million.2

2

Wealth Management
Wealth Management reported record net revenues for the current quarter of $6.6 billion compared with $6.3 billion ayear ago. Pre-tax income of $1.8 billion8 in the current quarter resulted in a pre-tax margin of 27.8% or 29.2%
excluding the impact of integration-related expenses.6,7
Net revenues up 6% from a year ago:
• Asset management revenues decreased from a year ago
reflecting lower asset levels due to declines in the markets,partially offset by positive fee-based flows.
• Transactional revenues15 decreased 15% excluding theimpact of mark-to-market gains on investments associatedwith certain employee deferred compensation plans. The
decrease was driven by lower client activity amid uncertainty
in the markets.

($ millions)

4Q 2022

4Q 2021

Net Revenues$6,626$6,254

Asset management$3,347$3,700$931$1,027$2,138$1,405

Other

$210

$122

Provision for credit losses

$26

$13

Transactional

15

Net interest• Net interest income increased from a year ago on higher
interest rates and bank lending growth.

Total Expenses$4,760$4,826

Total Expenses:

Compensation$3,343$3,486• Compensation expense decreased from a year ago driven bylower compensable revenues, partially offset by higher salaryexpenses on increased headcount and higher expenses
related to certain deferred compensation plans linked toinvestment performance.

Non-compensation$1,417$1,340• Non-compensation expenses increased from a year ago
primarily driven by investments in technology, as well as
higher marketing and business development costs.

Investment Management
Investment Management reported net revenues of $1.5 billion compared with $1.8 billion a year ago. Pre-tax income
was $214 million compared with $508 million a year ago.8
Net revenues down 17% from a year ago:($ millions)

4Q 2022

4Q 2021• Asset management and related fees decreased from ayear ago driven primarily on lower asset levels due tothe decline in the equity markets.

Net Revenues$1,461$1,751

Asset management and related fees

$1,371$1,585• Performance-based income and other revenues
decreased from a year ago primarily due to lower
accrued carried interest in certain of our private funds.

Performance-based income and other

$90

$166

Total Expenses$1,247$1,243

Total Expenses:

Compensation

$628

$631

• Compensation expense was essentially unchanged
from a year ago, as higher salary expenses were offset
by lower carried interest.

Non-compensation

$619

$612

3

Full Year Results
Institutional Securities
Institutional Securities reported net revenues of $24.4 billion compared with $29.8 billion in the prior year. Pre-tax
income was $6.7 billion compared with $11.8 billion in the prior year.8
Investment Banking revenues down 49% from prior year:($ millions)

FY 2022

FY 2021

Net Revenues$24,393$29,833

Investment Banking$5,235$10,272• Fixed income underwriting revenues decreased from arecord prior year as macroeconomic conditions contributed
to lower bond and loan issuances.

Advisory$2,946$3,487$851$4,437

Equity net revenues down 6% from prior year:

Fixed income underwriting$1,438$2,348Equity$10,769$11,435

Fixed Income$9,022$7,516

Other$(633)$610

Provision for credit losses

$211

$(7)

Total Expenses$17,467$18,026

Compensation$8,246$9,165

Non-compensation$9,221$8,861• Advisory revenues decreased from a record prior year
driven by lower completed M&A transactions.
• Equity underwriting revenues decreased significantly fromthe prior year across products reflecting historically low
global equity volumes.

• Equity net revenues decreased from a record prior year,
primarily driven by markdowns on certain strategic
investments and lower results in cash equities on lower
client activity, partially offset by higher revenues in prime
brokerage primarily driven by the absence of a single client
event in the prior year.

Equity underwriting

Fixed Income net revenues up 20% from prior year:• Fixed Income net revenues increased from the prior year,
reflecting strength in macro, credit products andcommodities on higher client engagement and gains oninventory held for client facilitation in macro products driven
by volatility in the markets.
Other:• Other revenues in the current year were driven by mark-tomarket losses on corporate loans held for sale and loan
hedges of $876 million. These losses were substantially
offset by net interest income and fees of $701 million. In
addition, the current year included mark-to-market losses
on investments associated with certain employee deferredcompensation plans versus gains in the prior year andlower contributions from our Mitsubishi UFJ securities joint
venture.
Provision for credit losses:• Provision for credit losses increased from the prior year primarily driven by the current macroeconomic environment,
portfolio growth and the prior year reflecting a release in the allowance for credit losses.
Total Expenses:• Compensation expense decreased from the prior year driven by lower revenues and a decline related to certain
deferred compensation plans linked to investment performance.
• Non-compensation expenses increased from the prior year on investments in technology and higher litigation costs,
primarily driven by $200 million related to a specific regulatory matter reported in the current year second quarter.
4

Wealth Management
Wealth Management reported record net revenues of $24.4 billion compared with $24.2 billion in the prior year. Pre-tax
income of $6.6 billion8 in the current year resulted in a reported pre-tax margin of 27.0% or 28.4% excluding the impact
of integration-related expenses.6,7
Net revenues up 1% from prior year:($ millions)

FY 2022

FY 2021• Asset management revenues decreased from the prior year
on lower asset levels due to declines in the markets, partially
offset by positive fee-based flows.

Net Revenues$24,417$24,243

Asset management$13,872$13,966• Transactional revenues15 decreased 18% excluding theimpact of mark-to-market losses on investments associatedwith certain employee deferred compensations plans.
Results reflect lower activity from elevated levels in the prioryear amid uncertainty in the markets.

Transactional15$2,473$4,259Net interest$7,429$5,393

Other

$643

$625

Provision for credit losses

$69

$11

• Net interest income increased from the prior year on higher
interest rates and bank lending growth.

Total Expenses$17,765$18,051

Total Expenses:

Compensation$12,534$13,090• Compensation expense decreased from the prior year
primarily driven by a decline related to certain deferredcompensation plans linked to investment performance,
partially offset by higher salary expenses on increased
headcount.

Non-compensation$5,231$4,961• Non-compensation expenses increased from the prior year
primarily driven by investments in technology, as well as
higher marketing and business development costs.

Investment Management
Investment Management reported net revenues of $5.4 billion compared with $6.2 billion in the prior year. Pre-tax
income was $807 million compared with $1.7 billion in the prior year.8 The comparisons of current year results to theprior period were impacted by the acquisition of Eaton Vance completed on March 1, 2021.
Net revenues down 14% from prior year:($ millions)

FY 2022

FY 2021• Asset management and related fees decreased onlower asset levels due to the decline in the equity
markets.

Net Revenues$5,375$6,220Asset management and related fees

$5,332$5,576• Performance-based income and other revenues
decreased from the prior year on lower accrued carriedinterest in our private funds, mark-to-market losses oninvestments associated with certain employee deferredcompensation plans and lower marks on public
investments reflecting the decline in equity markets.

Performance-based income and other

$43

$644

Total Expenses$4,568$4,542Compensation$2,273$2,373

Non-compensation$2,295$2,169Total Expenses:• Compensation expense decreased from the prior year driven by lower compensation associated with carriedinterest, partially offset by incremental compensation as a result of the Eaton Vance acquisition. 6• Non-compensation expenses increased from the prior year primarily driven by increased marketing and businessdevelopment costs and incremental expenses related to the Eaton Vance acquisition.65

Other Matters• The Firm repurchased $1.7 billion of its
outstanding common stock during the quarter, and$9.9 billion during the year as part of its Share
Repurchase Program.

4Q 2022 4Q 2021 FY 2022 FY 2021
Common Stock Repurchases
Repurchases ($MM)• The Board of Directors declared a $0.775
quarterly dividend per share, payable on February
15, 2023 to common shareholders of record on
January 31, 2023.
• The effective tax rate for the current quarter was
18.9% and for the full year was 20.7%. The fourth
quarter included net discrete tax benefits of $89
million and $69 million for the full year.

$1,700$2,833

20

28

113

126

Average Price$86.07$99.80$87.25$91.13

Period End Shares (MM)

1,675

1,772

1,675

1,772

Tax Rate

18.9%

23.9%

20.7%

23.1%

CET1 capital17

15.3%

16.0%

Tier 1 capital17

17.2%

17.7%

CET1 capital17

15.6%

17.4%

Tier 1 capital17

17.5%

19.1%

Tier 1 leverage18

6.7%

7.1%

SLR19

5.5%

5.6%

Number of Shares (MM)$9,865 $11,464

Capital16Standardized Approach

Advanced Approach

Leveraged-based capital

6

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities,
wealth management and investment management services. With offices in 41 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, 2021 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.

7

1

Includes preferred dividends related to the calculation of earnings per share for the fourth quarter of 2022 and 2021 of approximately $123
million and $104 million, respectively. Includes preferred dividends related to the calculation of earnings per share for the years ended 2022
and 2021 of approximately $489 million and $468 million, respectively.
2

The Firm recorded severance costs of $133 million in the fourth quarter of 2022, associated with a December employee action, which wasreported in the business segments’ results as follows: Institutional Securities $88 million, Wealth Management $30 million and Investment
Management $15 million.
3

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S.
GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of 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 adjustmentsthat effectively exclude, or include amounts from the most directly 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 otherstakeholders in order to provide 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 be different
from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, wewill also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S.
GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S.
GAAP financial measure.
4

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 further transparency about, or an additional
means of assessing, our financial condition and operating results.
5

Return on average tangible common equity and return on average tangible equity excluding integration-related expenses are non-GAAP
financial measures that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period
operating performance and capital adequacy. The calculation of return on average tangible common equity represents full year or
annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity. Tangible
common equity, also a non-GAAP financial measure, represents common equity less goodwill and intangible assets net of allowable
mortgage servicing rights deduction.
The Firm’s and business segment’s fourth quarter and full year results for 2022 and 2021 include integration-related expenses as a resultof the E*TRADE and Eaton Vance acquisitions reported in the Wealth Management segment and Investment Management segment,
respectively. The amounts are presented as follows (in millions):
6

4Q 2022

4Q 2021

FY 2022

FY 2021

Firm
Compensation
Non-compensation
Total non-interest expenses
Total non-interest expenses (after-tax)

$ 10
110
$ 120
$ 92

$ 25
121
$ 146
$ 114

$ 41
429
$ 470
$360

$ 102
354
$ 456
$ 352

Wealth Management
Compensation
Non-compensation
Total non-interest expenses
Total non-interest expenses (after-tax)

$4
90
$ 94
$ 72

$ 10
99
$ 109
$ 85

$ 12
345
$ 357
$ 273

$ 58
288
$ 346
$ 267

Investment Management
Compensation
Non-compensation
Total non-interest expenses
Total non-interest expenses (after-tax)

$6
20
$ 26
$ 20

$ 15
22
$ 37
$ 29

$ 29
84
$ 113
$ 87

$ 44
66
$ 110
$ 85

7

Pre-tax margin represents income before taxes divided by net revenues. Wealth Management pre-tax margin excluding the integrationrelated expenses represents income before taxes less those expenses divided by net revenues. Wealth Management pre-tax margin
excluding integration-related expenses 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.
8

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

8

The Firm’s full year expense efficiency ratio of 73.2% represents total non-interest expenses as a percentage of net revenues. The Firm
expense efficiency ratio excluding integration-related expenses of 72.4% represents total non-interest expenses adjusted for integrationrelated expenses as a percentage of net revenues. The Firm expense efficiency ratio excluding integration-related expenses is a non-GAAP
financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period
operating performance.
910

Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment for services isa fee calculated on those assets.
11

Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers,
dividends, interest, and client fees, and exclude institutional cash management related activity.
12

Wealth Management net new assets represent client inflows, including dividends and interest, and asset acquisitions, less client outflows,
and exclude activity from business combinations/divestitures and the impact of fees and commissions.
13

AUM is defined as assets under management or supervision.

14

Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes the Liquidity and Overlay
Services asset class.
15

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

16

Capital ratios are estimates as of the press release date, January 17, 2023.

CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each of the (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" inthe Firm’s Annual Report on Form 10-K for the year ended December 31, 2021 and in the Firm’s Quarterly Report on Form 10-Q for thequarter ended September 30, 2022.
17

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.
18

The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $77.2 billion and $83.3 billion, andsupplementary leverage exposure denominator of approximately $1.40 trillion and $1.48 trillion, for the fourth quarter of 2022 and 2021,
respectively.
19

9

Consolidated Income Statement Information(unaudited, dollars in millions)

Revenues:
Investment banking
Trading
Investments
Commissions and fees
Asset management
Other
Total non‐interest revenues

Dec 31, 2022

Quarter Ended
Sep 30, 2022 Dec 31, 2021$$

Interest income
Interest expense
Net interest
Net revenues

1,318
3,017
85
1,169
4,803
38
10,430

1,373
3,331
(168)
1,133
4,744
63
10,476$Percentage Change From:
Sep 30, 2022 Dec 31, 2021

2,581
2,394
632
1,307
5,395
126
12,435

(4%)
(9%)
*
3%
1%
(40%)
‐‐

(49%)
26%
(87%)
(11%)
(11%)
(70%)
(16%)

Twelve Months Ended
Dec 31, 2022 Dec 31, 2021$

5,599
13,92815
4,938
19,578283
44,341$

Percentage
Change10,994
12,8101,376
5,521
19,967
1,042
51,710

(49%)
9%
(99%)
(11%)
(2%)
(73%)
(14%)
129%
*
16%
(10%)

9,232
6,913
2,319
12,749

6,101
3,591
2,510
12,986

2,411
322
2,089
14,524

51%
93%
(8%)
(2%)

*
*
11%
(12%)

21,595
12,2689,327
53,668

9,411
1,366
8,045
59,755

87

35

5

149%

*

280

4

Non‐interest expenses:
Compensation and benefits

5,615

5,614

5,487

‐‐

2%

23,05324,628(6%)

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

851
933
853
443
295
878
4,253

847
874
755
429
215
829
3,949

811
833
829
479
205
991
4,148

‐‐
7%
13%
3%
37%
6%
8%

5%
12%
3%
(8%)
44%
(11%)
3%

3,458
3,493
3,070
1,729
905
3,591
16,246

3,341
3,119
2,933
1,725
643
3,694
15,455

4%
12%
5%
‐‐
41%
(3%)
5%

9,868

9,563

9,635

3%

2%

39,29940,083

(2%)

2,794
528
2,266
30
2,236
123
2,113

3,388
726
2,662
30
2,632
138
2,494

4,884
1,168
3,716
20
3,696
104
3,592

(18%)
(27%)
(15%)
‐‐
(15%)
(11%)
(15%)

(43%)
(55%)
(39%)
50%
(40%)
18%
(41%)

14,0892,910
11,179150
11,029489
10,54019,668
4,548
15,12086
15,034468
14,566

(28%)
(36%)
(26%)
74%
(27%)
4%
(28%)

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

$

$

$

$

$

$

$

$

$

$

‐ Firm net revenues excluding mark‐to‐market gains and losses on deferred cash‐based compensation plans (DCP) were: 4Q22: $12,555 million, 3Q22: $13,222 million, 4Q21: $14,394 million,
4Q22 YTD: $54,866 million, 4Q21 YTD: $59,366 million.
‐ Firm compensation expenses excluding DCP were: 4Q22: $5,426 million, 3Q22: $5,733 million, 4Q21: $5,350 million, 4Q22 YTD: $23,769 million, 4Q21 YTD: $24,102 million.
The End Notes are an integral part of this presentation. Refer to the Financial Supplement on pages 12 ‐ 18 for Definition of U.S. GAAP to Non‐GAAP Measures, Definitions of Performance Metrics and Terms,
Supplemental Quantitative Details and Calculations, and Legal Notice for additional information.

10*

Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Dec 31, 2022

Quarter Ended
Sep 30, 2022 Dec 31, 2021

$
$

$
$

Percentage Change From:
Sep 30, 2022 Dec 31, 2021

Twelve Months Ended
Dec 31, 2022 Dec 31, 2021

Percentage
ChangeFinancial 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
Excluding integration‐related expenses
Adjusted earnings per diluted share
Adjusted return on average common equity
Adjusted return on average tangible common equity

1.28
1.26
9.2%
12.6%

1.49
1.47

$
$

10.7%
14.6%

2.05
2.01

(14%)
(14%)

(38%)
(37%)

$
$

14.7%
19.8%

$
$

54.55
40.06

$
$

54.46
39.93

$
$

55.12
40.91

$

1.31
9.6%
13.1%

$

1.53
11.1%
15.2%

$

2.08
15.2%
20.4%

6.23
6.15

$
$

11.2%
15.3%

(14%)

(37%)

8.16
8.03

(24%)
(23%)

15.0%
19.8%

$
$

54.55
40.06

$
$

55.12
40.91

$

6.36
11.6%
15.7%

$

8.22
15.3%
20.2%

(23%)

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
Firm expense efficiency ratio excluding integration‐related expenses
Effective tax rate

22%
44%
33%
77%
76%
18.9%

26%
43%
30%
74%
73%
21.4%

34%
38%
29%
66%
65%
23.9%

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

1,675

1,694

1,772

(1%)

(5%)

1,652
1,679

1,674
1,697

1,751
1,785

(1%)
(1%)

(6%)
(6%)

Worldwide employees

82,427

81,56774,814

1%

10%

26%
43%
30%
73%
72%
20.7%

33%
41%
26%
67%
66%
23.1%

1,691
1,713

1,785
1,814

Statistical Data:

Notes:‐ For the quarters ended December 31, 2022, September 30, 2022 and December 31, 2021, Firm results include pre‐tax integration‐related expenses of $120 million, $123 million and $146 million ($92 million, $94 million and$114 million after‐tax) respectively, reported in the Wealth Management and Investment Management business segments. The twelve months ended December 31, 2022 and 2021 results include pre‐tax integration‐related
expenses of $470 million and $456 million ($360 million and $352 million after‐tax), respectively.
‐ The End Notes are an integral part of this presentation. Refer to the Financial Supplement on pages 12 ‐ 18 for Definition of U.S. GAAP to Non‐GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental
Quantitative Details and Calculations, and Legal Notice for additional information.

11

(5%)
(6%)