Morgan Stanley Second Quarter 2020 Earnings Results
Morgan Stanley Reports Net Revenues of $13.4 Billion and EPS of $1.96
NEW YORK, July 16, 2020 – Morgan Stanley (NYSE: MS) today reported net revenues of $13.4 billion for thesecond quarter ended June 30, 2020 compared with $10.2 billion a year ago. Net income applicable to Morgan
Stanley was $3.2 billion, or $1.96 per diluted share1, compared with net income of $2.2 billion, or $1.23 per diluted
share1, for the same period a year ago. The current quarter included intermittent net discrete tax expenses of $134
million which had an impact of $0.08 per diluted share.
James P. Gorman, Chairman and Chief Executive Officer, said, “Our decade long business transformation was
intended to provide stability during times of serious stress. The second quarter tested the model and we performed
exceedingly well, delivering record results. This builds on the momentum of a very strong first quarter, while morethan 90% of our employees continue to work from home, demonstrating the ongoing operational resilience of ourplatform. We remain focused on supporting our employees, communities, and clients, while managing our risk andcontinuing to invest in our businesses.”Financial Summary2,3Highlights($ millions, except per share data)

Firm

2Q 2020

2Q 2019

Net revenues$13,414$10,244

Compensation expense$6,035$4,531

Non-compensation expenses
Pre-tax income6$3,024$2,810$4,355$2,903

Net income app. to MS$3,196$2,201

68%

72%

$1.96

$1.23

$49.57$44.13$43.68$38.44

15.7%

11.2%

17.8%

12.8%

Expense efficiency ratio

7

Earnings per diluted share
8Book value per share

Tangible book value per share
Return on equity

9

10

Return on tangible equity10
Institutional Securities
Net revenues$7,977$5,113

Investment Banking$2,051$1,472

Sales & Trading$5,553$3,304

Net revenues$4,680$4,408Fee-based client assets ($ billions)11$1,236$1,159Fee-based asset flows ($ billions)12

$11.1

$9.8

Loans ($ billions)

$85.2

$74.1

Wealth Management

Investment Management
Net revenues

$886

$839

13

AUM ($ billions)

$665

$497

Long-term net flows ($ billions)14

$15.4

$4.9

Media Relations: Wesley McDade 212-761-2430• The Firm’s results reflect both record net revenues up ~30%
and net income up ~45%4 with contributions from all
businesses and geographies.
• The Firm delivered ROE of 15.7% and ROTCE of 17.8%.
• The Firm’s allowance for credit losses on loans held forinvestment increased by 40% to $866 million as of June 30,
2020 with a provision for credit losses of $246 million in thecurrent quarter.
• Our balance sheet, capital and liquidity remain strong andthe Firm is well positioned to continue to facilitate client
activity.
• Institutional Securities net revenues increased 56% reflecting
outperformance across the businesses. Sales and Tradingup 68% on strong client engagement as markets stabilized;
Underwriting up 64% as clients accessed the open capital
markets to strengthen their balance sheets.
• Wealth Management delivered a pre-tax income of $1.1
billion with a pre-tax margin of 24.4%5 despite a challenging
market and rate environment. Bank lending increased 15%
and brokerage sweep deposits were up $40 billion from ayear ago.
• Investment Management reported both record long-term net
flows of $15.4 billion and AUM of $665 billion driving revenue
growth of 6%.

Investor Relations: Sharon Yeshaya 212-761-1632

Institutional Securities
Institutional Securities reported net revenues for the current quarter of $8.0 billion compared with $5.1 billion a year
ago. Pre-tax income was $3.0 billion compared with $1.5 billion a year ago.6
Investment Banking revenues up 39% from a year ago:
• Advisory revenues decreased from a year ago driven by lower
completed M&A activity and fewer large transactions.

($ millions)

2Q 2020

2Q 2019

Net Revenues$7,977$5,113

Investment Banking$2,051$1,472Advisory

$462

$506

Equity underwriting

$882

$546

Sales and Trading net revenues up 68% from a year ago:

Fixed income underwriting

$707

$420

• Equity sales and trading net revenues increased from a year
ago reflecting strong performance in cash equities andderivatives across all regions driven by elevated client activity.

Sales and Trading$5,553$3,304Equity$2,619$2,130

Fixed Income$3,033$1,133

Other

$(99)

$41

Investments and Other

$373

$337

Investments

$36

$194

Other

$337

$143

• Equity underwriting revenues increased from a year ago on
increased volumes and higher revenues from blocks,
convertibles and follow-on offerings.
• Fixed income underwriting revenues increased from a year ago
on higher investment grade and non-investment grade bondissuances as clients continue to access the market to benefit
from the lower rate environment and to raise liquidity.

• Fixed Income sales and trading net revenues increased
significantly from a year ago reflecting strong performanceacross products and geographies on higher client activity.
The increase in credit products reflected robust global capital
markets activity and credit spread movements. The foreignexchange and rates businesses benefited from elevatedvolatility and wider bid-offer spreads while commodities
revenues benefited from higher client activity in volatile
markets.
• Other sales and trading net revenues decreased from a year
ago driven by losses on economic hedges associated withcorporate lending activity.
Investments and Other:

Total Expenses$4,984$3,650• Investments revenues decreased from a year ago. The prioryear quarter included gains associated with an investment’s
initial public offering and subsequent mark-to-market gains onremaining holdings.

Compensation$2,952$1,789Non-compensation$2,032$1,861• Other revenues increased from a year ago primarily related tomark-to-market gains associated with corporate lending activity
as credit spreads tightened in the quarter, partially offset by anincrease in the allowance for credit losses for loans held forinvestment.
Total Expenses:• Compensation expenses increased from a year ago on higher revenues.
• Non-compensation expenses increased from a year ago primarily on higher volume driven expenses andinformation processing costs partially offset by lower spending on business travel, entertainment and conferences.

2

Wealth Management
Wealth Management reported net revenues for the current quarter of $4.7 billion compared with $4.4 billion from a year
ago. Pre-tax income of $1.1 billion6 in the current quarter resulted in a pre-tax margin of 24.4%.5
Net revenues increased 6% from a year ago:($ millions)• Asset management revenues were essentially unchanged
from a year ago reflecting lower markets and lower averagefee rates primarily on changes in asset mix, offset by positiveflows.
• Transactional revenues15 decreased slightly excluding theimpact of mark-to-market gains on investments associatedwith employee deferred cash-based compensation plans.
• Net interest income remained essentially unchanged from ayear ago reflecting growth in bank lending, increases in bankdeposits and lower mortgage securities prepayment
amortization expense, partially offset by the impact of lower
average interest rates. Wealth Management client liabilities16
were $94 billion at quarter end compared with $84 billion ayear ago.

2Q 2020

2Q 2019

Net Revenues$4,680$4,408Asset management$2,507$2,544

Transactional15$1,075$728

Net interest$1,030$1,016$68$120

Total Expenses$3,538$3,165Compensation$2,729$2,382

$809

$783

Other

Non-compensation

Total Expenses:• Compensation expense increased from a year ago primarily driven by the increase in the fair value of deferred cashbased compensation plan referenced investments.
• Non-compensation expenses were essentially unchanged from a year ago.

Investment Management
Investment Management reported net revenues of $886 million compared with $839 million a year ago. Pre-tax
income was $216 million compared with $199 million a year ago.6
Net revenues increased 6% from a year ago:
2Q 2020

2Q 2019

Net Revenues

$886

$839

Asset management

$684

$612

Investments

$231

$247

Other

$(29)

$(20)

Total Expenses

$670

$640

Compensation

$354

$360

Non-compensation

$316

$280

($ millions)• Asset management revenues increased 12% from a year ago
driven by record AUM on continued strong performance andpositive net flows.
• Investments revenues decreased slightly on lower accrued
carried interest from Real Estate and Infrastructure funds.
Total Expenses:• Compensation expense decreased slightly from a year ago
principally due to a decrease in carried interest.
• Non-compensation expenses increased from a year ago driven
by higher brokerage and clearing costs.

3

Other Matters• The Comprehensive Capital Analysis and Review (CCAR)
results affirm the Firm’s strong capital position and reflect
the stability of the business model.

2Q 2020

2Q 2019

Common Equity Tier 1 capital18

16.1%

16.3%

Tier 1 capital18

18.1%

18.6%

Tier 1 leverage19

8.1%

8.4%

Supplementary leverage ratio20

7.3%

6.5%

Repurchases ($ millions)NA$1,180• The effective tax rate for the quarter was 25.7%. The
current quarter includes intermittent net discrete tax
expenses of $134 million principally associated with theremeasurement of reserves related to a foreign tax matter.

Number of Shares (millions)NA

26

Average Price

NA$44.53• The Firm’s provision for credit losses on loans and lending
commitments was $239 million for the second quarter of
2020, compared with $18 million for the second quarter of2019 and $407 million for the first quarter of 2020. The
allowance for credit losses on loans and lending
commitments was $1.2 billion as of June 30, 2020, an
increase of approximately 26% over the previous quarter.

Period End Shares (millions)

1,576

1,659

Tax Rate

25.7%

22.6%

• At June 30, 2020 the Firm’s Common Equity Tier 118 andTier 118 risk-based capital ratios under the Advanced
Approach were 16.1% and 18.1%, respectively and under
the Standardized Approach the ratios were 16.5% and18.6%, respectively.
• Supplementary leverage ratio (SLR)20 and exposures in thecurrent quarter include the Federal Reserve interim final
rule relief in effect until March 31, 2021. The impact of theinterim rule on the SLR ratio was an improvement of
0.9%20.

Capital17

Common Stock Repurchases• The Board of Directors declared a $0.35 quarterly dividend
per share, payable on August 14, 2020 to commonshareholders of record on July 31, 2020.

4

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealthmanagement and investment management services. With offices in more than 41 countries, the Firm’s employees serve clientsworldwide 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 andsegment 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 may include certain non-GAAP financial measures. The definitionof such measures or reconciliation of such metrics to the comparable U.S. GAAP figures are included in this earnings release andthe Financial Supplement, both of which are available on www.morganstanley.com.
This earnings release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27Aof the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context,
forward-looking statements often address expected future business and financial performance and financial condition, and often
contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, andvariations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees,
uncertain, including the attainment of certain financial and other targets, objectives and goals of the Firm, as well as statements
about the consummation of the proposed transaction with E*TRADE Financial Corporation (“E*TRADE”) and the anticipated benefits
thereof. All such forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results todiffer materially from those expressed in such forward-looking statements. Important risk factors that may cause such a difference
include, but are not limited to, (i) the completion of the proposed transaction on anticipated terms and timing, including obtaining
required stockholder and regulatory approvals, anticipated tax treatment, unforeseen liabilities, future capital expenditures,
revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects,
business and management strategies for the management, expansion and growth of the combined company’s operations and otherconditions to the completion of the acquisition, including the possibility that any of the anticipated benefits of the proposedtransaction will not be realized or will not be realized within the expected time period, (ii) the ability of the Firm and E*TRADE tointegrate the business successfully and to achieve anticipated synergies, risks and costs, (iii) potential litigation relating to the
proposed transaction that could be instituted against the Firm, E*TRADE or their respective directors, (iv) the risk that disruptions
from the proposed transaction will harm the Firm’s and E*TRADE’s business, including current plans and operations, (v) the abilityof the Firm or E*TRADE to retain and hire key personnel, (vi) potential adverse reactions or changes to business relationships
resulting from the announcement or completion of the acquisition, (vii) continued availability of capital and financing and rating
agency actions, (viii) legislative, regulatory and economic developments, (ix) potential business uncertainty, including changes toexisting business relationships, during the pendency of the acquisition that could affect Morgan Stanley’s and/or E*TRADE’s
financial performance, (x) certain restrictions during the pendency of the acquisition that may impact the Firm’s or E*TRADE’s ability
to pursue certain business opportunities or strategic transactions, (xi) unpredictability and severity of catastrophic events, including,but not limited to, acts of terrorism or outbreak of war or hostilities, as well as management’s response to any of the aforementioned
factors, (xii) dilution caused by the Firm’s issuance of additional shares of its common stock in connection with the proposedtransaction, (xiii) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of
unexpected factors or events, (xiv) those risks described in Item 1A of the Firm’s most recently filed Annual Report on Form 10-K
and subsequent reports on Forms 10-Q and 8-K, including the risk factor under Item 8.01 “Other Matters” in the Current Report on
Form 8-K dated April 16, 2020, and the additional risk factors under “Risk Factors” in the Registration Statement on Form S-4 filedon April 17, 2020, as amended (“Form S-4”), (xv) those risks described in Item 1A of E*TRADE’s most recently filed Annual Reporton Form 10-K and subsequent reports on Forms 10-Q and 8-K and (xvi) those risks described in the proxy statement/prospectus on
Form S-4 available from the sources indicated above. These risks, as well as other risks associated with the proposed acquisition,
are more fully discussed in the proxy statement/prospectus included in the registration statement on Form S-4 filed with the SEC in
connection with the proposed acquisition. While the list of factors presented here and the list of factors presented in the registration
statement on Form S-4 are considered representative, no such list should be considered to be a complete statement of all potential
risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include,
among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any ofwhich could have a material adverse effect on the Firm’s or E*TRADE’s consolidated financial condition, results of operations, credit
rating or liquidity. Neither the Firm nor E*TRADE assumes any obligation to publicly provide revisions or updates to any forwardlooking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except
as otherwise required by securities and other applicable laws.

5

1

Includes preferred dividends related to the calculation of earnings per share of $149 million and $170 million for the second
quarter of 2020 and 2019, 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 positions, 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 prospective regulatory capital requirements. 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, we will 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.

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, investors, analysts and other stakeholders by providing furthertransparency about, or an additional means of assessing, our financial condition and operating results.
4

Net revenues of $13.4 billion and net income applicable to Morgan Stanley of $3.2 billion represent records for a reported
quarterly period after excluding the impact of debt valuation adjustments (DVA), which were previously reflected in net
revenues in prior periods, and reflecting the current reporting structure of the Firm (i.e. exclusive of discontinued operations).
Net revenues and net income applicable to Morgan Stanley, excluding the impact of DVA, were non-GAAP financial
measures in those prior periods that were reconciled to the comparable GAAP financial measures in the respective quarterly
reports filed on Form 10-Q.

5

Pre-tax margin represents income (loss) before taxes divided by net revenues.

6

Pre-tax income represents income (loss) before taxes.

7

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

8Book value per common share represents common equity divided by period end common shares outstanding.

9

Tangible book value per common share is a non-GAAP financial measure that the Firm considers useful for analysts,
investors and other stakeholders to allow better comparability of period-to-period operating performance and capital
adequacy. The calculation of tangible book value per common share represents tangible common equity divided by period
end common shares outstanding. Tangible common equity, also a non-GAAP financial measure, represents common equity
less goodwill and intangible assets net of allowable mortgage servicing rights deduction.

10

The return on average tangible common equity and tangible common equity are non-GAAP financial measures that the
Firm considers useful for analysts, investors and other stakeholders to allow better comparability of period-to-period
operating performance and capital adequacy. The calculation of return on average common equity and return on averagetangible common equity represents annualized earnings applicable to Morgan Stanley common shareholders as apercentage of average common equity and average tangible common equity, respectively. Tangible common equity
represents common equity less goodwill and intangible assets net of certain allowable servicing rights deduction.
11

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.
12

Wealth Management fee-based asset flows include net new fee-based assets, net account transfers, dividends, interest,and client fees and exclude institutional cash management related activity.
13

AUM is defined as assets under management.

6

14Long-term net flows include the Equity, Fixed Income and Alternative/Other asset classes and exclude the Liquidity asset
class.
15

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

16

Wealth Management client liabilities reflect U.S. Bank Subsidiaries’ lending and broker-dealer margin activity. U.S. Bank
refers to the Firm’s U.S. Bank operating subsidiaries Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National
Association.

17

Capital ratios are estimates as of the press release date, July 16, 2020.

18

The Firm’s risk-based capital ratios for purposes of determining regulatory compliance are the lower of the capital ratios
computed under 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 andoperational risk RWAs (the “Advanced Approach”). At June 30, 2020 the Firm’s ratios are based on the Advanced Approach,while at June 30, 2019, they were based on the Standardized Approach. For information on the calculation of regulatory
capital and ratios for prior periods, please refer to “Liquidity and Capital Resources – Regulatory Requirements” in the Firm’s
2019 Form 10-K.
19

The Tier 1 leverage ratio is a non-risk 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.
20

The Firm must maintain a Tier 1 supplementary leverage ratio of 5% inclusive of a capital buffer of at least 2% in order toavoid limitations on capital distributions, including dividends and stock repurchases, and discretionary bonus payments to
executive officers. The Firm’s Supplementary Leverage Ratio utilizes a Tier 1 capital numerator of approximately $77.4
billion and $72.7 billion, and supplementary leverage exposure denominator of approximately $1.06 trillion and $1.12 trillion,
for the second quarter of 2020 and 2019, respectively. Based on a Federal Reserve interim final rule in effect until March 31,
2021, our SLR and Supplementary leverage exposure as of June 30, 2020 reflect the exclusion of U.S. Treasury securities
and deposits at Federal Reserve Banks. The exclusion of these assets had the effect of improving our SLR ratio by 0.9% asof June 30, 2020.

7

Morgan Stanley
Consolidated Income Statement Information(unaudited, dollars in millions)

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

Jun 30, 2020

Quarter Ended
Mar 31, 2020

Jun 30, 2019

$

$

$

Interest income
Interest expense
Net interest
Net revenues
Non‐interest expenses:
Compensation and benefits
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
Total non‐interest expenses
Income before provision for income taxes
Provision for income taxes
Net income (loss)
Net income applicable to nonredeemable noncontrolling interests
Net income (loss) applicable to Morgan Stanley
Preferred stock dividend
Earnings (loss) applicable to Morgan Stanley common shareholders

$

$

2,142
4,683
275
1,102
3,265
347
11,814

1,271
3,056
38
1,360
3,417
(1,011)
8,131

Percentage Change From:Mar 31, 2020 Jun 30, 2019

1,590
2,732
441
979
3,220
253
9,215

69%
53%
*
(19%)
(4%)
*
45%

35%
71%
(38%)
13%
1%
37%
28%

Six Months Ended
Jun 30, 2020
Jun 30, 2019
$

3,413
7,739
313
2,462
6,682
(664)
19,945$Percentage
Change

2,832
6,173
714
1,945
6,269
554
18,487

21%
25%
(56%)
27%
7%
*
8%

2,358
758
1,600
13,414

3,503
2,147
1,356
9,487

4,506
3,477
1,029
10,244

(33%)
(65%)
18%
41%

(48%)
(78%)
55%
31%

5,861
2,905
2,956
22,901

8,796
6,753
2,043
20,530

(33%)
(57%)
45%
12%

6,035

4,283

4,531

41%

33%

10,318

9,182

12%

716
589
535
365
63
756
3,024

740
563
449
365
132
809
3,058

630
538
537
353
162
590
2,810

(3%)
5%
19%
‐‐
(52%)
(7%)
(1%)

14%
9%
‐‐
3%
(61%)
28%
8%

1,456
1,152
984
730
195
1,565
6,082

1,223
1,070
1,051
700
303
1,143
5,490

19%
8%
(6%)
4%
(36%)
37%
11%

9,059

7,341

7,341

23%

23%

16,40014,672

12%

4,355
1,119
3,236
40
3,196
149
3,047

2,146
366
1,780
82
1,698
108
1,590

2,903
657
2,246
45
2,201
170
2,031

103%
*
82%
(51%)
88%
38%
92%

50%
70%
44%
(11%)
45%
(12%)
50%

6,501
1,485
5,016
122
4,894
257
4,637

5,858
1,144
4,714
84
4,630
263
4,367

11%
30%
6%
45%
6%
(2%)
6%

$

$

$

$

$

$

$

$

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

8

Morgan Stanley
Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)Jun 30, 2020

Quarter Ended
Mar 31, 2020

Jun 30, 2019

$
$

$
$

$
$

Percentage Change From:Mar 31, 2020 Jun 30, 2019

Six Months Ended
Jun 30, 2020 Jun 30, 2019

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 intermittent net discrete tax provision / benefit
Adjusted earnings per diluted share
Adjusted return on average common equity
Adjusted return on average tangible common equity

1.98
1.96
15.7%
17.8%

1.02
1.01
8.5%
9.7%

1.24
1.23

94%
94%

60%
59%

$
$

11.2%
12.8%

$
$

49.57
43.68

$
$

49.09
43.28

$
$

44.13
38.44

$

2.04
16.4%
18.6%

$

0.99
8.3%
9.5%

$

1.23
11.2%
12.8%

3.00
2.96

$
$

12.2%
13.9%

106%

66%

2.65
2.62

13%
13%

12.1%
13.8%

$
$

49.57
43.68

$
$

44.13
38.44

$

3.03
12.5%
14.2%

$

2.56
11.8%
13.5%

18%

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

32%
45%
23%
68%
25.7%

23%
45%
32%
77%
17.1%

28%
44%
27%
72%
22.6%

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

1,576

1,576

1,659

‐‐

(5%)

1,541
1,557

1,555
1,573

1,634
1,655

(1%)
(1%)

(6%)
(6%)

Worldwide employees

61,596

60,67059,513

2%

4%

28%
45%
27%
72%
22.8%

29%
45%
27%
71%
19.5%

1,548
1,565

1,646
1,666

Statistical Data:

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

9

(6%)
(6%)