Morgan Stanley Fourth Quarter and Full Year 2021 Earnings Results
Morgan Stanley Reports Fourth Quarter Net Revenues of $14.5 Billion, EPS of $2.01 and ROTCE of 19.8%;
Record Full Year Net Revenues of $59.8 Billion, EPS of $8.03 and ROTCE of 19.8%
NEW YORK, January 19, 2022 – Morgan Stanley (NYSE: MS) today reported net revenues of $14.5 billion for the fourth
quarter ended December 31, 2021 compared with $13.6 billion a year ago. Net income applicable to Morgan Stanley was $3.7
billion, or $2.01 per diluted share,1 compared with $3.4 billion, or $1.81 per diluted share,1 for the same period a year ago.
Full year net revenues were $59.8 billion compared with $48.8 billion a year ago. Net income applicable to Morgan Stanley forthe current year was $15.0 billion, or $8.03 per diluted share,1 compared with $11.0 billion, or $6.46 per diluted share,1 a year
ago. The comparisons of current year results to prior periods were impacted by the acquisitions of E*TRADE Financial
Corporation (“E*TRADE”) and Eaton Vance Corp. (“Eaton Vance”).
James P. Gorman, Chairman and Chief Executive Officer, said, “2021 was an outstanding year for our Firm. We delivered
record net revenues of $60 billion and a ROTCE of 20%, with stand-out results in each of our business segments. WealthManagement grew client assets by nearly $1 trillion to $4.9 trillion this year, with $438 billion in net new assets. Combinedwith Investment Management, we now have $6.5 trillion in client assets. Our integrated investment bank has continued togain wallet share. We have a sustainable business model with scale, capital flexibility, momentum and growth.”

Financial Summary2,3,4

Full Year Highlights

Firm ($MM, except per share data)

4Q 2021

4Q 2020

FY 2021

FY 2020

Net revenues$14,524$13,597$59,755$48,757

$5

$4

$4

$761

Compensation expense$5,487$5,450$24,628$20,854

Non-compensation expenses
Pre-tax income9$4,148$3,713$15,455$12,724$4,884$4,430$19,668$14,418

Net income app. to MS$3,696$3,385$15,034$10,996

Expense efficiency ratio7

66%

67%

67%

69%

Earnings per diluted share

$2.01

$1.81

$8.03

$6.46

Book value per share$55.12$51.13$55.12$51.13

Tangible book value per share$40.91$41.95$40.91$41.95Return on equity

14.7%

14.7%

15.0%

13.1%

19.8%

17.7%

19.8%

15.2%

Net revenues$6,669$6,970$29,833$26,476

Investment Banking$2,434$2,302$10,272$7,204Equity$2,857$2,534$11,435$9,921

Fixed Income$1,228$1,790$7,516$8,847

Net revenues$6,254$5,672$24,243$19,086

Fee-based client assets ($Bn)10$1,839$1,472$1,839$1,472Fee-based asset flows ($Bn)11

$37.8

$24.1

$179.3$77.4

Net new assets ($Bn)$127.1$73.4$437.7$175.4Loans ($Bn)$129.2$98.1$129.2$98.1$1,751$1,100$6,220$3,734$1,565$781$1,565$781$(1.1)

$8.5

$26.4

$41.0

Provision for credit losses

Return on tangible equity

5

Institutional Securities

Wealth Management

12

Investment Management
Net revenues
AUM ($Bn)13
Long-term net flows ($Bn)

14Media Relations: Wesley McDade 212-761-2430• The Firm’s full year results reflect both record net
revenues of $59.8 billion up 23% year over year andnet income of $15.0 billion up 37%.
• The Firm delivered full year ROTCE of 19.8%.5,6• The full year Firm expense efficiency ratio was
67%.6,7• Common Equity Tier 1 capital standardized ratio
was 16.0%.

• Institutional Securities reported record full year net
revenues of $29.8 billion up 13% with strong
revenues across Advisory, Underwriting, and Equity.

• Wealth Management delivered a full year pre-tax
margin of 25.5% or 26.9% excluding integrationrelated expenses.6,8 The business added net new
assets of $438 billion and total client assets undermanagement were $4.9 trillion, up 23% from a yearago.
• Investment Management reported full year net
revenues above $6 billion driven by strong feebased asset management revenues on record AUM
of $1.6 trillion.

Investor Relations: Leslie Bazos 212-761-5352

Fourth Quarter Results
Institutional Securities
Institutional Securities reported net revenues for the current quarter of $6.7 billion compared with $7.0 billion a year
ago. Pre-tax income was $3.0 billion compared with $3.2 billion a year ago.9
Investment Banking revenues up 6% from a year ago:($ millions)

4Q 2021

4Q 2020• Advisory revenues increased from a year ago driven byhigher completed M&A transactions.

Net Revenues$6,669$6,970• Equity underwriting revenues decreased from a year ago
due to declines in follow-on offerings and blocks, partially
offset by higher revenues from private placements.

Investment Banking$2,434$2,302• Fixed income underwriting revenues increased from a year
ago driven by higher securitized products and noninvestment grade issuances.

Advisory$1,071$827

Equity underwriting$853$1,000

Fixed income underwriting

$510

$475

Equity$2,857$2,534

Fixed Income$1,228$1,790

Other

$150

$344

Provision for credit losses

$(8)

$13

Total Expenses$3,705$3,797Compensation$1,370$1,575

Non-compensation$2,335$2,222Equity net revenues up 13% from a year ago:
• Equity net revenues increased from a year ago driven byhigher prime brokerage revenues as a result of higher
client balances, and also included a significant mark-tomarket gain of $225 million on a strategic investment,
partially offset by declines in cash equities and derivatives.
Fixed Income net revenues down 31% from a year ago:
• Fixed Income net revenues decreased from a year ago
driven by a challenging trading environment in rates andlower volumes and tighter bid-offer spreads in credit.
Other:• Other revenues decreased from a year ago due to lower
gains on investments associated with certain employee
deferred compensation plans and lower mark-to-market
gains on corporate loans held for sale, net of related
hedges.
Total Expenses:• Compensation expense decreased from a year ago reflecting lower expenses related to certain deferredcompensation plans linked to investment performance.
• Non-compensation expenses increased from a year ago primarily driven by higher volume related expenses.

2

Wealth Management
Wealth Management reported net revenues for the current quarter of $6.3 billion compared with $5.7 billion a year ago.
Pre-tax income of $1.4 billion9 in the current quarter resulted in a pre-tax margin of 22.6% or 24.4% excluding theimpact of integration-related expenses.6,8
Net revenues up 10% from a year ago:($ millions)

4Q 2021

4Q 2020

Net Revenues$6,254$5,672

Asset management$3,700$2,975

Transactional15$1,027$1,340Net interest$1,405$1,207

Other

$122

$150

• Net interest income increased from a year ago primarily
driven by strong growth in bank lending and higher
brokerage sweep deposits.

Provision for credit losses

$13

$(9)

Total Expenses$4,826$4,611

Total Expenses:

Compensation$3,486$3,345• Compensation expense increased from a year ago driven byhigher compensable revenues and higher benefits cost,
partially offset by lower expenses related to certain deferredcompensation plans linked to investment performance.

Non-compensation$1,340$1,266• Asset management revenues increased from a year ago
reflecting higher asset levels driven by market appreciationand strong positive fee-based flows.
• Transactional revenues15 were essentially unchanged
excluding the impact of mark-to-market gains on investments
associated with certain employee deferred compensationplans.

• Non-compensation expenses increased from a year ago driven by higher professional services and integrationrelated expenses.6

Investment Management
Investment Management reported net revenues of $1.8 billion compared with $1.1 billion a year ago. Pre-tax income
was $508 million compared with $196 million a year ago.9 The comparisons of current year results to prior periods
were impacted by the acquisition of Eaton Vance completed on March 1, 2021.
Net revenues up 59% from a year ago:($ millions)

4Q 2021

4Q 2020• Asset management and related fees increased from ayear ago driven by the Eaton Vance acquisition, higher
performance fees, and higher average AUM.

Net Revenues$1,751$1,100Asset management and related fees

$1,585$869• Performance-based income and other revenues
decreased from a year ago reflecting losses oninvestments associated with certain employee deferredcompensation plans.

Performance-based income and other

$166

$231

Total Expenses$1,243$904

Compensation

$631

$530

Total Expenses:

Non-compensation

$612

$374

• Compensation expense increased from a year ago
primarily driven by the Eaton Vance acquisition,6partially offset by lower expenses related to certain
deferred compensation plans linked to investment
performance.
• Non-compensation expenses increased from a year ago primarily driven by the Eaton Vance acquisition.63

Full Year Results
Institutional Securities
Institutional Securities reported record net revenues of $29.8 billion compared with $26.5 billion a year ago. Pre-tax
income was $11.8 billion compared with $9.2 billion in the prior year.9
Investment Banking revenues up 43% from a year ago:
• Record Advisory revenues increased from a year ago
driven by higher completed M&A transactions.
• Record Equity underwriting revenues increased from a year
ago primarily on higher volumes in IPOs, private
placements and blocks.
• Record Fixed income underwriting revenues increased froma year ago on higher non-investment grade loan and bondissuances driven by increased event driven financing.
Equity net revenues up 15% from a year ago:
• Record Equity net revenues increased from a year ago
reflecting strong performance across products andgeographies, with notable strength in Asia, driven by higher
client engagement.
Fixed Income net revenues down 15% from a year ago:
• Fixed Income net revenues decreased versus a strong prioryear with declines across businesses driven by tighter bidoffer spreads in macro and credit corporates, partially offset
by securitized products.
Other:• Other revenues increased from a year ago driven by higher
contributions from our Mitsubishi UFJ securities joint
venture and mark-to-market gains on corporate loans held
for sale, net of related hedges.

($ millions)

FY 2021

FY 2020

Net Revenues$29,833$26,476

Investment Banking$10,272$7,204Advisory$3,487$2,008Equity underwriting$4,437$3,092

Fixed income underwriting$2,348$2,104Equity$11,435$9,921

Fixed Income$7,516$8,847

Other

$610

$504

Provision for credit losses

$(7)

$731

Total Expenses$18,026$16,594

Compensation$9,165$8,342

Non-compensation$8,861$8,252

Provision for credit losses:• Provision for credit losses decreased from a year ago as a result of an improved macroeconomic environment
versus the prior year.
Total Expenses:• Compensation expense increased from a year ago driven by higher discretionary compensation on higher revenues
as well as increases in salaries and benefits.
• Non-compensation expenses increased from a year ago primarily driven by higher volume related expenses.

4

Wealth Management
Wealth Management reported net revenues of $24.2 billion compared with $19.1 billion a year ago. Pre-tax income of$6.2 billion9 in the current year resulted in a reported pre-tax margin of 25.5% or 26.9% excluding the impact ofintegration-related expenses.6,8 The comparisons of current year results to prior periods were impacted by theacquisition of E*TRADE in the fourth quarter of 2020.
Net revenues up 27% from a year ago:
• Asset management revenues increased from a year ago on
higher asset levels driven by market appreciation and record
fee-based flows.
• Transactional revenues15 increased 29% excluding theimpact of mark-to-market gains on investments associatedwith certain employee deferred compensations plans.
Results reflect incremental revenues due to the E*TRADE
acquisition and strong client activity.
• Net interest income increased from a year ago primarily
driven by the E*TRADE acquisition, strong growth in banklending, improved mortgage securities prepayment impact,and higher brokerage sweep deposits, partially offset by the
impact of lower average rates.

($ millions)

FY 2021

FY 2020

Net Revenues$24,243$19,086

Asset management$13,966$10,955

Transactional15$4,259$3,694

Net interest$5,393$4,022

Other

$625

$415

Provision for credit losses

$11

$30

Total Expenses$18,051$14,669

Compensation$13,090$10,970

Non-compensation$4,961$3,699Total Expenses:• Compensation expense increased from a year ago primarily driven by higher compensable revenues and higher
compensation driven by the E*TRADE acquisition.6• Non-compensation expenses increased from a year ago primarily driven by the E*TRADE acquisition.6

Investment Management
Investment Management reported net revenues of $6.2 billion compared with $3.7 billion a year ago. Pre-tax income
was $1.7 billion compared with $870 million in the prior year.9 The comparisons of current year results to prior periods
were impacted by the acquisition of Eaton Vance completed on March 1, 2021.
Net revenues up 67% from a year ago:
• Asset management and related fees increased due tothe Eaton Vance acquisition, record AUM on strong
performance and positive flows across all asset
classes.
• Performance-based income and other revenues
decreased from a year ago reflecting lower results in
our Asia private equity business, primarily driven by anunderlying public investment and lower gains on
investments associated with certain employee deferredcompensation plans. The decrease was partially offset
by higher accrued carried interest across our private
funds.

($ millions)

FY 2021

FY 2020

Net Revenues$6,220$3,734

Asset management and related fees

$5,576$3,013

Performance-based income and other

$644

$721

Total Expenses$4,542$2,864Compensation$2,373$1,542

Non-compensation$2,169$1,322

Total Expenses:• Compensation expense increased from a year ago driven by the Eaton Vance acquisition6 and higher compensation
associated with carried interest, partially offset by lower expenses related to certain deferred compensation plans
linked to investment performance.
• Non-compensation expenses increased from a year ago primarily driven by the Eaton Vance acquisition.65

Other Matters• The Firm repurchased $2.8 billion of its
outstanding common stock during the quarter aspart of its Share Repurchase Program.

4Q 2021 4Q 2020 FY 2021 FY 2020
Common Stock Repurchases• The Board of Directors declared a $0.70 quarterly
dividend per share, payable on February 15, 2022
to common shareholders of record on January 31,
2022.

Repurchases ($MM)• The Firm early adopted the Standardized
Approach for Counterparty Credit Risk (SA-CCR)
under Basel III on December 1, 2021. As a resultof the adoption, as of December 31, 2021 our riskweighted assets under the Standardized
Approach increased by $23 billion and ourStandardized CET1 capital ratio decreased by 82
basis points.20

Number of Shares (MM)$2,833

NA $11,464$1,347

28

NA

126

29

Average Price$99.80NA$91.13$46.01

Period End Shares (MM)

1,772

1,810

1,772

1,810

Tax Rate

23.9%

23.0%

23.1%

22.5%

CET1 capital17,20

16.0%

17.4%

Tier 1 capital17

17.6%

19.4%

CET1 capital17

17.5%

17.7%

Tier 1 capital17

19.3%

19.8%

Tier 1 leverage18

7.1%

8.4%

SLR19

5.6%

7.4%

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 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, 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, 2020 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

Includes preferred dividends related to the calculation of earnings per share for the fourth quarter of 2021 and 2020 of approximately $104
million and $119 million, respectively. Includes preferred dividends related to the calculation of earnings per share for the years ended 2021
and 2020 of approximately $468 million and $496 million, respectively.

1

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.
2

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.

3

The provision for credit losses for loans and lending commitments is now presented as a separate line in the consolidated income
statements.

4

Return on average tangible common equity is a non-GAAP financial measures that the Firm considers useful for analysts, investors andother 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 apercentage 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.

5

The Firm’s and business segment’s fourth quarter and full year results for 2021 and 2020 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 2021

4Q 2020

FY 2021

FY 2020

$ 25
121
$ 146
$ 114

$ 151
80
$ 231
$ 189

$ 102
354
$ 456
$ 352

$ 151
80
$ 231
$ 189

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

$ 10
99
$ 109
$ 85

$ 151
80
$ 231
$ 189

$ 58
288
$ 346
$ 267

$ 151
80
$ 231
$ 189

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

$ 15
22
$ 37
$ 29

-

$ 44
66
$ 110
$ 85

-

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

The Firm expense efficiency ratio of 67.1% represents total non-interest expenses as a percentage of net revenues. The Firm expense
efficiency ratio excluding integration-related expenses of 66.3% represents total non-interest expenses adjusted for integration-related
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.
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 other8

8

stakeholders to allow comparability of period-to-period operating performance.
9

Pre-tax income represents income before taxes.

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.

10

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.

11

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.

12

13

AUM is defined as assets under management or supervision.

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

14

Transactional revenues include investment banking, trading, and commissions and fee revenues. Transactional revenues excluding theimpact of mark-to-market gains on investments associated with employee deferred cash-based compensation plans is a non-GAAP
financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow better comparability of period-toperiod operating performance and capital adequacy.

15

16

Capital ratios are estimates as of the press release date, January 19, 2022.

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, 2020 (2020 Form 10-K).

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 $83.4 billion and $88.1 billion, andsupplementary leverage exposure denominator of approximately $1.48 trillion and $1.19 trillion, for the fourth quarter of 2021 and 2020,
respectively. Based on a Federal Reserve interim final rule that was in effect until March 31, 2021, our SLR and supplementary leverage
exposure as of December 31, 2020 reflect the exclusion of U.S. Treasury securities and deposits at Federal Reserve Banks. The exclusionof these assets had the effect of increasing our SLR by 0.8% as of December 31, 2020.

19

The Firm early adopted the standardized approach for counterparty credit risk (SA-CCR) under Basel III on December 1, 2021. SA-CCR
replaced the current exposure method used to measure derivatives counterparty exposure within the Standardized Approach risk-weighted
assets (RWAs) and Supplementary Leverage Ratio exposure calculations in the regulatory capital framework. As a result of the adoption,
as of December 31, 2021 our risk-weighted assets under the Standardized Approach increased by $23 billion and our Standardized CET1
capital ratio decreased by 82 basis points.

20

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, 2021

Quarter Ended
Sep 30, 2021 Dec 31, 2020$$

Interest income
Interest expense
Net interest
Net revenues
Provision for credit losses
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
Net income applicable to nonredeemable noncontrolling interests
Net income applicable to Morgan Stanley
Preferred stock dividend
Earnings applicable to Morgan Stanley common shareholders

$

$

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

3,013
2,861
45
1,280
5,201
290
12,690$Percentage Change From:
Sep 30, 2021 Dec 31, 2020

2,435
3,229
327
1,352
3,926
457
11,726

(14%)
(16%)
*
2%
4%
(57%)
(2%)

6%
(26%)
93%
(3%)
37%
(72%)
6%

Twelve Months Ended
Dec 31, 2021 Dec 31, 2020$

10,994
12,8101,376
5,521
19,967
1,042
51,710$Percentage
Change7,674
13,983986
4,851
14,272678
42,444

43%
(8%)
40%
14%
40%
54%
22%

2,411
322
2,089
14,524

2,351
288
2,063
14,753

2,245
374
1,871
13,597

3%
12%
1%
(2%)

7%
(14%)
12%
7%

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

10,162
3,849
6,313
48,757

(7%)
(65%)
27%
23%

5

24

4

(79%)

25%

4

761

(99%)

5,487

5,920

5,450

(7%)

1%

24,62820,854

18%

811
833
829
479
205
991
4,148

825
788
734
427
146
1,015
3,935

776
697
679
456
161
944
3,713

(2%)
6%
13%
12%
40%
(2%)
5%

5%
20%
22%
5%
27%
5%
12%

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

2,929
2,465
2,205
1,559
434
3,132
12,724

14%
27%
33%
11%
48%
18%
21%

9,635

9,855

9,163

(2%)

5%

40,08333,578

19%

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

4,874
1,150
3,724
17
3,707
123
3,584

4,430
1,018
3,412
27
3,385
119
3,266

-2%
-18%
-(15%)
--

10%
15%
9%
(26%)
9%
(13%)
10%

19,668
4,548
15,12086
15,034468
14,566

14,418
3,239
11,179183
10,996496
10,500

36%
40%
35%
(53%)
37%
(6%)
39%

$

$

$

$

$

$

$

$

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, 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, 2021

Quarter Ended
Sep 30, 2021

Dec 31, 2020

$
$

$
$

$
$

Percentage Change From:
Sep 30, 2021
Dec 31, 2020

Twelve Months Ended
Dec 31, 2021 Dec 31, 2020

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

2.05
2.01

2.01
1.98

14.7%
19.8%

14.5%
19.6%

1.84
1.81

2%
2%

11%
11%

$
$

14.7%
17.7%

$
$

55.12
40.91

$
$

54.56
40.47

$
$

51.13
41.95

$

2.08
15.2%
20.4%

$

2.04
15.0%
20.2%

$

1.92
15.6%
18.7%

8.16
8.03

$
$

15.0%
19.8%

2%

8%

6.55
6.46

25%
24%

13.1%
15.2%

$
$

55.12
40.91

$
$

51.13
41.95

$

8.22
15.3%
20.2%

$

6.58
13.3%
15.4%

25%

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

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

33%
40%
27%
67%
66%
23.6%

33%
40%
27%
67%
66%
23.0%

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

1,772

1,799

1,810

(2%)

(2%)

1,751
1,785

1,781
1,812

1,774
1,802

(2%)
(1%)

(1%)
(1%)

Worldwide employees

74,81473,62068,097

2%

10%

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

30%
43%
26%
69%
68%
22.5%

1,785
1,814

1,603
1,624

Statistical Data:

11%
12%

Notes:- For the quarters ended December 31, 2021 and September 30, 2021 and the full year ended December 31, 2021, Firm results include pre-tax integration-related expenses of $146 million, $145 million and $456 million ($114 million,$111 million and $352 million after-tax) respectively, reported in the Wealth Management and Investment Management business segments. For the quarter and full year ended December 31, 2020, Firm results include pre-tax
integration-related expenses of $231 million ($189 million after-tax) reported in the Wealth Management segment.
- 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, Definitions of Performance Metrics and Terms, Supplemental
Quantitative Details and Calculations, and Legal Notice for additional information.

11