Morgan Stanley Second Quarter 2024 Earnings Results
Morgan Stanley Reports Net Revenues of $15.0 Billion, EPS of $1.82 and ROTCE of 17.5%
NEW YORK, July 16, 2024 – Morgan Stanley (NYSE: MS) today reported net revenues of $15.0 billion for thesecond quarter ended June 30, 2024 compared with $13.5 billion a year ago. Net income applicable to Morgan
Stanley was $3.1 billion, or $1.82 per diluted share,1 compared with net income of $2.2 billion, or $1.24 per diluted
share,1 for the same period a year ago.
Ted Pick, Chief Executive Officer, said, “The Firm delivered another strong quarter in an improving capital markets
environment, resulting in first half 2024 revenues of $30.2 billion, EPS of $3.85 and an ROTCE of 18.6%. Total client
assets grew to $7.2 trillion on our road to $10+ trillion. We announced an increase of our quarterly common stock
dividend to $0.925 per share while maintaining robust capital levels with a CET1 ratio of 15.2%, reflecting the
durability of our business model. We continue to execute on our strategy and remain well positioned to deliver
growth and long-term value for our shareholders.”

Highlights

Financial Summary2,3
Firm ($ millions, except per share data)

2Q 2024

2Q 2023

Net revenues$15,019$13,457

Provision for credit losses

$76

$161

Compensation expense$6,460$6,262

Non-compensation expenses$4,409$4,222

6$4,074$2,812$3,076$2,182

72%

78%

$1.82

$1.24

$56.80$55.24$42.30$40.79

13.0%

8.9%

17.5%

12.1%

Net revenues$6,982$5,654

Investment Banking$1,619$1,075Equity$3,018$2,548Fixed Income$1,999$1,716$6,792$6,660Fee-based client assets ($ billions)9$2,188$1,856

10

$26.0

$22.7

Net new assets ($ billions)

$36.4

$89.5

Loans ($ billions)$150.9$144.7$1,386$1,281$1,518$1,412$(1.2)$1.1

Pre-tax income

Net income app. to MS
8

Expense efficiency ratio

1

Earnings per diluted share
Book value per share

4

Tangible book value per share
Return on equity

4

Return on tangible common equity

Institutional Securities

Wealth Management
Net revenues

Fee-based asset flows ($ billions)
11

Investment Management
Net revenues
AUM ($ billions)12
13

Long-term net flows ($ billions)Media Relations: Wesley McDade 212-761-2430• Net revenues for the second quarter were $15.0 billion,
balanced across Wealth Management and Institutional
Securities.
• The Firm delivered ROTCE of 17.5%.2,4• The Firm expense efficiency ratio was 72% for both thesecond quarter and the first half of the year benefiting fromour scale and intentional expense management.3,8• During the quarter, the Firm accreted $1.5 billion ofCommon Equity Tier 1 capital while supporting our clientsand executing capital actions, and ended the quarter witha Standardized Common Equity Tier 1 capital ratio of
15.2%.16• Institutional Securities net revenues of $7.0 billion reflect
strong performance across the franchise, with notablestrength in Equity, driven by higher client activity, and in
Investment Banking on robust debt underwriting results.

• Wealth Management delivered a pre-tax margin of 26.8%
for the quarter.7 Net revenues were $6.8 billion on record
asset management revenues driven by cumulative feebased asset flows and a positive market environment.
Fee-based asset flows were $26 billion for the quarter and$52 billion for the first half of the year.10 The businessadded net new assets of $36 billion in the quarter and$131 billion in the first half of the year.11• Investment Management results reflect net revenues of$1.4 billion, primarily driven by increased asset
management revenues on higher long-term average
AUM.12

Investor Relations: Leslie Bazos 212-761-5352

Second Quarter Results
Institutional Securities
Institutional Securities reported net revenues for the current quarter of $7.0 billion compared with $5.7 billion a year
ago. Pre-tax income was $2.0 billion compared with $1.0 billion a year ago.6
Investment Banking revenues up 51% from a year ago:($ millions)

2Q 2024

2Q 2023• Advisory revenues increased from a year ago on higher

Net Revenues$6,982$5,654

Investment Banking$1,619$1,075Advisory

$592

$455

Equity underwriting

$352

$225

Fixed income underwriting

$675

$395

Equity$3,018$2,548Fixed Income$1,999$1,716

Other

$346

$315

$54

$97

completed M&A transactions.

• Equity underwriting revenues increased from a year ago driven
by private placements and higher revenues in IPOs andconvertible offerings.

• Fixed income underwriting revenues increased significantly
from a year ago primarily driven by higher non-investment
grade issuances.
Equity net revenues up 18% from a year ago:

• Equity net revenues increased from a year ago reflecting strong
performance across business lines and regions, particularly in
Asia, on stronger client engagement and a constructive market
environment.
Fixed Income net revenues up 16% from a year ago:

• Fixed Income net revenues increased from a year ago driven byhigher results in credit reflecting strong financing revenues andin foreign exchange on higher client engagement.

Provision for credit losses

Other:

Total Expenses$4,882$4,580• Other revenues for the quarter increased from a year ago
primarily driven by higher net interest income and fees andlower mark-to-market losses on corporate loans, inclusive ofloan hedges.

Compensation$2,291$2,215

Non-compensation$2,591$2,365

Provision for credit losses:• Provision for credit losses decreased on lower provisions on corporate loans compared to the prior year quarter.
Total Expenses:• Compensation expense increased from a year ago on higher revenues, partially offset by lower severance costs.
• Non-compensation expenses increased from a year ago on higher execution-related expenses.

2

Wealth Management
Wealth Management reported net revenues of $6.8 billion in the current quarter compared with $6.7 billion a year ago.
Pre-tax income of $1.8 billion6 in the current quarter resulted in a pre-tax margin of 26.8%.7
Net revenues up 2% from a year ago:•

Record asset management revenues reflect higher asset levels
from a year ago and the cumulative impact of positive feebased flows.

• Transactional revenues increased 5% excluding the impact of
5,14

mark-to-market on investments associated with DCP.
increase was primarily driven by higher equity relatedtransactions.
•($ millions)

2Q 2024

2Q 2023

Net Revenues$6,792$6,660Asset management$3,989$3,452$782$869$1,798$2,156

Other

$223

$183

Provision for credit losses

$22

$64

Total Expenses$4,949$4,915Compensation$3,601$3,503

Non-compensation$1,348$1,412The

Net interest income decreased from a year ago on lower
average sweep deposits reflecting the cumulative effect of cash
redeployments by clients in a higher interest rate environment.

Transactional14
Net interest

Provision for credit losses:•

Provision for credit losses decreased on lower provisions in thecommercial real estate sector compared to the prior year
quarter.

Total Expenses:•

Compensation expense increased from a year ago on higher
compensable revenues, partially offset by lower expenses
related to DCP and lower severance costs.

•

Non-compensation expenses decreased from a year ago on
lower professional services and the absence of integrationrelated expenses in the current quarter.

Investment Management
Investment Management net revenues were $1.4 billion compared with $1.3 billion a year ago. Pre-tax income was$222 million compared with $170 million a year ago.6
Net revenues up 8% from a year ago:($ millions)

2Q 2024

2Q 2023• Asset management and related fees increased from a year ago

Net Revenues$1,386$1,281$1,342$1,268$44$13

Total Expenses$1,164$1,111Compensation

$568

$544

Non-compensation

$596

$567

on higher average AUM driven by higher market levels.

• Performance-based income and other revenues increased froma year ago primarily due to higher accrued carried interest in
our private funds, partially offset by mark-to-market losses oninvestments associated with DCP versus gains in the prior year.
Total Expenses:• Compensation expense increased from a year ago on higher
compensation associated with carried interest.

Asset management andrelated fees
Performance-based income
and other• Non-compensation expenses increased from a year ago,
primarily driven by continued investments in technology andinfrastructure to support business growth.
3

Other Matters• The Firm repurchased $0.8 billion of its outstanding common
stock during the quarter as part of its Share Repurchase
Program.
• The Firm reauthorized a multi-year repurchase program of up to$20 billion of outstanding common stock without a set
expiration date.
• The Board of Directors declared a $0.925 quarterly dividend pershare, an increase of 7.5 cents, payable on August 15, 2024 tocommon shareholders of record on July 31, 2024.
• The effective tax rate for the current quarter was 23.5%.

2Q 2024
Common Stock Repurchases
Repurchases ($MM)

2Q 2023$750$1,0008

12$95.96$83.86

Period End Shares (MM)

1,619

1,659

Tax Rate

23.5%

21.0%

CET1 capital16

15.2%

15.5%

Tier 1 capital16

17.0%

17.4%

CET1 capital16

15.3%

15.8%

Tier 1 capital16

17.1%

17.8%

6.8%

6.7%

5.5%

5.5%

Number of Shares (MM)Average Price

Capital15Standardized Approach

Advanced Approach

Leverage-based capital
Tier 1 leverage17
18

SLR

4

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking,securities, wealth management and investment management services. With offices in 42 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, 2023 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.

5

1Includes preferred dividends related to the calculation of earnings per share for the second quarter of 2024 and 2023 of
approximately $134 million and $133 million, 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 position, 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 capital adequacy. These measures are not in accordance with, or a substitute for U.S. GAAP, and may bedifferent from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a nonGAAP financial measure, we will also generally define it or present the most directly comparable financial measurecalculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the nonGAAP 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, analysts, investors, and other stakeholders by providing furthertransparency about, or an additional means of assessing, our financial condition and operating results.
4

Tangible common equity is a non-GAAP financial measure that the Firm considers useful for analysts, investors and otherstakeholders to allow comparability of period-to-period operating performance and capital adequacy. Tangible common
equity represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction.
The calculation of return on average tangible common equity, also a non-GAAP financial measure, represents full year or
annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common
equity. The calculation of tangible book value per common share, also a non-GAAP financial measure, represents tangible
common shareholder’s equity divided by common shares outstanding.
5“DCP” refers to certain employee deferred cash-based compensation programs. Please refer to "Management’s
Discussion and Analysis of Financial Condition and Results of Operations – Other Matters – Deferred Cash-Based
Compensation” in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2023.
6

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

7

Pre-tax margin represents income before provision for income taxes divided by net revenues.

8

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

9

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.
10

Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net accounttransfers, dividends, interest, and client fees, and exclude institutional cash management related activity.
11

Wealth Management net new assets represent client asset inflows, inclusive of interest, dividends and asset acquisitions,less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees andcommissions.
12

AUM is defined as assets under management or supervision.

13

Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes theLiquidity and Overlay Services asset class.
14

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

15

Capital ratios are estimates as of the press release date, July 16, 2024.

16

CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each ofthe (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" in the Firm’s Annual Report on Form 10-K for the year ended
December 31, 2023.

6

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 $80.5 billion and$78.4 billion, and supplementary leverage exposure denominator of approximately $1.47 trillion and $1.42 trillion, for thesecond quarter of 2024 and 2023, respectively.

7

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, 2024

Quarter Ended
Mar 31, 2024 Jun 30, 2023$$

Interest income
Interest expense
Net interest
Net revenues
Provision for credit losses

1,735
4,131
157
1,183
5,424
322
12,952

1,589
4,852
137
1,227
5,269
266
13,340$Percentage Change From:Mar 31, 2024 Jun 30, 2023

Six Months Ended
Jun 30, 2024 Jun 30, 2023

1,155
3,802
95
1,090
4,817
488
11,447

9%
(15%)
15%
(4%)
3%
21%
(3%)

50% $
9%
65%
9%
13%
(34%)
13%

3,324
8,983
294
2,410
10,693588
26,292$

Percentage
Change

2,485
8,279
240
2,329
9,545
740
23,618

34%
9%
23%
3%
12%
(21%)
11%

13,52911,462
2,067
15,01912,930
11,134
1,796
15,136

10,9138,903
2,010
13,457

5%
3%
15%
(1%)

24%
29%
3%
12%

26,45922,596
3,863
30,15520,893
16,537
4,356
27,974

27%
37%
(11%)
8%

76

(6)

161

*

(53%)

70

395

(82%)

Non-interest expenses:
Compensation and benefits

6,460

6,696

6,262

(4%)

3%

13,156

12,6724%

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

995
1,011
753
464
245
941
4,409

921
976
639
441
217
857
4,051

875
926
767
471
236
947
4,222

8%
4%
18%
5%
13%
10%
9%

14%
9%
(2%)
(1%)
4%
(1%)
4%

1,916
1,987
1,392
905
462
1,798
8,460

1,756
1,841
1,477
911
483
1,867
8,335

9%
8%
(6%)
(1%)
(4%)
(4%)
1%

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$

10,869
4,074
957
3,117
41
3,076
134
2,942

10,747
4,395
933
3,462
50
3,412
146
3,266

10,484
2,812
591
2,221
39
2,182
133
2,049

1%
(7%)
3%
(10%)
(18%)
(10%)
(8%)
(10%)

4%
45%
62%
40%
5%
41%
1%
44%

21,616
8,469
1,890
6,579
91
6,488
280
6,208

21,007
6,572
1,318
5,254
92
5,162
277
4,885

3%
29%
43%
25%
(1%)
26%
1%
27%

$

$

$

$

$

$

$

$

Notes:– In the first quarter of 2024, the Firm implemented certain presentation changes that impacted interest income and interest expense but had no effect on net interest income. These changes were made to align theaccounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related customer receivables andpayables that are currently accounted for as a single unit of account on the balance sheet. The current and previous presentation of these interest income and interest expense amounts are acceptable and the change
does not represent a change in accounting principle. These changes were applied retrospectively to the income statement in 2023 and accordingly, prior period amounts were adjusted to conform with the current
presentation.
– Firm net revenues excluding mark-to-market gains and losses on deferred cash-based compensation plans (DCP) were: 2Q24: $15,073 million, 1Q24: $14,949 million, 2Q23: $13,343 million, 2Q24 YTD: $30,022 million,
2Q23 YTD: $27,707 million.
– Firm compensation expenses excluding DCP were: 2Q24: $6,405 million, 1Q24: $6,447 million, 2Q23: $6,084 million, 2Q24 YTD: $12,852 million, 2Q23 YTD: $12,301 million.
– The End Notes are an integral part of this presentation. Refer to pages 12 - 17 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms,
Supplemental Quantitative Details and Calculations, and Legal Notice.

8

Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Quarter Ended

Percentage Change From:Jun 30, 2024

Mar 31, 2024

Jun 30, 2023

Mar 31, 2024

Jun 30, 2023

Earnings per basic share

$

1.85

$

2.04

$

Earnings per diluted share

$

1.82

$

2.02

$

1.25

(9%)

1.24

(10%)

Six Months Ended

Percentage
ChangeJun 30, 2024

Jun 30, 2023

48%

$

3.89

$

2.98

31%

47%

$

3.85

$

2.95

31%

Financial Metrics:

Return on average common equity

13.0%

14.5%

8.9%

13.8%

10.7%

Return on average tangible common equity

17.5%

19.7%

12.1%

18.6%

14.5%

Book value per common share

$

56.80

$

55.60

$

55.24

$

56.80

$

55.24

Tangible book value per common share

$

42.30

$

41.07

$

40.79

$

42.30

$

40.79

Financial Ratios:
Pre-tax margin

27%

29%

21%

28%

23%

Compensation and benefits as a % of net revenues

43%

44%

47%

44%

45%

Non-compensation expenses as a % of net revenues

29%

27%

31%

28%

30%

Firm expense efficiency ratio

72%

71%

78%

72%

75%

23.5%

21.2%

21.0%

22.3%

20.1%

1,619

1,627

1,659

—%

(2%)

Basic
Diluted

1,594
1,611

1,601
1,616

1,635

—%

(3%)

1,651

—%

(2%)

1,597
1,614

1,640
1,657

Worldwide employees

79,066

79,61082,006(1%)(4%)

Effective tax rate
Statistical Data:
Period end common shares outstanding (millions)Average common shares outstanding (millions)

(3%)
(3%)

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

9