Media Relations: Michele Davis 212-761-9621

Investor Relations: Kathleen McCabe 212-761-4469

Morgan Stanley Reports Second Quarter 2015:



Net Revenues of $9.7 Billion and Earnings per Diluted Share of $0.85

Excluding DVA,1 Net Revenues of $9.6 Billion and Earnings per Diluted Share of$0.792,3,4



Continued Strength in Equity Sales & Trading; Investment Banking Ranked #1 in
Global IPOs and #2 in Global Announced M&A5



Wealth Management Pre-Tax Margin of 23%6

NEW YORK, July 20, 2015 – Morgan Stanley (NYSE: MS) today reported net revenues of $9.7 billion for thesecond quarter ended June 30, 2015 compared with $8.6 billion a year ago. For the current quarter, net income
applicable to Morgan Stanley was $1.8 billion, or $0.85 per diluted share,7 compared with net income of $1.9
7billion, or $0.92 per diluted share, for the same period a year ago. The earnings for the prior year second
quarter included a net discrete tax benefit of $609 million or $0.31 per diluted share, principally related to theremeasurement of reserves and related interest.8
14

Excluding DVA, net revenues for the current quarter were $9.6 billion compared with $8.5 billion a year ago. ,Excluding DVA and the net discrete tax benefit in the prior year quarter, net income applicable to Morgan Stanley
was $1.7 billion, or $0.79 per diluted share, compared with net income of $1.2 billion, or $0.58 per diluted share34
in the prior year. ,Compensation expense of $4.4 billion increased from $4.2 billion a year ago primarily driven by higher revenues.
Non-compensation expenses of $2.6 billion increased from $2.5 billion a year ago on higher volume driven
expenses and professional services costs, principally consulting fees.
The annualized return on average common equity was 9.9 percent in the current quarter, or 9.1 percent
excluding DVA. 91

Summary of Firm Results(dollars in millions)Net

Excluding DVA 4
Net
Net Income

As Reported
Net Income

Revenues

App. to MS (a)Revenues

App. to MS (a)2Q 2015$9,743$1,807$9,561$1,688

1Q 2015$9,907$2,394$9,782$2,314

2Q 2014$8,608$1,899$8,521$1,838(a) Net income applicable to Morgan Stanley included net discrete tax benefits of $564 million and $609 million in 1Q 2015 and2Q 2014, respectively.

Business Overview
Institutional Securities net revenues excluding DVA were $5.0 billion.10 Revenues for the quarter reflectrobust performance in Equity sales and trading, strong results in Investment Banking and continued
progress in Fixed Income and Commodities sales and trading.



Wealth Management net revenues were $3.9 billion. The pre-tax margin was 23%. Fee based asset flows
for the quarter were $13.9 billion, with total client assets of $2.0 trillion at quarter end.



Investment Management reported net revenues of $751 million with assets under management or
supervision of $403 billion.

6

James P. Gorman, Chairman and Chief Executive Officer, said, “We delivered a strong quarter across each of ourbusinesses, through client-focused execution, expense discipline and prudent risk management. We remain
focused on delivering the long-term value of this franchise.”2

Summary of Institutional Securities Results(dollars in millions)
As Reported
Net
Pre-Tax
Revenues
IncomeExcluding DVA 10
Net
Pre-Tax
Revenues
Income2Q 2015$5,172$1,622$4,990$1,440

1Q 2015$5,458$1,813$5,333$1,688

2Q 2014$4,248$960$4,161$873

INSTITUTIONAL SECURITIESInstitutional Securities reported pre-tax income from continuing operations of $1.6 billion compared with pre-tax
income of $960 million in the second quarter of last year. Net revenues for the current quarter were $5.2 billion
compared with $4.2 billion a year ago. Excluding DVA, net revenues for the current quarter of $5.0 billion,
1 10
compared with $4.2 billion a year ago. , The following discussion for sales and trading excludes DVA.


Advisory revenues of $423 million, equity underwriting revenues of $489 million and fixed income
underwriting revenues of $528 million were essentially unchanged from the prior year quarter, reflecting acontinued favorable market environment.



Equity sales and trading net revenues of $2.3 billion increased from $1.8 billion a year ago reflecting strong
performance across products and regions on higher levels of client activity.11



Fixed Income & Commodities sales and trading net revenues of $1.3 billion increased from $1.0 billion ayear ago. Results reflect higher revenues primarily in rates and foreign exchange, partly offset by lower
11
results in credit products and commodities.



Other revenues of $212 million increased from $108 million a year ago reflecting fees and gains associatedwith corporate loans and higher results in our Japanese joint venture Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.



Compensation expense of $1.9 billion increased from $1.7 billion a year ago on higher revenues. Noncompensation expenses of $1.7 billion for the current quarter increased from $1.6 billion a year ago primarily
driven by increased business activity and higher professional services costs, including legal and consulting
fees.



Morgan Stanley’s average trading Value-at-Risk (VaR) measured at the 95% confidence level was $54
million compared with $47 million from the first quarter of 2015 and $48 million in the second quarter of theprior year.12

On May 11, 2015, Morgan Stanley announced a definitive agreement to sell the Global Oil Merchanting unit of
its Commodities division to Castleton Commodities International LLC.

3

Summary of Wealth Management Results(dollars in millions)
Net
Revenues

Pre-Tax
Income2Q 2015$3,875$885

1Q 2015$3,834$855

2Q 2014$3,702$763

WEALTH MANAGEMENT
Wealth Management reported pre-tax income from continuing operations of $885 million compared with $763
6
million in the second quarter of last year. The quarter’s pre-tax margin was 23%. Net revenues for the current
quarter were $3.9 billion compared with $3.7 billion a year ago.


Asset management fee revenues of $2.2 billion increased from $2.1 billion a year ago reflecting an increase infee based assets and positive flows.

Transactional revenues13 of $872 million decreased from $991 million a year ago primarily reflecting lower
revenues related to investments associated with certain employee deferred compensation plans and lower
levels of new issue activity.



Net interest income of $737 million increased from $577 million a year ago on higher deposit and loanbalances.

Compensation expense for the current quarter of $2.2 billion was essentially unchanged from a year ago.
Non-compensation expenses of $790 million increased from $754 million a year ago, primarily driven byhigher consulting and legal fees.

Total client assets were $2.0 trillion at quarter end. Client assets in fee based accounts of $813 billion
increased 7% compared with the prior year quarter. Fee based asset flows for the quarter were $13.9 billion.



Wealth Management representatives were 15,771 at the end of the current quarter. Average annualized
revenue per representative of $978,000 increased 8% compared with the prior year quarter.

As of June 30, 2015 the transfer of deposits from Citigroup Inc. (Citi) to the Firm was completed. During thequarter, approximately $4 billion of deposits held by Citi relating to the Firm’s customer accounts weretransferred to the Firm’s depository institutions. Wealth Management bank deposits were $132 billion at the endof the current quarter.

4

Summary of Investment Management Results(dollars in millions)
Net
Revenues

Pre-Tax
Income2Q 2015

$751

$220

1Q 2015

$669

$187

2Q 2014

$705

$209

INVESTMENT MANAGEMENT
Investment Management reported pre-tax income from continuing operations of $220 million compared with pretax income of $209 million in the second quarter of last year.
Net revenues of $751 million increased from $705 million in the prior year primarily reflecting higher gains
on investments in the Merchant Banking and Real Estate Investing business.

Compensation expense for the current quarter of $308 million increased from $293 million a year ago,
principally due to an increase in deferred compensation associated with carried interest. Non-compensation
expenses of $223 million increased from $203 million a year ago.



Assets under management or supervision at June 30, 2015 of $403 billion increased from $399 billion a year
ago. The business recorded net outflows of $4.0 billion in the current quarter.

CAPITAL
As of June 30, 2015, the Firm’s Common Equity Tier 1 and Tier 1 risk-based capital ratios under U.S. Basel III
Advanced Approach transitional provisions were approximately 14.0% and 15.7%, respectively.14
As of June 30, 2015, the Firm estimates its pro forma fully phased-in Common Equity Tier 1 risk-based capitalratio (Advanced Approach) and pro forma fully phased-in Supplementary Leverage Ratio to be approximately
12.5% and 5.3%, respectively.14,15,16
At June 30, 2015, book value and tangible book value per common share were $34.52 and $29.54,17 respectively,
based on approximately 2.0 billion shares outstanding.

OTHER MATTERS
The effective tax rate from continuing operations for the current quarter was 32.8%.
During the quarter ended June 30, 2015, the Firm repurchased approximately $625 million of its common stock orapproximately 16 million shares.
The Board of Directors declared a $0.15 quarterly dividend per share payable on August 14, 2015 to commonshareholders of record on July 31, 2015.

5

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 more than 43 countries, theFirm’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 andthe Financial Supplement are available online in the Investor Relations section at www.morganstanley.com.

###(See Attached Schedules)
This earnings release contains forward-looking statements. Readers are cautioned not to place undue relianceon forward-looking statements, which speak only as of the date on which they are made and which reflect
management's current estimates, projections, expectations or beliefs and which are subject to risks anduncertainties that may cause actual results to differ materially. For a discussion of additional risks anduncertainties that may affect the future results of the Company, please see “Forward-Looking Statements”
immediately preceding Part I, Item 1, “Competition” and “Supervision and Regulation” in Part I, Item 1,“Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s Discussion andAnalysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative andQualitative Disclosures about Market Risk” in Part II, Item 7A in the Company's Annual Report on Form 10K for the year ended December 31, 2014 and other items throughout the Form 10-K, the Company’s
Quarterly Reports on Form 10-Q and the Company’s Current Reports on Form 8-K, including any
amendments thereto.

6

1

Represents the change in the fair value of certain of the Firm’s long-term and short-term borrowings resulting from thefluctuation in the Firm’s credit spreads and other credit factors (Debt Valuation Adjustment, DVA).
2

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. For these purposes, “GAAP” refers to generally
accepted accounting principles in the United States. The Securities and Exchange Commission (SEC) defines a “non-GAAP
financial measure” as a numerical measure of historical or future financial performance, financial positions, or cash flowsthat is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measurecalculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by Morgan Stanley areprovided as additional information to investors in order to provide them with greater transparency about, or an alternative
method for assessing, our financial condition and operating results. These measures are not in accordance with, or asubstitute for 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, we will also generally define it or present the most directlycomparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of thedifferences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.
3

Earnings (loss) per diluted share amounts, excluding DVA, are non-GAAP financial measures that the Firm considers
useful for investors to allow better comparability of period-to-period operating performance. Such exclusions are provided todifferentiate revenues associated with Morgan Stanley borrowings, regardless of whether the impact is either positive, or
negative, that result solely from fluctuations in credit spreads and other credit factors. The reconciliation of earnings (loss)
per diluted share applicable to Morgan Stanley common shareholders from a non-GAAP to GAAP basis is as follows(number of shares are presented in millions):

Earnings (loss) per diluted share - Non-GAAP
DVA Impact
Net discrete tax benefit
Earnings (loss) per diluted share - GAAP

2Q 2015
$0.79
$0.06
$0.00
$0.85

2Q 2014
$0.58
$0.03
$0.31
$0.92

1,960

1,969

Average diluted shares4

Net revenues excluding DVA and net income (loss) applicable to Morgan Stanley, excluding DVA and net discrete benefit,
are non-GAAP financial measures that the Firm considers useful for investors to allow for better comparability of period-toperiod operating performance. The reconciliation of net revenues and net income (loss) applicable to Morgan Stanley from a
non-GAAP to GAAP basis is as follows (amounts are presented in millions):

Firm net revenues - Non-GAAP
DVA impact
Firm net revenues - GAAPNet income (loss) applicable to MS ex. DVA/net discrete tax benefit - Non-GAAP
Net discrete tax benefit
Net income (loss) applicable to MS ex. DVA - Non-GAAP
DVA impact
Net income (loss) applicable to MS - GAAP5

2Q 2015$9,561$182$9,743

1Q 2015$9,782$125$9,907

2Q 2014$8,521$87$8,608$1,688$0$1,688$119$1,807$1,750$564$2,314$80$2,394$1,229$609$1,838$61$1,899Source: Thomson Reuters – for the period of January 1, 2015 to June 30, 2015 as of July 1, 2015.

7

6

Pre-tax margin is a non-GAAP financial measure that the Firm considers useful for investors to assess operating
performance. Pre-tax margin represents income (loss) from continuing operations before taxes divided by net revenues.
7

Includes preferred dividends and other adjustments related to the calculation of earnings per share for the second quarter of2015 and 2014 of approximately $142 million and $79 million, respectively. Refer to page 13 of Morgan Stanley’s Financial
Supplement accompanying this release for the calculation of earnings per share.
8

The impact to earnings per diluted share is calculated by dividing the net discrete tax benefit by the average number ofdiluted shares outstanding.
9

Annualized return on average common equity (ROE) and ROE excluding DVA are non-GAAP financial measures that the
Firm considers useful for investors to allow better comparability of period-to-period operating performance. The calculationof ROE uses net income applicable to Morgan Stanley less preferred dividends as a percentage of average common equity.
To determine the ROE excluding DVA, both the numerator and denominator were adjusted to exclude this item. The
reconciliation of ROE to ROE excluding DVA is as follows:

ROE excluding DVA
DVA impact
ROE

2Q 2015
9.1%
0.8%
9.9%

10

Institutional Securities net revenues and pre-tax income (loss), excluding DVA, are non-GAAP financial measures that the
Firm considers useful for investors to allow for better comparability of period-to-period operating performance. The
reconciliation of net revenues and pre-tax income (loss) from a non-GAAP to GAAP basis is as follows (amounts arepresented in millions):

Net revenues - Non-GAAP
DVA impact
Net revenues - GAAP
Pre-tax income (loss) - Non-GAAP
DVA impact
Pre-tax income (loss) - GAAP8

2Q 2015$4,990$182$5,172

1Q 2015$5,333$125$5,458

2Q 2014$4,161$87$4,248$1,440$182$1,622$1,688$125$1,813

$873
$87
$960

11

Sales and trading net revenues, including Fixed Income & Commodities (FIC) and Equity sales and trading net revenues
excluding DVA, are non-GAAP financial measures that the Firm considers useful for investors to allow better comparabilityof period-to-period operating performance. The reconciliation of sales and trading, including FIC and Equity sales andtrading net revenues from a non-GAAP to GAAP basis is as follows (amounts are presented in millions):
2Q 2015$3,322$182$3,504

2Q 2014$2,559$87$2,646FIC Sales & Trading - Non-GAAP
DVA Impact
FIC Sales & Trading - GAAP

$1,267$110$1,377$1,011$50$1,061Equity Sales & Trading - Non-GAAP
DVA Impact
Equity Sales & Trading - GAAP

$2,270$72$2,342$1,789$37$1,826

Sales & Trading - Non-GAAP
DVA Impact
Sales & Trading - GAAP

12

VaR represents the loss amount that one would not expect to exceed, on average, more than five times every one hundred
trading days in the Firm’s trading positions if the portfolio were held constant for a one-day period. Further discussion of thecalculation of VaR and the limitations of the Firm’s VaR methodology is disclosed in Part II, Item 7A “Quantitative andQualitative Disclosures about Market Risk” included in Morgan Stanley’s Annual Report on Form 10-K for the year ended
December 31, 2014. Refer to page 6 of Morgan Stanley’s Financial Supplement accompanying this release for the VaR
disclosure.
13

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

14

As a U.S. Basel III Advanced Approach banking organization, the Firm is required to compute risk-based capital ratios
using both (i) standardized approaches for calculating credit risk weighted assets (“RWAs”) and market risk RWAs (the“Standardized Approach”); and (ii) an advanced internal ratings-based approach for calculating credit risk RWAs, anadvanced measurement approach for calculating operational risk RWAs, and an advanced approach for market risk RWAs
calculated under Basel III (the “Advanced Approach”). To implement a provision of the Dodd-Frank Act, U.S. Basel III
subjects Advanced Approach banking organizations that have been approved by their regulators to exit the parallel run, suchas the Firm, to a permanent “capital floor”. Beginning on January 1, 2015, the capital floor is the lower of the capital ratios
computed under the Advanced Approach or the Standardized Approach under U.S. Basel III, taking into consideration
applicable transitional provisions. As of June 30, 2015, the lower ratio is represented by U.S. Basel III Advanced Approach.
These computations are preliminary estimates as of July 20, 2015 (the date of this release) and could be subject to revision in
Morgan Stanley’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015. The methods for calculating the
Firm’s risk-based capital ratios will change through January 1, 2022 as aspects of the U.S. Basel III final rule are phased in.
For information on the calculation of regulatory capital and ratios for prior periods, please refer to Part II, Item 7 "Liquidity
and Capital Resources - Regulatory Requirements" in Morgan Stanley's Annual Report on Form 10-K for the year ended
December 31, 2014 and Part I, Item 2 "Liquidity and Capital Resources - Regulatory Requirements" in Morgan Stanley's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2015.
15

U.S. Basel III requires the Firm to disclose information related to its supplementary leverage ratio beginning on January 1,
2015, which through to the end of 2017 will include the effects of transitional provisions. The supplementary leverage ratio
will become effective as a capital standard on January 1, 2018. Specifically, beginning on January 1, 2018, the Firm must
maintain a Tier 1 supplementary leverage capital buffer of greater than 2% in addition to the 3% minimum supplementary
leverage ratio (for a total of greater than 5%), in order to avoid limitations on capital distributions, including dividends andstock repurchases, and discretionary bonus payments to executive officers. The Firm’s pro forma Supplementary Leverage
Ratio estimate utilizes a fully phased-in U.S. Basel III Tier 1 capital numerator and a denominator of approximately $1.16

9trillion. The Firm’s estimates are subject to risks and uncertainties that may cause actual results to differ materially fromestimates based on these regulations. Further, these expectations should not be taken as projections of what the Firm’s
supplementary leverage ratios or earnings, assets or exposures will actually be at future dates. See “Risk Factors” in Part I,
Item 1A of the 2014 Form 10-K for a discussion of risks and uncertainties that may affect the future results of the Firm.
16

The pro forma fully phased-in Common Equity Tier 1 risk-based capital ratio and pro forma fully phased-in
supplementary leverage ratio are non-GAAP financial measures that the Firm considers to be useful measures for evaluatingcompliance with new regulatory capital requirements that have not yet become effective.
17

Tangible common equity and tangible book value per common share are non-GAAP financial measures that the Firm
considers to be useful measures of capital adequacy. Tangible common equity equals common equity less goodwill andintangible assets net of allowable mortgage servicing rights deduction. Tangible book value per common share equals
tangible common equity divided by period end common shares outstanding.

10

MORGAN STANLEY
Quarterly Consolidated Financial Summary(unaudited, dollars in millions, except for per share data)

June 30, 2015
Net revenues
Institutional Securities
Wealth Management
Investment Management
Intersegment Eliminations
Net revenues

5,172
3,875
751
(55)
9,743

$

1,622
885
220
0
2,727

$

$

$

1,087
561
159
0
1,807

$

Earnings per diluted share from continuing operations
Earnings per diluted share
Earnings per diluted share from continuing operations excluding DVA
Earnings per diluted share excluding DVA

Income (loss) from continuing operations before tax
Institutional Securities
Wealth Management
Investment Management
Intersegment Eliminations
Income (loss) from continuing operations before tax
Net Income (loss) applicable to Morgan Stanley
Institutional Securities
Wealth Management
Investment Management
Intersegment Eliminations
Net Income (loss) applicable to Morgan Stanley
Earnings (loss) applicable to Morgan Stanley common shareholders$

Quarter Ended
Mar 31, 2015

June 30, 2014

5,458
3,834
669
(54)
9,907

$

1,813
855
187
0
2,855

$

$

$

1,750
535
109
0
2,394

1,665

$

$
$

0.85
0.85

$
$

0.79
0.79

$

$

$

$

Percentage Change From:Mar 31, 2015
June 30, 2014

Six Months Ended
June 30, 2015
June 30, 2014

4,248
3,702
705
(47)
8,608

(5%)
1%
12%
(2%)
(2%)

22%
5%
7%
(17%)
13%

$

960
763
209
0
1,932

(11%)
4%
18%
-(4%)

69%
16%
5%
-41%

$

(38%)
5%
46%
-(25%)

(16%)
20%
12%
-(5%)

$

$

1,290
467
142
0
1,899

2,314

$

1,820

(28%)

$
$

1.18
1.18

$
$

0.92
0.92

$
$

1.14
1.14

$
$

0.89
0.89

$

$

$

$

10,630
7,709
1,420
(109)
19,650

$

3,435
1,740
407
0
5,582

$

$

$

2,837
1,096
268
0
4,201

(9%)

$

(28%)
(28%)

(8%)
(8%)

(31%)
(31%)

(11%)
(11%)

Percentage
Change

8,925
7,311
1,457
(89)
17,604

19%
5%
(3%)
(22%)
12%

2,376
1,449
477
0
4,302

45%
20%
(15%)
-30%

$

2,253
888
263
0
3,404

26%
23%
2%
-23%

3,979

$

3,269

22%

$
$

2.03
2.03

$
$

1.66
1.66

22%
22%

$
$

1.93
1.93

$
$

1.59
1.59

21%
21%

$

$

$

$

Financial Metrics:

Return on average common equity from continuing operations
Return on average common equity

9.9%
9.9%

14.2%
14.1%

11.3%
11.3%

12.0%
12.0%

10.2%
10.2%

Return on average common equity from continuing operations excluding DVA
Return on average common equity excluding DVA

9.1%
9.1%

13.5%
13.5%

10.7%
10.7%

11.3%
11.3%

9.6%
9.6%

Notes: - Refer to End Notes and Definition of Performance Metrics and GAAP to Non-GAAP Measures on pages 14-15 from the Financial Supplement for additional information related to the calculation of the financial metrics.

11

MORGAN STANLEY
Quarterly Consolidated Income Statement Information(unaudited, dollars in millions)

Revenues:
Investment banking
Trading
Investments
Commissions and fees
Asset management, distribution and admin. fees
Other
Total non-interest revenues

June 30, 2015

Quarter Ended
Mar 31, 2015

June 30, 2014

$

$

$

Interest income
Interest expense
Net interest
Net revenues
Non-interest expenses:
Compensation and benefits
Non-compensation expenses:
Occupancy and equipment
Brokerage, clearing and exchange fees
Information processing and communications
Marketing and business development
Professional services
Other
Total non-compensation expenses
Total non-interest expenses
Income (loss) from continuing operations before taxes
Income tax provision / (benefit) from continuing operations
Income (loss) from continuing operations
Gain (loss) from discontinued operations after tax
Net income (loss)
Net income applicable to nonredeemable noncontrolling interests
Net income (loss) applicable to Morgan Stanley
Preferred stock dividend / Other
Earnings (loss) applicable to Morgan Stanley common shareholders
Pre-tax profit margin
Compensation and benefits as a % of net revenues
Non-compensation expenses as a % of net revenues
Effective tax rate from continuing operations

$

$

1,614
2,973
261
1,158
2,742
297
9,045

1,357
3,650
266
1,186
2,681
171
9,311

Percentage Change From:Mar 31, 2015
June 30, 2014

1,633
2,516
227
1,138
2,621
206
8,341

19%
(19%)
(2%)
(2%)
2%
74%
(3%)

(1%)
18%
15%
2%
5%
44%
8%

Six Months Ended
June 30, 2015
June 30, 2014
$

2,971
6,623
527
2,344
5,423
468
18,356$Percentage
Change

2,941
5,478
586
2,354
5,170
500
17,029

1%
21%
(10%)
-5%
(6%)
8%

1,386
688
698
9,743

1,484
888
596
9,907

1,250
983
267
8,608

(7%)
(23%)
17%
(2%)

11%
(30%)
161%
13%

2,870
1,576
1,294
19,650

2,593
2,018
575
17,604

11%
(22%)
125%
12%

4,405

4,524

4,200

(3%)

5%

8,929

8,506

5%

351
487
438
179
598
558
2,611

342
463
415
150
486
672
2,528

358
458
411
165
531
553
2,476

3%
5%
6%
19%
23%
(17%)
3%

(2%)
6%
7%
8%
13%
1%
5%

693
950
853
329
1,084
1,230
5,139

719
901
835
312
984
1,045
4,796

(4%)
5%
2%
5%
10%
18%
7%

7,016

7,052

6,676

(1%)

5%

14,06813,302

6%

2,727
894
1,833
(2)
1,831
24
1,807
142
1,665

2,855
387
2,468
(5)
2,463
69
2,394
80
2,314

1,932
15
1,917
0
1,917
18
1,899
79
1,820

(4%)
131%
(26%)
60%
(26%)
(65%)
(25%)
78%
(28%)

41%
*
(4%)
*
(4%)
33%
(5%)
80%
(9%)

5,582
1,281
4,301
(7)
4,294
93
4,201
222
3,979

4,302
800
3,502
(1)
3,501
97
3,404
135
3,269

30%
60%
23%
*
23%
(4%)
23%
64%
22%

$

$

$

$

$

$

$

$

28%
45%
27%

29%
46%
26%

22%
49%
29%

28%
45%
26%

24%
48%
27%

32.8%

13.6%

0.8%

22.9%

18.6%

Notes: - Refer to End Notes and Definition of Performance Metrics and GAAP to Non-GAAP Measures on pages 14-15 from the Financial Supplement for additional information.

12

MORGAN STANLEY
Quarterly Earnings Per Share(unaudited, dollars in millions, except for per share data)

Quarter Ended
June 30, 2015

Income (loss) from continuing operations
Net income applicable to nonredeemable noncontrolling interests$

Income (loss) from continuing operations applicable to Morgan Stanley
Less: Preferred Dividends
Income (loss) from continuing operations applicable to Morgan Stanley, prior to allocation of income toParticipating Restricted Stock Units
Basic EPS Adjustments:
Less: Allocation of earnings to Participating Restricted Stock Units
Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders

$

1,833
24

Earnings (loss) applicable to Morgan Stanley common shareholders

$

2,468
69

$

Mar 31, 2015

June 30, 2014

1,917
18

(26%)
(65%)

(4%)
33%

(25%)

(5%)

81%

86%

(28%)

(9%)

3
1,820

(50%)
(28%)

(67%)
(8%)

0
0
0
0
0

60%
-60%
-60%

*
-*
-*

2,399
78

1,899
76

1,668

2,321

1,823

1
1,667

$

(2)
0
(2)
0
(2)
$

June 30, 2014

1,809
141

Gain (loss) from discontinued operations after tax
Less: Gain (loss) from discontinued operations after tax applicable to noncontrolling interests
Gain (loss) from discontinued operations after tax applicable to Morgan Stanley
Less: Allocation of earnings to Participating Restricted Stock Units
Earnings (loss) from discontinued operations applicable to Morgan Stanley common shareholders

Average basic common shares outstanding (millions)

Percentage Change From:Mar 31, 2015

1,665

2
2,319

$

(5)
0
(5)
0
(5)
$

1,919

2,314

$

1,924

1,820

(28%)

(9%)

1,928

--

--

Six Months Ended
June 30, 2015$$

Change

3,502
97

23%
(4%)

4,208
219

3,405
130

68%

3,989

3,275

4,301
93

3
3,986

$

$

(7)
0
(7)
0
(7)
$

Percentage

June 30, 2014

3,979

5
3,270
(1)
0
(1)
0
(1)

$

1,922

24%

22%

(40%)
22%
*
-*
-*

3,269

22%

1,926

--

Earnings per basic share:
Income from continuing operations
Discontinued operations
Earnings per basic share

$
$
$

0.87
0.87

$
$
$

1.21
(0.01)
1.20

$
$
$

0.94
0.94

(28%)
*
(28%)

(7%)
-(7%)

$
$
$

2.07
2.07

$
$
$

1.70
1.70

22%
-22%

Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders

$

1,667

$

2,319

$

1,820

(28%)

(8%)

$

3,986

$

3,270

22%

0

60%

*

1,820

(28%)

(9%)

1,969

--

--

0.92
0.92

(28%)
-(28%)(8%)-(8%)

Earnings (loss) from discontinued operations applicable to Morgan Stanley common shareholders
Earnings (loss) applicable to Morgan Stanley common shareholders(2)$

Average diluted common shares outstanding and common stock equivalents (millions)
Earnings per diluted share:
Income from continuing operations
Discontinued operations
Earnings per diluted share

1,665

(5)
$

1,960

$
$
$

0.85
0.85

2,314

$

1,963

$
$
$

1.18
1.18

$
$
$

Notes: - Refer to End Notes and Definition of Performance Metrics and GAAP to Non-GAAP Measures on pages 14-15 from the Financial Supplement for additional information.

13

(7)
$

3,979

(1)
$

1,962

$
$
$

2.03
2.03

$
$
$

*

3,269

22%

1,969

--

1.66
1.66

22%
-22%