Morgan Stanley First Quarter 2020 Earnings Results
Morgan Stanley Reports Net Revenues of $9.5 Billion and EPS of $1.01
NEW YORK, April 16, 2020 – Morgan Stanley (NYSE: MS) today reported net revenues of $9.5 billion for the firstquarter ended March 31, 2020 compared with $10.3 billion a year ago. Net income applicable to Morgan Stanley was$1.7 billion, or $1.01 per diluted share,1 compared with net income of $2.4 billion, or $1.39 per diluted share,1 for thesame period a year ago.
James P. Gorman, Chairman and Chief Executive Officer, said, “Over the past two months, we have witnessed moremarket volatility, uncertainty and anxiety as a result of the devastating COVID-19 than at any time since the financial
crisis. While it’s too early to predict how this will unfold, Morgan Stanley navigated the quarter well given theconditions, and our results bear testament to the strength of our balanced business model. Our investments intechnology and infrastructure enabled us to continue to serve our clients around the globe with more than 90% of ouremployees working from home. I am proud of the dedication and professionalism of our employees in the face of
these obstacles.”Financial Summary2,3Highlights($ millions, except per share data)

Firm

1Q 2020

1Q 2019

Net revenues$9,487$10,286

Compensation expense$4,283$4,651

Non-compensation expenses
Pre-tax income5$3,058$2,680$2,146$2,955

Net income app. to MS$1,698$2,429• The Firm’s results demonstrated the stability of our franchise.

Expense efficiency ratio

6

77%

71%

$1.01

$1.39

$49.09$42.83$43.28$37.62

8.5%

13.1%

9.7%

14.9%

Net revenues$4,905$5,196

Investment Banking$1,144$1,151

Sales & Trading$4,865$3,742

Net revenues$4,037$4,389Fee-based client assets ($ billions)10$1,134$1,116

Fee-based asset flows ($ billions)11

$18.4

$14.8

Loans ($ billions)

$82.5

$71.5

Earnings per diluted share
Book value per share7
Tangible book value per share
Return on equity

8

9

Return on tangible equity9• Our balance sheet, capital and liquidity remain strong andthe Firm is well positioned to facilitate client activity in these
uncertain markets.
• With the COVID-19 pandemic, the Firm is focused on thehealth and financial wellness of our employees, clients,
shareholders and the local communities in which we operate.
• We voluntarily ceased our share repurchase program in thefirst quarter to better support clients with lending and otherservices during this global pandemic.
• Non-compensation expenses were elevated due to higher
volume-related expenses and the increase in the allowancefor credit losses for lending commitments.

Institutional Securities• Institutional Securities net revenues reflect strong
performance in Sales and Trading, up 30% on higher client
volumes and volatility; overall results were impacted by thedeterioration of credit in the global markets.

Wealth Management

Investment Management
Net revenues

$692

$804

12

AUM ($ billions)

$584

$480

Long-term net flows ($ billions)13$6.7$(0.4)Media Relations: Wesley McDade 212-761-2430• Wealth Management delivered a pre-tax margin of 26.1%4
despite market headwinds, reflecting strong underlying
business fundamentals. Bank lending increased 15% anddeposits were up $55 billion from a year ago.

• Investment Management reported strong management feeson higher AUM and continued positive long-term net flows.
Results reflect lower investment revenues driven by the
decline in global asset prices.

Investor Relations: Sharon Yeshaya 212-761-1632

Institutional Securities
Institutional Securities reported net revenues for the current quarter of $4.9 billion compared with $5.2 billion a year
ago. Pre-tax income was $1.0 billion compared with $1.6 billion a year ago.5
Investment Banking revenues down 1% from a year ago:
• Advisory revenues decreased from a year ago driven by lower
completed M&A activity on a decline in volumes, particularly inlarge transactions.
• Equity underwriting revenues were in line with a subdued prioryear quarter. The current year period reflects a steep decline inglobal equity volumes in the second half of the quarter, with theprior year impacted by lower IPO volumes.
• Fixed income underwriting revenues increased from a year ago
on higher investment grade bonds and non-investment gradeloan issuances as clients accessed the market to benefit fromthe lower rate environment and to raise additional liquidity in
March.

Sales and Trading net revenues up 30% from a year ago:
• Equity sales and trading net revenues increased from a year
ago reflecting strong performance across businesses,
particularly in the Americas and Asia, driven by higher client
volumes.

($ millions)

1Q 2020

1Q 2019

Net Revenues$4,905$5,196

Investment Banking$1,144$1,151Advisory

$362

$406

Equity underwriting

$336

$339

Fixed income underwriting

$446

$406

Sales and Trading$4,865$3,742Equity$2,422$2,015

Fixed Income$2,203$1,710$240$17$(1,104)

$303

$(25)

$81

Other

• Fixed Income sales and trading net revenues increased 29%
from a year ago reflecting strong performance across rates,
foreign exchange and commodities, on strong client
engagement and volatility in the markets. The increase waspartially offset by declines in credit products, notably insecuritized products and municipal securities, which were
negatively impacted by market dislocation.

Investments and Other

Other$(1,079)$222• Other sales and trading net revenues increased from a year
ago driven by gains on economic hedges associated withcorporate lending activity, partially offset by losses oninvestments associated with employee deferred cash-based
compensation plans.

Total Expenses$3,955$3,601Compensation$1,814$1,819Non-compensation$2,141$1,782

Investments

Investments and Other:• Investments revenues decreased from a year ago primarily driven by a markdown on an energy-related investment.
The prior year quarter included revenues related to a fund distribution.
• Other revenues decreased from a year ago reflecting mark-to-market losses on corporate loans held for sale due tothe widening of credit spreads and an increase in the allowance for credit losses for loans held for investment, as aresult of the credit deterioration that began in March.
Total Expenses:• Compensation expenses were essentially unchanged from a year ago.
• Non-compensation expenses increased from a year ago on higher volume-related expenses and an increase in theallowance for credit losses for unfunded lending commitments.

2

Wealth Management
Wealth Management reported net revenues for the current quarter of $4.0 billion compared with $4.4 billion from a year
ago. Pre-tax income of $1.1 billion5 in the current quarter resulted in a pre-tax margin of 26.1%.4
Net revenues decreased 8% from a year ago:
• Asset management revenues increased from a year ago
reflecting higher asset levels and strong fee-based asset
flows.
• Transactional revenues14 decreased significantly from a year
ago principally driven by mark-to-market losses oninvestments associated with employee deferred cash-based
compensation plans, reflecting the market decline in March.
This decrease was partially offset by a notable increase
compared with a year ago in commissions driven by higher
client activity and volumes in a volatile market environment.
• Net interest income decreased 21% compared with a year ago
primarily driven by lower interest rates and an increase inmortgage securities prepayment amortization expense.
Wealth Management client liabilities15 were $92 billion atquarter end compared with $82 billion a year ago.

($ millions)

1Q 2020

1Q 2019

Net Revenues$4,037$4,389Asset management$2,680$2,361

Transactional14

$399

$817

Net interest$896$1,130

Other

$62

$81

Total Expenses$2,982$3,201Compensation$2,212$2,462$770$739

Non-compensation

Total Expenses:• Compensation expense decreased from a year ago primarily driven by the significant decrease in the fair value ofdeferred cash-based compensation plan referenced investments, partially offset by increases in compensable
revenues.
• Non-compensation expenses increased from a year ago primarily driven by the inclusion of Solium Capital Inc. in
the current quarter.

Investment Management
Investment Management reported net revenues of $692 million compared with $804 million a year ago. Pre-tax
income was $143 million compared with $174 million a year ago.5
Net revenues decreased 14% from a year ago:
• Asset management revenues increased from a year ago driven
by higher levels of AUM.
• Investments revenues reflect a significant decrease from thereversal of accrued carried interest and markdowns on
investments due to the decline in global asset prices. The
decrease was partially offset by accrued carried interest
associated with mark-to-market gains on an underlying
investment, subject to sales restrictions, within an Asia private
equity fund.

1Q 2020

1Q 2019

Net Revenues

$692

$804

Asset management

$665

$617

Investments

$63

$191

Other

$(36)

$(4)

Total Expenses

$549

$630

Compensation

$257

$370

Non-compensation

$292

$260

($ millions)

Total Expenses:• Compensation expense decreased 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• Prior to voluntarily ceasing its program, the Firm
repurchased $1.3 billion of its outstanding common stockduring the quarter as part of its Share Repurchase Program.
• The Board of Directors declared a $0.35 quarterly dividend
per share, payable on May 15, 2020 to commonshareholders of record on April 30, 2020.
• The effective tax rate for the quarter was 17.1%, whichreflected a recurring-type of discrete tax benefit of $99
million associated with employee share-based payments.20
The current quarter also included intermittent net discrete
tax benefits of $31 million associated with theremeasurement of prior years’ tax liability.
• At March 31, 2020 the Firm’s risk-based capital ratios are
based on the Advanced Approach, while at March 31, 2019,
they were based on the Standardized Approach.

1Q 2020

1Q 2019

Common Equity Tier 1 capital17

15.3%

16.7%

Tier 1 capital17

17.4%

19.0%

Tier 1 leverage18

8.1%

8.4%

Supplementary leverage ratio19

6.2%

6.5%

$1,347$1,18029

28

Average Price$46.01$42.19Period End Shares (millions)

1,576

1,686

Tax Rate

17.1%

16.5%

Capital16

Common Stock Repurchases
Repurchases ($ millions)
Number of Shares (millions)

Coronavirus Disease (COVID-19) Pandemic
The coronavirus disease (“COVID-19”) pandemic and related government-imposed shelter-in-place restrictions have
had, and will continue to have, severe impact on global economic conditions and the environment in which we operate
our businesses.
Firm Operational Status and Actions• In responding to this unprecedented situation, we have taken measures to prioritize the health of our employees andtheir families, and to be prepared operationally to serve our clients, leveraging our business continuity planning andhistorical investments in technology.
• More than 90% of our employees are currently working from home, and to date, we have not experienced any
significant loss of operational capability, as we implemented our pandemic-related responses. We believe we areprepared to continue to operate with the vast majority of our workforce working remotely for as long as healthguidelines and prudence require, with limited impact to our operational capabilities.
• The coronavirus disease has impacted many people’s health around the world, including many of our employees.
Our Chairman and CEO was diagnosed with the coronavirus in March, but has fully recovered. The rest of the
Firm’s Operating Committee and Board of Directors remain healthy and are sheltering in place.
• With the COVID-19 impacts on individuals, communities and organizations continuing to evolve, governments
around the world have reacted to the health crisis caused by the pandemic, and central banks have taken steps toproactively address market disruptions by cutting interest rates and providing liquidity sources and other stimulus
programs. We are working with the Federal Reserve, U.S. Treasury and other global governmental agencies, ourclients and within our communities to participate in or facilitate the numerous programs aimed at keeping markets
functioning and supporting those affected by the economic downturn.

4• We also have taken several direct steps to provide assistance. Our balance sheet has increased as we support
market and client activity; take in increased deposits from our Wealth Management clients; extend credit to ourinstitutional clients and retail clients to provide them with additional liquidity; and provide financing to support
COVID-19 impacted clients across multiple sectors.
Financial Status and Outlook• The Firm’s financial condition is healthy and our capital and liquidity remain strong. In March 2020, we have seen
deposit inflows of $38 billion as customers have sought relative safety away from volatile markets and the Firmraised more than $5 billion in new long-term debt supplementing our liquidity position.
• As mentioned in our discussion of our quarterly results, towards the end of the first quarter of 2020, we observed theimpact of the pandemic on each of our businesses. The decline of asset prices, reduction in interest rates, wideningof credit spreads, lending and counterparty credit deterioration, market volatility and reduced investment banking
activity had the most immediate negative impacts on our first quarter performance. We experienced significant
decreases in the valuation of loans and commitments, investments and certain classes of trading assets, anincrease in the allowance for credit losses, and reduced net interest income and investment banking fees. The
credit deterioration within Institutional Securities was notable, with mark-to-market losses, net of economic hedges
of $610 million on loans held for sale and a provision of $388 million for credit losses on loans and unfunded lending
commitments held for investment. At the same time, high levels of client trading activity related to market volatility
significantly increased revenues for global macro products, Commodities and the transactional businesses in WealthManagement.
• Though we are unable to estimate the extent of the impact, an extended period of depressed economic activity
necessitated to combating the disease, and the severity and duration of the related global economic crisis, will
adversely impact our future operating results, and the attainment of our financial targets, with the continuance ofmany of the same negative impacts and without the potential benefit of higher client trading activity experienced in
the first quarter. See “Risk Factor— Our results from operations have been, and will likely continue to be,
adversely affected by the COVID-19 pandemic” included in the Firm’s current report on Form 8-K dated April 16,
2020.

5

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
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 may include certain non-GAAP financial measures. The
definition of such measures or reconciliation of such metrics to the comparable U.S. GAAP figures are included in thisearnings release and the 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 27A of 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 andfinancial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,”“would,” “target,” similar expressions, and variations or negatives of these words. Forward-looking statements by their natureaddress 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 and theanticipated benefits thereof. All such forward-looking statements are subject to risks, uncertainties and assumptions that
could cause actual results to differ materially from those expressed in such forward-looking statements. Important risk factorsthat may cause such a difference include, but are not limited to, (i) the completion of the proposed transaction on anticipatedterms 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 andgrowth of the combined company’s operations and other conditions to the completion of the acquisition, including thepossibility that any of the anticipated benefits of the proposed transaction will not be realized or will not be realized within the
expected time period, (ii) the ability of the Firm and E*TRADE to integrate 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 ability of the Firm or E*TRADE to retainand hire key personnel, (vi) potential adverse reactions or changes to business relationships resulting from theannouncement 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 to existing
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 theaforementioned factors, (xii) dilution caused by the Firm’s issuance of additional shares of its common stock in connection
with the proposed transaction, (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, (xv) those risks described in Item 1A of
E*TRADE’s most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K and (xvi) thoserisks that will be described in the proxy statement/prospectus on Form S-4 available from the sources indicated above. Theserisks, as well as other risks associated with the proposed acquisition, will be more fully discussed in the proxystatement/prospectus that will be included in the registration statement on Form S-4 that will be filed with the SEC in
connection with the proposed acquisition. While the list of factors presented here is, and the list of factors to be presented in
the registration statement on Form S-4 will be, 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 therealization of forward-looking statements. Consequences of material differences in results as compared with thoseanticipated 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 of which 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 forward-looking 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.

6

1

Includes preferred dividends related to the calculation of earnings per share of $108 million and $93 million for the firstquarter 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

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

5

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

6

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

7Book value per common share represents common equity divided by period end common shares outstanding.

8

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.

9

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 allowable servicing rights deduction.

10

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.
11

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.
12

AUM is defined as assets under management.

13

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

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

7

15

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.

16

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

17

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 March 31, 2020 the Firm’s ratios are based on the Advanced
Approach, while at March 31, 2019, they were based on the Standardized Approach. For information on the calculation ofregulatory capital and ratios for prior periods, please refer to Part II, Item 7 “Liquidity and Capital Resources – Regulatory
Requirements” in the Firm’s 2019 Form 10-K.
18

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.
19

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 $74.0
billion and $71.9 billion, and supplementary leverage exposure denominator of approximately $1.19 trillion and $1.10 trillion,
for the first quarter of 2020 and 2019, respectively.
20

The income tax consequences related to employee share-based payments are recognized in Provision for income taxes in
the consolidated income statement, and may be either a benefit or a provision. Conversion of employee share-based awards
to Firm shares will primarily occur in the first quarter of each year. The impact of recognizing excess tax benefits upon
conversion of awards in the first quarter of 2020 was a benefit of $99 million to Provision for income taxes. We consider these
employee share-based award related provisions or benefits to be recurring-type (“Recurring”) discrete tax items, as we
anticipate conversion activity each year. Accordingly, these Recurring discrete tax provisions or benefits are excluded fromthe intermittent net discrete tax provisions or benefits disclosures.

8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

Mar 31, 2020

Quarter Ended
Dec 31, 2019 Mar 31, 2019

$

$

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

1,696
2,314
739
984
3,451
240
9,424

$

Percentage Change From:
Dec 31, 2019 Mar 31, 2019

1,242
3,441
273
966
3,049
301
9,272

(25%)
32%
(95%)
38%
(1%)
*
(14%)

2%
(11%)
(86%)
41%
12%
*
(12%)

Interest income
Interest expense
Net interest
Net revenues

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

3,952
2,519
1,433
10,857

4,290
3,276
1,014
10,286

(11%)
(15%)
(5%)
(13%)

(18%)
(34%)
34%
(8%)

Non‐interest expenses:
Compensation and benefits

4,283

5,228

4,651

(18%)

(8%)

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

740
563
449
365
132
809
3,058

633
567
555
375
200
566
2,896

593
532
514
347
141
553
2,680

17%
(1%)
(19%)
(3%)
(34%)
43%
6%

25%
6%
(13%)
5%
(6%)
46%
14%

7,341

8,124

7,331

(10%)

‐‐

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

2,733
428
2,305
66
2,239
154
2,085

2,955
487
2,468
39
2,429
93
2,336

(21%)
(14%)
(23%)
24%
(24%)
(30%)
(24%)

(27%)
(25%)
(28%)
110%
(30%)
16%
(32%)

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

$

$

$

$

$

$

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

Morgan Stanley
Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Mar 31, 2020

Quarter Ended
Dec 31, 2019 Mar 31, 2019

$
$

$
$

Percentage Change From:
Dec 31, 2019 Mar 31, 2019

Financial Metrics:
Earnings per basic share
Earnings per diluted share

1.02
1.01

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

8.5%
9.7%

1.33
1.30

$
$

11.3%
13.0%

1.41
1.39

(23%)
(22%)

(28%)
(27%)

(18%)

(26%)

13.1%
14.9%

$
$

49.09
43.28

$
$

45.82
40.01

$
$

42.83
37.62

$

0.99
8.3%
9.5%

$

1.20
10.5%
12.0%

$

1.33
12.5%
14.2%

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

23%
45%
32%
77%
17.1%

25%
48%
27%
75%
15.7%

29%
45%
26%
71%
16.5%

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

1,576

1,594

1,686

(1%)

(7%)

1,555
1,573

1,573
1,602

1,658
1,677

(1%)
(2%)

(6%)
(6%)

Worldwide employees

60,67060,43160,469‐‐‐‐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.

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