# EDGAR Filing Document

**Accession Number:** 0000895421
**File Stem:** 0000895421-25-000539
**Filing Date:** 2025-11
**Character Count:** 485681
**Document Hash:** af673c68cab2f8a5a5893fb183fbd9c0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000895421-25-000539.hdr.sgml**: 20251103

**ACCESSION NUMBER**: 0000895421-25-000539

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 164

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251103

**DATE AS OF CHANGE**: 20251103

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MORGAN STANLEY
- **CENTRAL INDEX KEY:** 0000895421
- **STANDARD INDUSTRIAL CLASSIFICATION:** SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 363145972
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-11758
- **FILM NUMBER:** 251444156

**BUSINESS ADDRESS:**
- **STREET 1:** 1585 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
- **BUSINESS PHONE:** 212-761-4000

**MAIL ADDRESS:**
- **STREET 1:** 1585 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MORGAN STANLEY DEAN WITTER & CO
- **DATE OF NAME CHANGE:** 19980326

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DEAN WITTER DISCOVER & CO
- **DATE OF NAME CHANGE:** 19960315

?xml version='1.0' encoding='ASCII'? ms-20250930

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

***For the quarterly period ended September 30, 2025*** 

Commission File Number 1-11758

![mslogo3q20.jpg](ms-20250930_g1.jpg)

(Exact name of Registrant as specified in its charter)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Delaware** | **1585 Broadway** | **1585 Broadway** | **1585 Broadway** | **36-3145972** | **(212)** | **761-4000** |
| (State or other jurisdiction of<br>incorporation or organization) | **New York,** | **NY** | **10036** | (I.R.S. Employer Identification No.) | (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) |
| (State or other jurisdiction of<br>incorporation or organization) | (Address of principal executive offices, including Zip Code) | (Address of principal executive offices, including Zip Code) | (Address of principal executive offices, including Zip Code) | (I.R.S. Employer Identification No.) | (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) |

---

---

| | | |
|:---|:---|:---|
| <br>**Securities registered pursuant to Section 12(b) of the Act:** | | |
| Title of each class | Trading<br>Symbol(s) | Name of exchange on<br>which registered |
| Common Stock, $0.01 par value | MS | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate | MS/PA | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;Non-Cumulative Preferred Stock, Series A, $0.01 par value | MS/PA | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PE | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;Non-Cumulative Preferred Stock, Series E, $0.01 par value | MS/PE | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PF | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;Non-Cumulative Preferred Stock, Series F, $0.01 par value | MS/PF | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PI | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;Non-Cumulative Preferred Stock, Series I, $0.01 par value | MS/PI | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PK | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;Non-Cumulative Preferred Stock, Series K, $0.01 par value | MS/PK | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of 4.875% | MS/PL | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;Non-Cumulative Preferred Stock, Series L, $0.01 par value | MS/PL | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of 4.250% | MS/PO | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;Non-Cumulative Preferred Stock, Series O, $0.01 par value | MS/PO | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of 6.500% | MS/PP | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;Non-Cumulative Preferred Stock, Series P, $0.01 par value | MS/PP | New York Stock Exchange |
| Depositary Shares, each representing 1/1,000th interest in a share of 6.625% | MS/PQ | New York Stock Exchange |
| &nbsp;&nbsp;Non-Cumulative Preferred Stock, Series Q, $0.01 par value | MS/PQ | New York Stock Exchange |
| Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 | MS/26C | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;of Morgan Stanley Finance LLC (and Registrant's guarantee with respect thereto) | MS/26C | New York Stock Exchange |
| Global Medium-Term Notes, Series A, Floating Rate Notes Due 2029 | MS/29 | New York Stock Exchange |
| &nbsp;&nbsp;&nbsp;of Morgan Stanley Finance LLC (and Registrant's guarantee with respect thereto) | MS/29 | New York Stock Exchange |

---

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. &nbsp;&nbsp;&nbsp;&nbsp; ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

As of October 31, 2025, there were 1,589,309,311 shares of the Registrant's Common Stock, par value $0.01 per share, outstanding.

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| | ![Image3.jpg](ms-20250930_g1.jpg) |

---

QUARTERLY REPORT ON FORM 10-Q

*For the quarter ended September 30, 2025* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Table of Contents** | **Table of Contents** | Part | Item | Page |
| **<u>[Financial Information](#i19725df28446465794a1a8db90131935_16)</u>** | **<u>[Financial Information](#i19725df28446465794a1a8db90131935_16)</u>** | I |  |  |
| &nbsp;&nbsp;**<u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i19725df28446465794a1a8db90131935_16)</u>** | &nbsp;&nbsp;**<u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i19725df28446465794a1a8db90131935_16)</u>** | I | 2 | [4](#i19725df28446465794a1a8db90131935_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Introduction](#i19725df28446465794a1a8db90131935_19)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Introduction](#i19725df28446465794a1a8db90131935_19)</u> |  |  | [4](#i19725df28446465794a1a8db90131935_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Executive Summary](#i19725df28446465794a1a8db90131935_22)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Executive Summary](#i19725df28446465794a1a8db90131935_22)</u> |  |  | [5](#i19725df28446465794a1a8db90131935_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Business Segments](#i19725df28446465794a1a8db90131935_25)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Business Segments](#i19725df28446465794a1a8db90131935_25)</u> |  |  | [9](#i19725df28446465794a1a8db90131935_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Institutional Securities](#i19725df28446465794a1a8db90131935_28)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Institutional Securities](#i19725df28446465794a1a8db90131935_28)</u> |  |  | [10](#i19725df28446465794a1a8db90131935_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Wealth Management](#i19725df28446465794a1a8db90131935_31)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Wealth Management](#i19725df28446465794a1a8db90131935_31)</u> |  |  | [13](#i19725df28446465794a1a8db90131935_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Investment Management](#i19725df28446465794a1a8db90131935_34)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Investment Management](#i19725df28446465794a1a8db90131935_34)</u> |  |  | [16](#i19725df28446465794a1a8db90131935_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Supplemental Financial Information](#i19725df28446465794a1a8db90131935_37)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Supplemental Financial Information](#i19725df28446465794a1a8db90131935_37)</u> |  |  | [18](#i19725df28446465794a1a8db90131935_37) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Accounting Development Updates](#i19725df28446465794a1a8db90131935_40)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Accounting Development Updates](#i19725df28446465794a1a8db90131935_40)</u> |  |  | [18](#i19725df28446465794a1a8db90131935_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Critical Accounting Estimates](#i19725df28446465794a1a8db90131935_43)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Critical Accounting Estimates](#i19725df28446465794a1a8db90131935_43)</u> |  |  | [18](#i19725df28446465794a1a8db90131935_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Liquidity and Capital Resources](#i19725df28446465794a1a8db90131935_46)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Liquidity and Capital Resources](#i19725df28446465794a1a8db90131935_46)</u> |  |  | [19](#i19725df28446465794a1a8db90131935_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Balance Sheet](#i19725df28446465794a1a8db90131935_49)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Balance Sheet](#i19725df28446465794a1a8db90131935_49)</u> |  |  | [19](#i19725df28446465794a1a8db90131935_49) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Regulatory Requirements](#i19725df28446465794a1a8db90131935_52)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Regulatory Requirements](#i19725df28446465794a1a8db90131935_52)</u> |  |  | [22](#i19725df28446465794a1a8db90131935_52) |
| &nbsp;&nbsp;**<u>[Quantitative and Qualitative Disclosures about Risk](#i19725df28446465794a1a8db90131935_55)</u>** | &nbsp;&nbsp;**<u>[Quantitative and Qualitative Disclosures about Risk](#i19725df28446465794a1a8db90131935_55)</u>** | I | 3 | [28](#i19725df28446465794a1a8db90131935_55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Market Risk](#i19725df28446465794a1a8db90131935_58)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Market Risk](#i19725df28446465794a1a8db90131935_58)</u> |  |  | [28](#i19725df28446465794a1a8db90131935_58) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Credit Risk](#i19725df28446465794a1a8db90131935_61)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Credit Risk](#i19725df28446465794a1a8db90131935_61)</u> |  |  | [30](#i19725df28446465794a1a8db90131935_61) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Country and Other Risks](#i19725df28446465794a1a8db90131935_64)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Country and Other Risks](#i19725df28446465794a1a8db90131935_64)</u> |  |  | [36](#i19725df28446465794a1a8db90131935_64) |
| &nbsp;&nbsp;**<u>[Report of Independent Registered Public Accounting Firm](#i19725df28446465794a1a8db90131935_67)</u>** | &nbsp;&nbsp;**<u>[Report of Independent Registered Public Accounting Firm](#i19725df28446465794a1a8db90131935_67)</u>** |  |  | [38](#i19725df28446465794a1a8db90131935_67) |
| &nbsp;&nbsp;**<u>[Consolidated Financial Statements and Notes](#i19725df28446465794a1a8db90131935_70)</u>** | &nbsp;&nbsp;**<u>[Consolidated Financial Statements and Notes](#i19725df28446465794a1a8db90131935_70)</u>** | I | 1 | [39](#i19725df28446465794a1a8db90131935_70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Income Statement](#i19725df28446465794a1a8db90131935_73)[(Unaudited)](#i19725df28446465794a1a8db90131935_73)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Income Statement](#i19725df28446465794a1a8db90131935_73)[(Unaudited)](#i19725df28446465794a1a8db90131935_73)</u> |  |  | [39](#i19725df28446465794a1a8db90131935_73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Comprehensive Income Statement](#i19725df28446465794a1a8db90131935_76)[(Unaudited)](#i19725df28446465794a1a8db90131935_76)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Comprehensive Income Statement](#i19725df28446465794a1a8db90131935_76)[(Unaudited)](#i19725df28446465794a1a8db90131935_76)</u> |  |  | [39](#i19725df28446465794a1a8db90131935_76) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheet (Un](#i19725df28446465794a1a8db90131935_79)[audit](#i19725df28446465794a1a8db90131935_79)[ed](#i19725df28446465794a1a8db90131935_79)[at](#i19725df28446465794a1a8db90131935_79)September 30, 2025[)](#i19725df28446465794a1a8db90131935_79)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheet (Un](#i19725df28446465794a1a8db90131935_79)[audit](#i19725df28446465794a1a8db90131935_79)[ed](#i19725df28446465794a1a8db90131935_79)[at](#i19725df28446465794a1a8db90131935_79)September 30, 2025[)](#i19725df28446465794a1a8db90131935_79)</u> |  |  | [40](#i19725df28446465794a1a8db90131935_79) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statement](#i19725df28446465794a1a8db90131935_85)[of Changes in Total Equity (Unaudited)](#i19725df28446465794a1a8db90131935_85)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statement](#i19725df28446465794a1a8db90131935_85)[of Changes in Total Equity (Unaudited)](#i19725df28446465794a1a8db90131935_85)</u> |  |  | [41](#i19725df28446465794a1a8db90131935_85) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Cash Flow Statement](#i19725df28446465794a1a8db90131935_88)[(Unaudited)](#i19725df28446465794a1a8db90131935_88)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Cash Flow Statement](#i19725df28446465794a1a8db90131935_88)[(Unaudited)](#i19725df28446465794a1a8db90131935_88)</u> |  |  | [42](#i19725df28446465794a1a8db90131935_88) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements (Unaudited)](#i19725df28446465794a1a8db90131935_91)</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements (Unaudited)](#i19725df28446465794a1a8db90131935_91)</u> |  |  | [43](#i19725df28446465794a1a8db90131935_91) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[1.](#i19725df28446465794a1a8db90131935_94)</u> | &nbsp;&nbsp;<u>[Introduction and Basis of Presentation](#i19725df28446465794a1a8db90131935_94)</u> |  |  | [43](#i19725df28446465794a1a8db90131935_94) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[2.](#i19725df28446465794a1a8db90131935_97)</u> | &nbsp;&nbsp;<u>[Significant Accounting Policies](#i19725df28446465794a1a8db90131935_97)</u> |  |  | [44](#i19725df28446465794a1a8db90131935_97) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[3.](#i19725df28446465794a1a8db90131935_103)</u> | &nbsp;&nbsp;<u>[Cash and Cash Equivalents](#i19725df28446465794a1a8db90131935_103)</u> |  |  | [44](#i19725df28446465794a1a8db90131935_103) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[4.](#i19725df28446465794a1a8db90131935_106)</u> | &nbsp;&nbsp;<u>[Fair Values](#i19725df28446465794a1a8db90131935_106)</u> |  |  | [44](#i19725df28446465794a1a8db90131935_106) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[5.](#i19725df28446465794a1a8db90131935_112)</u> | &nbsp;&nbsp;<u>[Fair Value Option](#i19725df28446465794a1a8db90131935_112)</u> |  |  | [50](#i19725df28446465794a1a8db90131935_112) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[6.](#i19725df28446465794a1a8db90131935_115)</u> | &nbsp;&nbsp;<u>[Derivative Instruments and Hedging Activities](#i19725df28446465794a1a8db90131935_115)</u> |  |  | [51](#i19725df28446465794a1a8db90131935_115) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[7.](#i19725df28446465794a1a8db90131935_118)</u> | &nbsp;&nbsp;<u>[Investment Securities](#i19725df28446465794a1a8db90131935_118)</u> |  |  | [54](#i19725df28446465794a1a8db90131935_118) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[8.](#i19725df28446465794a1a8db90131935_124)</u> | &nbsp;&nbsp;<u>[Collateralized Transactions](#i19725df28446465794a1a8db90131935_124)</u> |  |  | [56](#i19725df28446465794a1a8db90131935_124) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[9.](#i19725df28446465794a1a8db90131935_127)</u> | &nbsp;&nbsp;<u>[Loans, Lending Commitments and Related Allowance for Credit Losses](#i19725df28446465794a1a8db90131935_127)</u> |  |  | [58](#i19725df28446465794a1a8db90131935_127) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[10.](#i19725df28446465794a1a8db90131935_130)</u> | &nbsp;&nbsp;<u>[Other Assets](#i19725df28446465794a1a8db90131935_130)</u> |  |  | [62](#i19725df28446465794a1a8db90131935_130) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[11.](#i19725df28446465794a1a8db90131935_133)</u> | &nbsp;&nbsp;<u>[Deposits](#i19725df28446465794a1a8db90131935_133)</u> |  |  | [62](#i19725df28446465794a1a8db90131935_133) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[12.](#i19725df28446465794a1a8db90131935_136)</u> | &nbsp;&nbsp;<u>[Borrowings and Other Secured Financings](#i19725df28446465794a1a8db90131935_136)</u> |  |  | [63](#i19725df28446465794a1a8db90131935_136) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[13.](#i19725df28446465794a1a8db90131935_139)</u> | &nbsp;&nbsp;<u>[Commitments, Guarantees and Contingencies](#i19725df28446465794a1a8db90131935_139)</u> |  |  | [63](#i19725df28446465794a1a8db90131935_139) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[14.](#i19725df28446465794a1a8db90131935_142)</u> | &nbsp;&nbsp;<u>[Variable Interest Entities and Securitization Activities](#i19725df28446465794a1a8db90131935_142)</u> |  |  | [67](#i19725df28446465794a1a8db90131935_142) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[15.](#i19725df28446465794a1a8db90131935_145)</u> | &nbsp;&nbsp;<u>[Regulatory Requirements](#i19725df28446465794a1a8db90131935_145)</u> |  |  | [69](#i19725df28446465794a1a8db90131935_145) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[16.](#i19725df28446465794a1a8db90131935_148)</u> | &nbsp;&nbsp;<u>[Total Equity](#i19725df28446465794a1a8db90131935_148)</u> |  |  | [71](#i19725df28446465794a1a8db90131935_148) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[17.](#i19725df28446465794a1a8db90131935_151)</u> | &nbsp;&nbsp;<u>[Interest Income and Interest Expense](#i19725df28446465794a1a8db90131935_151)</u> |  |  | [73](#i19725df28446465794a1a8db90131935_151) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[18.](#i19725df28446465794a1a8db90131935_154)</u> | &nbsp;&nbsp;<u>[Income Taxes](#i19725df28446465794a1a8db90131935_154)</u> |  |  | [74](#i19725df28446465794a1a8db90131935_154) |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[19.](#i19725df28446465794a1a8db90131935_157)</u> | &nbsp;&nbsp;<u>[Segment, Geographic and Revenue Information](#i19725df28446465794a1a8db90131935_157)</u> |  |  | [74](#i19725df28446465794a1a8db90131935_157) |
| &nbsp;&nbsp;**<u>[Financial Data Supplement (Unaudited)](#i19725df28446465794a1a8db90131935_160)</u>** | &nbsp;&nbsp;**<u>[Financial Data Supplement (Unaudited)](#i19725df28446465794a1a8db90131935_160)</u>** |  |  | [77](#i19725df28446465794a1a8db90131935_160) |
| &nbsp;&nbsp;**<u>[Glossary of Common Terms and Acronyms](#i19725df28446465794a1a8db90131935_163)</u>** | &nbsp;&nbsp;**<u>[Glossary of Common Terms and Acronyms](#i19725df28446465794a1a8db90131935_163)</u>** |  |  | [78](#i19725df28446465794a1a8db90131935_163) |
| &nbsp;&nbsp;**<u>[Controls and Procedures](#i19725df28446465794a1a8db90131935_175)</u>** | &nbsp;&nbsp;**<u>[Controls and Procedures](#i19725df28446465794a1a8db90131935_175)</u>** | I | 4 | [79](#i19725df28446465794a1a8db90131935_175) |
| **<u>[Other Information](#i19725df28446465794a1a8db90131935_169)</u>** | **<u>[Other Information](#i19725df28446465794a1a8db90131935_169)</u>** | II |  |  |
| &nbsp;&nbsp;**<u>[Legal Proceedings](#i19725df28446465794a1a8db90131935_169)</u>** | &nbsp;&nbsp;**<u>[Legal Proceedings](#i19725df28446465794a1a8db90131935_169)</u>** | II | 1 | [79](#i19725df28446465794a1a8db90131935_169) |
| &nbsp;&nbsp;**<u>[Risk Factors](#i19725df28446465794a1a8db90131935_1961)</u>** | &nbsp;&nbsp;**<u>[Risk Factors](#i19725df28446465794a1a8db90131935_1961)</u>** | II | 1A | [79](#i19725df28446465794a1a8db90131935_1961) |
| &nbsp;&nbsp;**<u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i19725df28446465794a1a8db90131935_172)</u>** | &nbsp;&nbsp;**<u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i19725df28446465794a1a8db90131935_172)</u>** | II | 2 | [79](#i19725df28446465794a1a8db90131935_172) |
| &nbsp;&nbsp;**<u>[Other Information](#i19725df28446465794a1a8db90131935_166)</u>** | &nbsp;&nbsp;**<u>[Other Information](#i19725df28446465794a1a8db90131935_166)</u>** | II | 5 | [79](#i19725df28446465794a1a8db90131935_166) |
| &nbsp;&nbsp;**<u>[Exhibits](#i19725df28446465794a1a8db90131935_178)</u>** | &nbsp;&nbsp;**<u>[Exhibits](#i19725df28446465794a1a8db90131935_178)</u>** | II | 6 | [79](#i19725df28446465794a1a8db90131935_178) |
| **<u>[Signatures](#i19725df28446465794a1a8db90131935_181)</u>** | **<u>[Signatures](#i19725df28446465794a1a8db90131935_181)</u>** |  |  | [79](#i19725df28446465794a1a8db90131935_181) |

---

 2

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| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| | ![Image3.jpg](ms-20250930_g1.jpg) |

---

**Available Information**

We file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission ("SEC"). The SEC maintains a website, *www.sec.gov*, that contains annual, quarterly and current reports, proxy and information statements, and other information that issuers file electronically with the SEC. Our electronic SEC filings are available to the public at the SEC's website.

Our website is *www.morganstanley.com*. You can access our Investor Relations webpage at *www.morganstanley.com/about-us-ir*. We make available free of charge, on or through our Investor Relations webpage, our proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934, as amended ("Exchange Act"), as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. We also make available, through our Investor Relations webpage, via a link to the SEC's website, statements of beneficial ownership of our equity securities filed by our directors, officers, 10% or greater shareholders and others under Section 16 of the Exchange Act.

You can access information about our corporate governance at *www.morganstanley.com/about-us-governance.* Our webpages include:

• Amended and Restated Certificate of Incorporation;

• Amended and Restated Bylaws;

• Charters for our Audit Committee, Compensation, Management Development and Succession Committee, Governance and Sustainability Committee, Operations and Technology Committee, and Risk Committee;

• Corporate Governance Policies;

• Policy Regarding Corporate Political Activities;

• Policy Regarding Shareholder Rights Plan;

• Equity Ownership Commitment;

• Code of Ethics and Business Conduct;

• Code of Conduct; and

• Integrity Hotline Information.

Our Code of Ethics and Business Conduct applies to all directors, officers and employees, including our Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer and Controller. We will post any amendments to the Code of Ethics and Business Conduct and any waivers that are required to be disclosed by the rules of either the SEC or the New York Stock Exchange LLC on our website. You can request a copy of these documents, excluding exhibits, at no cost, by contacting Investor Relations, 1585 Broadway, New York, NY 10036 (212-761-4000). The information on our website is not incorporated by reference into this report.

 3

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| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| | ![Image3.jpg](ms-20250930_g1.jpg) |

---

**Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Introduction**

Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms "Morgan Stanley," "Firm," "us," "we" or "our" mean Morgan Stanley (the "Parent Company") together with its consolidated subsidiaries. See the "Glossary of Common Terms and Acronyms" for the definition of certain terms and acronyms used throughout this Form 10-Q.

A description of the clients and principal products and services of each of our business segments is as follows:

Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Markets business, which comprises Equity and Fixed Income, provides sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.

Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.

Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.

Management's Discussion and Analysis includes certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results. Such metrics, when used, are defined and may be different from or inconsistent with metrics used by other companies.

The results of operations in the past have been, and in the future may continue to be, materially affected by: competition; legislative, legal and regulatory developments; and other risk factors. These factors also may have an adverse impact on our ability to achieve our strategic objectives. Additionally, the discussion of our results of operations herein may contain forward-looking statements. These statements, which reflect management's beliefs and expectations, are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of the risks and uncertainties that may affect our future results, see "Forward-Looking Statements", "Business—Competition", "Business—Supervision and Regulation" and "Risk Factors" in the 2024 Form 10-K and "Liquidity and Capital Resources—Regulatory Requirements" herein.

 4 September 2025 Form 10-Q

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|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Executive Summary**

**Overview of Financial Results**

***Consolidated Results—Three Months Ended September 30, 2025***

• The Firm reported net revenues of $18.2 billion and net income applicable to Morgan Stanley of $4.6 billion reflecting strong results across business segments and regions.

• The Firm delivered ROE of 18.0% and ROTCE of 23.5% (see "Selected Non-GAAP Financial Information" herein).

• The Firm's expense efficiency ratio was 67% for the third quarter and 69% for the year-to-date.

• At September 30, 2025, the Firm's Standardized Common Equity Tier 1 capital ratio was 15.1%, and its Supplementary Leverage Ratio was 5.5%.

• Institutional Securities reported net revenues of $8.5 billion reflecting strong performance in Equity on higher client activity and a rebound in Investment Banking.

• Wealth Management delivered a pre-tax margin of 30.3%. Net revenues of $8.2 billion reflect higher Asset management and Transactional revenues and higher Net interest income. The business added net new assets of $81 billion and fee-based asset flows were $42 billion.

• Investment Management results reflect net revenues of $1.7 billion, primarily driven by asset management fees on higher average AUM.

**Net Revenues**

*($ in millions)*

![13743895419235](ms-20250930_g2.jpg)

**Net Income Applicable to Morgan Stanley**

*($ in millions)*

![14293651233132](ms-20250930_g3.jpg)

**Earnings per Diluted Common Share**

![8796093245585](ms-20250930_g4.jpg)

We reported net revenues of $18.2 billion in the quarter ended September 30, 2025 ("current quarter," or "3Q 2025"), which increased by 18% compared with $15.4 billion in the quarter ended September 30, 2024 ("prior year quarter," or "3Q 2024"). Net income applicable to Morgan Stanley was $4.6 billion in the current quarter, which increased by 45% compared with $3.2 billion in the prior year quarter. Diluted earnings per common share was $2.80 in the current quarter, which increased by 49% compared with $1.88 in the prior year quarter.

We reported net revenues of $52.8 billion in the nine months ended September 30, 2025 ("current year period," or "YTD 2025"), which increased by 16% compared with $45.5 billion in the nine months ended September 30, 2024 ("prior year period," or "YTD 2024"). Net income applicable to Morgan Stanley was $12.5 billion in the current year period, which increased by 29% compared with $9.7 billion in the prior year period. Diluted earnings per common share was $7.53 in the current year period, which increased by 31% compared with $5.73 in the prior year period.

September 2025 Form 10-Q 5

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|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Non-Interest Expenses**

*($ in millions)*

![4398046950160](ms-20250930_g5.jpg)

• Compensation and benefits expenses of $7,442 million in the current quarter increased 11% from the prior year quarter, primarily due to an increase in the formulaic payout to Wealth Management advisors on higher revenues, higher expenses related to outstanding deferred compensation and higher salary expenses.

• Compensation and benefits expenses of $22,153 million in the current year period increased 11% from the prior year period, primarily due to an increase in the formulaic payout to Wealth Management advisors and higher discretionary incentive compensation within Institutional Securities, both on higher revenues, and higher expenses related to outstanding deferred compensation.

During the current year period, as a result of a March employee action, we recognized severance costs associated with a reduction in force of $144 million, included in Compensation and Benefits expense. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary" in the Form 10-Q for the quarter ended March 31, 2025.

• Non-compensation expenses of $4,754 million in the current quarter and $14,077 million in the current year period increased 9% and 10%, respectively, compared with the prior year periods, primarily due to higher execution-related expenses and increased technology spend.

***Provision for Credit Losses***

The Provision for credit losses on loans and lending commitments was $0 million in the current quarter, reflecting portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans, offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments in the prior year quarter was $79 million, primarily related to provisions for certain specific commercial real estate and corporate loans and growth across loan

portfolios, partially offset by improvements in the macroeconomic outlook.

The Provision for credit losses on loans and lending commitments of $331 million in the current year period was primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans. The Provision for credit losses on loans and lending commitments in the prior year period was $149 million, primarily related to provisions for certain specific commercial real estate and corporate loans and growth across certain loan portfolios, partially offset by improvements in the macroeconomic outlook.

For further information on the Provision for credit losses, see "Credit Risk" herein.

***Business Segment Results***

**Net Revenues by Segment**<sup>1</sup>

*($ in millions)*

![4398046950171](ms-20250930_g6.jpg)

**Net Income Applicable to Morgan Stanley by Segment**<sup>1</sup>

*($ in millions)*

![4398046950186](ms-20250930_g7.jpg)

1. The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 19 to the financial statements for details of intersegment eliminations.

 6 September 2025 Form 10-Q

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|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

• Institutional Securities net revenues of $8,523 million in the current quarter and $25,149 million in the current year period increased 25% and 21%, respectively, compared with the prior year periods, primarily reflecting higher results in Equity driven by higher client activity and higher underwriting revenues within Investment Banking.

• Wealth Management net revenues of $8,234 million in the current quarter and $23,325 million in the current year period increased 13% and 11%, respectively, compared with the prior year periods, primarily reflecting higher Asset management revenues on higher market levels and the cumulative impact of positive fee-based flows, and higher Transactional revenues on higher client activity.

• Investment Management net revenues of $1,651 million in the current quarter and $4,805 million in the current year period increased 13% and 14%, respectively, compared with the prior year periods, primarily reflecting higher Asset management and related fees driven by higher AUM on higher market levels and higher Performance-based income and other revenues.

**Net Revenues by Region**<sup>1</sup>

*($ in millions)*

![10445360903041](ms-20250930_g8.jpg)

1. For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements in the 2024 Form 10-K.

• Americas net revenues increased 18% and 14% in the current quarter and in the current year period, respectively, compared with the prior year periods, driven by higher results across all business segments.

• EMEA net revenues increased 6% and 15% in the current quarter and in the current year period, respectively, compared with the prior year periods, primarily driven by higher results in Equity, partially offset by lower results in Investment Banking compared with strong results in the prior year periods, within the Institutional Securities business segment.

• Asia net revenues increased 31% and 29% in the current quarter and in the current year period, respectively,

compared with the prior year periods, primarily driven by higher results in Equity and Investment Banking within the Institutional Securities business segment.

**Selected Financial Information and Other Statistical Data**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions, except per share data* | **2025** | 2024 | **2025** | 2024 |
| **Consolidated results** |  |  |  |  |
| Net revenues | $**18224** | $15383 | $**52755** | $45538 |
| Earnings applicable to Morgan Stanley common shareholders | $**4450** | $3028 | $**11999** | $9236 |
| Earnings per diluted common share | $**2.80** | $1.88 | $**7.53** | $5.73 |
| **Consolidated financial measures** | **Consolidated financial measures** | **Consolidated financial measures** | **Consolidated financial measures** |  |
| Expense efficiency ratio<sup>1</sup> | **67%** | 72% | **69%** | 72% |
| ROE<sup>2</sup> | **18.0%** | 13.1% | **16.5%** | 13.5% |
| ROTCE<sup>2, 3</sup> | **23.5%** | 17.5% | **21.6%** | 18.2% |
| Pre-tax margin<sup>4</sup> | **33%** | 27% | **31%** | 28% |
| Effective tax rate | **22.8%** | 23.6% | **22.2%** | 22.7% |
| **Pre-tax margin by segment**<sup>4</sup> | **Pre-tax margin by segment**<sup>4</sup> | **Pre-tax margin by segment**<sup>4</sup> | **Pre-tax margin by segment**<sup>4</sup> |  |
| Institutional Securities | **37%** | 28% | **34%** | 30% |
| Wealth Management | **30%** | 28% | **29%** | 27% |
| Investment Management | **22%** | 18% | **21%** | 17% |

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| | | |
|:---|:---|:---|
| *$ in millions, except per share data, worldwide employees and client assets* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Average liquidity resources for three months ended<sup>5</sup> | $**368090** | $345440 |
| Loans<sup>6</sup> | $**277307** | $246814 |
| Total assets | $**1364806** | $1215071 |
| Deposits | $**405480** | $376007 |
| Borrowings | $**331679** | $288819 |
| Common equity | $**100212** | $94761 |
| Tangible common equity<sup>3</sup> | $**77392** | $71604 |
| Common shares outstanding | **1591** | 1607 |
| Book value per common share<sup>7</sup> | $**62.98** | $58.98 |
| Tangible book value per common share<sup>3, 7</sup> | $**48.64** | $44.57 |
| Worldwide employees (in thousands) | **82** | 80 |
| Client assets<sup>8</sup> (in billions) | $**8861** | $7860 |
| **Capital Ratios**<sup>9</sup> |  |  |
| Common Equity Tier 1 capital—Standardized | **15.1%** | 15.9% |
| Tier 1 capital—Standardized | **16.9%** | 18.0% |
| Common Equity Tier 1 capital—Advanced | **15.7%** | 15.7% |
| Tier 1 capital—Advanced | **17.6%** | 17.8% |
| Tier 1 leverage | **6.8%** | 6.9% |
| SLR | **5.5%** | 5.6% |

---

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

2. ROE and ROTCE represent annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively.

3. Represents a non-GAAP financial measure. See "Selected Non-GAAP Financial Information" herein.

4. Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.

5. For a discussion of Liquidity resources, see "Liquidity and Capital Resources—Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources" herein.

6. Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet.

7. Book value per common share and tangible book value per common share equal common equity and tangible common equity, respectively, divided by common shares outstanding.

8. Client assets represents the sum of Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets are invested in Investment Management products and are therefore also included in Investment Management's AUM.

September 2025 Form 10-Q 7

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|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

9. For a discussion of our capital ratios, see "Liquidity and Capital Resources—Regulatory Requirements" herein.

**Economic and Market Conditions**

Client and investor confidence and market sentiment have improved in the third quarter of 2025. The quarter was characterized by increased momentum in capital markets activity and lower interest rates. The rate of economic growth, ongoing geopolitical uncertainty, as well as the timing and pace of further central bank actions have impacted and could continue to impact capital markets and our businesses.

For more information on economic and market conditions, and the potential effects of geopolitical events and acts of war or aggression on our future results, refer to "Risk Factors" and "Forward-Looking Statements" in the 2024 Form 10-K.

**Selected Non-GAAP Financial Information** 

We prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain "non-GAAP financial measures" in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A "non-GAAP financial measure" excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and 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, 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 U.S. GAAP financial measure and the non-GAAP financial measure.

We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. For additional information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Other Matters" in the 2024 Form 10-K.

Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity. The calculation of tangible common equity represents common shareholders' equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity ("ROTCE") and tangible book value per common share, also non-GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period-to-period, respectively. The calculation of ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity. The calculation of tangible book value per common share represents tangible common equity divided by common shares outstanding.

The principal non-GAAP financial measures presented in this document are set forth in the following tables.

**Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Net revenues** | $**18224** | $15383 | $**52755** | $45538 |
| Adjustment for mark-to-market losses (gains) on DCP<sup>1</sup> | **(248)** | (239) | **(476)** | (372) |
| Adjusted Net revenues—non-GAAP | $**17976** | $15144 | $**52279** | $45166 |
| **Compensation expense** | $**7442** | $6733 | $**22153** | $19889 |
| Adjustment for mark-to-market gains (losses) on DCP<sup>1</sup> | **(300)** | (276) | **(669)** | (580) |
| Adjusted Compensation expense—non-GAAP | $**7142** | $6457 | $**21484** | $19309 |
| **Wealth Management Net revenues** | $**8234** | $7270 | $**23325** | $20942 |
| Adjustment for mark-to-market losses (gains) on DCP<sup>1</sup> | **(206)** | (170) | **(369)** | (265) |
| Adjusted Wealth Management Net revenues—non-GAAP | $**8028** | $7100 | $**22956** | $20677 |
| **Wealth Management Compensation expense** | $**4388** | $3868 | $**12534** | $11257 |
| Adjustment for mark-to-market gains (losses) on DCP<sup>1</sup> | **(222)** | (184) | **(469)** | (373) |
| Adjusted Wealth Management Compensation expense—non-GAAP | $**4166** | $3684 | $**12065** | $10884 |

---

1. Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment.

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Tangible equity** |  |  |
| Common equity | $**100212** | $94761 |
| Less: Goodwill and net intangible assets | **(22820)** | (23157) |
| **Tangible common equity—non-GAAP** | $**77392** | $71604 |

---

 8 September 2025 Form 10-Q

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| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Average Monthly Balance | Average Monthly Balance | Average Monthly Balance | Average Monthly Balance |
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Tangible equity** |  |  |  |  |
| Common equity | $**98709** | $92706 | $**97134** | $91049 |
| Less: Goodwill and net intangible assets | **(22865)** | (23416) | **(22971)** | (23559) |
| **Tangible common equity—non-GAAP** | $**75844** | $69290 | $**74163** | $67490 |

---

**Non-GAAP Financial Measures by Business Segment**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in billions* | **2025** | 2024 | **2025** | 2024 |
| **Average common equity**<sup>1</sup> | **Average common equity**<sup>1</sup> |  |  |  |
| Institutional Securities | $**48.4** | $45.0 | $**48.4** | $45.0 |
| Wealth Management | **29.4** | 29.1 | **29.4** | 29.1 |
| Investment Management | **10.6** | 10.8 | **10.6** | 10.8 |
| **ROE**<sup>2</sup> |  |  |  |  |
| Institutional Securities | **19%** | 12% | **17%** | 13% |
| Wealth Management | **25%** | 21% | **23%** | 19% |
| Investment Management | **10%** | 7% | **10%** | 7% |
| **Average tangible common equity**<sup>1</sup> | **Average tangible common equity**<sup>1</sup> |  |  |  |
| Institutional Securities | $**48.0** | $44.6 | $**48.0** | $44.6 |
| Wealth Management | **16.3** | 15.5 | **16.3** | 15.5 |
| Investment Management | **1.0** | 1.1 | **1.0** | 1.1 |
| **ROTCE**<sup>2</sup> |  |  |  |  |
| Institutional Securities | **20%** | 12% | **17%** | 13% |
| Wealth Management | **45%** | 39% | **41%** | 37% |
| Investment Management | **105%** | 68% | **102%** | 65% |

---

1. Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see "Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework" herein). The sums of the segments' Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity.

2. The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.

**Return on Tangible Common Equity Goal**

We have an ROTCE goal of 20%. Our ROTCE goal is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors.

See "Risk Factors" and "Forward-Looking Statements" in the 2024 Form 10-K for further information on market and economic conditions and their potential effects on our future operating results.

ROTCE represents a non-GAAP financial measure. For further information on non-GAAP measures, see "Selected Non-GAAP Financial Information" herein.

**Business Segments**

Substantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 19 to the financial statements for segment net

revenues by income statement line item and information on intersegment transactions.

For an overview of the components of our business segments, net revenues, provision for credit losses, compensation expense and income taxes, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Segments" in the 2024 Form 10-K.

September 2025 Form 10-Q 9

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Institutional Securities**

**Income Statement Information**

---

| | | | |
|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | % Change |
| *$ in millions* | **2025** | 2024 | % Change |
| **Revenues** |  |  |  |
| &nbsp;&nbsp;Advisory | $**684** | $546 | **25%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity | **652** | 362 | **80%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed Income | **772** | 555 | **39%** |
| &nbsp;&nbsp;Total Underwriting | **1424** | 917 | **55%** |
| Total Investment Banking | **2108** | 1463 | **44%** |
| Equity | **4116** | 3045 | **35%** |
| Fixed Income | **2169** | 2003 | **8%** |
| Other | **130** | 304 | **(57)%** |
| **Net revenues** | $**8523** | $6815 | **25%** |
| **Provision for credit losses** | **1** | 68 | **(99)%** |
| Compensation and benefits | **2422** | 2271 | **7%** |
| Non-compensation expenses | **2918** | 2565 | **14%** |
| **Total non-interest expenses** | **5340** | 4836 | **10%** |
| Income before provision for income taxes | **3182** | 1911 | **67%** |
| Provision for income taxes | **672** | 438 | **53%** |
| Net income | **2510** | 1473 | **70%** |
| Net income applicable to noncontrolling interests | **42** | 37 | **14%** |
| **Net income applicable to Morgan Stanley** | $**2468** | $1436 | **72%** |

---

---

| | | | |
|:---|:---|:---|:---|
| | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, | % Change |
| *$ in millions* | **2025** | 2024 | % Change |
| **Revenues** |  |  |  |
| &nbsp;&nbsp;Advisory | $**1755** | $1599 | **10%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity | **1471** | 1144 | **29%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed Income | **1981** | 1786 | **11%** |
| &nbsp;&nbsp;Total Underwriting | **3452** | 2930 | **18%** |
| Total Investment Banking | **5207** | 4529 | **15%** |
| Equity | **11965** | 8905 | **34%** |
| Fixed Income | **6953** | 6487 | **7%** |
| Other | **1024** | 892 | **15%** |
| **Net revenues** | $**25149** | $20813 | **21%** |
| **Provision for credit losses** | **260** | 124 | **110%** |
| Compensation and benefits | **7706** | 6905 | **12%** |
| Non-compensation expenses | **8609** | 7476 | **15%** |
| **Total non-interest expenses** | **16315** | 14381 | **13%** |
| Income before provision for income taxes | **8574** | 6308 | **36%** |
| Provision for income taxes | **1840** | 1406 | **31%** |
| Net income | **6734** | 4902 | **37%** |
| Net income applicable to noncontrolling interests | **133** | 127 | **5%** |
| **Net income applicable to Morgan Stanley** | $**6601** | $4775 | **38%** |

---

**Investment Banking**

**Investment Banking Volumes**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in billions* | **2025** | 2024 | **2025** | 2024 |
| Completed mergers and acquisitions<sup>1</sup> | $**256** | $124 | $**576** | $473 |
| Equity and equity-related offerings<sup>2, 3</sup> | **24** | 13 | **61** | 43 |
| Fixed Income offerings<sup>2, 4</sup> | **84** | 80 | **276** | 263 |

---

Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of October 1, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.

1. Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.

2. Based on full credit for single book managers and equal credit for joint book managers.

3. Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.

4. Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.

***Investment Banking Revenues***

Net revenues of $2,108 million in the current quarter increased 44% from the prior year quarter, reflecting higher results across businesses, particularly in underwriting revenues.

• Advisory revenues increased primarily reflecting higher completed M&A transactions in the Americas in a constructive market environment.

• Equity underwriting revenues increased primarily reflecting higher initial public offerings and convertible issuances.

• Fixed Income underwriting revenues increased primarily reflecting higher non-investment grade and investment grade loan and bond issuances, which benefitted from higher event-related activity.

Net revenues of $5,207 million in the current year period increased 15% from the prior year period reflecting higher results across businesses, particularly in underwriting revenues.

• Advisory revenues increased primarily reflecting higher completed M&A transactions in the Americas in a constructive market environment.

• Equity underwriting revenues increased primarily reflecting higher convertible issuances, initial public offerings and follow-on offerings.

• Fixed Income underwriting revenues increased primarily reflecting higher non-investment grade loan issuances, which benefitted from higher event-related activity.

See "Investment Banking Volumes" herein.

 10 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Equity, Fixed Income and Other Net Revenues**

**Equity and Fixed Income Net Revenues**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| | | | Net Interest<sup>2</sup> | All Other<sup>3</sup> | |
| *$ in millions* | Trading | Fees<sup>1</sup> | Net Interest<sup>2</sup> | All Other<sup>3</sup> | Total |
| Financing | $**2666** | $**158** | $**(717)** | $**3** | $**2110** |
| Execution services | **1245** | **722** | **(107)** | **146** | **2006** |
| **Total Equity** | $**3911** | $**880** | $**(824)** | $**149** | $**4116** |
| **Total Fixed Income** | $**1850** | $**107** | $**141** | $**71** | $**2169** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 |
| | | | Net Interest<sup>2</sup> | All Other<sup>3</sup> | |
| *$ in millions* | Trading | Fees<sup>1</sup> | Net Interest<sup>2</sup> | All Other<sup>3</sup> | Total |
| Financing | $1913 | $144 | $(686) | $— | $1371 |
| Execution services | 925 | 680 | (98) | 167 | 1674 |
| **Total Equity** | $2838 | $824 | $(784) | $167 | $3045 |
| **Total Fixed Income** | $2008 | $103 | $(169) | $61 | $2003 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| | | | Net Interest<sup>2</sup> | All Other<sup>3</sup> | |
| *$ in millions* | Trading | Fees<sup>1</sup> | Net Interest<sup>2</sup> | All Other<sup>3</sup> | Total |
| Financing | $**7372** | $**470** | $**(2019)** | $**3** | $**5826** |
| Execution services | **3774** | **2254** | **(311)** | **422** | **6139** |
| **Total Equity** | $**11146** | $**2724** | $**(2330)** | $**425** | $**11965** |
| **Total Fixed Income** | $**6150** | $**322** | $**273** | $**208** | $**6953** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| | | | Net Interest<sup>2</sup> | All Other<sup>3</sup> | |
| *$ in millions* | Trading | Fees<sup>1</sup> | Net Interest<sup>2</sup> | All Other<sup>3</sup> | Total |
| Financing | $6036 | $414 | $(2296) | $2 | $4156 |
| Execution services | 2830 | 1901 | (221) | 239 | 4749 |
| **Total Equity** | $8866 | $2315 | $(2517) | $241 | $8905 |
| **Total Fixed Income** | $6705 | $303 | $(694) | $173 | $6487 |

---

1. Includes Commissions and fees and Asset management revenues.

2. Includes funding costs, which are allocated to the businesses based on funding usage.

3. Includes Investments and Other revenues.

***Equity***

Net revenues of $4,116 million in the current quarter and $11,965 million in the current year period increased 35% and 34%, respectively, compared with the prior year periods, reflecting an increase in Financing and Execution services.

• Financing revenues increased primarily due to increased client activity and higher average client balances, particularly in Asia.

• Execution services revenues increased primarily due to increased client activity and higher gains on inventory held to facilitate client activity in derivatives and cash equities.

***Fixed Income***

Net revenues of $2,169 million in the current quarter increased 8% from the prior year quarter, reflecting an increase in Credit products and Commodities, partially offset by a decrease in Global macro products.

• Global macro products revenues decreased primarily due to higher losses on inventory held to facilitate client activity

on lower volatility and decreased client activity in foreign exchange products.

• Credit products revenues increased primarily due to increased client activity across products, particularly in securitized products.

• Commodities products and other fixed income revenues increased primarily due to increased client activity in structured transactions and higher gains on inventory held to facilitate client activity.

Net revenues of $6,953 million in the current year period increased 7% from the prior year period, reflecting an increase in Global macro and Credit products, partially offset by a decrease in Commodities.

• Global macro products revenues increased primarily due to increased client activity and gains on inventory held to facilitate client activity in foreign exchange and rates products.

• Credit products revenues increased primarily due to increased client activity across products, particularly in securitized products, partially offset by lower results on inventory held to facilitate client activity.

• Commodities products and other fixed income revenues decreased primarily due to lower gains on inventory held to facilitate client activity, partially offset by increased client activity.

***Other Net Revenues***

Other net revenues were $130 million in the current quarter, compared with $304 million in the prior year quarter, primarily reflecting lower net interest income and fees, following the sale of corporate loans held-for-sale in the first quarter of 2025, and higher mark-to-market losses on corporate loans, inclusive of hedges.

Other net revenues were $1,024 million in the current year period, compared with $892 million in the prior year period, primarily reflecting gains on the sale of corporate loans held-for-sale compared with mark-to-market losses, inclusive of hedges, in the prior year period, partially offset by lower net interest income and fees on those loans.

**Provision for Credit Losses**

The Provision for credit losses on loans and lending commitments of $1 million in the current quarter was primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans, offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $68 million in the prior year quarter was primarily related to growth across loan portfolios and provisions for certain specific commercial real estate and corporate loans, partially offset by improvements in the macroeconomic outlook.

September 2025 Form 10-Q 11

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

The Provision for credit losses on loans and lending commitments of $260 million in the current year period was primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans. The Provision for credit losses on loans and lending commitments of $124 million in the prior year period was primarily related to growth across loan portfolios and provisions for certain specific commercial real estate loans, partially offset by improvements in the macroeconomic outlook.

For further information on the Provision for credit losses, see "Credit Risk" herein.

**Non-Interest Expenses**

Non-interest expenses of $5,340 million in the current quarter increased 10% compared with the prior year quarter, reflecting higher Non-compensation expenses and Compensation and benefits expenses.

• Compensation and benefits expenses increased primarily due to higher expenses related to outstanding deferred compensation and higher salary expenses.

• Non-compensation expenses increased primarily due to higher execution-related expenses on higher volumes.

Non-interest expenses of $16,315 million in the current year period increased 13%, compared with the prior year period, reflecting higher Non-compensation expenses and Compensation and benefits expenses.

• Compensation and benefits expenses increased primarily due to higher discretionary incentive compensation on higher revenues and higher expenses related to outstanding deferred compensation.

• Non-compensation expenses increased primarily due to higher execution-related expenses on higher volumes.

 12 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Wealth Management**

**Income Statement Information**

---

| | | | |
|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | % Change |
| *$ in millions* | **2025** | 2024 | % Change |
| **Revenues** |  |  |  |
| Asset management | $**4789** | $4266 | **12%** |
| Transactional<sup>1</sup> | **1308** | 1076 | **22%** |
| Net interest | **1991** | 1774 | **12%** |
| Other<sup>2</sup> | **146** | 154 | **(5)%** |
| **Net revenues** | **8234** | 7270 | **13%** |
| **Provision for credit losses** | **(1)** | 11 | **N/M** |
| Compensation and benefits | **4388** | 3868 | **13%** |
| Non-compensation expenses | **1348** | 1331 | **1%** |
| **Total non-interest expenses** | **5736** | 5199 | **10%** |
| Income before provision for income taxes | **2499** | 2060 | **21%** |
| Provision for income taxes | **610** | 492 | **24%** |
| **Net income applicable to Morgan Stanley** | $**1889** | $1568 | **20%** |

---

---

| | | | |
|:---|:---|:---|:---|
| | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, | % Change |
| *$ in millions* | **2025** | 2024 | % Change |
| **Revenues** |  |  |  |
| Asset management | $**13596** | $12084 | **13%** |
| Transactional<sup>1</sup> | **3445** | 2891 | **19%** |
| Net interest | **5803** | 5428 | **7%** |
| Other<sup>2</sup> | **481** | 539 | **(11)%** |
| **Net revenues** | **23325** | 20942 | **11%** |
| **Provision for credit losses** | **71** | 25 | **184%** |
| Compensation and benefits | **12534** | 11257 | **11%** |
| Non-compensation expenses | **4070** | 3973 | **2%** |
| **Total non-interest expenses** | **16604** | 15230 | **9%** |
| &nbsp;&nbsp;Income before provision for <br>income taxes | **6650** | 5687 | **17%** |
| Provision for income taxes | **1529** | 1313 | **16%** |
| **Net income applicable to Morgan Stanley** | $**5121** | $4374 | **17%** |

---

1. Transactional includes Investment banking, Trading, and Commissions and fees revenues.

2. Other includes Investments and Other revenues.

**Wealth Management Metrics**

---

| | | | | |
|:---|:---|:---|:---|:---|
| *$ in billions* | **At September 30,<br>2025** | **At September 30,<br>2025** | At December 31,<br>2024 | At December 31,<br>2024 |
| Total client assets<sup>1</sup> | **$** | **7054** | $| 6194 |
| U.S. Bank Subsidiary loans | **$** | **174** | $| 160 |
| Margin and other lending<sup>2</sup> | **$** | **28** | $| 28 |
| Deposits<sup>3</sup> | **$** | **398** | $| 370 |
| Annualized weighted average cost of deposits<sup>4</sup> |  |  |  |  |
| &nbsp;&nbsp;Period end | **2.72%** | **2.72%** | 2.73% | 2.73% |
| &nbsp;&nbsp; Period average for three months ended | **2.88%** | **2.88%** | 2.94% | 2.94% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| | **2025** | 2024 | **2025** | 2024 |
| Net new assets | $**81.0** | $63.9 | $**234.0** | $195.2 |

---

1. Client assets represent those for which Wealth Management is providing services including financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage and investment advisory services; financial and wealth planning services; workplace services, including stock plan administration, and retirement plan services. See "Advisor-Led Channel" and "Self-Directed Channel" herein for additional information.

2. Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non-purpose securities-based lending on non-bank entities.

3. Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other deposits, and time deposits.

4. Annualized weighted average represents the total annualized weighted average cost of the various deposit products. Amounts include the effect of related hedging derivatives. The period end cost of deposits is based upon balances and rates as of September 30, 2025 and December 31, 2024. The period average is based on daily balances and rates for the period.

***Net New Assets***

NNA 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 and commissions. The level of NNA in a given period is influenced by a variety of factors, including macroeconomic factors that impact client investment and spending behaviors, seasonality, our ability to attract and retain financial advisors and clients, capital market and corporate activities which may impact the amount of assets in certain client channels, and large idiosyncratic inflows and outflows. These factors have had an impact on our NNA in recent periods. Should these factors continue, the growth rate of our NNA may be impacted.

**Advisor-Led Channel**

---

| | | | | |
|:---|:---|:---|:---|:---|
| *$ in billions* | **At September 30,<br>2025** | **At September 30,<br>2025** | At December 31,<br>2024 | At December 31,<br>2024 |
| Advisor-led client assets<sup>1</sup> | **$** | **5414** | $| 4758 |
| &nbsp;&nbsp;Fee-based client assets<sup>2</sup> | **$** | **2653** | $| 2347 |
| &nbsp;&nbsp;Fee-based client assets as a percentage of advisor-led client assets | **49%** | **49%** | 49% | 49% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| | **2025** | 2024 | **2025** | 2024 |
| Fee-based asset flows<sup>3</sup> | $**41.9** | $35.7 | $**114.5** | $87.9 |

---

1. Advisor-led client assets represent client assets in accounts that have a Wealth Management representative assigned.

2. Fee-based client assets represent the amount of client assets where the basis of payment for services is a fee calculated on those assets.

3. 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. For a description of the Inflows and Outflows included in Fee-based asset flows, see "Fee-Based Client Assets Rollforwards" herein.

September 2025 Form 10-Q 13

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Self-Directed Channel**

---

| | | |
|:---|:---|:---|
|  | **At September 30,<br>2025** | At December 31,<br>2024 |
| Self-directed client assets<sup>1</sup> (in billions) | $**1639** | $1437 |
| Self-directed households<sup>2</sup> (in millions) | **8.4** | 8.3 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| | **2025** | 2024 | **2025** | 2024 |
| Daily average revenue trades ("DARTs")<sup>3</sup> (in thousands) | **1012** | 815 | **999** | 812 |

---

1. Self-directed client assets represent active accounts which are not advisor led. Active accounts are defined as having at least $25 in assets.

2. Self-directed households represent the total number of households that include at least one active account with self-directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.

3. DARTs represent the total self-directed trades in a period divided by the number of trading days during that period.

**Workplace Channel**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| | **At September 30,<br>2025** | At December 31,<br>2024 |
| Stock plan unvested assets<sup>2</sup> (in billions) | $**534** | $475 |
| Stock plan participants<sup>3,4</sup> (in millions) | **6.6** | 6.6 |

---

1. The workplace channel includes equity compensation solutions for companies, their executives and employees.

2. Stock plan unvested assets represent the market value of public company securities at the end of the period.

3. Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.

4. The number of stock plan participants declined slightly in the third quarter of 2025, primarily as a result of the previously announced dispositions of the Firm's EMEA stock plan business. The disposition is expected to complete in the fourth quarter of 2025.

**Net Revenues**

***Asset Management***

Asset management revenues of $4,789 million in the current quarter and $13,596 million in the current year period increased 12% and 13%, respectively, compared with the prior year periods, primarily reflecting higher fee-based assets due to higher market levels and the cumulative impact of positive fee-based flows.

See "Fee-Based Client Assets Rollforwards" herein.

***Transactional Revenues***

Transactional revenues of $1,308 million in the current quarter and $3,445 million in the current year period increased 22% and 19%, respectively, compared with the prior year periods, primarily driven by higher client activity across products and channels, and higher gains on DCP investments.

For further information on the impact of DCP, see "Selected Non-GAAP Financial Information" herein.

***Net Interest***

Net interest revenues of $1,991 million in the current quarter and $5,803 million in the current year period increased 12% and 7%, respectively, compared with the prior year periods, primarily due to changes in balance sheet mix and the cumulative impact of lending growth, partially offset by the net effect of lower interest rates.

The level and pace of interest rate changes and other macroeconomic factors have impacted client preferences, including cash allocation to higher-yielding products and client demand for loans. These factors, along with other developments, such as pricing changes to certain deposit types due to various competitive dynamics, have impacted our net interest income. To the extent they persist, or other factors arise, such as central bank actions, net interest income may be impacted in future periods.

**Provision for Credit Losses**

The Provision for credit losses on loans and lending commitments was a net release of $1 million in the current quarter, primarily related to improvements in the macroeconomic outlook, partially offset by portfolio growth in residential real estate loans. The Provision for credit losses on loans and lending commitments of $11 million in the prior year quarter was primarily related to certain specific commercial real estate loans, partially offset by improvements in the macroeconomic outlook.

The Provision for credit losses on loans and lending commitments of $71 million in the current year period was primarily related to certain specific loans in our tailored lending and residential real estate portfolios, as well as portfolio growth in residential real estate loans. In the prior year period, the Provision for credit losses on loans and lending commitments of $25 million was primarily related to certain specific commercial real estate and securities-based loans, and portfolio growth, partially offset by improvements in the macroeconomic outlook.

**Non-Interest Expenses**

Non-interest expenses of $5,736 million in the current quarter increased 10%, compared with the prior year quarter, primarily as a result of higher Compensation and benefits expenses.

• Compensation and benefits expenses increased, primarily as a result of an increase in the formulaic payout to Wealth Management advisors driven by higher compensable revenue and higher expenses related to DCP.

• Non-compensation expenses increased, primarily as a result of higher marketing and business development costs and increased technology spend, partially offset by lower amortization of intangible assets.

Non-interest expenses of $16,604 million in the current year period increased 9%, compared with the prior year period,

 14 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

primarily as a result of higher Compensation and benefits expenses.

• Compensation and benefits expenses increased, primarily as a result of an increase in the formulaic payout to Wealth Management advisors driven by higher compensable revenue and higher expenses related to DCP.

• Non-compensation expenses increased, primarily as a result of higher marketing and business development costs and increased technology spend, partially offset by lower amortization of intangible assets.

For further information on the impact of DCP, see "Selected Non-GAAP Financial Information" herein.

**Fee-Based Client Assets Rollforwards**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *$ in billions* | At<br>June 30,<br>2025 | Inflows<sup>1</sup> | Outflows<sup>2</sup> | Market Impact<sup>3</sup> | **At<br>Sept 30,<br>2025** |
| Separately managed<sup>4</sup> | $728 | $**25** | $**(10)** | $**45** | $**788** |
| Unified managed | 680 | **39** | **(18)** | **31** | **732** |
| Advisor | 214 | **11** | **(12)** | **12** | **225** |
| Portfolio manager | 793 | **34** | **(27)** | **42** | **842** |
| Subtotal | $2415 | $**109** | $**(67)** | $**130** | $**2587** |
| Cash management | 63 | **14** | **(11)** | **—** | **66** |
| **Total** | $2478 | $**123** | $**(78)** | $**130** | $**2653** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *$ in billions* | At<br>June 30,<br>2024 | Inflows<sup>1</sup> | Outflows<sup>2</sup> | Market Impact<sup>3</sup> | At<br>Sept 30,<br>2024 |
| Separately managed<sup>4</sup> | $663 | $21 | $(8) | $7 | $683 |
| Unified managed | 561 | 30 | (16) | 30 | 605 |
| Advisor | 199 | 10 | (10) | 10 | 209 |
| Portfolio manager | 704 | 33 | (24) | 32 | 745 |
| Subtotal | $2127 | $94 | $(58) | $79 | $2242 |
| Cash management | 61 | 11 | (12) |  | 60 |
| **Total** | $2188 | $105 | $(70) | $79 | $2302 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *$ in billions* | At<br>Dec 31,<br>2024 | Inflows<sup>1</sup> | Outflows<sup>2</sup> | Market Impact<sup>3</sup> | **At<br>Sept 30,<br>2025** |
| Separately managed<sup>4</sup> | $719 | $**72** | $**(30)** | $**27** | $**788** |
| Unified managed | 613 | **104** | **(49)** | **64** | **732** |
| Advisor | 207 | **26** | **(29)** | **21** | **225** |
| Portfolio manager | 750 | **92** | **(72)** | **72** | **842** |
| Subtotal | $2289 | $**294** | $**(180)** | $**184** | $**2587** |
| Cash management | 58 | **40** | **(32)** | **—** | **66** |
| **Total** | $2347 | $**334** | $**(212)** | $**184** | $**2653** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *$ in billions* | At<br>Dec 31,<br>2023 | Inflows<sup>1</sup> | Outflows<sup>2</sup> | Market Impact<sup>3</sup> | At<br>Sept 30,<br>2024 |
| Separately managed<sup>4</sup> | $589 | $55 | $(32) | $71 | $683 |
| Unified managed | 501 | 88 | (41) | 57 | 605 |
| Advisor | 188 | 23 | (27) | 25 | 209 |
| Portfolio manager | 645 | 88 | (66) | 78 | 745 |
| Subtotal | $1923 | $254 | $(166) | $231 | $2242 |
| Cash management | 60 | 46 | (46) |  | 60 |
| **Total** | $1983 | $300 | $(212) | $231 | $2302 |

---

1. Inflows include new accounts, account transfers, deposits, dividends and interest.

2. Outflows include closed or terminated accounts, account transfers, withdrawals and client fees.

3. Market impact includes realized and unrealized gains and losses on portfolio investments.

4. Includes non-custody account values based on asset values reported on a quarter lag by third-party custodians.

**Average Fee Rates**<sup>1</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *Fee rate in bps* | **2025** | 2024 | **2025** | 2024 |
| Separately managed | **12** | 12 | **12** | 12 |
| Unified managed | **90** | 91 | **90** | 91 |
| Advisor | **78** | 80 | **78** | 79 |
| Portfolio manager | **88** | 89 | **88** | 89 |
| Subtotal | **64** | 65 | **64** | 65 |
| Cash management | **6** | 7 | **6** | 6 |
| **Total** | **63** | 63 | **63** | 63 |

---

1. Based on Asset management revenues related to advisory services associated with fee-based assets.

For a description of fee-based client assets in the previous tables, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Segments—Wealth Management Fee-Based Client Assets" in the 2024 Form 10-K.

September 2025 Form 10-Q 15

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Investment Management**

**Income Statement Information**

---

| | | | |
|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | % Change |
| *$ in millions* | **2025** | 2024 | % Change |
| **Revenues** |  |  |  |
| Asset management and related fees | $**1534** | $1384 | **11%** |
| Performance-based income and other<sup>1</sup> | **117** | 71 | **65%** |
| **Net revenues** | **1651** | 1455 | **13%** |
| Compensation and benefits | **632** | 594 | **6%** |
| Non-compensation expenses | **655** | 601 | **9%** |
| **Total non-interest expenses** | **1287** | 1195 | **8%** |
| Income before provision for income taxes | **364** | 260 | **40%** |
| Provision for income taxes | **95** | 67 | **42%** |
| Net income | **269** | 193 | **39%** |
| Net income (loss) applicable to noncontrolling interests | **3** | 1 | **N/M** |
| **Net income applicable to Morgan Stanley** | $**266** | $192 | **39%** |

---

---

| | | | |
|:---|:---|:---|:---|
| | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, | % Change |
| *$ in millions* | **2025** | 2024 | % Change |
| **Revenues** |  |  |  |
| Asset management and related fees | $**4419** | $4072 | **9%** |
| Performance-based income and other<sup>1</sup> | **386** | 146 | **164%** |
| **Net revenues** | **4805** | 4218 | **14%** |
| Compensation and benefits | **1913** | 1727 | **11%** |
| Non-compensation expenses | **1882** | 1768 | **6%** |
| **Total non-interest expenses** | **3795** | 3495 | **9%** |
| Income before provision for income taxes | **1010** | 723 | **40%** |
| Provision for income taxes | **233** | 172 | **35%** |
| **Net income** | **777** | 551 | **41%** |
| Net income (loss) applicable to noncontrolling interests | **4** | 2 | **N/M** |
| **Net income applicable to Morgan Stanley** | $**773** | $549 | **41%** |

---

1. Includes Investments and Trading, Net interest, and Other revenues.

**Net Revenues**

***Asset Management and Related Fees***

Asset management and related fees of $1,534 million in the current quarter and $4,419 million in the current year period increased 11% and 9%, respectively, from the prior year periods, primarily driven by higher average AUM on higher market levels from the prior year periods.

Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. While higher market levels drove increases in average AUM in the current quarter, there were continued net outflows in the Equity asset class, which may be influenced by the structure and performance of our investment strategies and products

relative to their benchmarks, offset by higher net inflows in the Alternatives and Solutions and Fixed Income asset classes, reflecting client preferences. To the extent these conditions continue, we would expect our Asset management revenue to continue to be impacted.

See "Assets Under Management or Supervision" herein.

***Performance-based Income and Other***

Performance-based income and other revenues of $117 million in the current quarter increased from the prior year quarter, primarily due to higher accrued carried interest in certain private credit funds, partially offset by lower gains on DCP investments.

Performance-based income and other revenues of $386 million in the current year period increased from the prior year period, primarily due to higher accrued carried interest in infrastructure funds.

**Non-Interest Expenses**

Non-interest expenses of $1,287 million in the current quarter and $3,795 million in the current year period increased 8% and 9%, respectively, from the prior year periods, as a result of higher Compensation and benefits expenses and Non-compensation expenses.

• Compensation and benefits expenses increased in both the current quarter and current year period, primarily due to higher compensation associated with carried interest.

• Non-compensation expenses increased in the current quarter and current year period, primarily due to higher distribution expenses on higher AUM and increased technology and infrastructure spend.

 16 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Assets Under Management or Supervision Rollforwards**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *$ in billions* | At<br>June 30,<br>2025 | Inflows<sup>1</sup> | Outflows<sup>2</sup> | Market Impact<sup>3</sup> | Other<sup>4</sup> | **At<br>Sept 30,<br>2025** |
| Equity | $327 | $**11** | $**(16)** | $**10** | $**(3)** | $**329** |
| Fixed Income | 212 | **21** | **(13)** | **3** | **1** | **224** |
| Alternatives and Solutions | 636 | **46** | **(29)** | **34** | **(4)** | **683** |
| Long-Term AUM | $1175 | $**78** | $**(58)** | $**47** | $**(6)** | $**1236** |
| Liquidity and Overlay Services | 538 | **634** | **(606)** | **8** | **(3)** | **571** |
| **Total** | $1713 | $**712** | $**(664)** | $**55** | $**(9)** | $**1807** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *$ in billions* | At<br>June 30,<br>2024 | Inflows<sup>1</sup> | Outflows<sup>2</sup> | Market Impact<sup>3</sup> | Other<sup>4</sup> | At<br>Sept 30,<br>2024 |
| Equity | $301 | $9 | $(14) | $15 | $5 | $316 |
| Fixed Income | 176 | 17 | (12) | 6 | 1 | 188 |
| Alternatives and Solutions | 558 | 37 | (28) | 23 | 1 | 591 |
| Long-Term AUM | $1035 | $63 | $(54) | 44 | 7 | 1095 |
| Liquidity and Overlay Services | 483 | 570 | (556) | 9 | (3) | 503 |
| **Total** | $1518 | $633 | $(610) | $53 | $4 | $1598 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *$ in billions* | At<br>Dec 31,<br>2024 | Inflows<sup>1</sup> | Outflows<sup>2</sup> | Market Impact<sup>3</sup> | Other<sup>4</sup> | **At<br>Sept 30,<br>2025** |
| Equity | $312 | $**33** | $**(45)** | $**27** | $**2** | $**329** |
| Fixed Income | 192 | **64** | **(43)** | **10** | **1** | **224** |
| Alternatives and Solutions | 593 | **121** | **(90)** | **61** | **(2)** | **683** |
| Long-Term AUM | $1097 | $**218** | $**(178)** | $**98** | $**1** | $**1236** |
| Liquidity and Overlay Services | 569 | **1963** | **(1974)** | **21** | **(8)** | **571** |
| **Total** | $1666 | $**2181** | $**(2152)** | $**119** | $**(7)** | $**1807** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *$ in billions* | At<br>Dec 31,<br>2023 | Inflows<sup>1</sup> | Outflows<sup>2</sup> | Market Impact<sup>3</sup> | Other<sup>4</sup> | At<br>Sept 30,<br>2024 |
| Equity | $295 | $29 | $(48) | $41 | $(1) | $316 |
| Fixed Income | 171 | 48 | (37) | 8 | (2) | 188 |
| Alternatives and Solutions | 508 | 105 | (78) | 59 | (3) | 591 |
| Long-Term AUM | $974 | $182 | $(163) | $108 | $(6) | $1095 |
| Liquidity and Overlay Services | 485 | 1659 | (1648) | 20 | (13) | 503 |
| **Total** | $1459 | $1841 | $(1811) | $128 | $(19) | $1598 |

---

1. Inflows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments of client dividends and increases in invested capital. Inflows exclude the impact of exchanges, whereby a client changes positions within the same asset class.

2. Outflows represent redemptions from clients' funds, transition of funds from the committed capital period to the invested capital period and decreases in invested capital. Outflows exclude the impact of exchanges, whereby a client changes positions within the same asset class.

3. Market impact includes realized and unrealized gains and losses on portfolio investments. This excludes any funds where market impact does not impact management fees.

4. Other contains both distributions and foreign currency impact for all periods. Distributions represent decreases in invested capital due to returns of capital after the investment period of a fund. It also includes fund dividends that the client has not reinvested. Foreign currency impact reflects foreign currency changes for non-U.S. dollar denominated funds.

**Average AUM**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in billions* | **2025** | 2024 | **2025** | 2024 |
| Equity | $**327** | $307 | $**318** | $302 |
| Fixed income | **217** | 182 | **206** | 176 |
| Alternatives and Solutions | **656** | 574 | **623** | 547 |
| Long-term AUM subtotal | **1200** | 1063 | **1147** | 1025 |
| Liquidity and Overlay Services | **558** | 492 | **557** | 485 |
| **Total** | $**1758** | $1555 | $**1704** | $1510 |

---

**Average Fee Rates**<sup>1</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *Fee rate in bps* | **2025** | 2024 | **2025** | 2024 |
| Equity | **70** | 70 | **70** | 70 |
| Fixed income | **36** | 37 | **36** | 36 |
| Alternatives and Solutions | **27** | 28 | **27** | 29 |
| Long-term AUM | **40** | 41 | **41** | 42 |
| Liquidity and Overlay Services | **12** | 12 | **13** | 12 |
| Total | **31** | 32 | **31** | 33 |

---

1. Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees. For certain non-U.S. funds, it includes the portion of advisory fees that the advisor collects on behalf of third-party distributors. The payment of those fees to the distributor is included in Non-compensation expenses in the income statement.

For a description of the asset classes in the previous tables, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Segments—Investment Management—Assets Under Management or Supervision Rollforwards" in the 2024 Form 10-K.

September 2025 Form 10-Q 17

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Supplemental Financial Information**

**U.S. Bank Subsidiaries**

Our U.S. Bank Subsidiaries, Morgan Stanley Bank, N.A. ("MSBNA") and Morgan Stanley Private Bank, National Association ("MSPBNA") (together, "U.S. Bank Subsidiaries"), accept deposits, provide loans to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals, and invest in securities. Lending activity in our U.S. Bank Subsidiaries from the Institutional Securities business segment primarily includes Secured lending facilities, Commercial and Residential real estate and Corporate loans. Lending activity in our U.S. Bank Subsidiaries from the Wealth Management business segment primarily includes Securities-based lending, which allows clients to borrow money against the value of qualifying securities, other forms of secured loans, including tailored lending to ultra-high net worth clients, and Residential real estate loans.

For a further discussion of our credit risks, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk" herein. For a further discussion about loans and lending commitments, see Notes 9 and 13 to the financial statements.

**U.S. Bank Subsidiaries' Supplemental Financial Information**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| *$ in billions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Investment securities** |  |  |
| Available-for-sale at fair value | $**87.4** | $76.5 |
| Held-to-maturity | **45.2** | 47.8 |
| **Total Investment securities** | $**132.6** | $124.3 |
| **Wealth Management loans**<sup>2</sup> |  |  |
| Residential real estate | $**70.8** | $66.6 |
| Securities-based lending and Other<sup>3</sup> | **103.1** | 92.9 |
| **Total Wealth Management loans** | $**173.9** | $159.5 |
| **Institutional Securities loans**<sup>2</sup> |  |  |
| Corporate | $**7.5** | $7.1 |
| Secured lending facilities | **65.2** | 50.2 |
| Commercial and Residential real estate | **11.4** | 10.5 |
| Securities-based lending and Other | **5.3** | 5.6 |
| **Total Institutional Securities loans** | $**89.4** | $73.4 |
| **Total assets** | $**471.7** | $434.8 |
| Deposits<sup>4</sup> | $**397.9** | $369.7 |

---

1. Amounts exclude transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates.

2. Represents loans, net of ACL. For a further discussion of loans in the Wealth Management and Institutional Securities business segments, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk" herein.

3. Other loans primarily include tailored lending. For a further discussion of Other loans, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk" herein.

4. For further information on deposits, see "Liquidity and Capital Resources—Funding Management—Balance Sheet—Unsecured Financing" herein.

**Accounting Development Updates**

The Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not referenced below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption.

We are currently evaluating the following accounting updates:

*• Derivatives Scope Refinements and Share-Based Consideration from a Customer.* This update introduces targeted refinements to the derivatives and revenue recognition accounting guidance. It expands an existing scope exception for derivative accounting to exclude certain non-exchange-traded contracts. The update also clarifies that share-based payments from a customer are treated as noncash consideration under the revenue recognition standard until the related performance obligations are fulfilled and the right to the consideration is unconditional. The update is effective beginning January 1, 2027, with early adoption permitted. Transition may be applied prospectively, or under a modified retrospective approach.

• *Intangibles—Goodwill and Other—Internal - Use Software.* This update introduces targeted improvements to the recognition and capitalization guidance for internal-use software costs. The update eliminates the prior "project stage" framework and instead requires capitalization of software development costs when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform its intended function. In assessing the probability threshold, entities are required to evaluate whether significant development uncertainty exists, including whether the software contains novel or unproven functionality or whether significant performance requirements have not been identified or continue to be substantially revised. The update is effective beginning January 1, 2028, with early adoption permitted. Transition may be applied prospectively, retrospectively, or under a modified approach.

We continue to evaluate accounting updates disclosed in the "Accounting Development Updates" section of the 2024 Form 10-K, including the implementation of the Income Tax Disclosures accounting update effective for the annual reporting period beginning January 1, 2025. We do not expect a material impact on our financial condition or results of operations upon adoption.

**Critical Accounting Estimates**

Our financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements in the 2024 Form 10-K and Note 2 to the financial statements), the fair value of financial instruments, goodwill and intangible assets, legal and regulatory contingencies (see Note 14 to the financial statements in the 2024 Form 10-K and Note 13 to the financial statements) and income taxes policies involve a higher degree of judgment and complexity. For a further discussion about our critical accounting policies, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates" in the 2024 Form 10-K.

 18 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Liquidity and Capital Resources**

Our liquidity and capital policies are established and maintained by senior management, with oversight by the Asset/Liability Management Committee and our Board of Directors ("Board"). Through various risk and control committees, senior management reviews business performance relative to these policies, monitors the availability of alternative sources of financing, and oversees the liquidity, interest rate and currency sensitivity of our asset and liability position. Our Corporate Treasury department ("Treasury"), Firm Risk Committee, Asset/Liability Management Committee, and other committees and control groups assist in evaluating, monitoring and managing the impact that our business activities have on our balance sheet, liquidity and capital structure. Liquidity and capital matters are reported regularly to the Board and the Risk Committee of the Board.

**Balance Sheet**

We monitor and evaluate the composition and size of our balance sheet on a regular basis. Our balance sheet management process includes quarterly planning, business-specific thresholds, monitoring of business-specific usage versus key performance metrics and new business impact assessments.

We establish balance sheet thresholds at the consolidated and business segment levels. We monitor balance sheet utilization and review variances resulting from business activity and market fluctuations. On a regular basis, we review current performance versus established thresholds and assess the need to re-allocate our balance sheet based on business segment needs. We also monitor key metrics, including asset and liability size and capital usage.

**Total Assets by Business Segment**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | IS | WM | IM | Total |
| **Assets** |  |  |  |  |
| Cash and cash equivalents | $**79961** | $**23735** | $**38** | $**103734** |
| Trading assets at fair value | **406007** | **12575** | **5241** | **423823** |
| Investment securities | **34252** | **129280** | **—** | **163532** |
| Securities purchased under agreements to resell | **94155** | **17579** | **—** | **111734** |
| Securities borrowed | **128275** | **838** | **—** | **129113** |
| Customer and other receivables | **74772** | **36916** | **1569** | **113257** |
| Loans<sup>1</sup> | **93394** | **173902** | **4** | **267300** |
| Goodwill | **437** | **10199** | **6089** | **16725** |
| Intangible assets | **23** | **2664** | **3410** | **6097** |
| Other assets<sup>2</sup> | **16855** | **11304** | **1332** | **29491** |
| **Total assets** | $**928131** | $**418992** | $**17683** | $**1364806** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | IS | WM | IM | Total |
| **Assets** |  |  |  |  |
| Cash and cash equivalents | $74079 | $31072 | $235 | $105386 |
| Trading assets at fair value | 320003 | 6915 | 4966 | 331884 |
| Investment securities | 38096 | 121583 |  | 159679 |
| Securities purchased under agreements to resell | 100404 | 18161 |  | 118565 |
| Securities borrowed | 121901 | 1958 |  | 123859 |
| Customer and other receivables | 47321 | 37196 | 1641 | 86158 |
| Loans<sup>1</sup> | 78607 | 159542 | 4 | 238153 |
| Goodwill | 435 | 10190 | 6081 | 16706 |
| Intangible assets | 27 | 2939 | 3487 | 6453 |
| Other assets<sup>2</sup> | 15735 | 11292 | 1201 | 28228 |
| **Total assets** | $796608 | $400848 | $17615 | $1215071 |

---

1. Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements).

2. Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments, and deferred tax assets.

A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities, including management of the investment portfolio.

**Liquidity Risk Management Framework**

The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile. For a further discussion about the Firm's Required Liquidity Framework and Liquidity Stress Tests, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Liquidity Risk Management Framework" in the 2024 Form 10-K.

At September 30, 2025 and December 31, 2024, we maintained sufficient liquidity to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests.

***Liquidity Resources***

We maintain sufficient liquidity resources, which consist of HQLA and cash deposits with banks ("Liquidity Resources"), to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements.

The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and

September 2025 Form 10-Q 19

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations.

**Liquidity Resources by Type of Investment**

---

| | | |
|:---|:---|:---|
| | Average Daily Balance<br>Three Months Ended | Average Daily Balance<br>Three Months Ended |
| *$ in millions* | **September 30,<br>2025** | June 30,<br>2025 |
| Cash deposits with central banks | $**56629** | $56914 |
| Unencumbered HQLA Securities<sup>1</sup>: |  |  |
| &nbsp;&nbsp;U.S. government obligations | **189861** | 184877 |
| &nbsp;&nbsp;U.S. agency and agency mortgage-backed securities | **82958** | 85482 |
| &nbsp;&nbsp;Non-U.S. sovereign obligations<sup>2</sup> | **30629** | 28291 |
| &nbsp;&nbsp;Other investment grade securities | **321** | 325 |
| Total HQLA<sup>1</sup> | $**360398** | $355889 |
| Cash deposits with banks (non-HQLA) | **7692** | 7500 |
| **Total Liquidity Resources** | $**368090** | $363389 |

---

1. HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries.

2. Primarily composed of unencumbered French, U.K., Japanese, Italian, German, and Spanish government obligations.

**Liquidity Resources by Non-Bank and Bank Legal Entities**

---

| | | |
|:---|:---|:---|
| | Average Daily Balance<br>Three Months Ended | Average Daily Balance<br>Three Months Ended |
| *$ in millions* | **September 30,<br>2025** | June 30,<br>2025 |
| **Non-Bank legal entities** | **Non-Bank legal entities** |  |
| U.S.: |  |  |
| &nbsp;&nbsp;Parent Company | $**90626** | $94757 |
| &nbsp;&nbsp;Non-Parent Company | **55786** | 55332 |
| Total U.S. | **146412** | 150089 |
| Non-U.S. | **70173** | 66830 |
| Total Non-Bank legal entities | **216585** | 216919 |
| **Bank legal entities** | **Bank legal entities** |  |
| U.S. | **145349** | 140280 |
| Non-U.S. | **6156** | 6190 |
| Total Bank legal entities | **151505** | 146470 |
| **Total Liquidity Resources** | $**368090** | $363389 |

---

Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors.

**Regulatory Liquidity Framework**

***Liquidity Coverage Ratio and Net Stable Funding Ratio***

We and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%.

The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of

banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded.

The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon.

As of September 30, 2025, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%.

**Liquidity Coverage Ratio**

---

| | | |
|:---|:---|:---|
| | Average Daily Balance<br>Three Months Ended | Average Daily Balance<br>Three Months Ended |
| *$ in millions* | **September 30,<br>2025** | June 30,<br>2025 |
| **Eligible HQLA** |  |  |
| Cash deposits with central banks | $**51867** | $52122 |
| Securities<sup>1</sup> | **234905** | 241114 |
| **Total Eligible HQLA** | $**286772** | $293236 |
| Net cash outflows | $**222223** | $218347 |
| **LCR** | **129%** | 134% |

---

1. Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds.

**Funding Management**

We manage our funding in a manner that reduces the risk of disruption to our operations. We pursue a strategy of diversification of secured and unsecured funding sources (by product, investor and region) and attempt to ensure that the tenor of our liabilities equals or exceeds the expected holding period of the assets being financed. Our goal is to achieve an optimal mix of durable secured and unsecured financing.

We fund our balance sheet on a global basis through diverse sources. These sources include our equity capital, borrowings, bank notes, securities sold under agreements to repurchase, securities lending, deposits, letters of credit and lines of credit. We have active financing programs for both standard and structured products targeting global investors and currencies.

Treasury allocates interest expense to our businesses based on the tenor and interest rate profile of the assets being funded. Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities.

***Secured Financing***

For a discussion of our secured financing activities, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Funding Management—Secured Financing" in the 2024 Form 10-K.

 20 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Collateralized Financing Transactions**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Securities purchased under agreements to resell and Securities borrowed | $**240847** | $242424 |
| Securities sold under agreements to repurchase and Securities loaned | $**77448** | $65293 |
| Securities received as collateral<sup>1</sup> | $**2612** | $9625 |

---

1. Included within Trading assets in the balance sheet.

---

| | | |
|:---|:---|:---|
| | Average Daily Balance <br>Three Months Ended | Average Daily Balance <br>Three Months Ended |
| *$ in millions* | **September 30,<br>2025** | December 31,<br>2024 |
| Securities purchased under agreements to resell and Securities borrowed | $**252101** | $250354 |
| Securities sold under agreements to repurchase and Securities loaned | $**86354** | $74949 |

---

See "Total Assets by Business Segment" herein for additional information on the assets shown in the previous table and Note 2 to the financial statements in the 2024 Form 10-K and Note 8 to the financial statements for additional information on collateralized financing transactions.

In addition to the collateralized financing transactions shown in the previous table, we engage in financing transactions collateralized by customer-owned securities, which are held in accordance with regulatory requirements. Receivables under these financing transactions, primarily margin loans, are included in Customer and other receivables in the balance sheet, and payables under these financing transactions, primarily to prime brokerage customers, are included in Customer and other payables in the balance sheet. Our risk exposure on these transactions is mitigated by collateral maintenance policies and the elements of our Liquidity Risk Management Framework.

***Unsecured Financing***

For a discussion of our unsecured financing activities, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Funding Management—Unsecured Financing" in the 2024 Form 10-K.

**Deposits**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Savings and demand deposits: |  |  |
| &nbsp;&nbsp;Brokerage sweep deposits<sup>1</sup> | $**139122** | $142550 |
| &nbsp;&nbsp;Savings and other | **167986** | 157348 |
| Total Savings and demand deposits | **307108** | 299898 |
| Time deposits<sup>2</sup> | **98372** | 76109 |
| **Total**<sup>3</sup> | $**405480** | $376007 |

---

1. Amounts represent balances swept from client brokerage accounts.

2. Our Time deposits are predominantly brokered certificates of deposit.

3. Our deposits are primarily held in U.S. offices.

Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each

category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. Total deposits in the current year period increased primarily due to increases in Time and Savings deposits.

**Borrowings by Maturity at September 30, 2025**<sup>1</sup>

---

| | | | |
|:---|:---|:---|:---|
| *$ in millions* | Parent Company | Subsidiaries | Total |
| Original maturities of one year or less | $**—** | $**7551** | $**7551** |
| Original maturities greater than one year | Original maturities greater than one year | Original maturities greater than one year | Original maturities greater than one year |
| 2025 | $**2412** | $**3448** | $**5860** |
| 2026 | **16454** | **14828** | **31282** |
| 2027 | **21977** | **16000** | **37977** |
| 2028 | **16048** | **23184** | **39232** |
| 2029 | **19636** | **13420** | **33056** |
| Thereafter | **118511** | **58210** | **176721** |
| Total greater than one year | $**195038** | $**129090** | $**324128** |
| Total | $**195038** | $**136641** | $**331679** |
| Maturities over next 12 months<sup>2</sup> |  |  | $**25439** |

---

1. Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, maturity represents the earliest put date.

2. Includes only borrowings with original maturities greater than one year.

Borrowings of $332 billion as of September 30, 2025 increased compared with $289 billion at December 31, 2024, primarily due to non-bank issuances net of maturities and redemptions.

We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types.

The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities.

For further information on Borrowings, see Note 12 to the financial statements.

**Credit Ratings**

We rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors.

September 2025 Form 10-Q 21

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

See also "Risk Factors—Liquidity Risk" in the 2024 Form 10-K.

**Parent Company and U.S. Bank Subsidiaries Issuer Ratings at October 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | Parent Company | Parent Company | Parent Company |
| | Short-Term Debt | Long-Term Debt | Rating Outlook |
| DBRS, Inc. | **R-1 (middle)** | **AA (low)** | **Stable** |
| Fitch Ratings, Inc. | **F1** | **A+** | **Stable** |
| Moody's Investors Service, Inc. | **P-1** | **A1** | **Stable** |
| Rating and Investment Information, Inc. | **a-1** | **A+** | **Stable** |
| S&P Global Ratings | **A-2** | **A-** | **Stable** |

---

---

| | | | |
|:---|:---|:---|:---|
| | MSBNA | MSBNA | MSBNA |
| | Short-Term Debt | Long-Term Debt | Rating Outlook |
| Fitch Ratings, Inc. | **F1+** | **AA-** | **Stable** |
| Moody's Investors Service, Inc. | **P-1** | **Aa3** | **Stable** |
| S&P Global Ratings | **A-1** | **A+** | **Stable** |

---

---

| | | | |
|:---|:---|:---|:---|
| | MSPBNA | MSPBNA | MSPBNA |
| | Short-Term Debt | Long-Term Debt | Rating Outlook |
| Fitch Ratings, Inc. | **F1+** | **AA-** | **Stable** |
| Moody's Investors Service, Inc. | **P-1** | **Aa3** | **Stable** |
| S&P Global Ratings | **A-1** | **A+** | **Stable** |

---

***Incremental Collateral or Terminating Payments***

In connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the financial statements for additional information on OTC derivatives that contain such contingent features.

While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests.

**Capital Management**

We view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements, such as the SCB, and rating agency guidelines. In the future, we may expand or

contract our capital base to address the changing needs of our businesses.

**Common Stock Repurchases**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *in millions, except for per share data* | **2025** | 2024 | **2025** | 2024 |
| Number of shares | **7** | 8 | **23** | 27 |
| Average price per share | $**145.77** | $99.94 | $**131.26** | $93.14 |
| Total | $**1085** | $750 | $**3085** | $2500 |

---

For additional information on our common stock repurchases, see Note 16 to the financial statements.

For a description of our capital plan, see "Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer" herein.

**Common Stock Dividend Announcement**

---

| | |
|:---|:---|
| Announcement date | October 15, 2025 |
| Amount per share | $1.00 |
| Date to be paid | November 14, 2025 |
| Shareholders of record as of | October 31, 2025 |

---

For additional information on our common stock dividends, see "Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer" herein.

For additional information on our common stock and information on our preferred stock, see Note 16 to the financial statements.

**Off-Balance Sheet Arrangements**

We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments.

We utilize SPEs primarily in connection with securitization activities. For information on our securitization activities, see Note 15 to the financial statements in the 2024 Form 10-K.

For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 13 to the financial statements. For a further discussion of our lending commitments, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk—Loans and Lending Commitments" herein.

**Regulatory Requirements**

**Regulatory Capital Framework** 

We are a financial holding company ("FHC") under the Bank Holding Company Act of 1956, as amended and are subject to the regulation and oversight of the Board of Governors of the Federal Reserve System ("Federal Reserve"). The Federal Reserve establishes capital requirements for us, including

 22 September 2025 Form 10-Q

------

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| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

"well-capitalized" standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 15 to the financial statements.

**Regulatory Capital Requirements**

We are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Capital Requirements" in the 2024 Form 10-K. For additional information on TLAC, see "Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements" herein.

*Risk-Based Regulatory Capital.* Risk-based capital ratio requirements apply to Common Equity Tier 1 ("CET1") capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios.

**Risk-Based Regulatory Capital Ratio Requirements**

---

| | | |
|:---|:---|:---|
| | **At September 30, 2025** and December 31, 2024 | **At September 30, 2025** and December 31, 2024 |
| | Standardized | Advanced |
| **Capital buffers** |  |  |
| Capital conservation buffer | **—%** | **2.5%** |
| SCB<sup>1</sup> | **6.0%** | **N/A** |
| G-SIB capital surcharge<sup>2</sup> | **3.0%** | **3.0%** |
| CCyB<sup>3</sup> | **—%** | **—%** |
| Capital buffer requirement | **9.0%** | **5.5%** |

---

1. For additional information on the SCB, see "Capital Plans, Stress Tests and the Stress Capital Buffer" herein and in the 2024 Form 10-K.

2. For a further discussion of the G-SIB capital surcharge, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—G-SIB Capital Surcharge" in the 2024 Form 10-K.

3. The CCyB can be set up to 2.5%, but is currently set by the Federal Reserve at zero.

The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our

ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs ("Standardized Approach") is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs ("Advanced Approach") is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB.

---

| | | | |
|:---|:---|:---|:---|
| | Regulatory Minimum | **At September 30, 2025** and December 31, 2024 | **At September 30, 2025** and December 31, 2024 |
| | Regulatory Minimum | Standardized | Advanced |
| **Required ratios**<sup>1</sup> | **Required ratios**<sup>1</sup> |  |  |
| CET1 capital ratio | **4.5%** | **13.5%** | **10.0%** |
| Tier 1 capital ratio | **6.0%** | **15.0%** | **11.5%** |
| Total capital ratio | **8.0%** | **17.0%** | **13.5%** |

---

1. Required ratios represent the regulatory minimum plus the capital buffer requirement.

Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At September 30, 2025 and December 31, 2024, the differences between the actual and required ratios were lower under the Standardized Approach.

*Leverage-Based Regulatory Capital.* Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced supplementary leverage ratio ("eSLR") capital buffer of at least 2%.

*CECL Deferral.* Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022, were phased-in at 75% from January 1, 2024 and were fully phased-in from January 1, 2025.

September 2025 Form 10-Q 23

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| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Regulatory Capital Ratios**

**Risk-based capital**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Standardized** | **Standardized** | **Advanced** | **Advanced** |
| *$ in millions* | **At<br>Sept 30,<br>2025** | At<br>Dec 31,<br>2024 | **At<br>Sept 30,<br>2025** | At<br>Dec 31,<br>2024 |
| &nbsp;&nbsp;**Risk-based** <br>**capital** | &nbsp;&nbsp;**Risk-based** <br>**capital** |  |  |  |
| CET1 capital | $**81303** | $75095 | $**81303** | $75095 |
| Tier 1 capital | **91036** | 84790 | **91036** | 84790 |
| Total capital | **101733** | 95567 | **100929** | 94846 |
| Total RWA | **539296** | 471834 | **518012** | 477331 |
| **Risk-based capital ratios** |  |  |  |  |
| CET1 capital | **15.1%** | 15.9% | **15.7%** | 15.7% |
| Tier 1 capital | **16.9%** | 18.0% | **17.6%** | 17.8% |
| Total capital | **18.9%** | 20.3% | **19.5%** | 19.9% |
| **Required ratios**<sup>1</sup> |  |  |  |  |
| CET1 capital | **13.5%** | 13.5% | **10.0%** | 10.0% |
| Tier 1 capital | **15.0%** | 15.0% | **11.5%** | 11.5% |
| Total capital | **17.0%** | 17.0% | **13.5%** | 13.5% |

---

1. Required ratios are inclusive of any buffers applicable as of the date presented.

**Leveraged-based capital**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At September 30,<br>2025** | At December 31,<br>2024 |
| **Leveraged-based capital** |  |  |
| Adjusted average assets<sup>1</sup> | $**1340745** | $1223779 |
| Supplementary leverage exposure<sup>2</sup> | **1659985** | 1517687 |
| **Leveraged-based capital ratios** |  |  |
| Tier 1 leverage | **6.8%** | 6.9% |
| SLR | **5.5%** | 5.6% |
| **Required ratios**<sup>3</sup> |  |  |
| Tier 1 leverage | **4.0%** | 4.0% |
| SLR | **5.0%** | 5.0% |

---

1. Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.

2. Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.

3. Required ratios are inclusive of any buffers applicable as of the date presented.

**Regulatory Capital**

---

| | | | |
|:---|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 | **Change** |
| **CET1 capital** |  |  |  |
| Common shareholders' equity | $**100212** | $94761 | $**5451** |
| Regulatory adjustments and deductions: |  |  |  |
| &nbsp;&nbsp;Net goodwill | **(16382)** | (16354) | **(28)** |
| &nbsp;&nbsp;Net intangible assets | **(4731)** | (5003) | **272** |
| &nbsp;&nbsp;Impact of CECL transition | **—** | 62 | **(62)** |
| &nbsp;&nbsp;Other adjustments and deductions<sup>1</sup> | **2204** | 1629 | **575** |
| **Total CET1 capital** | $**81303** | $75095 | $**6208** |
| **Additional Tier 1 capital** |  |  |  |
| Preferred stock | $**9750** | $9750 | $**—** |
| Noncontrolling interests | **925** | 807 | **118** |
| Additional Tier 1 capital | $**10675** | $10557 | $**118** |
| Deduction for investments in covered funds | **(942)** | (862) | **(80)** |
| **Total Tier 1 capital** | $**91036** | $84790 | $**6246** |
| **Standardized Tier 2 capital** |  |  |  |
| Subordinated debt | $**8372** | $8851 | $**(479)** |
| Eligible ACL | **2455** | 2065 | **390** |
| Other adjustments and deductions | **(130)** | (139) | **9** |
| **Total Standardized Tier 2 capital** | $**10697** | $10777 | $**(80)** |
| **Total Standardized capital** | $**101733** | $95567 | $**6166** |
| **Advanced Tier 2 capital** |  |  |  |
| Subordinated debt | $**8372** | $8851 | $**(479)** |
| Eligible credit reserves | **1651** | 1344 | **307** |
| Other adjustments and deductions | **(130)** | (139) | **9** |
| **Total Advanced Tier 2 capital** | $**9893** | $10056 | $**(163)** |
| **Total Advanced capital** | $**100929** | $94846 | $**6083** |

---

1. Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets.

 24 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**RWA Rollforward**

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended<br>September 30, 2025** | **Nine Months Ended<br>September 30, 2025** |
| *$ in millions* | Standardized | Advanced |
| **Credit risk RWA** |  |  |
| Balance at December 31, 2024 | $417982 | $316429 |
| Change related to the following items: |  |  |
| &nbsp;&nbsp;&nbsp;Derivatives | **23847** | **12678** |
| &nbsp;&nbsp;&nbsp;Securities financing transactions | **10007** | **1289** |
| &nbsp;&nbsp;&nbsp;Investment securities | **(597)** | **(19)** |
| &nbsp;&nbsp;&nbsp;Commitments, guarantees and loans | **15676** | **9861** |
| &nbsp;&nbsp;&nbsp;Equity investments | **4073** | **4576** |
| &nbsp;&nbsp;&nbsp;Other credit risk | **8300** | **7328** |
| Total change in credit risk RWA | $**61306** | $**35713** |
| **Balance at September 30, 2025** | $**479288** | $**352142** |
| **Market risk RWA** |  |  |
| Balance at December 31, 2024 | $53852 | $54322 |
| Change related to the following items: |  |  |
| &nbsp;&nbsp;&nbsp;Regulatory VaR | **2900** | **2900** |
| &nbsp;&nbsp;&nbsp;Regulatory stressed VaR | **2660** | **2660** |
| &nbsp;&nbsp;&nbsp;Incremental risk charge | **(2076)** | **(2076)** |
| &nbsp;&nbsp;&nbsp;Comprehensive risk measure | **(644)** | **(954)** |
| &nbsp;&nbsp;&nbsp;Specific risk | **3316** | **3316** |
| Total change in market risk RWA | $**6156** | $**5846** |
| **Balance at September 30, 2025** | $**60008** | $**60168** |
| **Operational risk RWA** |  |  |
| Balance at December 31, 2024 | N/A | $106580 |
| Change in operational risk RWA | **N/A** | **(878)** |
| **Balance at September 30, 2025** | **N/A** | $**105702** |
| **Total RWA** | $**539296** | $**518012** |

---

Regulatory VaR—VaR for regulatory capital requirements

In the current year period, Credit risk RWA increased under both the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily due to higher Derivatives exposures, particularly in foreign exchange, growth in lending within the Institutional Securities business segment, Securities financing transactions, Other credit risk driven by higher warehouse loan securitizations, cash and deferred tax assets, and growth in Equity investments. Under the Advanced Approach, the increase was primarily due to higher Derivatives exposures, particularly in foreign exchange, growth in lending within the Institutional Securities business segment, Other credit risk driven by higher warehouse loan securitizations, cash and deferred tax assets, and growth in Equity investments.

Market risk RWA increased in the current year period under both the Standardized and Advanced Approaches, primarily driven by higher Specific Risk due to Non-Securitization standardized charges, Regulatory VaR and Regulatory Stressed VaR, partially offset by lower incremental risk charges driven by decreased exposures to non-investment grade issuances.

The decrease in Operational risk RWA in the current year period is primarily related to lower execution-related losses, partially offset by an increase in litigation-related incidents.

**Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements** 

The Federal Reserve has established external TLAC, long-term debt ("LTD") and clean holding company requirements for top-tier BHCs of U.S. G-SIBs ("covered BHCs"), including the Parent Company. These requirements are designed to ensure that covered BHCs will have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of eligible LTD to equity or otherwise by imposing losses on eligible LTD or other forms of TLAC where an SPOE resolution strategy is used.

**Required and Actual TLAC and Eligible LTD Ratios**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | Actual Amount/Ratio | Actual Amount/Ratio |
| *$ in millions* | Regulatory Minimum | Required Ratio<sup>1</sup> | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| External TLAC<sup>2</sup> |  |  | $**275931** | $266146 |
| External TLAC as a % of RWA | **18.0%** | **21.5%** | **51.2%** | 55.8% |
| External TLAC as a % of leverage exposure | **7.5%** | **9.5%** | **16.6%** | 17.5% |
| Eligible LTD<sup>3</sup> |  |  | $**172554** | $169690 |
| Eligible LTD as a % of RWA | **9.0%** | **9.0%** | **32.0%** | 35.5% |
| Eligible LTD as a % of leverage exposure | **4.5%** | **4.5%** | **10.4%** | 11.2% |

---

1. Required ratios are inclusive of applicable buffers.

2. External TLAC consists of CET1 capital and Additional Tier 1 capital (each excluding any noncontrolling minority interests), as well as eligible LTD.

3. Consists of TLAC-eligible LTD reduced by 50% for amounts of unpaid principal due to be paid in more than one year but less than two years from each respective balance sheet date.

We are in compliance with all TLAC requirements as of September 30, 2025 and December 31, 2024.

For a further discussion of TLAC and related requirements, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements" in the 2024 Form 10-K.

**Capital Plans, Stress Tests and the Stress Capital Buffer**

The Federal Reserve has capital planning and stress test requirements for large BHCs, which form part of the Federal Reserve's annual CCAR framework.

We must submit, on at least an annual basis, a capital plan to the Federal Reserve, taking into account the results of separate annual stress tests designed by us and the Federal Reserve, so that the Federal Reserve may assess our systems and processes that incorporate forward-looking projections of revenues and losses to monitor and maintain our internal capital adequacy. As insured depository institutions ("IDIs") with less than $250 billion of average total assets over the four most recent consecutive quarters, our U.S. Bank Subsidiaries are not subject to company-run stress test regulatory requirements.

September 2025 Form 10-Q 25

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---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

As part of its annual capital supervisory stress testing process, the Federal Reserve determines an SCB for each large BHC, including us.

Our SCB remained at 6.0% through September 30, 2025. Together with other features of the regulatory capital framework, this SCB resulted in an aggregate Standardized Approach CET1 required ratio of 13.5%.

For the 2025 capital planning and stress test cycle, we submitted our capital plan and company-run stress test results to the Federal Reserve on April 7, 2025. On September 30, 2025, the Federal Reserve announced that it had reduced Morgan Stanley's SCB from 5.1% to 4.3%, effective on October 1, 2025 in response to the Firm seeking reconsideration of its preliminary SCB announced in June 2025. Together with other features of the regulatory capital framework, this SCB results in an aggregate Standardized Approach CET1 ratio of 11.8%. Generally, our SCB is determined annually based on the results of the supervisory stress test.

On April 17, 2025, the Federal Reserve proposed revisions to the SCB and CCAR frameworks. See "Regulatory Developments and Other Matters—Proposed Changes to Capital Requirements" herein. If relevant, the Firm will provide updated information on applicable regulatory capital standards in response to a final rulemaking, including any change in the Firm's SCB.

We also disclosed a summary of the results of our company-run stress tests on our Investor Relations website and increased our quarterly common stock dividend to $1.00 per share from $0.925, beginning with the common stock dividend announced on July 16, 2025.

For additional information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer" in the 2024 Form 10-K.

**Attribution of Average Common Equity According to the Required Capital Framework** 

Our required capital ("Required Capital") estimation is based on the Required Capital framework, an internal capital adequacy measure. Common equity attribution to the business segments is based on capital usage calculated under the Required Capital framework, as well as each business segment's relative contribution to our total Required Capital.

The Required Capital framework is a risk-based and leverage-based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change

occurs (*e.g*., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. We generally hold Parent Company common equity for prospective regulatory requirements, organic growth, potential future acquisitions and other capital needs.

**Average Common Equity Attribution under the Required Capital Framework**<sup>1</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in billions* | **2025** | 2024 | **2025** | 2024 |
| Institutional Securities | $**48.4** | $45.0 | $**48.4** | $45.0 |
| Wealth Management | **29.4** | 29.1 | **29.4** | 29.1 |
| Investment Management | **10.6** | 10.8 | **10.6** | 10.8 |
| Parent Company | **10.3** | 7.8 | **8.7** | 6.1 |
| **Total** | $**98.7** | $92.7 | $**97.1** | $91.0 |

---

1. The attribution of average common equity to the business segments is a non-GAAP financial measure. See "Selected Non-GAAP Financial Information" herein.

We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate.

**Resolution and Recovery Planning**

We are required to submit once every two years to the Federal Reserve and the FDIC a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of our material financial distress or failure. We submitted our 2025 targeted resolution plan on June 30, 2025.

As described in our most recent resolution plan, our preferred resolution strategy is an SPOE strategy, which would impose losses on the holders of eligible LTD and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on creditors of our supported entities and without requiring taxpayer or government financial support.

For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see "Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning," "Risk Factors—Legal, Regulatory and Compliance Risk" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Resolution and Recovery Planning" in the 2024 Form 10-K.

 26 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Management's Discussion and Analysis** | ![Image4.jpg](ms-20250930_g1.jpg) |

---

**Regulatory Developments and Other Matters**

***Proposed Changes to Capital Requirements***

On April 17, 2025, the Federal Reserve proposed revisions to the SCB and CCAR frameworks applicable to us, aimed at reducing the volatility of the capital requirements stemming from the Federal Reserve's annual stress test results. Under the proposal, our SCB would be based, in part, on the average of the post-stress capital decline embedded in the Federal Reserve's stress test results over two consecutive years. Additionally, the proposal would shift the annual effective date of the revised SCB from October 1 to January 1 of the following year and modify certain elements of the Federal Reserve's CCAR program.

***Proposed Changes to the Enhanced Supplementary Leverage Ratio***

On June 25, 2025, the U.S. banking agencies released a proposal to modify eSLR requirements applicable to U.S. G-SIBs and their U.S. IDI subsidiaries. If adopted, the proposal would modify the eSLR buffer applicable to U.S. G-SIBs to equal 50 percent of each BHC's Method 1 G-SIB capital surcharge, applied above the 3.0% minimum SLR requirement, and would modify eSLR standards for U.S. G-SIBs' IDI subsidiaries to have the same form and calibration as the BHC-level standard. As a result, under the proposal, the Firm and its U.S. Bank Subsidiaries would each have been subject to a 3.5% SLR requirement (inclusive of a 0.5% eSLR buffer) as of June 30, 2025, as compared with current standards, which impose a 5.0% SLR requirement on the Firm (inclusive of a 2.0% eSLR buffer) and require the U.S. Bank Subsidiaries to meet a 6.0% SLR requirement above the minimum 3.0% SLR requirement to be deemed "well capitalized." The Federal Reserve has also proposed conforming modifications to the SLR component of TLAC and LTD requirements, which currently incorporate the U.S. G-SIB 2.0% eSLR buffer. For more information on the leverage-based regulatory capital standards, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements" in the 2024 Form 10-K.

***Supervisory Stress Testing Proposals***

On October 24, 2025, the Federal Reserve proposed revisions to its supervisory stress testing framework through two related proposals. The first proposal would modify the timeline and operation of the annual supervisory stress test, including through revisions to the Federal Reserve's supervisory stress testing policy statements, and solicits comment on the Federal Reserve's supervisory stress testing models. The second proposal solicits comment on the Federal Reserve's proposed scenarios for the 2026 supervisory stress test. We continue to monitor developments related to these proposals.

September 2025 Form 10-Q 27

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| | ![Image16.jpg](ms-20250930_g1.jpg) |

---

**Quantitative and Qualitative Disclosures about Risk**

Management believes effective risk management is vital to the success of our business activities. For a discussion of our Enterprise Risk Management framework and risk management functions, see "Quantitative and Qualitative Disclosures about Risk—Risk Management" in the 2024 Form 10-K.

**Market Risk**

Market risk refers to the risk that a change in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity, will result in losses for a position or portfolio. Generally, we incur market risk as a result of trading, investing and client facilitation activities, principally within the Institutional Securities business segment where the substantial majority of our VaR for market risk exposures is generated. In addition, we incur non-trading market risk, principally within the Wealth Management and Investment Management business segments. The Wealth Management business segment primarily incurs non-trading market risk (including interest rate risk) from lending and deposit-taking activities. The Investment Management business segment primarily incurs non-trading market risk from capital investments in its funds. For a further discussion of market risk, see "Quantitative and Qualitative Disclosures about Risk—Market Risk" in the 2024 Form 10-K.

**Trading Risks**

We have exposures to a wide range of risks related to interest rates and credit spreads, equity prices, foreign exchange rates and commodity prices as well as the associated implied volatilities, correlations and spreads of the global markets in which we conduct our trading activities.

The statistical technique known as VaR is one of the tools we use to measure, monitor and review the market risk exposures of our trading portfolios.

For information regarding our primary risk exposures and market risk management, VaR methodology, assumptions and limitations, see "Quantitative and Qualitative Disclosures about Risk—Market Risk—Trading Risks" in the 2024 Form 10-K.

**95%/One-Day Management VaR for the Trading Portfolio**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| *$ in millions* | Period End | Average | High<sup>1</sup> | Low<sup>1</sup> |
| Interest rate and credit spread | $**26** | $**32** | $**43** | $**26** |
| Equity price | **39** | **38** | **44** | **33** |
| Foreign exchange rate | **15** | **12** | **17** | **9** |
| Commodity price | **14** | **17** | **21** | **11** |
| Less: Diversification benefit<sup>2</sup> | **(37)** | **(44)** | **N/A** | **N/A** |
| Primary Risk Categories | $**57** | $**55** | $**61** | $**49** |
| Credit portfolio | **18** | **19** | **21** | **18** |
| Less: Diversification benefit<sup>2</sup> | **(20)** | **(15)** | **N/A** | **N/A** |
| Total Management VaR | $**55** | $**59** | $**64** | $**53** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
| | June 30, 2025 | June 30, 2025 | June 30, 2025 | June 30, 2025 |
| *$ in millions* | Period End | Average | High<sup>1</sup> | Low<sup>1</sup> |
| Interest rate and credit spread | $31 | $30 | $42 | $20 |
| Equity price | 33 | 27 | 43 | 17 |
| Foreign exchange rate | 11 | 14 | 22 | 8 |
| Commodity price | 16 | 16 | 26 | 12 |
| Less: Diversification benefit<sup>2</sup> | (37) | (40) | N/A | N/A |
| Primary Risk Categories | $54 | $47 | $63 | $34 |
| Credit portfolio | 19 | 18 | 19 | 17 |
| Less: Diversification benefit<sup>2</sup> | (18) | (15) | N/A | N/A |
| Total Management VaR | $55 | $50 | $63 | $38 |

---

1. The high and low VaR values for the Total Management VaR and each of the component VaRs might have occurred on different days during the quarter, and, therefore, the diversification benefit is not an applicable measure.

2. Diversification benefit equals the difference between the total VaR and the sum of the component VaRs. This benefit arises because the simulated one-day losses for each of the components occur on different days. Similar diversification benefits are also taken into account within each component.

Average Total Management VaR and average Management VaR for the Primary Risk Categories increased from the three months ended June 30, 2025 primarily driven by increased exposures in the equity price category.

***Distribution of VaR Statistics and Net Revenues***

We evaluate the reasonableness of our VaR model by comparing the potential declines in portfolio values generated by the model with corresponding actual trading results for the Firm, as well as individual business units. For days where losses exceed the VaR statistic, we examine the drivers of trading losses to evaluate the VaR model's accuracy. There were no trading loss days in the current quarter.

 28 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

**Daily 95%/One-Day Total Management VaR for the Current Quarter**

*($ in millions)*

![13743895359416](ms-20250930_g9.jpg)

**Daily Net Trading Revenues for the Current Quarter**

*($ in millions)*

![13743895359372](ms-20250930_g10.jpg)

Daily net trading revenues include profits and losses from Interest rate and credit spread, Equity price, Foreign exchange rate, Commodity price, and Credit portfolio positions and intraday trading activities for our trading businesses. Certain items such as fees, commissions, net interest income and counterparty default risk are excluded from daily net trading revenues and the VaR model. Revenues required for Regulatory VaR backtesting further exclude intraday trading.

**Non-Trading Risks**

We believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following sensitivity analyses cover substantially all of the non-trading market risk in our portfolio.

**Credit Spread Risk Sensitivity**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>June 30,<br>2025 |
| Derivatives | $**6** | $6 |
| Borrowings carried at fair value | **58** | 55 |

---

1. Amounts represent the potential gain for each 1 bps widening of our credit spread.

The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits.

**Wealth Management Net Interest Income Sensitivity Analysis**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>June 30,<br>2025 |
| **Basis point change** |  |  |
| +200 | $**364** | $438 |
| +100 | **188** | 222 |
| -100 | **(228)** | (251) |
| -200 | **(517)** | (567) |

---

The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted balance sheet and business activity. The forecast includes modeled prepayment behavior, reinvestment of net cash flows from maturing assets and liabilities, and deposit pricing sensitivity to interest rates. These key assumptions are updated periodically based on historical data and future expectations.

We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors.

Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities,

September 2025 Form 10-Q 29

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---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits from other institutions and alternative cash-equivalent products available to depositors. Further, the level of interest rates could also impact client demand for loans.

Net interest income sensitivity to interest rates at September 30, 2025 decreased from June 30, 2025, primarily driven by the effects of changes in the balance sheet mix.

**Investments Sensitivity, Including Related Carried Interest**

---

| | | |
|:---|:---|:---|
| | Loss from 10% Decline | Loss from 10% Decline |
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>June 30,<br>2025 |
| Investments related to Investment Management activities | $**579** | $572 |
| Other investments: |  |  |
| &nbsp;&nbsp;&nbsp;MUMSS | **136** | 136 |
| &nbsp;&nbsp;&nbsp;Other Firm investments | **491** | 483 |

---

We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable. The measures reflected in the table above do not reflect the effect of any economic hedges or diversification that may reduce the risk of loss.

**Asset Management Revenue Sensitivity**

Certain asset management revenues in the Wealth Management and Investment Management business segments are derived from management fees, which are based on fee-based client assets in Wealth Management or AUM in Investment Management (together, "client holdings"). The assets underlying client holdings are primarily composed of equity, fixed income and alternative investments and are sensitive to changes in related markets. These revenues depend on multiple factors including, but not limited to, the level and duration of a market increase or decline, price volatility, the geographic and industry mix of client assets, and client behavior such as the rate and magnitude of client investments and redemptions. Therefore, overall revenues may not correlate completely with changes in the related markets.

**Credit Risk**

Credit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. We are primarily exposed to credit risk from institutions and individuals through our Institutional Securities and Wealth Management business segments. For a further discussion of our credit risks, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk" in the 2024 Form 10-K.

**Loans and Lending Commitments**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | HFI | HFS | FVO<sup>1</sup> | Total |
| Institutional Securities: |  |  |  |  |
| &nbsp;&nbsp;Corporate | $**7839** | $**8270** | $**—** | $**16109** |
| &nbsp;&nbsp;Secured lending facilities | **63610** | **2707** | **—** | **66317** |
| &nbsp;&nbsp;Commercial and Residential real estate | **7853** | **421** | **4297** | **12571** |
| &nbsp;&nbsp;Securities-based lending and Other | **3486** | **30** | **5665** | **9181** |
| **Total Institutional Securities** | **82788** | **11428** | **9962** | **104178** |
| Wealth Management: |  |  |  |  |
| &nbsp;&nbsp;Residential real estate | **70910** | **5** | **—** | **70915** |
| &nbsp;&nbsp;Securities-based lending and Other | **103378** | **—** | **—** | **103378** |
| **Total Wealth Management** | **174288** | **5** | **—** | **174293** |
| **Total Investment Management**<sup>2</sup> | **4** | **—** | **45** | **49** |
| **Total loans** | **257080** | **11433** | **10007** | **278520** |
| **ACL** | **(1213)** |  |  | **(1213)** |
| **Total loans, net of ACL** | $**255867** | $**11433** | $**10007** | $**277307** |
| **Lending commitments**<sup>3</sup> | $**159769** | $**40831** | $**1541** | $**202141** |
| **Total exposure** | $**415636** | $**52264** | $**11548** | $**479448** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | HFI | HFS | FVO<sup>1</sup> | Total |
| Institutional Securities: |  |  |  |  |
| &nbsp;&nbsp;Corporate | $6889 | $9183 | $— | $16072 |
| &nbsp;&nbsp;Secured lending facilities | 48842 | 2507 |  | 51349 |
| &nbsp;&nbsp;Commercial and Residential real estate | 8412 | 628 | 2420 | 11460 |
| &nbsp;&nbsp;Securities-based lending and Other | 2876 |  | 6041 | 8917 |
| **Total Institutional Securities** | 67019 | 12318 | 8461 | 87798 |
| Wealth Management: |  |  |  |  |
| &nbsp;&nbsp;Residential real estate | 66738 |  |  | 66738 |
| &nbsp;&nbsp;Securities-based lending and Other | 93139 | 1 |  | 93140 |
| **Total Wealth Management** | 159877 | 1 |  | 159878 |
| **Total Investment Management**<sup>2</sup> | 4 |  | 200 | 204 |
| **Total loans** | 226900 | 12319 | 8661 | 247880 |
| **ACL** | (1066) |  |  | (1066) |
| **Total loans, net of ACL** | $225834 | $12319 | $8661 | $246814 |
| **Lending commitments**<sup>3</sup> | $148818 | $26955 | $758 | $176531 |
| **Total exposure** | $374652 | $39274 | $9419 | $423345 |

---

Total exposure—consists of Total loans, net of ACL, and Lending commitments

1. FVO includes the fair value of certain unfunded lending commitments.

2. Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by Investment Management, composed primarily of senior secured loans to corporations.

3. Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for lending transactions. Since commitments associated with these business activities may expire unused or may not be utilized to full capacity, they do not necessarily reflect the actual future cash funding requirements.

 30 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

We provide loans and lending commitments to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals. In addition, we purchase loans in the secondary market. Loans and lending commitments are either held for investment, held for sale or carried at fair value. For more information on these loan classifications, see Note 2 to the financial statements in the 2024 Form 10-K.

Total loans and lending commitments increased by approximately $56 billion since December 31, 2024, primarily due to an increase in secured lending facilities and event-driven corporate lending commitments within the Institutional Securities business segment and growth in securities-based loans within the Wealth Management business segment.

See Notes 4, 5, 9 and 13 to the financial statements for further information.

**Allowance for Credit Losses—Loans and Lending Commitments**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **Three Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| **ACL—Loans** |  |  |
| Beginning balance | $1271 | $1066 |
| &nbsp;&nbsp;Gross charge-offs | **(64)** | **(126)** |
| &nbsp;&nbsp;Recoveries | **1** | **21** |
| Net (charge-offs)/recoveries | **(63)** | **(105)** |
| Provision for credit losses | **6** | **225** |
| Other | **(1)** | **27** |
| **Ending balance** | $**1213** | $**1213** |
| **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** |
| Beginning balance | $790 | $656 |
| Provision for credit losses | **(6)** | **106** |
| Other | **—** | **22** |
| **Ending balance** | $**784** | $**784** |
| **Total ending balance** | $**1997** | $**1997** |

---

**Provision for Credit Losses by Business Segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| *$ in millions* | IS | WM | Total | IS | WM | Total |
| Loans | $**5** | $**1** | $**6** | $**154** | $**71** | $**225** |
| Lending commitments | **(4)** | **(2)** | **(6)** | **106** | **—** | **106** |
| **Total** | $**1** | $**(1)** | $**—** | $**260** | $**71** | $**331** |

---

Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards. Risk factors considered in determining the allowance for credit losses for loans and lending commitments include the borrower's financial condition, industry, facility structure, LTV ratio, debt service ratio, collateral and covenants. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending terms, and volume and severity of past due loans may also be considered.

The allowance for credit losses for loans and lending commitments increased since December 31, 2024, primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans. Charge-offs in the current year period were primarily related to commercial real estate lending.

The base scenario used in our ACL models as of September 30, 2025 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. This scenario assumes modest economic growth in 2025, followed by a gradual improvement in 2026, as well as lower interest rates relative to the prior quarter forecast. Our ACL models incorporate key macroeconomic variables, including U.S. real GDP growth rate. The significance of key macroeconomic variables on our ACL models varies depending on portfolio composition and economic conditions.

**Forecasted U.S. Real GDP Growth Rates in Base Scenario**

---

| | | |
|:---|:---|:---|
| | **4Q 2025** | **4Q 2026** |
| Year-over-year growth rate | **1.2%** | **1.7%** |

---

Other key macroeconomic variables used in our ACL models include corporate credit spreads, interest rates and commercial real estate indices. See Note 2 to the financial statements in the 2024 Form 10-K for a discussion of the Firm's ACL methodology under CECL.

**Status of Loans Held for Investment**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 |
| | IS | WM | IS | WM |
| Accrual | **99.0%** | **99.7%** | 99.2% | 99.7% |
| Nonaccrual<sup>1</sup> | **1.0%** | **0.3%** | 0.8% | 0.3% |

---

1. Nonaccrual loans are loans where principal or interest is not expected when contractually due or are past due 90 days or more unless the obligation is well-secured and is in the process of collection.

September 2025 Form 10-Q 31

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

**Net Charge-off Ratios for Loans Held for Investment**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| | **2025** | **2025** | 2024 | 2024 |
| *$ in millions* | Net Charge-off Ratio<sup>1</sup> | Average <br>Loans | Net Charge-off Ratio<sup>1</sup> | Average <br>Loans |
| Corporate | **0.12%** | $**8055** | 0.58% | $6706 |
| Secured Lending Facilities | **— %** | **60956** | —% | 45136 |
| Commercial Real Estate | **0.45%** | **8023** | 0.71% | 8749 |
| Residential Real Estate | **— %** | **69973** | —% | 64029 |
| SBL and Other | **0.02%** | **105214** | —% | 91366 |
| **Total** | **0.02%** | $**252221** | 0.05% | $215986 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2025** | 2024 | 2024 |
| *$ in millions* | Net Charge-off Ratio<sup>1</sup> | Average <br>Loans | Net Charge-off Ratio<sup>1</sup> | Average <br>Loans |
| Corporate | **0.13%** | $**7763** | 0.56% | $6946 |
| Secured Lending Facilities | **— %** | **55365** | 0.03% | 42003 |
| Commercial Real Estate | **0.93%** | **8368** | 1.14% | 8682 |
| Residential Real Estate | **— %** | **68457** | —% | 62326 |
| SBL and Other | **0.02%** | **101422** | —% | 90106 |
| **Total** | **0.04%** | $**241375** | 0.07% | $210063 |

---

SBL—Securities-based lending

1. Net charge-off ratio represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL.

**Institutional Securities Loans and Lending Commitments**<sup>1</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | |
| *$ in millions* | <1 | 1-5 | 5-15 | >15 | Total |
| **Loans** |  |  |  |  |  |
| AA | $**—** | $**67** | $**18** | $**—** | $**85** |
| A | **1106** | **1106** | **167** | **—** | **2379** |
| BBB | **3858** | **16539** | **782** | **182** | **21361** |
| BB | **11599** | **35609** | **3230** | **424** | **50862** |
| Other NIG | **6070** | **12820** | **4206** | **164** | **23260** |
| Unrated<sup>2</sup> | **204** | **1288** | **861** | **3056** | **5409** |
| **Total loans, net of ACL** | **22837** | **67429** | **9264** | **3826** | **103356** |
| **Lending commitments** | **Lending commitments** |  |  |  |  |
| AAA | **—** | **75** | **—** | **—** | **75** |
| AA | **2428** | **4122** | **275** | **—** | **6825** |
| A | **4979** | **28890** | **578** | **—** | **34447** |
| BBB | **11498** | **62107** | **1392** | **133** | **75130** |
| BB | **3179** | **27272** | **10028** | **1253** | **41732** |
| Other NIG | **1463** | **20568** | **3099** | **3** | **25133** |
| Unrated<sup>2</sup> | **15** | **338** | **—** | **—** | **353** |
| **Total lending commitments** | **23562** | **143372** | **15372** | **1389** | **183695** |
| **Total exposure** | $**46399** | $**210801** | $**24636** | $**5215** | $**287051** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | |
| *$ in millions* | <1 | 1-5 | 5-15 | >15 | Total |
| **Loans** |  |  |  |  |  |
| AA | $3 | $575 | $187 | $— | $765 |
| A | 894 | 588 | 164 |  | 1646 |
| BBB | 5165 | 13185 | 91 | 124 | 18565 |
| BB | 11235 | 24467 | 2592 | 358 | 38652 |
| Other NIG | 8520 | 12776 | 1673 | 145 | 23114 |
| Unrated<sup>2</sup> | 227 | 1176 | 420 | 2503 | 4326 |
| **Total loans, net of ACL** | 26044 | 52767 | 5127 | 3130 | 87068 |
| **Lending commitments** | **Lending commitments** |  |  |  |  |
| AAA |  | 75 |  |  | 75 |
| AA | 2560 | 4285 | 88 |  | 6933 |
| A | 8226 | 21372 | 1091 |  | 30689 |
| BBB | 10135 | 54752 | 1507 | 146 | 66540 |
| BB | 3174 | 23239 | 3062 | 941 | 30416 |
| Other NIG | 1074 | 17436 | 3956 | 2 | 22468 |
| Unrated<sup>2</sup> | 14 | 93 | 33 |  | 140 |
| **Total lending commitments** | 25183 | 121252 | 9737 | 1089 | 157261 |
| **Total exposure** | $51227 | $174019 | $14864 | $4219 | $244329 |

---

NIG–Non-investment grade

1. Counterparty credit ratings are internally determined by the CRM.

2. Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk. For a further discussion of our market risk, see "Quantitative and Qualitative Disclosures about Risk—Market Risk" herein.

**Institutional Securities Loans and Lending Commitments by Industry**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Industry** |  |  |
| Financials | $**79953** | $68512 |
| Real estate | **48871** | 40041 |
| Healthcare | **20964** | 15455 |
| Communications Services | **19947** | 20425 |
| Industrials | **19737** | 20024 |
| Information Technology | **18263** | 15666 |
| Consumer discretionary | **15804** | 14699 |
| Consumer staples | **15704** | 12098 |
| Utilities | **13177** | 11755 |
| Energy | **12554** | 9036 |
| Materials | **8057** | 7378 |
| Insurance | **7253** | 6812 |
| Other | **6767** | 2428 |
| **Total exposure** | $**287051** | $244329 |

---

***Institutional Securities Lending Activities***

The Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of September 30, 2025 and December 31, 2024, over 90% of our Institutional Securities total exposure, which consisted of loans and lending commitments, was investment grade and/or secured by collateral. For a description of Institutional Securities' lending activities, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk" in the 2024 Form 10-K.

 32 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

**Institutional Securities Event-Driven Loans and Lending Commitments**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | |
| *$ in millions* | <1 | 1-5 | 5-15 | Total |
| Loans, net of ACL | $**741** | $**997** | $**2983** | $**4721** |
| Lending commitments | **3660** | **11430** | **8103** | **23193** |
| **Total exposure** | $**4401** | $**12427** | $**11086** | $**27914** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | |
| *$ in millions* | <1 | 1-5 | 5-15 | Total |
| Loans, net of ACL | $2253 | $2839 | $733 | $5825 |
| Lending commitments | 5153 | 2152 | 2918 | 10223 |
| **Total exposure** | $7406 | $4991 | $3651 | $16048 |

---

Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as a merger, acquisition, recapitalization or project finance activity. Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period.

**Institutional Securities Loans and Lending Commitments Held for Investment**

---

| | | | |
|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | Loans | Lending Commitments | Total |
| Corporate | $**7839** | $**113792** | $**121631** |
| Secured lending facilities | **63610** | **25767** | **89377** |
| Commercial real estate | **7853** | **471** | **8324** |
| Securities-based lending and Other | **3486** | **1293** | **4779** |
| **Total, before ACL** | $**82788** | $**141323** | $**224111** |
| ACL | $**(822)** | $**(769)** | $**(1591)** |

---

---

| | | | |
|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Loans | Lending Commitments | Total |
| Corporate | $6889 | $105824 | $112713 |
| Secured lending facilities | 48842 | 20971 | 69813 |
| Commercial real estate | 8412 | 1249 | 9661 |
| Securities-based lending and Other | 2876 | 1504 | 4380 |
| **Total, before ACL** | $67019 | $129548 | $196567 |
| ACL | $(730) | $(640) | $(1370) |

---

**Institutional Securities Commercial Real Estate Loans and Lending Commitments**

**By Region**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Loans<sup>1</sup> | LC<sup>1</sup> | Total Exposure | Loans<sup>1</sup> | LC<sup>1</sup> | Total Exposure |
| Americas | $**5391** | $**822** | $**6213** | $5066 | $820 | $5886 |
| EMEA | **3697** | **221** | **3918** | 3806 | 522 | 4328 |
| Asia | **550** | **83** | **633** | 467 | 13 | 480 |
| **Total** | $**9638** | $**1126** | $**10764** | $9339 | $1355 | $10694 |

---

**By Property Type**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Loans<sup>1</sup> | LC<sup>1</sup> | Total Exposure | Loans<sup>1</sup> | LC<sup>1</sup> | Total Exposure |
| Industrial | $**3088** | $**214** | $**3302** | $2610 | $125 | $2735 |
| Office | **2624** | **169** | **2793** | 2846 | 109 | 2955 |
| Multifamily | **1927** | **660** | **2587** | 2042 | 80 | 2122 |
| Retail | **1035** | **6** | **1041** | 1105 | 971 | 2076 |
| Hotel | **871** | **62** | **933** | 736 | 70 | 806 |
| Other | **93** | **15** | **108** |  |  |  |
| **Total** | $**9638** | $**1126** | $**10764** | $9339 | $1355 | $10694 |

---

LC–Lending Commitments

1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL.

As of September 30, 2025 and December 31, 2024, our lending against commercial real estate ("CRE") properties within the Institutional Securities business segment totaled $10.8 billion and $10.7 billion, respectively. This represents 3.7% and 4.4%, respectively, of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure.

In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types.

While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given its sensitivity to economic and secular factors.

September 2025 Form 10-Q 33

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

**Institutional Securities Allowance for Credit Losses—Loans and Lending Commitments**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| *$ in millions* | Corporate | Secured Lending Facilities | CRE | SBL and Other | Total |
| **ACL—Loans** |  |  |  |  |  |
| Beginning balance | $200 | $140 | $373 | $17 | $730 |
| &nbsp;&nbsp;Gross charge-offs | **(10)** | **—** | **(99)** | **—** | **(109)** |
| &nbsp;&nbsp;Recoveries | **—** | **—** | **21** | **—** | **21** |
| Net (charge-offs)/ recoveries | **(10)** | **—** | **(78)** | **—** | **(88)** |
| Provision (release) | **41** | **55** | **55** | **3** | **154** |
| Other | **8** | **5** | **14** | **(1)** | **26** |
| **Ending balance** | $**239** | $**200** | $**364** | $**19** | $**822** |
| **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** |
| Beginning balance | $507 | $88 | $40 | $5 | $640 |
| Provision (release) | **93** | **39** | **(25)** | **(1)** | **106** |
| Other | **17** | **4** | **—** | **2** | **23** |
| **Ending balance** | $**617** | $**131** | $**15** | $**6** | $**769** |
| **Total ending balance** | $**856** | $**331** | $**379** | $**25** | $**1591** |

---

**Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance Before Allowance**

---

| | | |
|:---|:---|:---|
| | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Corporate | **3.0%** | 2.9% |
| Secured lending facilities | **0.3%** | 0.3% |
| Commercial real estate | **4.6%** | 4.4% |
| Securities-based lending and Other | **0.5%** | 0.6% |
| Total Institutional Securities loans | **1.0%** | 1.1% |

---

**Wealth Management Loans and Lending Commitments**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | |
| *$ in millions* | <1 | 1-5 | 5-15 | >15 | Total |
| Securities-based lending and Other | $**90947** | $**11263** | $**754** | $**144** | $**103108** |
| Residential real estate  | **1** | **115** | **1014** | **69664** | **70794** |
| Total loans, net of ACL | $**90948** | $**11378** | $**1768** | $**69808** | $**173902** |
| Lending commitments | **14865** | **3099** | **53** | **429** | **18446** |
| **Total exposure** | $**105813** | $**14477** | $**1821** | $**70237** | $**192348** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | Contractual Years to Maturity | |
| *$ in millions* | <1 | 1-5 | 5-15 | >15 | Total |
| Securities-based lending and Other | $82788 | $8944 | $1024 | $145 | $92901 |
| Residential real estate  | 1 | 111 | 1106 | 65423 | 66641 |
| Total loans, net of ACL | $82789 | $9055 | $2130 | $65568 | $159542 |
| Lending commitments | 16318 | 2523 | 43 | 386 | 19270 |
| **Total exposure** | $99107 | $11578 | $2173 | $65954 | $178812 |

---

The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans.

For more information about our Securities-based lending and Residential real estate loans, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk" in the 2024 Form 10-K.

**Wealth Management Commercial Real Estate Loans and Lending Commitments by Property Type**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Loans<sup>1</sup> | LC<sup>1</sup> | Total exposure | Loans<sup>1</sup> | LC<sup>1</sup> | Total exposure |
| Retail | $**2362** | $**—** | $**2362** | $2293 | $— | $2293 |
| Office | **2135** | **1** | **2136** | 1951 | 11 | 1962 |
| Multifamily | **1804** | **222** | **2026** | 1928 | 261 | 2189 |
| Industrial | **441** | **—** | **441** | 456 |  | 456 |
| Hotel | **440** | **—** | **440** | 442 |  | 442 |
| Other | **384** | **—** | **384** | 309 |  | 309 |
| **Total** | $**7566** | $**223** | $**7789** | $7379 | $272 | $7651 |

---

LC–Lending Commitments

1. Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL.

As of September 30, 2025 and December 31, 2024, our direct lending against CRE properties totaled $7.8 billion and $7.7 billion, respectively, within the Wealth Management business segment. This represents 4.0% and 4.3%, respectively, of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our private banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both September 30, 2025 and December 31, 2024, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees. All of our lending against CRE properties within Wealth Management are in the Americas region.

**Wealth Management Allowance for Credit Losses—Loans and Lending Commitments**

---

| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| *$ in millions* | Residential Real Estate | SBL and Other | Total |
| **ACL—Loans** |  |  |  |
| Beginning balance | $97 | $239 | $336 |
| Gross charge-offs | **—** | **(17)** | **(17)** |
| Provision (release) | **26** | **45** | **71** |
| Other | **(1)** | **2** | **1** |
| **Ending balance** | $**122** | $**269** | $**391** |
| **ACL—Lending commitments** | **ACL—Lending commitments** |  |  |
| Beginning balance | $4 | $12 | $16 |
| Other | **1** | **(2)** | **(1)** |
| **Ending balance** | $**5** | $**10** | $**15** |
| **Total ending balance** | $**127** | $**279** | $**406** |

---

As of September 30, 2025 and December 31, 2024, more than 75% of Wealth Management residential real estate loans were to borrowers with "Exceptional" or "Very Good" FICO scores (*i.e.,* exceeding 740). Additionally, Wealth Management's securities-based lending portfolio remains well-collateralized and subject to daily client margining, which includes requiring customers to deposit additional collateral or reduce debt positions, when necessary.

 34 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

**Customer and Other Receivables**

**Margin Loans and Other Lending**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Institutional Securities | $**41717** | $27612 |
| Wealth Management | **27853** | 28270 |
| **Total** | $**69570** | $55882 |

---

The Institutional Securities and Wealth Management business segments provide margin lending arrangements that allow customers to borrow against the value of qualifying securities, primarily for the purpose of purchasing additional securities, as well as to collateralize short positions. Institutional Securities primarily includes margin loans in the Equity Financing business. Wealth Management includes margin loans as well as non-purpose securities-based lending on non-bank entities. Amounts may fluctuate from period to period as overall client balances change as a result of market levels, client positioning and leverage.

Credit exposures arising from margin lending activities are generally mitigated by their short-term nature, the value of collateral held and our right to call for additional margin when collateral values decline. However, we could incur losses in the event that the customer fails to meet margin calls and collateral values decline below the loan amount. This risk is elevated in loans backed by collateral pools with significant concentrations in individual issuers or securities with similar risk characteristics. For a further discussion, see "Risk Factors—Credit Risk" in the 2024 Form 10-K.

**Employee Loans**

For information on employee loans and related ACL, see Note 9 to the financial statements.

**Derivatives**

**Fair Value of OTC Derivative Assets**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | **Counterparty Credit Rating**<sup>1</sup> | **Counterparty Credit Rating**<sup>1</sup> | **Counterparty Credit Rating**<sup>1</sup> | **Counterparty Credit Rating**<sup>1</sup> | **Counterparty Credit Rating**<sup>1</sup> | |
| *$ in millions* | AAA | AA | A | BBB | NIG | Total |
| Less than 1 year | $**1507** | $**14033** | $**34920** | $**18993** | $**11551** | $**81004** |
| 1-3 years | **498** | **5625** | **16165** | **10165** | **8013** | **40466** |
| 3-5 years | **743** | **7342** | **9901** | **7326** | **3466** | **28778** |
| Over 5 years | **3172** | **25564** | **50768** | **28550** | **7316** | **115370** |
| Total, gross | $**5920** | $**52564** | $**111754** | $**65034** | $**30346** | $**265618** |
| Counterparty netting | **(3340)** | **(43216)** | **(83367)** | **(46006)** | **(16967)** | **(192896)** |
| Cash and securities collateral | **(2347)** | **(8426)** | **(24101)** | **(12925)** | **(5874)** | **(53673)** |
| **Total, net** | $**233** | $**922** | $**4286** | $**6103** | $**7505** | $**19049** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | **Counterparty Credit Rating**<sup>1</sup> | **Counterparty Credit Rating**<sup>1</sup> | **Counterparty Credit Rating**<sup>1</sup> | **Counterparty Credit Rating**<sup>1</sup> | **Counterparty Credit Rating**<sup>1</sup> | |
| *$ in millions* | AAA | AA | A | BBB | NIG | Total |
| Less than 1 year | $1711 | $17625 | $50643 | $22643 | $9793 | $102415 |
| 1-3 years | 541 | 6249 | 19068 | 10248 | 6095 | 42201 |
| 3-5 years | 973 | 7308 | 9821 | 5631 | 3750 | 27483 |
| Over 5 years | 3330 | 25406 | 49469 | 28206 | 6398 | 112809 |
| Total, gross | $6555 | $56588 | $129001 | $66728 | $26036 | $284908 |
| Counterparty netting | (3320) | (44604) | (98598) | (47132) | (14691) | (208345) |
| Cash and securities collateral | (2559) | (10632) | (25568) | (13729) | (5558) | (58046) |
| **Total, net** | $676 | $1352 | $4835 | $5867 | $5787 | $18517 |

---

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Industry** |  |  |
| Financials | $**6777** | $5678 |
| Utilities | **3346** | 3733 |
| Industrials | **1381** | 1315 |
| Consumer discretionary | **1080** | 1046 |
| Healthcare | **786** | 353 |
| Energy | **761** | 987 |
| Regional governments | **712** | 799 |
| Communications Services | **708** | 914 |
| Consumer staples | **639** | 734 |
| Information technology | **632** | 634 |
| Materials | **532** | 409 |
| Real estate | **323** | 91 |
| Sovereign governments | **296** | 683 |
| Not-for-profit organizations | **110** | 94 |
| Insurance | **95** | 207 |
| Other | **871** | 840 |
| **Total** | $**19049** | $18517 |

---

1. Counterparty credit ratings are determined internally by the CRM.

We are exposed to credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the possibility that a counterparty may fail to perform according to the terms of the contract. For more information on derivatives, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives" in the 2024 Form 10-K and Note 6 to the financial statements.

September 2025 Form 10-Q 35

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

**Country Risk**

Country risk exposure is the risk that events in, or that affect, a foreign country (any country other than the U.S.) might adversely affect us. We actively manage country risk exposure through a comprehensive risk management framework that combines credit and other market fundamentals and allows us to effectively identify, monitor and limit country risk. For a further discussion of our country risk exposure see "Quantitative and Qualitative Disclosures about Risk—Country and Other Risks" in the 2024 Form 10-K.

**Top 10 Non-U.S. Country Exposures**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | United Kingdom | France | Japan | Germany | Brazil |
| **Sovereign** |  |  |  |  |  |
| Net inventory<sup>1</sup> | $**148** | $**6206** | $**3634** | $**(1341)** | $**5358** |
| Net counterparty exposure<sup>2</sup> | **12** | **—** | **4** | **77** | **2** |
| Exposure before hedges | **160** | **6206** | **3638** | **(1264)** | **5360** |
| Hedges<sup>3</sup> | **(55)** | **(21)** | **(169)** | **(148)** | **(129)** |
| Net exposure | $**105** | $**6185** | $**3469** | $**(1412)** | $**5231** |
| **Non-sovereign** |  |  |  |  |  |
| Net inventory<sup>1</sup> | $**1049** | $**422** | $**659** | $**234** | $**129** |
| Net counterparty exposure<sup>2</sup> | **8168** | **3468** | **3692** | **3130** | **480** |
| Loans | **10976** | **720** | **1111** | **1734** | **238** |
| Lending commitments | **10099** | **3281** | **(60)** | **6659** | **375** |
| Exposure before hedges | **30292** | **7891** | **5402** | **11757** | **1222** |
| Hedges<sup>3</sup> | **(2041)** | **(1543)** | **(264)** | **(1782)** | **(92)** |
| Net exposure | $**28251** | $**6348** | $**5138** | $**9975** | $**1130** |
| **Total net exposure** | $**28356** | $**12533** | $**8607** | $**8563** | $**6361** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *$ in millions* | Spain | Australia | Korea | India | Netherlands |
| **Sovereign** |  |  |  |  |  |
| Net inventory<sup>1</sup> | $**1491** | $**(122)** | $**2587** | $**974** | $**(102)** |
| Net counterparty exposure<sup>2</sup> | **—** | **7** | **293** | **8** | **—** |
| Exposure before hedges | **1491** | **(115)** | **2880** | **982** | **(102)** |
| Hedges<sup>3</sup> | **(8)** | **—** | **(35)** | **—** | **(12)** |
| Net exposure | $**1483** | $**(115)** | $**2845** | $**982** | $**(114)** |
| **Non-sovereign** |  |  |  |  |  |
| Net inventory<sup>1</sup> | $**361** | $**477** | $**246** | $**1257** | $**874** |
| Net counterparty exposure<sup>2</sup> | **444** | **872** | **838** | **1146** | **823** |
| Loans | **1618** | **1502** | **42** | **176** | **1250** |
| Lending commitments | **956** | **1744** | **107** | **449** | **1056** |
| Exposure before hedges | **3379** | **4595** | **1233** | **3028** | **4003** |
| Hedges<sup>3</sup> | **(268)** | **(416)** | **(30)** | **(10)** | **(142)** |
| Net exposure | $**3111** | $**4179** | $**1203** | $**3018** | $**3861** |
| **Total net exposure** | $**4594** | $**4064** | $**4048** | $**4000** | $**3747** |

---

1. Net inventory represents exposure to both long and short single-name and index positions (*i.e*., bonds and equities at fair value and CDS based on a notional amount assuming zero recovery adjusted for the fair value of any receivable or payable).

2. Net counterparty exposure (*e.g*., repurchase transactions, securities lending and OTC derivatives) is net of the benefit of collateral received and also is net by counterparty when legally enforceable master netting agreements are in place.

3. Amounts represent net CDS hedges (purchased and sold) on net counterparty exposure and lending executed by trading desks responsible for hedging counterparty and lending credit risk exposures. Amounts are based on the CDS

notional amount assuming zero recovery adjusted for the fair value of any receivable or payable. For further description of the contractual terms for purchased credit protection and whether they may limit the effectiveness of our hedges, see "Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives" in the 2024 Form 10-K.

**Operational Risk** 

Operational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors (*e.g.*, inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal and compliance risks, or damage to physical assets. We may incur operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (*e.g.*, IT and trade processing). For a further discussion about our operational risk, see "Quantitative and Qualitative Disclosures about Risk—Operational Risk" in the 2024 Form 10-K.

**Model Risk**

Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs. Model risk can lead to financial loss, poor business and strategic decision-making, noncompliance with applicable laws and/or regulations or damage to the Firm's reputation. The risk inherent in a model is a function of the materiality, complexity and uncertainty around inputs and assumptions. Model risk is generated from the use of models impacting financial statements, regulatory filings, capital adequacy assessments and the formulation of strategy. For a further discussion about our model risk, see "Quantitative and Qualitative Disclosures about Risk—Model Risk" in the 2024 Form 10-K.

**Liquidity Risk**

Liquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern. For a further discussion about our liquidity risk, see "Quantitative and Qualitative Disclosures about Risk—Liquidity Risk" in the 2024 Form 10-K and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources" herein.

**Legal, Regulatory and Compliance Risk**

Legal, regulatory and compliance risk includes the risk of legal or regulatory sanctions, material financial loss, including fines, penalties, judgments, damages and/or settlements, limitations on our business, or loss to reputation that we may suffer as a result of failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes

 36 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Risk Disclosures** | ![Image17.jpg](ms-20250930_g1.jpg) |

---

of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty's performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing, and anti-corruption rules and regulations. For a further discussion about our legal and compliance risk, see "Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk" in the 2024 Form 10-K.

**Climate Risk**

Climate risk consists of physical and transition risks. Physical risks include harm to people and property arising from acute climate-related events, such as floods, hurricanes, heatwaves, droughts and wildfires, and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Transition risks include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or regulation of carbon emissions. Climate risk, which is not expected to have a significant effect on our consolidated results of operations or financial condition in the near term, is an overarching risk that can impact other categories of risk. For a further discussion about our climate risk, see "Quantitative and Qualitative Disclosures about Risk—Climate Risk" in the 2024 Form 10-K.

September 2025 Form 10-Q 37

------

<u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u><br>

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Morgan Stanley:

**Results of Review of Interim Financial Information**

We have reviewed the accompanying condensed consolidated balance sheet of Morgan Stanley and subsidiaries (the "Firm") as of September 30, 2025, and the related condensed consolidated income statements, comprehensive income statements and statements of changes in total equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and the cash flow statements for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Firm as of December 31, 2024, and the related consolidated income statement, comprehensive income statement, cash flow statement and statement of changes in total equity for the year then ended (not presented herein) included in the Firm's Annual Report on Form 10-K; and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

**Basis for Review Results**

This interim financial information is the responsibility of the Firm's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

---

| |
|:---|
| <u>/s/ Deloitte & Touche LLP</u> |
| New York, New York |
| November 3, 2025 |

---

 38 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Consolidated Income Statement <br>(Unaudited)** | ![Image20.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *in millions, except per share data* | **2025** | 2024 | **2025** | 2024 |
| **Revenues** |  |  |  |  |
| Investment banking | $**2266** | $1590 | $**5621** | $4914 |
| Trading | **5020** | 4002 | **14876** | 12985 |
| Investments | **374** | 315 | **1131** | 609 |
| Commissions and fees | **1473** | 1294 | **4379** | 3704 |
| Asset management | **6441** | 5747 | **18357** | 16440 |
| Other | **159** | 239 | **1200** | 827 |
| Total non-interest revenues | **15733** | 13187 | **45564** | 39479 |
| Interest income | **15456** | 14185 | **44109** | 40644 |
| Interest expense | **12965** | 11989 | **36918** | 34585 |
| Net interest | **2491** | 2196 | **7191** | 6059 |
| **Net revenues** | **18224** | 15383 | **52755** | 45538 |
| **Provision for credit losses** | **—** | 79 | **331** | 149 |
| **Non-interest expenses** |  |  |  |  |
| Compensation and benefits | **7442** | 6733 | **22153** | 19889 |
| Brokerage, clearing and exchange fees | **1141** | 1044 | **3551** | 2960 |
| Information processing and communications | **1119** | 1042 | **3258** | 3029 |
| Professional services | **685** | 711 | **2070** | 2103 |
| Occupancy and equipment | **473** | 473 | **1381** | 1378 |
| Marketing and business development | **280** | 224 | **815** | 686 |
| Other | **1056** | 856 | **3002** | 2654 |
| **Total non-interest expenses** | **12196** | 11083 | **36230** | 32699 |
| Income before provision for income taxes | **6028** | 4221 | **16194** | 12690 |
| Provision for income taxes | **1373** | 995 | **3593** | 2885 |
| Net income | $**4655** | $3226 | $**12601** | $9805 |
| Net income applicable to noncontrolling interests | **45** | 38 | **137** | 129 |
| Net income applicable to Morgan Stanley | $**4610** | $3188 | $**12464** | $9676 |
| Preferred stock dividends | **160** | 160 | **465** | 440 |
| **Earnings applicable to Morgan Stanley common shareholders** | $**4450** | $3028 | $**11999** | $9236 |
| **Earnings per common share** |  |  |  |  |
| Basic | $**2.83** | $1.91 | $**7.61** | $5.79 |
| Diluted | $**2.80** | $1.88 | $**7.53** | $5.73 |
| **Average common shares outstanding** |  |  |  |  |
| Basic | **1571** | 1588 | **1577** | 1594 |
| Diluted | **1590** | 1609 | **1594** | 1612 |

---

**Consolidated Comprehensive Income Statement** 

**(Unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Net income | $**4655** | $3226 | $**12601** | $9805 |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | **(21)** | 284 | **371** | (31) |
| &nbsp;&nbsp;&nbsp;Change in net unrealized gains (losses) on available-for-sale securities | **349** | 723 | **749** | 900 |
| &nbsp;&nbsp;&nbsp;Pension and other | **4** | 3 | **8** | 16 |
| &nbsp;&nbsp;&nbsp;Change in net debt valuation adjustment | **(848)** | (175) | **(684)** | (463) |
| &nbsp;&nbsp;&nbsp;Net change in cash flow hedges | **42** | 34 | **75** | 6 |
| Total other comprehensive income (loss) | $**(474)** | $869 | $**519** | $428 |
| Comprehensive income | $**4181** | $4095 | $**13120** | $10233 |
| Net income applicable to noncontrolling interests | **45** | 38 | **137** | 129 |
| Other comprehensive income (loss) applicable to noncontrolling interests | **(41)** | 95 | **51** | (7) |
| **Comprehensive income applicable to Morgan Stanley** | $**4177** | $3962 | $**12932** | $10111 |

---

See Notes to Consolidated Financial Statements 39 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Consolidated Balance Sheet** | ![Image23.jpg](ms-20250930_g1.jpg) |

---

---

| | | |
|:---|:---|:---|
| *$ in millions, except share data* | **(Unaudited)**<br>**At<br>September 30,<br>2025**  | At<br>December 31,<br>2024 |
| **Assets** |  |  |
| Cash and cash equivalents | $**103734** | $105386 |
| Trading assets at fair value (**$199,429** and $148,945 pledged as collateral) | **423823** | 331884 |
| Investment securities: |  |  |
| &nbsp;&nbsp;Available-for-sale at fair value (amortized cost of **$110,695** and $101,960) | **108327** | 98608 |
| &nbsp;&nbsp;Held-to-maturity (fair value of **$47,369** and $51,203) | **55205** | 61071 |
| Securities purchased under agreements to resell (includes **$—** and $— at fair value) | **111734** | 118565 |
| Securities borrowed | **129113** | 123859 |
| Customer and other receivables | **113257** | 86158 |
| Loans: |  |  |
| &nbsp;&nbsp;Held for investment (net of allowance for credit losses of **$1,213** and $1,066) | **255867** | 225834 |
| &nbsp;&nbsp;Held for sale | **11433** | 12319 |
| Goodwill | **16725** | 16706 |
| Intangible assets (net of accumulated amortization of **$1,798** and $5,445) | **6097** | 6453 |
| Other assets | **29491** | 28228 |
| **Total assets** | $**1364806** | $1215071 |
| **Liabilities** |  |  |
| Deposits (includes **$8,477** and $6,499 at fair value) | $**405480** | $376007 |
| Trading liabilities at fair value | **162408** | 153764 |
| Securities sold under agreements to repurchase (includes **$703** and $956 at fair value) | **61504** | 50067 |
| Securities loaned | **15944** | 15226 |
| Other secured financings (includes **$16,687** and $14,088 at fair value) | **21441** | 21602 |
| Customer and other payables | **226445** | 175938 |
| Other liabilities and accrued expenses | **28854** | 28220 |
| Borrowings (includes **$127,285** and $103,332 at fair value) | **331679** | 288819 |
| **Total liabilities** | **1253755** | 1109643 |
| **Commitments and contingent liabilities (see Note 13)** |  |  |
| **Equity** |  |  |
| Morgan Stanley shareholders' equity: |  |  |
| &nbsp;&nbsp;Preferred stock | **9750** | 9750 |
| &nbsp;&nbsp;Common stock, $0.01 par value: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares authorized: **3,500,000,000**; Shares issued: **2,038,893,979**; Shares outstanding: **1,591,091,689** and 1,606,653,706 | **20** | 20 |
| &nbsp;&nbsp;Additional paid-in capital | **30730** | 30179 |
| &nbsp;&nbsp;Retained earnings | **112426** | 104989 |
| &nbsp;&nbsp;Employee stock trusts | **5058** | 5103 |
| &nbsp;&nbsp;Accumulated other comprehensive income (loss) | **(6346)** | (6814) |
| &nbsp;&nbsp;Common stock held in treasury at cost, $0.01 par value (**447,802,290** and 432,240,273 shares) | **(36618)** | (33613) |
| &nbsp;&nbsp;Common stock issued to employee stock trusts | **(5058)** | (5103) |
| **Total Morgan Stanley shareholders' equity** | **109962** | 104511 |
| Noncontrolling interests | **1089** | 917 |
| **Total equity** | **111051** | 105428 |
| **Total liabilities and equity** | $**1364806** | $1215071 |

---

September 2025 Form 10-Q 40 See Notes to Consolidated Financial Statements

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> |  |
| &nbsp;&nbsp;**Consolidated Statement of Changes in Total Equity**<br>**(Unaudited)** | ![Image25.jpg](ms-20250930_g1.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Preferred stock** |  |  |  |  |
| Beginning balance | $**9750** | $8750 | $**9750** | $8750 |
| Issuance of preferred stock | **—** | 1000 | **—** | 1000 |
| Ending balance | **9750** | 9750 | **9750** | 9750 |
| **Common stock** |  |  |  |  |
| Beginning and ending balance | **20** | 20 | **20** | 20 |
| **Additional paid-in capital** |  |  |  |  |
| Beginning balance | **30263** | 29459 | 30179 | 29832 |
| Share-based award activity | **467** | 366 | **551** | (7) |
| Issuance of preferred stock | **—** | (5) | **—** | (5) |
| Ending balance | **30730** | 29820 | **30730** | 29820 |
| **Retained earnings** |  |  |  |  |
| Beginning balance | **109567** | 101374 | 104989 | 97996 |
| Cumulative adjustment related to the adoption of an accounting standard update<sup>1</sup> | **—** |  | **—** | (60) |
| Net income applicable to Morgan Stanley | **4610** | 3188 | **12464** | 9676 |
| Preferred stock dividends<sup>2</sup> | **(160)** | (160) | **(465)** | (440) |
| Common stock dividends<sup>2</sup> | **(1592)** | (1492) | **(4562)** | (4259) |
| Other net increases (decreases) | **1** | 1 | **—** | (2) |
| Ending balance | **112426** | 102911 | **112426** | 102911 |
| **Employee stock trusts** |  |  |  |  |
| Beginning balance | **5085** | 5110 | 5103 | 5314 |
| Share-based award activity | **(27)** | (15) | **(45)** | (219) |
| Ending balance | **5058** | 5095 | **5058** | 5095 |
| **Accumulated other comprehensive income (loss)** |  |  |  |  |
| Beginning balance | **(5913)** | (6760) | (6814) | (6421) |
| Net change in Accumulated other comprehensive income (loss) | **(433)** | 774 | **468** | 435 |
| Ending balance | **(6346)** | (5986) | **(6346)** | (5986) |
| **Common stock held in treasury at cost** |  |  |  |  |
| Beginning balance | **(35503)** | (32129) | (33613) | (31139) |
| Share-based award activity | **41** | 74 | **1294** | 1629 |
| Repurchases of common stock and employee tax withholdings | **(1156)** | (813) | **(4299)** | (3358) |
| Ending balance | **(36618)** | (32868) | **(36618)** | (32868) |
| **Common stock issued to employee stock trusts** |  |  |  |  |
| Beginning balance | **(5085)** | (5110) | (5103) | (5314) |
| Share-based award activity | **27** | 15 | **45** | 219 |
| Ending balance | **(5058)** | (5095) | **(5058)** | (5095) |
| **Noncontrolling interests** |  |  |  |  |
| Beginning balance | **1086** | 892 | 917 | 944 |
| Net income applicable to noncontrolling interests | **45** | 38 | **137** | 129 |
| Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | **(41)** | 95 | **51** | (7) |
| Other net increases (decreases) | **(1)** | (1) | **(16)** | (42) |
| Ending balance | **1089** | 1024 | **1089** | 1024 |
| **Total equity** | $**111051** | $104671 | $**111051** | $104671 |

---

1. The Firm adopted the *Investments - Tax Credit Structures* accounting standard update on January 1, 2024. Refer to Note 2 to the financial statements in the 2024 Form 10-K for further information.

2. See Note 16 for information regarding dividends per share for each class of stock.

See Notes to Consolidated Financial Statements 41 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Consolidated Cash Flow Statement<br>(Unaudited)** | ![Image26.jpg](ms-20250930_g1.jpg) |

---

---

| | | |
|:---|:---|:---|
| | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 |
| **Cash flows from operating activities** |  |  |
| Net income | $**12601** | $9805 |
| Adjustments to reconcile net income to net cash provided by (used for) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | **1457** | 1231 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **3520** | 3516 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | **331** | 149 |
| &nbsp;&nbsp;&nbsp;Other operating adjustments | **268** | 121 |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Trading assets, net of Trading liabilities | **(69812)** | 12358 |
| &nbsp;&nbsp;&nbsp;Securities borrowed | **(5254)** | (11321) |
| &nbsp;&nbsp;&nbsp;Securities loaned | **718** | 2398 |
| &nbsp;&nbsp;&nbsp;Customer and other receivables and other assets | **(27142)** | (10317) |
| &nbsp;&nbsp;&nbsp;Customer and other payables and other liabilities | **49566** | 12556 |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | **6831** | (26612) |
| &nbsp;&nbsp;&nbsp;Securities sold under agreements to repurchase | **11437** | (4322) |
| **Net cash provided by (used for) operating activities** | **(15479)** | (10438) |
| **Cash flows from investing activities** |  |  |
| Proceeds from (payments for): |  |  |
| &nbsp;&nbsp;&nbsp;Other assets—Premises, equipment and software | **(2189)** | (2583) |
| &nbsp;&nbsp;&nbsp;Changes in loans, net | **(28560)** | (13934) |
| &nbsp;&nbsp;&nbsp;AFS securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases | **(28767)** | (27717) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales | **4650** | 5540 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from paydowns and maturities | **16123** | 15616 |
| &nbsp;&nbsp;HTM securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases | **—** | (3523) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from paydowns and maturities | **6107** | 8279 |
| &nbsp;&nbsp;Other investing activities | **(746)** | (988) |
| **Net cash provided by (used for) investing activities** | **(33382)** | (19310) |
| **Cash flows from financing activities** |  |  |
| Net proceeds from (payments for): |  |  |
| &nbsp;&nbsp;&nbsp;Other secured financings | **849** | 1384 |
| &nbsp;&nbsp;&nbsp;Deposits | **29111** | 11519 |
| Issuance of preferred stock, net of issuance costs | **—** | 995 |
| Proceeds from issuance of Borrowings | **94184** | 80369 |
| Payments for: |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings | **(71194)** | (54596) |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock and employee tax withholdings | **(4305)** | (3347) |
| &nbsp;&nbsp;&nbsp;Cash dividends | **(4905)** | (4553) |
| Other financing activities | **48** | (270) |
| **Net cash provided by (used for) financing activities** | **43788** | 31501 |
| Effect of exchange rate changes on cash and cash equivalents | **3421** | 99 |
| Net increase (decrease) in cash and cash equivalents | **(1652)** | 1852 |
| Cash and cash equivalents, at beginning of period | **105386** | 89232 |
| **Cash and cash equivalents, at end of period** | $**103734** | $91084 |
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| Cash payments for: |  |  |
| &nbsp;&nbsp;&nbsp;Interest | $**34682** | $34498 |
| &nbsp;&nbsp;&nbsp;Income taxes, net of refunds | **2684** | 1449 |

---

September 2025 Form 10-Q 42 See Notes to Consolidated Financial Statements

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**1. Introduction and Basis of Presentation** 

**The Firm**

Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms "Morgan Stanley" or the "Firm" mean Morgan Stanley (the "Parent Company") together with its consolidated subsidiaries. See the "Glossary of Common Terms and Acronyms" for the definition of certain terms and acronyms used throughout this Form 10-Q.

A description of the clients and principal products and services of each of the Firm's business segments is as follows:

Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Markets business, which comprises Equity and Fixed Income, provides sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.

Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.

Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations,

endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.

**Basis of Financial Information**

The financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates.

The Notes are an integral part of the Firm's financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.

The accompanying financial statements should be read in conjunction with the Firm's financial statements and notes thereto included in the 2024 Form 10-K. Certain footnote disclosures included in the 2024 Form 10-K have been condensed or omitted from these financial statements as they are not required for interim reporting under U.S. GAAP. The financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire year.

***Consolidation***

The financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 14). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders' equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.

For a discussion of the Firm's significant regulated U.S. and international subsidiaries and its involvement with VIEs, see Note 1 to the financial statements in the 2024 Form 10-K.

 43 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**2. Significant Accounting Policies**

For a detailed discussion about the Firm's significant accounting policies and for further information on accounting updates adopted in the prior year, see Note 2 to the financial statements in the 2024 Form 10-K.

During the nine months ended September 30, 2025 there were no significant updates to the Firm's significant accounting policies.

**3. Cash and Cash Equivalents** 

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Cash and due from banks | $**5516** | $4436 |
| Interest bearing deposits with banks | **98218** | 100950 |
| **Total Cash and cash equivalents** | $**103734** | $105386 |
| Restricted cash | $**30261** | $29643 |

---

For additional information on cash and cash equivalents, including restricted cash, see Note 2 to the financial statements in the 2024 Form 10-K.

**4. Fair Values** 

**Recurring Fair Value Measurements&nbsp;&nbsp;&nbsp;&nbsp;**

**Assets and Liabilities Measured at Fair Value on a Recurring Basis** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | Level 1 | Level 2 | Level 3 | Netting<sup>1</sup> | Total |
| **Assets at fair value** |  |  |  |  |  |
| Trading assets: |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury and agency securities | $**59141** | $**42287** | $**—** | $**—** | $**101428** |
| &nbsp;&nbsp;Other sovereign government obligations | **54861** | **417** | **64** | **—** | **55342** |
| &nbsp;&nbsp;State and municipal securities | **—** | **3932** | **—** | **—** | **3932** |
| &nbsp;&nbsp;MABS | **—** | **2176** | **506** | **—** | **2682** |
| &nbsp;&nbsp;Loans and lending commitments<sup>2</sup> | **—** | **8741** | **1266** | **—** | **10007** |
| Corporate and other debt<sup>6</sup> | **3797** | **35436** | **1499** | **—** | **40732** |
| &nbsp;&nbsp;Corporate equities<sup>3,5</sup> | **159387** | **1934** | **267** | **—** | **161588** |
| &nbsp;&nbsp;Derivative and other contracts: | &nbsp;&nbsp;Derivative and other contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate | **3494** | **125160** | **340** | **—** | **128994** |
| &nbsp;&nbsp;&nbsp;Credit | **—** | **12671** | **287** | **—** | **12958** |
| &nbsp;&nbsp;&nbsp;Foreign exchange | **584** | **73915** | **141** | **—** | **74640** |
| &nbsp;&nbsp;&nbsp;Equity | **8488** | **108419** | **707** | **—** | **117614** |
| &nbsp;&nbsp;&nbsp;Commodity and other | **615** | **12335** | **2844** | **—** | **15794** |
| &nbsp;&nbsp;&nbsp;Netting<sup>1</sup>  | **(10634)** | **(259969)** | **(884)** | **(41072)** | **(312559)** |
| &nbsp;&nbsp;Total derivative and other contracts | **2547** | **72531** | **3435** | **(41072)** | **37441** |
| &nbsp;&nbsp;Investments<sup>4,5</sup> | **822** | **498** | **1461** | **—** | **2781** |
| &nbsp;&nbsp;Physical commodities | **—** | **1184** | **—** | **—** | **1184** |
| Total trading assets<sup>4</sup> | **280555** | **169136** | **8498** | **(41072)** | **417117** |
| Investment securities—AFS | 78245 | 30082 |  |  | 108327 |
| **Total assets at fair value** | $**358800** | $**199218** | $**8498** | $**(41072)** | $**525444** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | Level 1 | Level 2 | Level 3 | Netting<sup>1</sup> | Total |
| **Liabilities at fair value** |  |  |  |  |  |
| Deposits | $**—** | $**8476** | $**1** | $**—** | $**8477** |
| Trading liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury and agency securities | **18093** | **598** | **—** | **—** | **18691** |
| &nbsp;&nbsp;Other sovereign government obligations | **26456** | **77** | **2** | **—** | **26535** |
| Corporate and other debt<sup>6</sup> | **1518** | **16121** | **68** | **—** | **17707** |
| &nbsp;&nbsp;Corporate equities<sup>3</sup> | **62663** | **287** | **65** | **—** | **63015** |
| &nbsp;&nbsp;Derivative and other contracts: | &nbsp;&nbsp;Derivative and other contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate | **3408** | **112188** | **713** | **—** | **116309** |
| &nbsp;&nbsp;&nbsp;Credit | **—** | **13608** | **194** | **—** | **13802** |
| &nbsp;&nbsp;&nbsp;Foreign exchange | **676** | **68567** | **396** | **—** | **69639** |
| &nbsp;&nbsp;&nbsp;Equity | **10951** | **129151** | **1728** | **—** | **141830** |
| &nbsp;&nbsp;&nbsp;Commodity and other | **623** | **11830** | **1819** | **—** | **14272** |
| &nbsp;&nbsp;&nbsp;Netting<sup>1</sup> | **(10634)** | **(259969)** | **(884)** | **(47905)** | **(319392)** |
| &nbsp;&nbsp;Total derivative and other contracts | **5024** | **75375** | **3966** | **(47905)** | **36460** |
| Total trading liabilities | **113754** | **92458** | **4101** | **(47905)** | **162408** |
| Securities sold under agreements to repurchase | **—** | **251** | **452** | **—** | **703** |
| Other secured financings | **—** | **16569** | **118** | **—** | **16687** |
| Borrowings | **—** | **125934** | **1351** | **—** | **127285** |
| **Total liabilities at fair value** | $**113754** | $**243688** | $**6023** | $**(47905)** | $**315560** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Level 1 | Level 2 | Level 3 | Netting<sup>1</sup> | Total |
| **Assets at fair value** |  |  |  |  |  |
| Trading assets: |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury and agency securities | $54436 | $44332 | $— | $— | $98768 |
| &nbsp;&nbsp;Other sovereign government obligations | 25179 | 9969 | 17 |  | 35165 |
| &nbsp;&nbsp;State and municipal securities |  | 2993 |  |  | 2993 |
| &nbsp;&nbsp;MABS |  | 2231 | 281 |  | 2512 |
| &nbsp;&nbsp;Loans and lending commitments<sup>2</sup> |  | 7602 | 1059 |  | 8661 |
| &nbsp;&nbsp;Corporate and other debt |  | 30394 | 1258 |  | 31652 |
| &nbsp;&nbsp;Corporate equities<sup>3,5</sup> | 102874 | 606 | 154 |  | 103634 |
| &nbsp;&nbsp;Derivative and other contracts: | &nbsp;&nbsp;Derivative and other contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate | 4154 | 124309 | 343 |  | 128806 |
| &nbsp;&nbsp;&nbsp;Credit |  | 8783 | 367 |  | 9150 |
| &nbsp;&nbsp;&nbsp;Foreign exchange | 65 | 108037 | 620 |  | 108722 |
| &nbsp;&nbsp;&nbsp;Equity | 2704 | 72532 | 446 |  | 75682 |
| &nbsp;&nbsp;&nbsp;Commodity and other | 1366 | 12370 | 2195 |  | 15931 |
| &nbsp;&nbsp;&nbsp;Netting<sup>1</sup> | (6471) | (251771) | (645) | (40835) | (299722) |
| &nbsp;&nbsp;Total derivative and other contracts | 1818 | 74260 | 3326 | (40835) | 38569 |
| &nbsp;&nbsp;Investments<sup>4,5</sup> | 808 | 933 | 754 |  | 2495 |
| &nbsp;&nbsp;Physical commodities |  | 1229 |  |  | 1229 |
| Total trading assets<sup>4</sup> | 185115 | 174549 | 6849 | (40835) | 325678 |
| Investment securities—AFS | 69834 | 28774 |  |  | 98608 |
| **Total assets at fair value** | $254949 | $203323 | $6849 | $(40835) | $424286 |

---

September 2025 Form 10-Q 44

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Level 1 | Level 2 | Level 3 | Netting<sup>1</sup> | Total |
| **Liabilities at fair value** |  |  |  |  |  |
| Deposits | $— | $6498 | $1 | $— | $6499 |
| Trading liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury and agency securities | 21505 | 3 |  |  | 21508 |
| &nbsp;&nbsp;Other sovereign government obligations | 20724 | 3712 | 84 |  | 24520 |
| &nbsp;&nbsp;Corporate and other debt |  | 9032 | 11 |  | 9043 |
| &nbsp;&nbsp;Corporate equities<sup>3</sup> | 60653 | 95 | 15 |  | 60763 |
| &nbsp;&nbsp;Derivative and other contracts: | &nbsp;&nbsp;Derivative and other contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate | 3615 | 114179 | 396 |  | 118190 |
| &nbsp;&nbsp;&nbsp;Credit |  | 9302 | 270 |  | 9572 |
| &nbsp;&nbsp;&nbsp;Foreign exchange | 147 | 104793 | 31 |  | 104971 |
| &nbsp;&nbsp;&nbsp;Equity | 3241 | 90639 | 1594 |  | 95474 |
| &nbsp;&nbsp;&nbsp;Commodity and other | 1461 | 11215 | 887 |  | 13563 |
| &nbsp;&nbsp;&nbsp;Netting<sup>1</sup> | (6471) | (251771) | (645) | (44953) | (303840) |
| &nbsp;&nbsp;Total derivative and other contracts | 1993 | 78357 | 2533 | (44953) | 37930 |
| Total trading liabilities | 104875 | 91199 | 2643 | (44953) | 153764 |
| Securities sold under agreements to repurchase |  | 512 | 444 |  | 956 |
| Other secured financings |  | 14012 | 76 |  | 14088 |
| Borrowings |  | 102385 | 947 |  | 103332 |
| **Total liabilities at fair value** | $104875 | $214606 | $4111 | $(44953) | $278639 |

---

MABS—Mortgage- and asset-backed securities

1. For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled "Netting." Positions classified within the same level that are with the same counterparty are netted within that level. For further information on derivative instruments and hedging activities, see Note 6.

2. For a further breakdown by type, see the following Detail of Loans and Lending Commitments at Fair Value table.

3. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes.

4. Amounts exclude certain investments that are measured based on NAV per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see "Net Asset Value Measurements" herein.

5. At September 30, 2025 and December 31, 2024, the Firm's Trading assets included an insignificant amount of equity securities subject to contractual sale restrictions that generally prohibit the Firm from selling the security for a period of time as of the measurement date.

6. Within Corporate and other debt the Firm holds supranational and regional governmental bonds. The Firm's valuation techniques and valuation hierarchy classification policies for such instruments is consistent with that of the Firm's holdings in Other sovereign government obligations, which are further described in Note 4 to the financial statements in the 2024 Form 10-K.

**Detail of Loans and Lending Commitments at Fair Value** 

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Commercial real estate | $**1582** | $498 |
| Residential real estate | **2715** | 1922 |
| Securities-based lending and Other loans | **5710** | 6241 |
| **Total** | $**10007** | $8661 |

---

**Unsettled Fair Value of Futures Contracts**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Customer and other receivables (payables), net | $**1802** | $1914 |

---

1. These contracts are primarily Level 1, actively traded, valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables.

For a description of the valuation techniques applied to the Firm's major categories of assets and liabilities measured at fair value on a recurring basis, see Note 4 to the financial statements in the 2024 Form 10-K. During the current quarter, there were no significant revisions made to the Firm's valuation techniques.

**Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Other sovereign government obligations** | **Other sovereign government obligations** | **Other sovereign government obligations** | **Other sovereign government obligations** | **Other sovereign government obligations** |
| Beginning balance | $26 | $74 | $17 | $94 |
| Realized and unrealized gains (losses) | **—** | 3 | **—** | 1 |
| Purchases | **5** | 14 | **5** | 48 |
| Sales | **(18)** | (27) | **(5)** | (74) |
| Net transfers | **51** | 45 | **47** | 40 |
| Ending balance | $**64** | $109 | $**64** | $109 |
| Unrealized gains (losses) | $**—** | $(2) | $**—** | $(2) |
| **State and municipal securities** | **State and municipal securities** | **State and municipal securities** | **State and municipal securities** | **State and municipal securities** |
| Beginning balance | $10 | $— | $— | $34 |
| Sales | **—** |  | **—** | (29) |
| Net transfers | **(10)** | 13 | **—** | 8 |
| Ending balance | $**—** | $13 | $**—** | $13 |
| Unrealized gains (losses) | $**—** | $— | $**—** | $— |
| **MABS** | **MABS** | **MABS** | **MABS** | **MABS** |
| Beginning balance | $515 | $423 | $281 | $489 |
| Realized and unrealized gains (losses) | **12** | 10 | **11** | 27 |
| Purchases | **26** | 43 | **101** | 140 |
| Sales | **(46)** | (58) | **(68)** | (243) |
| Net transfers | **(1)** | 23 | **181** | 28 |
| Ending balance | $**506** | $441 | $**506** | $441 |
| Unrealized gains (losses) | $**11** | $15 | $**(2)** | $9 |
| **Loans and lending commitments** | **Loans and lending commitments** | **Loans and lending commitments** | **Loans and lending commitments** | **Loans and lending commitments** |
| Beginning balance | $1283 | $2176 | $1059 | $2066 |
| Realized and unrealized gains (losses) | **20** | 29 | **20** | 19 |
| Purchases and originations | **273** | 130 | **557** | 681 |
| Sales | **(277)** | (648) | **(484)** | (917) |
| Settlements | **—** | (4) | **(2)** | (174) |
| Net transfers | **(33)** | (99) | **116** | (91) |
| Ending balance | $**1266** | $1584 | $**1266** | $1584 |
| Unrealized gains (losses) | $**13** | $(1) | $**18** | $(2) |
| **Corporate and other debt** | **Corporate and other debt** | **Corporate and other debt** | **Corporate and other debt** | **Corporate and other debt** |
| Beginning balance | $1759 | $1925 | $1258 | $1983 |
| Realized and unrealized gains (losses) | **73** | 9 | **(84)** | 44 |
| Purchases and originations | **225** | 423 | **643** | 834 |
| Sales | **(285)** | (496) | **(308)** | (980) |
| Settlements | **—** | (73) | **—** | (85) |
| Net transfers | **(273)** | (62) | **(10)** | (70) |
| Ending balance | $**1499** | $1726 | $**1499** | $1726 |
| Unrealized gains (losses) | $**84** | $6 | $**129** | $101 |

---

 45 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Corporate equities** | **Corporate equities** | **Corporate equities** | **Corporate equities** | **Corporate equities** |
| Beginning balance | $205 | $217 | $154 | $199 |
| Realized and unrealized gains (losses) | **17** | (24) | **(16)** | (93) |
| Purchases | **63** | 26 | **153** | 65 |
| Sales | **(62)** | (29) | **(111)** | (58) |
| Net transfers | **44** | 4 | **87** | 81 |
| Ending balance | $**267** | $194 | $**267** | $194 |
| Unrealized gains (losses) | $**39** | $(11) | $**—** | $(17) |
| **Investments** | **Investments** | **Investments** | **Investments** | **Investments** |
| Beginning balance | $780 | $843 | $754 | $949 |
| Realized and unrealized gains (losses) | **69** | 53 | **345** | 63 |
| Purchases | **56** | 18 | **76** | 42 |
| Sales | **(44)** | (101) | **(235)** | (241) |
| Net transfers | **600** | (3) | **521** | (3) |
| Ending balance | $**1461** | $810 | $**1461** | $810 |
| Unrealized gains (losses) | $**94** | $24 | $**342** | $6 |
| **Investment securities—AFS** | **Investment securities—AFS** | **Investment securities—AFS** |  |  |
| Beginning balance | $11 | $— | $— | $— |
| Net transfers | **(11)** |  | **—** |  |
| Ending balance | $**—** | $— | $**—** | $— |
| Unrealized gains (losses) | $**—** | $— | $**—** | $— |
| **Net derivatives: Interest rate** | **Net derivatives: Interest rate** | **Net derivatives: Interest rate** | **Net derivatives: Interest rate** | **Net derivatives: Interest rate** |
| Beginning balance | $(457) | $262 | $(53) | $(73) |
| Realized and unrealized gains (losses) | **35** | (120) | **(370)** | (103) |
| Purchases | **64** | 20 | **85** | 27 |
| Issuances | **(29)** | (6) | **(121)** | (14) |
| Settlements | **(21)** | (77) | **44** | (18) |
| Net transfers | **35** | (79) | **42** | 181 |
| Ending balance | $**(373)** | $— | $**(373)** | $— |
| Unrealized gains (losses) | $**50** | $(114) | $**(326)** | $(65) |
| **Net derivatives: Credit** | **Net derivatives: Credit** | **Net derivatives: Credit** | **Net derivatives: Credit** | **Net derivatives: Credit** |
| Beginning balance | $97 | $124 | $97 | $96 |
| Realized and unrealized gains (losses) | **(31)** | 108 | **(115)** | (42) |
| Settlements | **8** | (116) | **117** | 39 |
| Net transfers | **19** | (2) | **(6)** | 21 |
| Ending balance | $**93** | $114 | $**93** | $114 |
| Unrealized gains (losses) | $**(42)** | $108 | $**(104)** | $(21) |
| **Net derivatives: Foreign exchange** | **Net derivatives: Foreign exchange** | **Net derivatives: Foreign exchange** | **Net derivatives: Foreign exchange** | **Net derivatives: Foreign exchange** |
| Beginning balance | $(433) | $(118) | $589 | $(365) |
| Realized and unrealized gains (losses) | **66** | 51 | **68** | 57 |
| Purchases | **2** |  | **13** |  |
| Issuances | **—** |  | **(24)** |  |
| Settlements | **133** | 117 | **(870)** | 264 |
| Net transfers | **(23)** | 45 | **(31)** | 139 |
| Ending balance | $**(255)** | $95 | $**(255)** | $95 |
| Unrealized gains (losses) | $**60** | $51 | $**68** | $61 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Net derivatives: Equity** | **Net derivatives: Equity** | **Net derivatives: Equity** | **Net derivatives: Equity** | **Net derivatives: Equity** |
| Beginning balance | $(1077) | $(1055) | $(1148) | $(1102) |
| Realized and unrealized gains (losses) | **(148)** | (123) | **110** | 125 |
| Purchases | **53** | 54 | **206** | 186 |
| Issuances | **(197)** | (161) | **(753)** | (473) |
| Settlements | **(131)** | 265 | **154** | 337 |
| Net transfers | **479** | 252 | **410** | 159 |
| Ending balance | $**(1021)** | $(768) | $**(1021)** | $(768) |
| Unrealized gains (losses) | $**(104)** | $(155) | $**(24)** | $11 |
| **Net derivatives: Commodity and other** | **Net derivatives: Commodity and other** | **Net derivatives: Commodity and other** | **Net derivatives: Commodity and other** | **Net derivatives: Commodity and other** |
| Beginning balance | $887 | $1203 | $1308 | $1290 |
| Realized and unrealized gains (losses) | **208** | 223 | **370** | 789 |
| Purchases | **81** | 70 | **206** | 126 |
| Issuances | **(176)** | (23) | **(315)** | (37) |
| Settlements | **(119)** | (398) | **(296)** | (909) |
| Net transfers | **144** | (51) | **(248)** | (235) |
| Ending balance | $**1025** | $1024 | $**1025** | $1024 |
| Unrealized gains (losses) | $**332** | $(58) | $**457** | $(48) |
| **Deposits** | **Deposits** | **Deposits** | **Deposits** | **Deposits** |
| Beginning balance | $30 | $34 | $1 | $33 |
| Settlements | **—** |  | **(1)** |  |
| Net transfers | **(29)** | (33) | **1** | (32) |
| Ending balance | $**1** | $1 | $**1** | $1 |
| Unrealized losses (gains) | $**—** | $— | $**—** | $— |
| **Nonderivative trading liabilities** | **Nonderivative trading liabilities** | **Nonderivative trading liabilities** | **Nonderivative trading liabilities** | **Nonderivative trading liabilities** |
| Beginning balance | $114 | $42 | $110 | $60 |
| Realized and unrealized losses (gains) | **16** | 6 | **(5)** | (17) |
| Purchases | **(104)** | (44) | **8** | (50) |
| Sales | **118** | 25 | **77** | 78 |
| Settlements | **—** |  | **—** | (1) |
| Net transfers | **(9)** | 43 | **(55)** | 2 |
| Ending balance | $**135** | $72 | $**135** | $72 |
| Unrealized losses (gains) | $**46** | $9 | $**(4)** | $(6) |
| **Securities sold under agreements to repurchase** | **Securities sold under agreements to repurchase** | **Securities sold under agreements to repurchase** | **Securities sold under agreements to repurchase** | **Securities sold under agreements to repurchase** |
| Beginning balance | $446 | $449 | $444 | $449 |
| Realized and unrealized losses (gains) | **6** | 4 | **8** | 4 |
| Ending balance | $**452** | $453 | $**452** | $453 |
| Unrealized losses (gains) | $**5** | $3 | $**7** | $4 |
| **Other secured financings** | **Other secured financings** | **Other secured financings** |  |  |
| Beginning balance | $144 | $91 | $76 | $92 |
| Realized and unrealized losses (gains) | **(11)** | 1 | **(1)** | (4) |
| Sales | **—** |  | **(231)** |  |
| Issuances | **4** | 57 | **257** | 94 |
| Settlements | **—** | (16) | **(152)** | (58) |
| Net transfers | **(19)** | 14 | **169** | 23 |
| Ending balance | $**118** | $147 | $**118** | $147 |
| Unrealized losses (gains) | $**(11)** | $1 | $**(1)** | $(4) |

---

September 2025 Form 10-Q 46

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Borrowings** | **Borrowings** | **Borrowings** | **Borrowings** | **Borrowings** |
| Beginning balance | $2678 | $1976 | $947 | $1878 |
| Realized and unrealized losses (gains) | **115** | 86 | **214** | 90 |
| Issuances | **155** | 95 | **576** | 412 |
| Settlements | **(178)** | (105) | **(181)** | (212) |
| Net transfers<sup>1</sup> | **(1419)** | (581) | **(205)** | (697) |
| Ending balance | $**1351** | $1471 | $**1351** | $1471 |
| Unrealized losses (gains) | $**124** | $109 | $**210** | $115 |
| Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | **—** | (1) | **—** |  |

---

1. Net transfers include the transfer of Borrowings from Level 3 to Level 2 of $1.4 billion and $0.2 billion for the three and nine months ended September 30, 2025, respectively, primarily due to the decrease in the significance of unobservable inputs related to equity structured notes.

Level 3 instruments may be hedged with instruments classified in Level 1 and Level 2. The realized and unrealized gains or losses for assets and liabilities within the Level 3 category presented in the previous tables do not reflect the related realized and unrealized gains or losses on hedging instruments that have been classified by the Firm within the Level 1 and/or Level 2 categories.

The unrealized gains (losses) during the period for assets and liabilities within the Level 3 category may include changes in fair value during the period that were attributable to both observable and unobservable inputs. Total realized and unrealized gains (losses) are primarily included in Trading revenues in the income statement.

Additionally, in the previous tables, consolidations of VIEs are included in Purchases, and deconsolidations of VIEs are included in Settlements.

**Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements**

**Valuation Techniques and Unobservable Inputs**

---

| | | | |
|:---|:---|:---|:---|
| | Balance / Range (Average<sup>1</sup>) | Balance / Range (Average<sup>1</sup>) | Balance / Range (Average<sup>1</sup>) |
| *$ in millions, except inputs* | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 |
| **Other sovereign government obligations** | $**64** | $| 17 |
| Comparable pricing: |  |  |  |
| &nbsp;&nbsp;Bond price | **60 to 110 points (99 points)** | 45 to 104 points (75 points) | 45 to 104 points (75 points) |
| **MABS** | $**506** | $| 281 |
| Comparable pricing: |  |  |  |
| &nbsp;&nbsp;Bond price | **40 to 106 points (80 points)** | 27 to 98 points (67 points) | 27 to 98 points (67 points) |
| **Loans and lending commitments** | $**1266** | $| 1059 |
| Margin loan model: |  |  |  |
| &nbsp;&nbsp;Margin loan rate | N/M | 1% to 4% (3%) | 1% to 4% (3%) |
| Comparable pricing: |  |  |  |
| &nbsp;&nbsp;Loan price | **50 to 106 points (89 points)** | 49 to 102 points (90 points) | 49 to 102 points (90 points) |

---

---

| | | |
|:---|:---|:---|
| | Balance / Range (Average<sup>1</sup>) | Balance / Range (Average<sup>1</sup>) |
| *$ in millions, except inputs* | **At September 30, 2025** | At December 31, 2024 |
| **Corporate and other debt** | $**1499** | $1258 |
| Comparable pricing: | Comparable pricing: |  |
| &nbsp;&nbsp;Bond price | **29 to 130 points (88 points)** | 28 to 130 points (83 points) |
| Discounted cash flow: | Discounted cash flow: |  |
| &nbsp;&nbsp;Loss given default | **54% to 85% (68% / 54%)** | 54% to 84% (62% / 54%) |
| **Corporate equities** | $**267** | $154 |
| Comparable pricing: |  |  |
| &nbsp;&nbsp;Equity price | **100%** | 100% |
| **Investments** | $**1461** | $754 |
| Discounted cash flow: | Discounted cash flow: |  |
| &nbsp;&nbsp;WACC | **11% to 21% (17%)** | 12% to 21% (16%) |
| &nbsp;&nbsp;Exit multiple | **9 to 9 times (9 times)** | 9 to 10 times (10 times) |
| Market approach: |  |  |
| &nbsp;&nbsp;EBITDA multiple | **18 times** | 20 times |
| Comparable pricing: |  |  |
| &nbsp;&nbsp;Equity price | **24% to 100% (95%)** | 24% to 100% (84%) |
| **Net derivative and other contracts:** |  |  |
| **Interest rate** | $**(373)** | $(53) |
| Option model: |  |  |
| &nbsp;&nbsp;IR volatility skew | **47% to 96% (75% / 76%)** | 72% to 97% (81% / 79%) |
| &nbsp;&nbsp;IR curve correlation | **56% to 99% (85% / 87%)** | 28% to 99% (83% / 86%) |
| &nbsp;&nbsp;Bond volatility | **75% to 149% (87% / 90%)** | 78% to 148% (92% / 92%) |
| &nbsp;&nbsp;Inflation volatility | **32% to 67% (44% / 40%)** | 30% to 68% (44% / 38%) |
| **Credit** | $**93** | $97 |
| Credit default swap model: | Credit default swap model: |  |
| &nbsp;&nbsp;Cash-synthetic <br>&nbsp;&nbsp;&nbsp;&nbsp;basis | **7 points** | 7 points |
| &nbsp;&nbsp;Bond price | **0 to 93 points (51 points)** | 0 to 90 points (48 points) |
| &nbsp;&nbsp;Credit spread | **22 to 675 bps (105 bps)** | 10 to 360 bps (90 bps) |
| &nbsp;&nbsp;Funding spread | **6 to 590 bps (73 bps)** | 10 to 590 bps (76 bps) |
| **Foreign exchange**<sup>2</sup> | $**(255)** | $589 |
| Option model: |  |  |
| &nbsp;&nbsp;IR curve | **-1% to 10% (2% / 0%)** | 5% to 10% (8% / 8%) |
| &nbsp;&nbsp;Contingency probability | **80% to 95% (85% / 95%)** | 90% to 95% (91% / 95%) |
| **Equity**<sup>2</sup> | $**(1021)** | $(1148) |
| Option model: |  |  |
| &nbsp;&nbsp;Equity volatility | **3% to 126% (26%)** | 7% to 98% (20%) |
| &nbsp;&nbsp;Equity volatility skew | **-11% to 7% (-1%)** | -2% to 0% (-1%) |
| &nbsp;&nbsp;Equity correlation | **0% to 100% (66%)** | 20% to 94% (58%) |
| &nbsp;&nbsp;FX correlation | **-87% to 90% (-23%)** | -68% to 60% (-36%) |
| &nbsp;&nbsp;IR correlation | **0% to 15% (6%)** | N/M |
| **Commodity and other** | $**1025** | $1308 |
| Option model: |  |  |
| &nbsp;&nbsp;Forward power price | **$8 to $144 ($64) per MWh** | $0 to $185 ($48) per MWh |
| &nbsp;&nbsp;Commodity volatility | **17% to 97% (30%)** | 0% to 165% (37%) |
| &nbsp;&nbsp;Cross-commodity correlation | **69% to 99% (98%)** | 54% to 100% (94%) |
| **Liabilities Measured at Fair Value on a Recurring Basis** | **Liabilities Measured at Fair Value on a Recurring Basis** | **Liabilities Measured at Fair Value on a Recurring Basis** |
| **Corporate and other debt** | $**68** | $**11** |
| Comparable pricing: |  |  |
| &nbsp;&nbsp;Bond price | **2 to 101 points (32 points)** | N/M |

---

 47 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | |
|:---|:---|:---|
| | Balance / Range (Average<sup>1</sup>) | Balance / Range (Average<sup>1</sup>) |
| *$ in millions, except inputs* | **At September 30, 2025** | At December 31, 2024 |
| **Securities sold under agreements to repurchase** | $**452** | $444 |
| Discounted cash flow: | Discounted cash flow: |  |
| &nbsp;&nbsp;Funding spread | **21 to 139 bps (70 / 69 bps)** | 11 to 102 bps (36 / 26 bps) |
| **Other secured financings** | $**118** | $76 |
| Comparable pricing: | Comparable pricing: |  |
| &nbsp;&nbsp;Loan price | **0 to 95 points (70 points)** | 0 to 100 points (33 points) |
| **Borrowings** | $**1351** | $947 |
| Option model: |  |  |
| &nbsp;&nbsp;Equity volatility | **9% to 95% (24%)** | 7% to 71% (21%) |
| &nbsp;&nbsp;Equity volatility skew | **-5% to 1% (-1%)** | -2% to 0% (0%) |
| &nbsp;&nbsp;Equity correlation | **20% to 100% (89%)** | 53% to 64% (58%) |
| &nbsp;&nbsp;Equity - FX correlation | **-65% to 29% (-18%)** | -52% to 24% (-12%) |
| &nbsp;&nbsp;Credit default swap model: |  |  |
| &nbsp;&nbsp;Credit spread | **188 to 472 bps (330 bps)** | 247 to 433 bps (340 bps) |
| Discounted cash flow: | Discounted cash flow: |  |
| &nbsp;&nbsp;Loss given default | **54% to 85% (68% / 54%)** | 54% to 84% (62% / 54%) |
| **Nonrecurring Fair Value Measurement** | **Nonrecurring Fair Value Measurement** |  |
| **Loans** | $**2714** | $4518 |
| Corporate loan model: | Corporate loan model: |  |
| &nbsp;&nbsp;Credit spread | **116 to 932 bps (276 bps)** | 109 to 1,469 bps (1,007 bps) |
| Comparable pricing: |  |  |
| &nbsp;&nbsp;Loan price | **50 to 101 points (86 points)** | 25 to 100 points (71 points) |
| Warehouse model: |  |  |
| &nbsp;&nbsp;Credit spread | **69 to 182 bps (99 bps)** | 207 to 280 bps (254 bps) |

---

Points—Percentage of par

IR—Interest rate

FX—Foreign exchange

1. A single amount is disclosed for range and average when there is no significant difference between the minimum, maximum and average. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant.

2. Includes derivative contracts with multiple risks (*i.e.*, hybrid products).

The previous table provides information on the valuation techniques, significant unobservable inputs, and the ranges and averages for each major category of assets and liabilities measured at fair value on a recurring and nonrecurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory of financial instruments. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm's inventory. Generally, there are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation technique.

For a description of the Firm's significant unobservable inputs and qualitative information about the effect of hypothetical changes in the values of those inputs, see Note 4 to the financial statements in the 2024 Form 10-K. During the three months ended September 30, 2025, there were no

significant revisions made to the descriptions of the Firm's significant unobservable inputs.

**Net Asset Value Measurements** 

**Fund Interests** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Carrying<br>Value | Commitment | Carrying<br>Value | Commitment |
| Private equity and other | $**3096** | $**655** | $2653 | $644 |
| Real estate | **3537** | **216** | 3461 | 214 |
| Hedge | **73** | **2** | 92 | 2 |
| **Total** | $**6706** | $**873** | $6206 | $860 |

---

Amounts in the previous table represent the Firm's carrying value of general and limited partnership interests in fund investments, as well as any related performance-based income in the form of carried interest. The carrying amounts are measured based on the NAV of the fund taking into account the distribution terms applicable to the interest held. This same measurement applies whether the fund investments are accounted for under the equity method or fair value.

For a description of the Firm's investments in private equity and other funds, real estate funds and hedge funds, which are measured based on NAV, see Note 4 to the financial statements in the 2024 Form 10-K.

See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. See Note 19 for information regarding unrealized carried interest at risk of reversal.

**Nonredeemable Funds by Contractual Maturity** 

---

| | | |
|:---|:---|:---|
| | **Carrying Value at September 30, 2025** | **Carrying Value at September 30, 2025** |
| *$ in millions* | Private Equity and Other | Real Estate |
| Less than 5 years | $**1092** | $**2006** |
| 5-10 years | **1698** | **1353** |
| Over 10 years | **306** | **178** |
| **Total** | $**3096** | $**3537** |

---

**Nonrecurring Fair Value Measurements** 

**Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis**

---

| | | | |
|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | Fair Value | Fair Value | Fair Value |
| *$ in millions* | Level 2 | Level 3<sup>1</sup> | Total |
| **Assets** |  |  |  |
| Loans | $**1383** | $**2714** | $**4097** |
| Other assets—Other investments | **—** | **60** | **60** |
| Other assets—ROU assets | **19** | **—** | **19** |
| **Total** | $**1402** | $**2774** | $**4176** |
| **Liabilities** |  |  |  |
| Other liabilities and accrued expenses—Lending commitments | $**58** | $**25** | $**83** |
| **Total** | $**58** | $**25** | $**83** |

---

September 2025 Form 10-Q 48

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | |
|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Fair Value | Fair Value | Fair Value |
| *$ in millions* | Level 2 | Level 3<sup>1</sup> | Total |
| **Assets** |  |  |  |
| Loans | $1607 | $4518 | $6125 |
| Other assets—Other investments |  | 58 | 58 |
| Other assets—ROU assets | 23 |  | 23 |
| **Total** | $1630 | $4576 | $6206 |
| **Liabilities** |  |  |  |
| Other liabilities and accrued expenses—Lending commitments | $48 | $33 | $81 |
| **Total** | $48 | $33 | $81 |

---

1. For significant Level 3 balances, refer to "Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements" section herein for details of the significant unobservable inputs used for nonrecurring fair value measurement.

**Gains (Losses) from Nonrecurring Fair Value Remeasurements**<sup>1</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Assets** |  |  |  |  |
| Loans<sup>2</sup> | $**(148)** | $(136) | $**(319)** | $(190) |
| Other assets—Other investments<sup>3</sup> | **—** |  | **(6)** | (7) |
| Other assets—Premises, equipment and software<sup>4</sup> | **(7)** | (10) | **(52)** | (12) |
| Other assets—ROU assets<sup>5</sup> | **(1)** |  | **(1)** |  |
| **Total** | $**(156)** | $(146) | $**(378)** | $(209) |
| **Liabilities** |  |  |  |  |
| Other liabilities and accrued expenses—Lending commitments<sup>2</sup> | $**(5)** | $(2) | $**(1)** | $8 |
| **Total** | $**(5)** | $(2) | $**(1)** | $8 |

---

1. Gains and losses for Loans and Other assets—Other investments are classified in Other revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale; otherwise, they are recorded in Other expenses.

2. Nonrecurring changes in the fair value of loans and lending commitments, which exclude the impact of related economic hedges, are calculated as follows: for the held-for-investment category, based on the value of the underlying collateral; and for the held-for-sale category, based on recently executed transactions, market price quotations, valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and CDS spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such transactions and quotations are unobservable.

3. Losses related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and recently executed transactions.

4. Losses related to Other assets—Premises, equipment and software generally include impairments as well as write-offs related to the disposal of certain assets.

5. Losses related to Other Assets—ROU assets include impairments related to the discontinued leased properties.

**Financial Instruments Not Measured at Fair Value** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | Carrying<br>Value | Fair Value | Fair Value | Fair Value | Fair Value |
| *$ in millions* | Carrying<br>Value | Level 1 | Level 2 | Level 3 | Total |
| **Financial assets** | **Financial assets** |  |  |  |  |
| Cash and cash equivalents | $**103734** | $**103734** | $**—** | $**—** | $**103734** |
| Investment securities—HTM | **55205** | **12919** | **33098** | **1352** | **47369** |
| Securities purchased under agreements to resell | **111734** | **—** | **110611** | **1154** | **111765** |
| Securities borrowed | **129113** | **—** | **129113** | **—** | **129113** |
| Customer and other receivables | **106879** | **—** | **102293** | **4527** | **106820** |
| Loans<sup>1</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Held for investment | **255867** | **—** | **10700** | **241877** | **252577** |
| &nbsp;&nbsp;Held for sale | **11433** | **—** | **6208** | **5280** | **11488** |
| Other assets | **704** | **—** | **704** | **—** | **704** |
| **Financial liabilities** | **Financial liabilities** | **Financial liabilities** |  |  |  |
| Deposits | $**397003** | $**—** | $**397686** | $**—** | $**397686** |
| Securities sold under agreements to repurchase | **60801** | **—** | **60786** | **—** | **60786** |
| Securities loaned | **15944** | **—** | **15949** | **—** | **15949** |
| Other secured financings | **4754** | **—** | **4751** | **—** | **4751** |
| Customer and other payables | **226430** | **—** | **226430** | **—** | **226430** |
| Borrowings | **204394** | **—** | **208157** | **199** | **208356** |
|  | Commitment<br>Amount |  |  |  |  |
| Lending commitments<sup>2</sup> | $**200600** | $**—** | $**1085** | $**1129** | $**2214** |

---

 49 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Carrying<br>Value | Fair Value | Fair Value | Fair Value | Fair Value |
| *$ in millions* | Carrying<br>Value | Level 1 | Level 2 | Level 3 | Total |
| **Financial assets** | **Financial assets** |  |  |  |  |
| Cash and cash equivalents | $105386 | $105386 | $— | $— | $105386 |
| Investment securities—HTM | 61071 | 15803 | 34180 | 1220 | 51203 |
| Securities purchased under agreements to resell | 118565 |  | 117151 | 1450 | 118601 |
| Securities borrowed | 123859 |  | 123859 |  | 123859 |
| Customer and other receivables | 79586 |  | 75361 | 4056 | 79417 |
| Loans<sup>1</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Held for investment | 225834 |  | 17859 | 202297 | 220156 |
| &nbsp;&nbsp;Held for sale | 12319 |  | 6324 | 6115 | 12439 |
| Other assets | 839 |  | 839 |  | 839 |
| **Financial liabilities** | **Financial liabilities** | **Financial liabilities** |  |  |  |
| Deposits | $369508 | $— | $370039 | $— | $370039 |
| Securities sold under agreements to repurchase | 49111 |  | 49103 |  | 49103 |
| Securities loaned | 15226 |  | 15228 |  | 15228 |
| Other secured financings | 7514 |  | 7511 |  | 7511 |
| Customer and other payables | 175890 |  | 175890 |  | 175890 |
| Borrowings | 185487 |  | 188269 | 93 | 188362 |
|  | Commitment<br>Amount |  |  |  |  |
| Lending commitments<sup>2</sup> | $175774 | $— | $1094 | $839 | $1933 |

---

1. Amounts include loans measured at fair value on a nonrecurring basis.

2. Represents Lending commitments accounted for as Held for Investment and Held for Sale. For a further discussion on lending commitments, see Note 13.

The previous tables exclude all non-financial assets and liabilities, such as Goodwill and Intangible assets, and certain financial instruments, such as equity method investments and certain receivables.

**5. Fair Value Option**

The Firm has elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate complexities of applying certain accounting models.

**Borrowings Measured at Fair Value on a Recurring Basis**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Business Unit Responsible for Risk Management** | **Business Unit Responsible for Risk Management** | **Business Unit Responsible for Risk Management** |
| Equity | $**61119** | $49144 |
| Interest rates | **45095** | 34451 |
| Commodities | **13873** | 14829 |
| Credit | **5341** | 3306 |
| Foreign exchange | **1857** | 1602 |
| **Total** | $**127285** | $103332 |

---

**Net Revenues from Liabilities under the Fair Value Option**

---

| | | | |
|:---|:---|:---|:---|
| *$ in millions* | Trading Revenues | Interest Expense | Net Revenues<sup>1</sup> |
| **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| Borrowings | $**(3101)** | $**267** | $**(3368)** |
| Deposits | **(91)** | **63** | **(154)** |
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 |
| Borrowings | $(6993) | $175 | $(7168) |

---

---

| | | | |
|:---|:---|:---|:---|
| *$ in millions* | Trading Revenues | Interest Expense | Net Revenues<sup>1</sup> |
| **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| Borrowings | $**(10866)** | $**708** | $**(11574)** |
| Deposits | **(216)** | **170** | **(386)** |
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| Borrowings | $(6158) | $474 | $(6632) |

---

1. Amounts do not reflect any gains or losses from related economic hedges.

Gains (losses) from changes in fair value are recorded in Trading revenues and are mainly attributable to movements in the reference price or index, interest rates or foreign exchange rates.

**Gains (Losses) Due to Changes in Instrument-Specific Credit Risk**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, |
| | **2025** | **2025** | 2024 | 2024 |
| *$ in millions* | Trading Revenues | OCI | Trading Revenues | OCI |
| Loans and other receivables<sup>1</sup> | $**46** | $**—** | $(15) | $— |
| Lending commitments | **(1)** | **—** | (3) |  |
| Deposits | **—** | **(27)** |  | (3) |
| Borrowings | **(5)** | **(1093)** | (4) | (227) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| | **2025** | **2025** | 2024 | 2024 |
| *$ in millions* | Trading<br>Revenues | OCI | Trading<br>Revenues | OCI |
| Loans and other receivables<sup>1</sup> | $**(5)** | $**—** | $(13) | $— |
| Lending commitments | **(3)** | **—** | (4) |  |
| Deposits | **—** | **38** |  | 8 |
| Borrowings | **(17)** | **(943)** | (21) | (617) |

---

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Cumulative pre-tax DVA gain (loss) recognized in AOCI | $**(3773)** | $(2868) |

---

1. Loans and other receivables-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses.

September 2025 Form 10-Q 50

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**Difference Between Contractual Principal and Fair Value**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Loans and other receivables<sup>2</sup> | $**11021** | $10207 |
| &nbsp;&nbsp;Nonaccrual loans<sup>2</sup> | **8401** | 7719 |
| Borrowings<sup>3</sup> | **3235** | 3249 |

---

1. Amounts indicate contractual principal greater than or (less than) fair value.

2. The majority of the difference between principal and fair value amounts for loans and other receivables relates to distressed debt positions purchased at amounts well below par.

3. Excludes borrowings where the repayment of the initial principal amount fluctuates based on changes in a reference price or index.

The previous tables exclude non-recourse debt from consolidated VIEs, liabilities related to transfers of financial assets treated as collateralized financings, pledged commodities and other liabilities that have specified assets attributable to them.

**Fair Value Loans on Nonaccrual Status**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Nonaccrual loans | $**1159** | $647 |
| &nbsp;&nbsp;Nonaccrual loans 90 or more days past due | **157** | 155 |

---

**6. Derivative Instruments and Hedging Activities**

**Fair Values of Derivative Contracts**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Assets at September 30, 2025** | **Assets at September 30, 2025** | **Assets at September 30, 2025** | **Assets at September 30, 2025** |
| *$ in millions* | Bilateral OTC | Cleared OTC | Exchange-Traded | Total |
| **Designated as accounting hedges** | **Designated as accounting hedges** |  |  |  |
| Interest rate | $**3** | $**5** | $**—** | $**8** |
| Foreign exchange | **49** | **60** | **—** | **109** |
| Total | **52** | **65** | **—** | **117** |
| **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** |  |  |
| ***Economic hedges of loans*** |  |  |  |  |
| Credit | **—** | **19** | **—** | **19** |
| ***Other derivatives*** |  |  |  |  |
| Interest rate | **114429** | **14447** | **110** | **128986** |
| Credit | **4731** | **8208** | **—** | **12939** |
| Foreign exchange | **68766** | **5141** | **624** | **74531** |
| Equity | **36890** | **—** | **80724** | **117614** |
| Commodity and other | **12870** | **—** | **2924** | **15794** |
| Total | **237686** | **27815** | **84382** | **349883** |
| **Total gross derivatives** | $**237738** | $**27880** | $**84382** | $**350000** |
| **Amounts offset** |  |  |  |  |
| Counterparty netting | **(166835)** | **(26061)** | **(81034)** | **(273930)** |
| Cash collateral netting | **(37029)** | **(1600)** | **—** | **(38629)** |
| **Total in Trading assets** | $**33874** | $**219** | $**3348** | $**37441** |
| **Amounts not offset**<sup>1</sup> |  |  |  |  |
| Financial instruments collateral | **(15044)** | **—** | **—** | **(15044)** |
| **Net amounts** | $**18830** | $**219** | $**3348** | $**22397** |
| Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $**5075** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Liabilities at September 30, 2025** | **Liabilities at September 30, 2025** | **Liabilities at September 30, 2025** | **Liabilities at September 30, 2025** |
| *$ in millions* | Bilateral OTC | Cleared OTC | Exchange-Traded | Total |
| **Designated as accounting hedges** | **Designated as accounting hedges** |  |  |  |
| Interest rate | $**510** | $**—** | $**—** | $**510** |
| Foreign exchange | **143** | **39** | **—** | **182** |
| Total | **653** | **39** | **—** | **692** |
| **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** |  |  |
| ***Economic hedges of loans*** |  |  |  |  |
| Credit | **47** | **638** | **—** | **685** |
| ***Other derivatives*** |  |  |  |  |
| Interest rate | **102606** | **13080** | **113** | **115799** |
| Credit | **5297** | **7820** | **—** | **13117** |
| Foreign exchange | **63266** | **5495** | **696** | **69457** |
| Equity | **60952** | **—** | **80878** | **141830** |
| Commodity and other | **11453** | **—** | **2819** | **14272** |
| Total | **243621** | **27033** | **84506** | **355160** |
| **Total gross derivatives** | $**244274** | $**27072** | $**84506** | $**355852** |
| **Amounts offset** |  |  |  |  |
| Counterparty netting | **(166835)** | **(26061)** | **(81034)** | **(273930)** |
| Cash collateral netting | **(44457)** | **(1005)** | **—** | **(45462)** |
| **Total in Trading liabilities** | $**32982** | $**6** | $**3472** | $**36460** |
| **Amounts not offset**<sup>1</sup> |  |  |  |  |
| Financial instruments collateral | **(4012)** | **—** | **(1051)** | **(5063)** |
| **Net amounts** | $**28970** | $**6** | $**2421** | $**31397** |
| Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | **7296** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Assets at December 31, 2024 | Assets at December 31, 2024 | Assets at December 31, 2024 | Assets at December 31, 2024 |
| *$ in millions* | Bilateral OTC | Cleared OTC | Exchange-Traded | Total |
| **Designated as accounting hedges** | **Designated as accounting hedges** |  |  |  |
| Interest rate | $4 | $— | $— | $4 |
| Foreign exchange | 185 | 122 |  | 307 |
| Total | 189 | 122 |  | 311 |
| **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** |  |  |
| ***Economic hedges of loans*** |  |  |  |  |
| Credit |  | 28 |  | 28 |
| ***Other derivatives*** |  |  |  |  |
| Interest rate | 115520 | 13163 | 119 | 128802 |
| Credit | 4711 | 4411 |  | 9122 |
| Foreign exchange | 104024 | 4301 | 90 | 108415 |
| Equity | 24368 |  | 51314 | 75682 |
| Commodity and other | 14071 |  | 1860 | 15931 |
| Total | 262694 | 21903 | 53383 | 337980 |
| **Total gross derivatives** | $262883 | $22025 | $53383 | $338291 |
| **Amounts offset** |  |  |  |  |
| Counterparty netting | (188069) | (20276) | (51168) | (259513) |
| Cash collateral netting | (38511) | (1698) |  | (40209) |
| **Total in Trading assets** | $36303 | $51 | $2215 | $38569 |
| **Amounts not offset**<sup>1</sup> |  |  |  |  |
| Financial instruments collateral | (17837) |  |  | (17837) |
| **Net amounts** | $18466 | $51 | $2215 | $20732 |
| Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $3354 |

---

 51 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Liabilities at December 31, 2024 | Liabilities at December 31, 2024 | Liabilities at December 31, 2024 | Liabilities at December 31, 2024 |
| *$ in millions* | Bilateral OTC | Cleared OTC | Exchange-Traded | Total |
| **Designated as accounting hedges** | **Designated as accounting hedges** |  |  |  |
| Interest rate | $533 | $— | $— | $533 |
| Foreign exchange | 3 |  |  | 3 |
| Total | 536 |  |  | 536 |
| **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** |  |  |
| ***Economic hedges of loans*** |  |  |  |  |
| Credit | 53 | 718 |  | 771 |
| ***Other derivatives*** |  |  |  |  |
| Interest rate | 104495 | 13038 | 124 | 117657 |
| Credit | 4941 | 3860 |  | 8801 |
| Foreign exchange | 100730 | 4085 | 153 | 104968 |
| Equity | 42332 |  | 53142 | 95474 |
| Commodity and other | 11584 |  | 1979 | 13563 |
| Total | 264135 | 21701 | 55398 | 341234 |
| **Total gross derivatives** | $264671 | $21701 | $55398 | $341770 |
| **Amounts offset** |  |  |  |  |
| Counterparty netting | (188070) | (20276) | (51168) | (259514) |
| Cash collateral netting | (43126) | (1200) |  | (44326) |
| **Total in Trading liabilities** | $33475 | $225 | $4230 | $37930 |
| **Amounts not offset**<sup>1</sup> |  |  |  |  |
| Financial instruments collateral | (6338) |  | (2658) | (8996) |
| **Net amounts** | $27137 | $225 | $1572 | $28934 |
| Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $4321 |

---

1. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other netting criteria are not met in accordance with applicable offsetting accounting guidance.

See Note 4 for information related to the unsettled fair value of futures contracts not designated as accounting hedges, which are excluded from the previous tables.

**Notionals of Derivative Contracts**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Assets at September 30, 2025** | **Assets at September 30, 2025** | **Assets at September 30, 2025** | **Assets at September 30, 2025** |
| *$ in billions* | Bilateral OTC | Cleared OTC | Exchange- Traded | Total |
| **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** |
| Interest rate | $**—** | $**188** | $**—** | $**188** |
| Foreign exchange | **5** | **4** | **—** | **9** |
| Total | **5** | **192** | **—** | **197** |
| **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** |
| ***Economic hedges of loans*** |  |  |  |  |
| Credit | **—** | **—** | **—** | **—** |
| ***Other derivatives*** |  |  |  |  |
| Interest rate | **4116** | **7568** | **528** | **12212** |
| Credit | **269** | **259** | **—** | **528** |
| Foreign exchange | **4256** | **299** | **18** | **4573** |
| Equity | **904** | **—** | **848** | **1752** |
| Commodity and other | **151** | **—** | **77** | **228** |
| Total | **9696** | **8126** | **1471** | **19293** |
| **Total gross derivatives** | $**9701** | $**8318** | $**1471** | $**19490** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Liabilities at September 30, 2025** | **Liabilities at September 30, 2025** | **Liabilities at September 30, 2025** | **Liabilities at September 30, 2025** |
| *$ in billions* | Bilateral OTC | Cleared OTC | Exchange- Traded | Total |
| **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** |
| Interest rate | $**3** | $**215** | $**—** | $**218** |
| Foreign exchange | **16** | **2** | **—** | **18** |
| Total | **19** | **217** | **—** | **236** |
| **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** |
| ***Economic hedges of loans*** |  |  |  |  |
| Credit | **2** | **17** | **—** | **19** |
| ***Other derivatives*** |  |  |  |  |
| Interest rate | **4095** | **7579** | **529** | **12203** |
| Credit | **291** | **249** | **—** | **540** |
| Foreign exchange | **4279** | **286** | **22** | **4587** |
| Equity | **995** | **—** | **1333** | **2328** |
| Commodity and other | **130** | **—** | **85** | **215** |
| Total | **9792** | **8131** | **1969** | **19892** |
| **Total gross derivatives** | $**9811** | $**8348** | $**1969** | $**20128** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Assets at December 31, 2024 | Assets at December 31, 2024 | Assets at December 31, 2024 | Assets at December 31, 2024 |
| *$ in billions* | Bilateral OTC | Cleared OTC | Exchange-Traded | Total |
| **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** |
| Interest rate | $— | $108 | $— | $108 |
| Foreign exchange | 14 | 4 |  | 18 |
| Total | 14 | 112 |  | 126 |
| **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** |
| ***Economic hedges of loans*** |  |  |  |  |
| Credit |  |  |  |  |
| ***Other derivatives*** |  |  |  |  |
| Interest rate | 3713 | 4367 | 442 | 8522 |
| Credit | 208 | 149 |  | 357 |
| Foreign exchange | 2717 | 171 | 9 | 2897 |
| Equity | 591 |  | 609 | 1200 |
| Commodity and other | 137 |  | 77 | 214 |
| Total | 7366 | 4687 | 1137 | 13190 |
| **Total gross derivatives** | $7380 | $4799 | $1137 | $13316 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Liabilities at December 31, 2024 | Liabilities at December 31, 2024 | Liabilities at December 31, 2024 | Liabilities at December 31, 2024 |
| *$ in billions* | Bilateral OTC | Cleared OTC | Exchange-Traded | Total |
| **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** | **Designated as accounting hedges** |
| Interest rate | $2 | $193 | $— | $195 |
| Foreign exchange | 1 |  |  | 1 |
| Total | 3 | 193 |  | 196 |
| **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** | **Not designated as accounting hedges** |
| ***Economic hedges of loans*** |  |  |  |  |
| Credit | 2 | 20 |  | 22 |
| ***Other derivatives*** |  |  |  |  |
| Interest rate | 3626 | 4468 | 417 | 8511 |
| Credit | 230 | 133 |  | 363 |
| Foreign exchange | 2763 | 178 | 18 | 2959 |
| Equity | 754 |  | 826 | 1580 |
| Commodity and other | 100 |  | 89 | 189 |
| Total | 7475 | 4799 | 1350 | 13624 |
| **Total gross derivatives** | $7478 | $4992 | $1350 | $13820 |

---

The notional amounts of derivative contracts generally overstate the Firm's exposure. In most circumstances, notional amounts are used only as a reference point from which to calculate amounts owed between the parties to the contract. Furthermore, notional amounts do not reflect the

September 2025 Form 10-Q 52

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

benefit of legally enforceable netting arrangements or risk mitigating transactions.

For a discussion of the Firm's derivative instruments and hedging activities, see Note 6 to the financial statements in the 2024 Form 10-K.

**Gains (Losses) on Accounting Hedges** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended |
| | September 30, | September 30, | September 30, | September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Fair value hedges—Recognized in Interest income** | **Fair value hedges—Recognized in Interest income** | **Fair value hedges—Recognized in Interest income** | **Fair value hedges—Recognized in Interest income** | **Fair value hedges—Recognized in Interest income** |
| Interest rate contracts | $**(100)** | $(1277) | $**(903)** | $(686) |
| Investment Securities—AFS | **115** | 1302 | **938** | 755 |
| **Fair value hedges—Recognized in Interest expense** | **Fair value hedges—Recognized in Interest expense** | **Fair value hedges—Recognized in Interest expense** | **Fair value hedges—Recognized in Interest expense** | **Fair value hedges—Recognized in Interest expense** |
| Interest rate contracts | $**609** | $5777 | $**4471** | $3627 |
| Deposits | **(34)** | (227) | **(112)** | (235) |
| Borrowings | **(574)** | (5561) | **(4364)** | (3403) |
| **Net investment hedges—Foreign exchange contracts** | **Net investment hedges—Foreign exchange contracts** | **Net investment hedges—Foreign exchange contracts** | **Net investment hedges—Foreign exchange contracts** | **Net investment hedges—Foreign exchange contracts** |
| Recognized in OCI | $**175** | $(533) | $**(1229)** | $122 |
| Forward points excluded from hedge effectiveness testing—Recognized in Interest income | **96** | 50 | **143** | 140 |
| **Cash flow hedges—Interest rate contracts**<sup>1</sup> | **Cash flow hedges—Interest rate contracts**<sup>1</sup> | **Cash flow hedges—Interest rate contracts**<sup>1</sup> | **Cash flow hedges—Interest rate contracts**<sup>1</sup> | **Cash flow hedges—Interest rate contracts**<sup>1</sup> |
| Recognized in OCI | $**15** | $34 | $**28** | $(26) |
| Less: Realized gains (losses) (pre-tax) reclassified from AOCI to interest income | **(40)** | (11) | **(70)** | (34) |
| Net change in cash flow hedges included within AOCI | **55** | 45 | **98** | 8 |

---

1. During the nine months ended September 30, 2025, there were no forecasted transactions that failed to occur. The net gains (losses) associated with cash flow hedges expected to be reclassified from AOCI within 12 months as of September 30, 2025, is approximately $(60) million. The maximum length of time over which forecasted cash flows are hedged is 40 months.

**Fair Value Hedges—Hedged Items** 

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Investment Securities—AFS** |  |  |
| Amortized cost basis currently or previously hedged<sup>1</sup> | $**57275** | $54809 |
| Basis adjustments included in amortized cost<sup>2</sup> | $**218** | $(741) |
| **Deposits** |  |  |
| Carrying amount currently or previously hedged | $**48904** | $21524 |
| Basis adjustments included in carrying amount<sup>2</sup> | $**156** | $44 |
| **Borrowings** |  |  |
| Carrying amount currently or previously hedged | $**189937** | $171834 |
| Basis adjustments included in carrying amount**—**Outstanding hedges | $**(5769)** | $(10072) |
| Basis adjustments included in carrying amount**—**Terminated hedges | $**(631)** | $(648) |

---

1. Carrying amount represents the amortized cost. As of September 30, 2025, and December 31, 2024, the amortized cost of the portfolio layer method closed portfolios was $600 million and $325 million, respectively. The Firm designated $703 million and $178 million as hedged amounts as of September 30, 2025, and December 31, 2024, respectively, representing the total notional value of all outstanding layers in each portfolio, including both spot-starting and forward-starting layers. The cumulative amount of basis adjustments was $2.2 million as of September 30, 2025 and $(2) million as of December 31, 2024. Refer to Note 2 to the financial statements in the 2024 Form 10-K and Note 7 herein for additional information.

2. Hedge accounting basis adjustments are primarily related to outstanding hedges.

**Gains (Losses) on Economic Hedges of Loans**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended |
| | September 30, | September 30, | September 30, | September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Recognized in Other revenues** | **Recognized in Other revenues** | **Recognized in Other revenues** | **Recognized in Other revenues** | **Recognized in Other revenues** |
| Credit contracts<sup>1</sup> | $**(82)** | $(101) | $**(172)** | $(248) |

---

1. Amounts related to hedges of certain held-for-investment and held-for-sale loans.

**Net Derivative Liabilities and Collateral Posted** 

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Net derivative liabilities with credit risk-related contingent features | $**23734** | $22414 |
| Collateral posted | **18038** | 16252 |

---

The previous table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Firm has posted collateral in the normal course of business.

**Incremental Collateral and Termination Payments upon Potential Future Ratings Downgrade** 

---

| | |
|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** |
| One-notch downgrade | $**267** |
| Two-notch downgrade | **513** |
| Bilateral downgrade agreements included in the amounts above<sup>1</sup> | $**643** |

---

1. Amount represents arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are used by the Firm to manage the risk of counterparty downgrades.

The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody's Investors Service, Inc., S&P Global Ratings and/or other rating agencies. The previous table shows the future potential collateral amounts and termination payments that could be called or required by counterparties or exchange and clearing organizations in the event of one-notch or two-notch downgrade scenarios based on the relevant contractual downgrade triggers.

**Maximum Potential Payout/Notional of Credit Protection Sold**<sup>1</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Years to Maturity at September 30, 2025** | **Years to Maturity at September 30, 2025** | **Years to Maturity at September 30, 2025** | **Years to Maturity at September 30, 2025** | **Years to Maturity at September 30, 2025** |
| *$ in billions* | < 1 | 1-3 | 3-5 | Over 5 | Total |
| **Single-name CDS** |  |  |  |  |  |
| Investment grade | $**15** | $**34** | $**38** | $**16** | $**103** |
| Non-investment grade | **7** | **18** | **16** | **4** | **45** |
| Total | $**22** | $**52** | $**54** | $**20** | $**148** |
| **Index and basket CDS** | **Index and basket CDS** | **Index and basket CDS** |  |  |  |
| Investment grade | $**4** | $**12** | $**8** | $**2** | $**26** |
| Non-investment grade | **9** | **26** | **231** | **94** | **360** |
| Total | $**13** | $**38** | $**239** | $**96** | $**386** |
| **Total CDS sold** | $**35** | $**90** | $**293** | $**116** | $**534** |
| Other credit contracts | **—** | **—** | **—** | **3** | **3** |
| **Total credit protection sold** | $**35** | $**90** | $**293** | $**119** | $**537** |
| CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | $**474** |

---

 53 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Years to Maturity at December 31, 2024 | Years to Maturity at December 31, 2024 | Years to Maturity at December 31, 2024 | Years to Maturity at December 31, 2024 | Years to Maturity at December 31, 2024 |
| *$ in billions* | < 1 | 1-3 | 3-5 | Over 5 | Total |
| **Single-name CDS** |  |  |  |  |  |
| Investment grade | $15 | $31 | $37 | $10 | $93 |
| Non-investment grade | 7 | 16 | 16 | 1 | 40 |
| Total | $22 | $47 | $53 | $11 | $133 |
| **Index and basket CDS** | **Index and basket CDS** | **Index and basket CDS** |  |  |  |
| Investment grade | $3 | $12 | $10 | $— | $25 |
| Non-investment grade | 11 | 22 | 158 | 16 | 207 |
| Total | $14 | $34 | $168 | $16 | $232 |
| **Total CDS sold** | $36 | $81 | $221 | $27 | $365 |
| Other credit contracts |  |  |  | 3 | 3 |
| **Total credit protection sold** | $36 | $81 | $221 | $30 | $368 |
| CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | $303 |

---

**Fair Value Asset (Liability) of Credit Protection Sold**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Single-name CDS** |  |  |
| Investment grade | $**2370** | $1890 |
| Non-investment grade | **767** | 585 |
| Total | $**3137** | $2475 |
| **Index and basket CDS** |  |  |
| Investment grade | $**883** | $799 |
| Non-investment grade | **3837** | 489 |
| Total | $**4720** | $1288 |
| **Total CDS sold** | $**7857** | $3763 |
| Other credit contracts | **145** | 133 |
| **Total credit protection sold** | $**8002** | $3896 |

---

1. Investment grade/non-investment grade determination is based on the internal credit rating of the reference obligation. Internal credit ratings serve as the CRM's assessment of credit risk and the basis for a comprehensive credit limits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor.

**Protection Purchased with CDS** 

---

| | | |
|:---|:---|:---|
| | Notional | Notional |
| *$ in billions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Single name | $**170** | $156 |
| Index and basket | **351** | 193 |
| Tranched index and basket | **31** | 28 |
| **Total** | $**552** | $377 |

---

---

| | | |
|:---|:---|:---|
| | Fair Value Asset (Liability) | Fair Value Asset (Liability) |
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Single name | $**(3499)** | $(2693) |
| Index and basket | **(4294)** | (654) |
| Tranched index and basket | **(1033)** | (962) |
| **Total** | $**(8826)** | $(4309) |

---

The Firm enters into credit derivatives, principally CDS, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm's counterparties for these derivatives are banks, broker-dealers, and insurance and other financial institutions.

The fair value amounts as shown in the previous tables are prior to cash collateral or counterparty netting. For further

information on credit derivatives and other credit contracts, see Note 6 to the financial statements in the 2024 Form 10-K.

**7. Investment Securities**

**AFS and HTM Securities**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | Amortized Cost<sup>1</sup> | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value |
| **AFS securities** |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury securities | $**78227** | $**103** | $**85** | $**78245** |
| &nbsp;&nbsp;U.S. agency securities<sup>2</sup> | **24369** | **17** | **2075** | **22311** |
| &nbsp;&nbsp;Agency CMBS | **5604** | **—** | **309** | **5295** |
| &nbsp;&nbsp;State and municipal securities | **1993** | **10** | **21** | **1982** |
| &nbsp;&nbsp;FFELP student loan ABS<sup>3</sup> | **500** | **1** | **7** | **494** |
| &nbsp;&nbsp;Unallocated basis adjustment<sup>4</sup> | **2** | **—** | **2** | **—** |
| Total AFS securities | **110695** | **131** | **2499** | **108327** |
| **HTM securities** |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury securities | **13634** | **—** | **715** | **12919** |
| &nbsp;&nbsp;U.S. agency securities<sup>2</sup> | **39124** | **59** | **7072** | **32111** |
| &nbsp;&nbsp;Agency CMBS | **808** | **—** | **49** | **759** |
| &nbsp;&nbsp;Non-agency CMBS | **1639** | **11** | **70** | **1580** |
| Total HTM securities | **55205** | **70** | **7906** | **47369** |
| **Total investment securities** | $**165900** | $**201** | $**10405** | $**155696** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Amortized Cost<sup>1</sup> | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value |
| **AFS securities** |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury securities | $70160 | $62 | $388 | $69834 |
| &nbsp;&nbsp;U.S. agency securities<sup>2</sup> | 24113 | 6 | 2652 | 21467 |
| &nbsp;&nbsp;Agency CMBS | 5704 |  | 388 | 5316 |
| &nbsp;&nbsp;State and municipal securities | 1373 | 18 | 4 | 1387 |
| &nbsp;&nbsp;FFELP student loan ABS<sup>3</sup> | 612 | 1 | 9 | 604 |
| &nbsp;&nbsp;Unallocated basis adjustment<sup>4</sup> | (2) | 2 |  |  |
| Total AFS securities | 101960 | 89 | 3441 | 98608 |
| **HTM securities** |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury securities | 16885 |  | 1082 | 15803 |
| &nbsp;&nbsp;U.S. agency securities<sup>2</sup> | 41582 | 4 | 8592 | 32994 |
| &nbsp;&nbsp;Agency CMBS | 1154 |  | 88 | 1066 |
| &nbsp;&nbsp;Non-agency CMBS | 1450 | 3 | 113 | 1340 |
| Total HTM securities | 61071 | 7 | 9875 | 51203 |
| **Total investment securities** | $163031 | $96 | $13316 | $149811 |

---

1. Amounts are net of any ACL.

2. U.S. agency securities consist mainly of agency mortgage pass-through pool securities, CMOs and agency-issued debt.

3. Underlying loans are backed by a guarantee, ultimately from the U.S. Department of Education, of at least 95% of the principal balance and interest outstanding.

4. Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 to the financial statements in the 2024 Form 10-K and Note 6 herein for additional information.

September 2025 Form 10-Q 54

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**AFS Securities in an Unrealized Loss Position**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At<br>September 30,<br>2025** | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 | At<br>December 31,<br>2024 |
| *$ in millions* | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses |
| U.S. Treasury securities |  |  |  |  |
| &nbsp;&nbsp;Less than 12 months | $**12762** | $**9** | $18338 | $65 |
| &nbsp;&nbsp;12 months or longer | **17063** | **76** | 19629 | 323 |
| Total | **29825** | **85** | 37967 | 388 |
| U.S. agency securities |  |  |  |  |
| &nbsp;&nbsp;Less than 12 months | **426** | **—** | 765 | 11 |
| &nbsp;&nbsp;12 months or longer | **18072** | **2075** | 18996 | 2641 |
| Total | **18498** | **2075** | 19761 | 2652 |
| Agency CMBS |  |  |  |  |
| &nbsp;&nbsp;Less than 12 months | **214** | **—** |  |  |
| &nbsp;&nbsp;12 months or longer | **4948** | **309** | 5018 | 388 |
| Total | **5162** | **309** | 5018 | 388 |
| State and municipal securities | State and municipal securities |  |  |  |
| &nbsp;&nbsp;Less than 12 months | **555** | **10** | 242 | 2 |
| &nbsp;&nbsp;12 months or longer | **252** | **11** | 62 | 2 |
| Total | **807** | **21** | 304 | 4 |
| FFELP student loan ABS | FFELP student loan ABS |  |  |  |
| &nbsp;&nbsp;Less than 12 months | **—** | **—** |  |  |
| &nbsp;&nbsp;12 months or longer | **398** | **7** | 442 | 9 |
| Total | **398** | **7** | 442 | 9 |
| Unallocated basis adjustment | **—** | **2** |  |  |
| **Total AFS securities in an unrealized loss position** | **Total AFS securities in an unrealized loss position** | **Total AFS securities in an unrealized loss position** | **Total AFS securities in an unrealized loss position** |  |
| &nbsp;&nbsp;Less than 12 months | **13957** | **19** | 19345 | 78 |
| &nbsp;&nbsp;12 months or longer | **40733** | **2478** | 44147 | 3363 |
| &nbsp;&nbsp;Unallocated basis adjustment | **—** | **2** | **—** | **—** |
| Total | $**54690** | $**2499** | $63492 | $3441 |

---

For AFS securities, the Firm believes there are no securities in an unrealized loss position that have credit losses after performing the analysis described in Note 2 in the 2024 Form 10-K and the Firm expects to recover the amortized cost basis of these securities. Additionally, the Firm does not intend to sell these securities and is not likely to be required to sell these securities prior to recovery of the amortized cost basis. As of September 30, 2025 and December 31, 2024, the securities in an unrealized loss position are predominantly investment grade.

The HTM securities net carrying amounts at September 30, 2025 and December 31, 2024 reflect an ACL of $62 million and $52 million, respectively, predominantly related to Non-agency CMBS. See Note 2 in the 2024 Form 10-K for a description of the ACL methodology used for HTM Securities.

As of September 30, 2025 and December 31, 2024, 97% of the Firm's portfolio of HTM securities were investment grade U.S. agency securities, U.S. Treasury securities and Agency CMBS, which were on accrual status and for which there is an underlying assumption of zero credit losses. Non-investment grade HTM securities primarily consisted of certain Non-agency CMBS securities, for which the expected credit losses were insignificant and were predominantly on accrual status at September 30, 2025 and December 31, 2024.

See Note 14 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS, and FFELP student loan ABS.

**Investment Securities by Contractual Maturity**

---

| | | | |
|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | Amortized Cost<sup>1</sup> | Fair Value | Annualized Average Yield<sup>2,3</sup> |
| **AFS securities** |  |  |  |
| U.S. Treasury securities: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | $**21899** | $**21888** | **3.2%** |
| &nbsp;&nbsp;After 1 year through 5 years | **54024** | **54056** | **3.9%** |
| &nbsp;&nbsp;After 5 years through 10 years | **2304** | **2301** | **4.1%** |
| &nbsp;&nbsp;After 10 years | **—** | **—** | **— %** |
| Total | **78227** | **78245** |  |
| U.S. agency securities: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | **18** | **17** | **0.2%** |
| &nbsp;&nbsp;After 1 year through 5 years | **203** | **194** | **1.8%** |
| &nbsp;&nbsp;After 5 years through 10 years | **434** | **402** | **1.6%** |
| &nbsp;&nbsp;After 10 years | **23714** | **21698** | **3.6%** |
| Total | **24369** | **22311** |  |
| Agency CMBS: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | **567** | **561** | **2.0%** |
| &nbsp;&nbsp;After 1 year through 5 years | **3747** | **3642** | **1.9%** |
| &nbsp;&nbsp;After 5 years through 10 years | **290** | **284** | **1.6%** |
| &nbsp;&nbsp;After 10 years | **1000** | **808** | **1.5%** |
| Total | **5604** | **5295** |  |
| State and municipal securities: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | **77** | **77** | **4.8%** |
| &nbsp;&nbsp;After 1 year through 5 years | **152** | **151** | **4.5%** |
| &nbsp;&nbsp;After 5 years through 10 years | **113** | **108** | **4.3%** |
| &nbsp;&nbsp;After 10 Years | **1651** | **1646** | **4.5%** |
| Total | **1993** | **1982** |  |
| FFELP student loan ABS: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | **61** | **59** | **5.5%** |
| &nbsp;&nbsp;After 1 year through 5 years | **48** | **47** | **5.4%** |
| &nbsp;&nbsp;After 5 years through 10 years | **22** | **22** | **5.3%** |
| &nbsp;&nbsp;After 10 years | **369** | **366** | **5.4%** |
| Total | **500** | **494** |  |
| Unallocated basis adjustment<sup>4</sup> | **2** | **—** | **—** |
| Total AFS securities | $**110695** | $**108327** | **3.6%** |

---

 55 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | |
|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | Amortized Cost<sup>1</sup> | Fair Value | Annualized Average Yield<sup>2</sup> |
| **HTM securities** |  |  |  |
| U.S. Treasury securities: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | $**6669** | $**6620** | **2.0%** |
| &nbsp;&nbsp;After 1 year through 5 years | **4909** | **4773** | **2.5%** |
| &nbsp;&nbsp;After 5 years through 10 years | **502** | **438** | **1.1%** |
| &nbsp;&nbsp;After 10 years | **1554** | **1088** | **2.3%** |
| Total | **13634** | **12919** |  |
| U.S. agency securities: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | **—** | **—** | **— %** |
| &nbsp;&nbsp;After 1 year through 5 years | **61** | **59** | **2.0%** |
| &nbsp;&nbsp;After 5 years through 10 years | **121** | **116** | **2.1%** |
| &nbsp;&nbsp;After 10 years | **38942** | **31936** | **2.1%** |
| Total | **39124** | **32111** |  |
| Agency CMBS: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | **178** | **175** | **0.9%** |
| &nbsp;&nbsp;After 1 year through 5 years | **464** | **443** | **1.3%** |
| &nbsp;&nbsp;After 5 years through 10 years | **143** | **121** | **1.6%** |
| &nbsp;&nbsp;After 10 years | **23** | **20** | **1.3%** |
| Total | **808** | **759** |  |
| Non-agency CMBS: |  |  |  |
| &nbsp;&nbsp;Due within 1 year | **127** | **121** | **5.0%** |
| &nbsp;&nbsp;After 1 year through 5 years | **757** | **735** | **4.6%** |
| &nbsp;&nbsp;After 5 years through 10 years | **373** | **344** | **4.3%** |
| &nbsp;&nbsp;After 10 years | **382** | **380** | **7.3%** |
| Total | **1639** | **1580** |  |
| Total HTM securities | $**55205** | $**47369** | **2.2%** |
| **Total investment securities** | $**165900** | $**155696** | **3.1%** |

---

1. Amounts are net of any ACL.

2. Annualized average yield is computed using the effective yield, weighted based on the amortized cost of each security. The effective yield is shown pre-tax and excludes the effect of related hedging derivatives.

3. At September 30, 2025, the annualized average yield, including the interest rate swap accrual of related hedges, was 3.5% for AFS securities contractually maturing within 1 year and 3.8% for all AFS securities.

4. Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 to the financial statements in the 2024 Form 10-K and Note 6 herein for additional information.

**Gross Realized Gains (Losses) on Sales of AFS Securities**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Gross realized gains | $**3** | $— | $**25** | $50 |
| Gross realized (losses) | **—** |  | **(1)** |  |
| **Total**<sup>1</sup> | $**3** | $— | $**24** | $50 |

---

1. Realized gains and losses are recognized in Other revenues in the income statement.

**8. Collateralized Transactions**

**Offsetting of Certain Collateralized Transactions**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset<sup>1</sup> | Net Amounts |
| **Assets** |  |  |  |  |  |
| Securities purchased under agreements to resell | $**480516** | $**(368782)** | $**111734** | $**(109259)** | $**2475** |
| Securities borrowed | **200015** | **(70902)** | **129113** | **(125492)** | **3621** |
| **Liabilities** |  |  |  |  |  |
| Securities sold under agreements to repurchase | $**430286** | $**(368782)** | $**61504** | $**(56918)** | $**4586** |
| Securities loaned | **86846** | **(70902)** | **15944** | **(15839)** | **105** |
| **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** |
| Securities purchased under agreements to resell | Securities purchased under agreements to resell | Securities purchased under agreements to resell | Securities purchased under agreements to resell | Securities purchased under agreements to resell | $**886** |
| Securities borrowed | Securities borrowed | Securities borrowed |  |  | **80** |
| Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | Securities sold under agreements to repurchase |  | **3285** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset<sup>1</sup> | Net Amounts |
| **Assets** |  |  |  |  |  |
| Securities purchased under agreements to resell | $409635 | $(291070) | $118565 | $(116157) | $2408 |
| Securities borrowed | 165642 | (41783) | 123859 | (117573) | 6286 |
| **Liabilities** |  |  |  |  |  |
| Securities sold under agreements to repurchase | $341137 | $(291070) | $50067 | $(45520) | $4547 |
| Securities loaned | 57009 | (41783) | 15226 | (15211) | 15 |
| **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** | **Net amounts for which master netting agreements are not in place or may not be legally enforceable** |
| Securities purchased under agreements to resell | Securities purchased under agreements to resell | Securities purchased under agreements to resell | Securities purchased under agreements to resell | Securities purchased under agreements to resell | $2054 |
| Securities borrowed | Securities borrowed | Securities borrowed |  |  | 2079 |
| Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | Securities sold under agreements to repurchase |  | 3448 |

---

1. Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance.

For further discussion of the Firm's collateralized transactions, see Notes 2 and 8 to the financial statements in the 2024 Form 10-K. For information related to offsetting of derivatives, see Note 6.

**Gross Secured Financing Balances by Remaining Contractual Maturity**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total |
| Securities sold under agreements to repurchase | $**263607** | $**95211** | $**32238** | $**39230** | $**430286** |
| Securities loaned | **76948** | **1** | **338** | **9559** | **86846** |
| Total included in the offsetting disclosure | $**340555** | $**95212** | $**32576** | $**48789** | $**517132** |
| Trading liabilities—<br>Obligation to return securities received as collateral | **6093** | **—** | **—** | **—** | **6093** |
| **Total** | $**346648** | $**95212** | $**32576** | $**48789** | $**523225** |

---

September 2025 Form 10-Q 56

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total |
| Securities sold under agreements to repurchase | $180793 | $104551 | $25071 | $30722 | $341137 |
| Securities loaned | 42473 |  | 317 | 14219 | 57009 |
| Total included in the offsetting disclosure | $223266 | $104551 | $25388 | $44941 | $398146 |
| Trading liabilities—<br>Obligation to return securities received as collateral | 18067 |  |  |  | 18067 |
| **Total** | $241333 | $104551 | $25388 | $44941 | $416213 |

---

**Gross Secured Financing Balances by Class of Collateral Pledged**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Securities sold under agreements to repurchase** | **Securities sold under agreements to repurchase** | **Securities sold under agreements to repurchase** |
| U.S. Treasury and agency securities | $**228058** | $177464 |
| Other sovereign government obligations | **154104** | 135806 |
| Corporate equities | **26552** | 14993 |
| Other | **21572** | 12874 |
| Total | $**430286** | $341137 |
| **Securities loaned** |  |  |
| Other sovereign government obligations | $**1605** | $1805 |
| Corporate equities | **83220** | 54144 |
| Other | **2021** | 1060 |
| Total | $**86846** | $57009 |
| Total included in the offsetting disclosure | $**517132** | $398146 |
| **Trading liabilities—Obligation to return securities received as collateral** | **Trading liabilities—Obligation to return securities received as collateral** | **Trading liabilities—Obligation to return securities received as collateral** |
| Corporate equities | $**5852** | $18059 |
| Other | **241** | 8 |
| Total | $**6093** | $18067 |
| **Total** | $**523225** | $416213 |

---

**Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Trading assets | $**40097** | $30867 |

---

The Firm pledges certain of its trading assets to collateralize securities sold under agreements to repurchase, securities loaned, other secured financings and derivatives and to cover customer short sales.

Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged as collateral) in the balance sheet. Pledged financial instruments that cannot be sold or repledged by the secured party are included within Trading Assets, but not identified as pledged assets parenthetically in the balance sheet.

**Fair Value of Collateral Received with Right to Sell or Repledge**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Collateral received with right to sell or repledge | $**1151503** | $932626 |
| Collateral that was sold or repledged<sup>1</sup> | **889923** | 724177 |

---

1. Does not include securities used to meet federal regulations for the Firm's U.S. broker-dealers.

The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed, securities-for-securities transactions, derivative transactions, customer margin loans and securities-based lending. In many cases, the Firm is permitted to sell or repledge this collateral to secure securities sold under agreements to repurchase, to enter into securities lending and derivative transactions or to deliver to counterparties to cover short positions.

**Securities Segregated for Regulatory Purposes**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Segregated securities<sup>1</sup> | $**22293** | $26329 |

---

1. Securities segregated under federal regulations for the Firm's U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheet.

**Customer Margin and Other Lending**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Margin and other lending | $**69570** | $55882 |

---

The Firm provides margin lending arrangements that allow customers to borrow against the value of qualifying securities. Receivables from these arrangements are included within Customer and other receivables in the balance sheet. Under these arrangements, the Firm receives collateral, which includes U.S. government and agency securities, other sovereign government obligations, corporate and other debt, and corporate equities. Margin loans are collateralized by customer-owned securities held by the Firm. The Firm monitors required margin levels and established credit terms daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary.

For a further discussion of the Firm's margin lending activities, see Note 8 to the financial statements in the 2024 Form 10-K.

Also included in the amounts in the previous table is non-purpose securities-based lending on entities in the Wealth Management business segment.

**Other Secured Financings**

The Firm has additional secured liabilities. For a further discussion of other secured financings, see Note 12.

 57 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

Additionally, for certain secured financing transactions that meet applicable netting criteria, the Firm offset Other secured financing liabilities against financing receivables recorded within Trading assets in the amount of $2,629 million and $437 million as of September 30, 2025 and December 31, 2024, respectively.

**9. Loans, Lending Commitments and Related Allowance for Credit Losses** 

**Loans by Type**

---

| | | | |
|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | HFI Loans | HFS Loans | Total Loans |
| Corporate | $**7839** | $**8270** | $**16109** |
| Secured lending facilities | **63610** | **2707** | **66317** |
| Commercial real estate | **7853** | **421** | **8274** |
| Residential real estate | **70910** | **5** | **70915** |
| Securities-based lending and Other | **106868** | **30** | **106898** |
| Total loans | **257080** | **11433** | **268513** |
| ACL | **(1213)** |  | **(1213)** |
| **Total loans, net** | $**255867** | $**11433** | $**267300** |
| Loans to non-U.S. borrowers, net | $**30364** | $**3742** | $**34106** |

---

---

| | | | |
|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | HFI Loans | HFS Loans | Total Loans |
| Corporate | $6889 | $9183 | $16072 |
| Secured lending facilities | 48842 | 2507 | 51349 |
| Commercial real estate | 8412 | 628 | 9040 |
| Residential real estate | 66738 |  | 66738 |
| Securities-based lending and Other  | 96019 | 1 | 96020 |
| Total loans | 226900 | 12319 | 239219 |
| ACL | (1066) |  | (1066) |
| **Total loans, net** | $225834 | $12319 | $238153 |
| Loans to non-U.S. borrowers, net | $23335 | $4763 | $28098 |

---

For additional information on the Firm's held-for-investment and held-for-sale loan portfolios, see Note 9 to the financial statements in the 2024 Form 10-K.

**Loans by Interest Rate Type**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Fixed Rate | Floating or Adjustable Rate | Fixed Rate | Floating or Adjustable Rate |
| Corporate | $**1** | $**16108** | $— | $16071 |
| Secured lending facilities | **525** | **65792** |  | 51349 |
| Commercial real estate | **328** | **7946** |  | 9041 |
| Residential real estate | **32051** | **38864** | 31014 | 35724 |
| Securities-based lending and Other | **26178** | **80720** | 25478 | 70542 |
| **Total loans, before ACL** | $**59083** | $**209430** | $56492 | $182727 |

---

See Note 4 for further information regarding Loans and lending commitments held at fair value. See Note 13 for details of current commitments to lend in the future.

**Loans Held for Investment before Allowance by Credit Quality and Origination Year**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate |
| *$ in millions* | IG | NIG | Total | IG | NIG | Total |
| Revolving | $**2606** | $**4876** | $**7482** | $2668 | $3963 | $6631 |
| 2025 | **125** | **38** | **163** |  |  |  |
| 2024 | **79** | **50** | **129** | 76 | 58 | 134 |
| 2023 | **—** | **49** | **49** |  | 50 | 50 |
| 2022 | **—** | **—** | **—** |  | 25 | 25 |
| 2021 | **15** | **—** | **15** | 15 |  | 15 |
| Prior | **—** | **1** | **1** | 31 | 3 | 34 |
| **Total** | $**2825** | $**5014** | $**7839** | $2790 | $4099 | $6889 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Secured Lending Facilities | Secured Lending Facilities | Secured Lending Facilities | Secured Lending Facilities | Secured Lending Facilities | Secured Lending Facilities |
| *$ in millions* | IG | NIG | Total | IG | NIG | Total |
| Revolving | $**14662** | $**34796** | $**49458** | $11405 | $27753 | $39158 |
| 2025 | **988** | **6410** | **7398** |  |  |  |
| 2024 | **268** | **2978** | **3246** | 818 | 2863 | 3681 |
| 2023 | **555** | **1047** | **1602** | 1371 | 1359 | 2730 |
| 2022 | **115** | **991** | **1106** | 279 | 1909 | 2188 |
| 2021 | **—** | **12** | **12** |  | 198 | 198 |
| Prior | **—** | **788** | **788** | 100 | 787 | 887 |
| **Total** | $**16588** | $**47022** | $**63610** | $13973 | $34869 | $48842 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate |
| *$ in millions* | IG | NIG | Total | IG | NIG | Total |
| Revolving | $**11** | $**8** | $**19** | $— | $161 | $161 |
| 2025 | **330** | **1278** | **1608** |  |  |  |
| 2024 | **582** | **1440** | **2022** | 147 | 2202 | 2349 |
| 2023 | **265** | **418** | **683** | 351 | 772 | 1123 |
| 2022 | **263** | **1236** | **1499** | 305 | 1488 | 1793 |
| 2021 | **251** | **1068** | **1319** | 166 | 1603 | 1769 |
| Prior | **37** | **666** | **703** |  | 1217 | 1217 |
| **Total** | $**1739** | $**6114** | $**7853** | $969 | $7443 | $8412 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate |
| | by FICO Scores | by FICO Scores | by FICO Scores | by LTV Ratio | by LTV Ratio | Total |
| *$ in millions* | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | Total |
| Revolving | $**159** | $**38** | $**6** | $**203** | $**—** | $**203** |
| 2025 | **6748** | **1210** | **151** | **7318** | **791** | **8109** |
| 2024 | **8057** | **1530** | **186** | **8838** | **935** | **9773** |
| 2023 | **6270** | **1344** | **194** | **6973** | **835** | **7808** |
| 2022 | **9804** | **2176** | **359** | **11378** | **961** | **12339** |
| 2021 | **10053** | **2143** | **214** | **11558** | **852** | **12410** |
| Prior | **15975** | **3835** | **458** | **18974** | **1294** | **20268** |
| **Total** | $**57066** | $**12276** | $**1568** | $**65242** | $**5668** | $**70910** |

---

September 2025 Form 10-Q 58

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate | Residential Real Estate |
| | by FICO Scores | by FICO Scores | by FICO Scores | by LTV Ratio | by LTV Ratio | Total |
| *$ in millions* | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | Total |
| Revolving | $136 | $39 | $5 | $180 | $— | $180 |
| 2024 | 8653 | 1607 | 191 | 9458 | 993 | 10451 |
| 2023 | 6778 | 1431 | 201 | 7529 | 881 | 8410 |
| 2022 | 10294 | 2298 | 370 | 11941 | 1021 | 12962 |
| 2021 | 10510 | 2247 | 228 | 12094 | 891 | 12985 |
| Prior | 17088 | 4171 | 491 | 20355 | 1395 | 21750 |
| **Total** | $53459 | $11793 | $1486 | $61557 | $5181 | $66738 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | Securities-based lending<sup>1</sup> | Other<sup>2</sup> | Other<sup>2</sup> | |
| *$ in millions* | Securities-based lending<sup>1</sup> | IG | NIG | Total |
| Revolving | $**86581** | $**5995** | $**1556** | $**94132** |
| 2025 | **1017** | **286** | **800** | **2103** |
| 2024 | **1358** | **780** | **176** | **2314** |
| 2023 | **812** | **305** | **900** | **2017** |
| 2022 | **238** | **183** | **1265** | **1686** |
| 2021 | **100** | **18** | **412** | **530** |
| Prior | **238** | **1100** | **2748** | **4086** |
| **Total** | $**90344** | $**8667** | $**7857** | $**106868** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| | Securities-based lending<sup>1</sup> | Other<sup>2</sup> | Other<sup>2</sup> | |
| *$ in millions* | Securities-based lending<sup>1</sup> | IG | NIG | Total |
| Revolving | $76432 | $6342 | $1551 | $84325 |
| 2024 | 1291 | 719 | 453 | 2463 |
| 2023 | 949 | 424 | 685 | 2058 |
| 2022 | 449 | 472 | 1053 | 1974 |
| 2021 | 100 | 14 | 538 | 652 |
| Prior | 270 | 1430 | 2847 | 4547 |
| **Total** | $79491 | $9401 | $7127 | $96019 |

---

IG—Investment Grade

NIG—Non-investment Grade

1. Securities-based loans are subject to collateral maintenance provisions, and at September 30, 2025 and December 31, 2024, these loans are predominantly over-collateralized. For more information on the ACL methodology related to securities-based loans, see Note 2 to the financial statements in the 2024 Form 10-K.

2. Other loans primarily include certain loans originated in the tailored lending business within the Wealth Management business segment, which typically consist of bespoke lending arrangements provided to ultra-high worth net clients. These facilities are generally secured by eligible collateral.

**Past Due Loans Held for Investment before Allowance**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At September 30, 2025** | At December 31, 2024 |
| Commercial real estate | $**199** | $272 |
| Residential real estate | **283** | 186 |
| Securities-based lending and Other | **145** | 86 |
| **Total** | $**627** | $544 |

---

1. As of September 30, 2025 and December 31, 2024, the majority of the amounts are 90 days or more past due.

**Nonaccrual Loans Held for Investment before Allowance**<sup>1</sup>

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At September 30, 2025** | At December 31, 2024 |
| Corporate | $**249** | $108 |
| Secured lending facilities | **5** | 6 |
| Commercial real estate | **561** | 447 |
| Residential real estate | **173** | 160 |
| Securities-based lending and Other | **293** | 298 |
| **Total** | $**1281** | $1019 |
| Nonaccrual loans without an ACL | $**147** | $162 |

---

1. There were no loans held for investment that were 90 days or more past due and still accruing as of September 30, 2025 and December 31, 2024. For further information on the Firm's nonaccrual policy, see Note 2 to the financial statements in the 2024 Form 10-K.

**Loan Modifications to Borrowers Experiencing Financial Difficulty**

The Firm may modify the terms of certain loans for economic or legal reasons related to a borrower's financial difficulties, and these modifications include interest rate reductions, principal forgiveness, term extensions and other-than-insignificant payment delays or a combination of these aforementioned modifications. Modified loans are typically evaluated individually for allowance for credit losses.

**Modified Loans Held for Investment**

**Period-end loans held for investment modified during the following periods**<sup>1</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, |
| | **2025** | **2025** | 2024 | 2024 |
| *$ in millions* | Amortized Cost | % of Total Loans<sup>2</sup> | Amortized Cost | % of Total Loans<sup>2</sup> |
| **Term Extension** | **Term Extension** | **Term Extension** | **Term Extension** | **Term Extension** |
| Corporate | $**42** | **0.5%** | $30 | 0.5% |
| Commercial real estate | **146** | **1.9%** | 56 | 0.6% |
| Securities-based lending and Other | **397** | **0.4%** | 21 | —% |
| **Total** | $**585** | **0.5%** | $107 | —% |
| **Other-than-insignificant Payment Delay** | **Other-than-insignificant Payment Delay** | **Other-than-insignificant Payment Delay** | **Other-than-insignificant Payment Delay** | **Other-than-insignificant Payment Delay** |
| Residential real estate | $**1** | **— %** | $— | —% |
| **Total** | $**1** | **— %** | $— | —% |
| **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** |
| Residential real estate | $**5** | **— %** | $— | —% |
| **Total** | $**5** | **— %** | $— | —% |
| **Total Modifications** | $**591** | **0.3%** | $107 | —% |

---

 59 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| | **2025** | **2025** | 2024 | 2024 |
| *$ in millions* | Amortized Cost | % of Total Loans<sup>2</sup> | Amortized Cost | % of Total Loans<sup>2</sup> |
| **Term Extension** | **Term Extension** | **Term Extension** | **Term Extension** | **Term Extension** |
| Corporate | $**172** | **2.2%** | $136 | 2.2% |
| Commercial real estate | **471** | **6.0%** | 136 | 1.6% |
| Residential real estate | **1** | **— %** |  | —% |
| Securities-based lending and Other | **429** | **0.4%** | 149 | 0.2% |
| **Total** | $**1073** | **0.6%** | $421 | 0.2% |
| **Other-than-insignificant Payment Delay** | **Other-than-insignificant Payment Delay** | **Other-than-insignificant Payment Delay** | **Other-than-insignificant Payment Delay** | **Other-than-insignificant Payment Delay** |
| Residential real estate | $**1** | **— %** | $— | —% |
| Securities-based lending and Other | **23** | **— %** |  | —% |
| **Total** | $**24** | **— %** | $— | —% |
| **Interest Rate Reduction** | **Interest Rate Reduction** | **Interest Rate Reduction** | **Interest Rate Reduction** | **Interest Rate Reduction** |
| Residential real estate | $**1** | **— %** | $— | —% |
| **Total** | $**1** | **— %** | $— | —% |
| **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** |
| Commercial real estate | $**75** | **1.0%** | $— | —% |
| Residential real estate | **7** | **— %** | 1 | —% |
| **Total** | $**82** | **0.1%** | $1 | —% |
| **Total Modifications** | $**1180** | **0.6%** | $422 | 0.2% |

---

1. Lending commitments to borrowers for which the Firm has modified terms of the receivable during the three months ended September 30, 2025 and 2024, were $174 million and $212 million, as of September 30, 2025 and 2024, respectively. Lending commitments to borrowers for which the Firm has modified terms of the receivable during the nine months ended September 30, 2025 and 2024 were $532 million and $676 million as of September 30, 2025 and 2024, respectively.

2. Percentage of total loans represents the percentage of modified loans to total loans held for investment by loan type.

**Financial Effect of Modifications on Loans Held for Investment**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025**<sup>1</sup> | **Three Months Ended September 30, 2025**<sup>1</sup> | **Three Months Ended September 30, 2025**<sup>1</sup> | **Three Months Ended September 30, 2025**<sup>1</sup> |
| | **Term Extension<br>(Months)** | **Other-than-insignificant Payment Delay<br>(Months)** | **Principal Forgiveness**<br>**($ millions)** | **Interest Rate Reduction<br>(%)** |
| **Single Modifications** | **Single Modifications** | **Single Modifications** | **Single Modifications** | **Single Modifications** |
| Corporate | **47** | **0** | $**—** | **— %** |
| Commercial real estate | **24** | **0** | **—** | **— %** |
| Residential real estate | **0** | **19** | **—** | **— %** |
| Securities-based lending and Other | **24** | **0** | **—** | —% |
| **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** |
| Residential real estate | **120** | **0** | $**—** | **1%** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2024<sup>1</sup> | Three Months Ended September 30, 2024<sup>1</sup> | Three Months Ended September 30, 2024<sup>1</sup> | Three Months Ended September 30, 2024<sup>1</sup> |
| | **Term Extension<br>(Months)** | **Other-than-insignificant Payment Delay<br>(Months)** | **Principal Forgiveness**<br>**($ millions)** | **Interest Rate Reduction<br>(%)** |
| **Single Modifications** | **Single Modifications** | **Single Modifications** | **Single Modifications** | **Single Modifications** |
| Corporate | 11 | 0 | $— | —% |
| Commercial real estate | 27 | 0 |  | —% |
| Securities-based lending and Other | 12 | 0 |  | —% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025**<sup>1</sup> | **Nine Months Ended September 30, 2025**<sup>1</sup> | **Nine Months Ended September 30, 2025**<sup>1</sup> | **Nine Months Ended September 30, 2025**<sup>1</sup> |
| | **Term Extension<br>(Months)** | **Other-than-insignificant Payment Delay<br>(Months)** | **Principal Forgiveness**<br>**($ millions)** | **Interest Rate Reduction<br>(%)** |
| **Single Modifications** | **Single Modifications** | **Single Modifications** | **Single Modifications** | **Single Modifications** |
| Corporate | **39** | **0** | $**—** | **— %** |
| Commercial real estate | **31** | **0** | **—** | **— %** |
| Residential real estate | **29** | **19** | **—** | **— %** |
| Securities-based lending and Other | **23** | **12** | **—** | —% |
| **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** |
| Commercial real estate | **65** | **0** | $**—** | **1%** |
| Residential real estate | **120** | **0** | **—** | **1%** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, 2024<sup>1</sup> | Nine Months Ended September 30, 2024<sup>1</sup> | Nine Months Ended September 30, 2024<sup>1</sup> | Nine Months Ended September 30, 2024<sup>1</sup> |
| | **Term Extension<br>(Months)** | **Other-than-insignificant Payment Delay<br>(Months)** | **Principal Forgiveness**<br>**($ millions)** | **Interest Rate Reduction<br>(%)** |
| **Single Modifications** | **Single Modifications** | **Single Modifications** | **Single Modifications** | **Single Modifications** |
| Corporate | 23 | 0 | $— | —% |
| Commercial real estate | 14 | 0 |  | —% |
| Securities-based lending and Other | 21 | 0 |  | —% |
| **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** | **Multiple Modifications - Term Extension and Interest Rate Reduction** |
| Residential real estate | 120 | 0 | $— | 1% |

---

1. In instances where more than one loan was modified, modification impact is presented on a weighted-average basis.

**Past Due Loans Held for Investment Modified in the Last 12 Months**

As of September 30, 2025, there were no past due loans held for investment modified in the 12 month period prior.

---

| | | | |
|:---|:---|:---|:---|
| | At September 30, 2024 | At September 30, 2024 | At September 30, 2024 |
| *$ in millions* | 30-89 Days Past Due | 90+ days <br>Past Due | Total |
| Commercial real estate | $— | $67 | $67 |
| Securities-based lending and Other | 42 |  | 42 |
| **Total** | $42 | $67 | $109 |

---

As of September 30, 2025, there were no loans held for investment that defaulted during the nine months ended September 30, 2025 that had been modified in the 12 month period prior. As of September 30, 2024 there was one commercial real estate loan held for investment with an amortized cost of $67 million that defaulted during the nine months ended September 30, 2024 that had been modified in the 12 month period prior to default.

**Provision for Credit Losses**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Loans | $**6** | $18 | $**225** | $81 |
| Lending commitments | **(6)** | 61 | **106** | 68 |

---

September 2025 Form 10-Q 60

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**Allowance for Credit Losses Rollforward and Allocation—Loans and Lending Commitments**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| *$ in millions* | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total |
| **ACL—Loans** |  |  |  |  |  |  |
| Beginning balance | $200 | $140 | $373 | $97 | $256 | $1066 |
| &nbsp;&nbsp;Gross charge-offs | **(10)** | **—** | **(99)** | **—** | **(17)** | **(126)** |
| &nbsp;&nbsp;Recoveries | **—** | **—** | **21** | **—** | **—** | **21** |
| Net (charge-offs)/ recoveries | **(10)** | **—** | **(78)** | **—** | **(17)** | **(105)** |
| Provision (release) | **41** | **55** | **55** | **26** | **48** | **225** |
| Other | **8** | **5** | **14** | **(1)** | **1** | **27** |
| **Ending balance** | $**239** | $**200** | $**364** | $**122** | $**288** | $**1213** |
| Percent of loans to total loans<sup>1</sup> | **3%** | **25%** | **3%** | **28%** | **41%** | **100%** |
| **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** |
| Beginning balance | $507 | $88 | $40 | $4 | $17 | $656 |
| Provision (release) | **93** | **39** | **(25)** | **—** | **(1)** | **106** |
| Other | **17** | **4** | **—** | **1** | **—** | **22** |
| **Ending balance** | $**617** | $**131** | $**15** | $**5** | $**16** | $**784** |
| **Total ending balance** | $**856** | $**331** | $**379** | $**127** | $**304** | $**1997** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| *$ in millions* | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total |
| **ACL—Loans** |  |  |  |  |  |  |
| Beginning balance | $241 | $153 | $463 | $100 | $212 | $1169 |
| Gross charge-offs | (39) | (11) | (103) |  | (2) | (155) |
| &nbsp;&nbsp;Recoveries |  |  | 4 |  | 3 | 7 |
| Net (charge-offs)/ recoveries | (39) | (11) | (99) |  | 1 | (148) |
| Provision (release) | 24 | (12) | 44 | (10) | 35 | 81 |
| Other | 1 |  | 3 |  | (2) | 2 |
| **Ending balance** | $227 | $130 | $411 | $90 | $246 | $1104 |
| Percent of loans to total loans<sup>1</sup> | 3% | 21% | 4% | 30% | 42% | 100% |
| **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** | **ACL—Lending commitments** |
| Beginning balance | $431 | $70 | $26 | $4 | $20 | $551 |
| Provision (release) | 41 | 19 | 9 |  | (1) | 68 |
| Other | (1) | 1 |  |  |  |  |
| **Ending balance** | $471 | $90 | $35 | $4 | $19 | $619 |
| **Total ending balance** | $698 | $220 | $446 | $94 | $265 | $1723 |

---

CRE—Commercial real estate

SBL—Securities-based lending

1. Percent of loans to total loans represents loans held for investment by loan type to total loans held for investment.

The allowance for credit losses for loans and lending commitments increased during the nine months ended September 30, 2025, primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans. Charge-offs in the current year period were primarily related to commercial real estate lending.

The base scenario used in the Firm's ACL models as of September 30, 2025 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. This scenario assumes modest economic growth in 2025, followed by a gradual

improvement in 2026, as well as lower interest rates relative to the prior quarter forecast. The ACL models incorporate key macroeconomic variables, including U.S. real GDP growth rate. The significance of key macroeconomic variables on the ACL models varies depending on portfolio composition and economic conditions. Other key macroeconomic variables used in the ACL models include corporate credit spreads, interest rates and commercial real estate indices.

For a further discussion of the Firm's loans as well as the Firm's allowance methodology, refer to Notes 2 and 9 to the financial statements in the 2024 Form 10-K.

**Gross Charge-offs by Origination Year**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| *$ in millions* | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total |
| Revolving | $**—** | $**—** | $**—** | $**—** | $**(8)** | $**(8)** |
| 2025 | **(10)** | **—** | **—** | **—** | **—** | **(10)** |
| 2022 | **—** | **—** | **(2)** | **—** | **—** | **(2)** |
| 2021 | **—** | **—** | **(34)** | **—** | **(4)** | **(38)** |
| Prior | **—** | **—** | **(1)** | **—** | **(5)** | **(6)** |
| **Total** | $**(10)** | $**—** | $**(37)** | $**—** | $**(17)** | $**(64)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 |
| *$ in millions* | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total |
| Revolving | $(39) | $— | $— | $— | $— | $(39) |
| 2022 |  |  | (18) |  |  | (18) |
| Prior |  |  | (44) |  |  | (44) |
| **Total** | $(39) | $— | $(62) | $— | $— | $(101) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| *$ in millions* | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total |
| Revolving | $**—** | $**—** | $**—** | $**—** | $**(8)** | $**(8)** |
| 2025 | **(10)** | **—** | **—** | **—** | **—** | **(10)** |
| 2022 | **—** | **—** | **(13)** | **—** | **—** | **(13)** |
| 2021 | **—** | **—** | **(45)** | **—** | **(4)** | **(49)** |
| Prior | **—** | **—** | **(41)** | **—** | **(5)** | **(46)** |
| **Total** | $**(10)** | $**—** | $**(99)** | $**—** | $**(17)** | $**(126)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| *$ in millions* | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total |
| Revolving | $(39) | $— | $— | $— | $— | $(39) |
| 2022 |  |  | (18) |  |  | (18) |
| 2021 |  |  |  |  | (2) | (2) |
| Prior | **—** | (11) | (85) | **—** | **—** | (96) |
| **Total** | $(39) | $(11) | $(103) | $— | $(2) | $(155) |

---

CRE—Commercial real estate

SBL—Securities-based lending

**Selected Credit Ratios**

---

| | | |
|:---|:---|:---|
| | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| ACL for loans to total HFI loans | **0.5%** | 0.5% |
| Nonaccrual HFI loans to total HFI loans | **0.5%** | 0.4% |
| ACL for loans to nonaccrual HFI loans  | **94.7%** | 104.6% |

---

 61 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**Employee Loans**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Currently employed by the Firm<sup>1</sup> | $**4621** | $4255 |
| No longer employed by the Firm<sup>2</sup> | **81** | 83 |
| Employee loans | $**4702** | $4338 |
| ACL | **(116)** | (112) |
| Employee loans, net of ACL | $**4586** | $4226 |
| Remaining repayment term, weighted average in years | **5.8** | 5.6 |

---

1. These loans are predominantly current.

2. These loans are predominantly past due for a period of 90 days or more.

Employee loans are granted in conjunction with a program established primarily to recruit certain Wealth Management financial advisors, are full recourse and generally require periodic repayments, and are due in full upon termination of employment with the Firm. These loans are recorded in Customer and other receivables in the balance sheet. See Note 2 to the financial statements in the 2024 Form 10-K for a description of the CECL allowance methodology, including credit quality indicators, for employee loans.

**10. Other Assets** 

**Equity Method Investments**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Investments | $**2042** | $1869 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Income (loss) | $**68** | $75 | $**189** | $185 |

---

Equity method investments, other than investments in certain fund interests, are summarized above and are included in Other assets in the balance sheet with related income or loss included in Other revenues in the income statement. See "Net Asset Value Measurements—Fund Interests" in Note 4 for the carrying value of certain of the Firm's fund interests, which are composed of general and limited partnership interests, as well as any related carried interest.

**Japanese Securities Joint Venture**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Income (loss) from investment in MUMSS | $**34** | $52 | $**100** | $128 |

---

For more information on MUMSS and other relationships with MUFG, see Note 11 to the financial statements in the 2024 Form 10-K.

**Tax Equity Investments**

The Firm invests in tax equity investment interests which entitle the Firm to a share of tax credits and other income tax benefits generated by the projects underlying the investments.

The Firm accounts for certain renewable energy and other tax equity investments programs using the proportional amortization method.

**Tax Equity Investments under the Proportional Amortization Method**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Low-income housing | $**1816** | $1787 |
| Renewable energy and other | **15** | 67 |
| **Total**<sup>1,2</sup> | $**1831** | $1854 |

---

1. Amounts include unfunded equity contributions of $639 million and $613 million as of September 30, 2025 and December 31, 2024, respectively. The corresponding liabilities for the commitments to fund these equity contributions are recorded in Other liabilities and accrued expenses. The majority of these commitments are expected to be funded within 5 years.

2. Amounts exclude $48 million and $48 million as of September 30, 2025 and December 31, 2024, respectively, of tax equity investments within programs for which the Firm elected the proportional amortization method that do not meet the conditions to apply the proportional amortization method, which are accounted for as equity method investments.

Income tax credits and other income tax benefits recognized as well as proportional amortization are included in the Provision for income taxes line in the consolidated income statement and in the Depreciation and amortization line in the consolidated cash flow statement.

**Net Benefits Attributable to Tax Equity Investments under the Proportional Amortization Method**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Income tax credits and other income tax benefits | $**75** | $74 | $**227** | $227 |
| Proportional amortization | **(60)** | (59) | **(184)** | (177) |
| **Net benefits** | $**15** | $15 | $**43** | $50 |

---

**11. Deposits**

**Deposits** 

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Savings and demand deposits | $**307108** | $299898 |
| Time deposits | **98372** | 76109 |
| **Total** | $**405480** | $376007 |
| Deposits subject to FDIC insurance | $**323552** | $298351 |
| Deposits not subject to FDIC insurance | $**81928** | $77656 |

---

**Time Deposit Maturities**

---

| | |
|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** |
| 2025 | $**14034** |
| 2026 | **37267** |
| 2027 | **20025** |
| 2028 | **12202** |
| 2029 | **8135** |
| Thereafter | **6709** |
| **Total** | $**98372** |

---

September 2025 Form 10-Q 62

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| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**12. Borrowings and Other Secured Financings**

**Borrowings**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Original maturities of one year or less | $**7551** | $4512 |
| **Original maturities greater than one year** | **Original maturities greater than one year** | **Original maturities greater than one year** |
| Senior | $**309979** | $270594 |
| Subordinated | **14149** | 13713 |
| **Total greater than one year** | $**324128** | $284307 |
| **Total** | $**331679** | $288819 |
| Weighted average stated maturity, in years<sup>1</sup> | **6.4** | 6.6 |

---

1. Only includes borrowings with original maturities greater than one year.

**Other Secured Financings**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Original maturities: |  |  |
| One year or less | $**13373** | $17133 |
| Greater than one year | **8068** | 4469 |
| **Total** | $**21441** | $21602 |
| Transfers of assets accounted for as secured financings | $**9479** | $10275 |

---

Other secured financings include the liabilities related to collateralized notes, transfers of financial assets that are accounted for as financings rather than sales and consolidated VIEs where the Firm is deemed to be the primary beneficiary. These liabilities are generally payable from the cash flows of the related assets accounted for as Trading assets. See Note 14 for further information on other secured financings related to VIEs and securitization activities.

For transfers of assets that fail to meet accounting criteria for a sale, the Firm continues to record the assets and recognizes the associated liabilities in the balance sheet.

**13. Commitments, Guarantees and Contingencies** 

**Commitments**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Years to Maturity at September 30, 2025** | **Years to Maturity at September 30, 2025** | **Years to Maturity at September 30, 2025** | **Years to Maturity at September 30, 2025** | |
| *$ in millions* | Less than 1 | 1-3 | 3-5 | Over 5 | Total |
| Lending: | Lending: |  |  |  |  |
| &nbsp;&nbsp;Corporate | $**15253** | $**47884** | $**77007** | $**10225** | $**150369** |
| &nbsp;&nbsp;Secured lending facilities | **7152** | **6604** | **10133** | **6086** | **29975** |
| &nbsp;&nbsp;Commercial and Residential real estate | **673** | **181** | **215** | **465** | **1534** |
| &nbsp;&nbsp;Securities-based lending and Other | **15349** | **3929** | **526** | **459** | **20263** |
| Forward-starting secured financing receivables<sup>1</sup> | **141793** | **3554** | **—** | **—** | **145347** |
| Central counterparty | **14298** | **—** | **—** | **—** | **14298** |
| Underwriting | **1422** | **—** | **—** | **—** | **1422** |
| Investment activities | **2533** | **313** | **76** | **471** | **3393** |
| Letters of credit and other financial guarantees | **26** | **—** | **—** | **5** | **31** |
| **Total** | $**198499** | $**62465** | $**87957** | $**17711** | $**366632** |
| Lending commitments participated to third parties | Lending commitments participated to third parties | Lending commitments participated to third parties | Lending commitments participated to third parties | Lending commitments participated to third parties | $**12877** |

---

1. These amounts primarily include secured financing receivables yet to settle as of September 30, 2025, with settlement generally occurring within three business days. These amounts also include commitments to enter into certain collateralized financing transactions.

Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements.

For a further description of these commitments, refer to Note 14 to the financial statements in the 2024 Form 10-K.

**Guarantees**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| | Maximum Potential Payout/Notional of Obligations by Years to Maturity | Maximum Potential Payout/Notional of Obligations by Years to Maturity | Maximum Potential Payout/Notional of Obligations by Years to Maturity | Maximum Potential Payout/Notional of Obligations by Years to Maturity | Carrying Amount Asset (Liability) |
| *$ in millions* | Less than 1 | 1-3 | 3-5 | Over 5 | Carrying Amount Asset (Liability) |
| Non-credit derivatives<sup>1</sup> | $**1449384** | $**714985** | $**211871** | $**560807** | $**(33866)** |
| Standby letters of credit and other financial guarantees issued<sup>2,3</sup> | **1558** | **734** | **1547** | **2543** | **14** |
| Liquidity facilities | **2834** | **—** | **—** | **—** | **2** |
| Whole loan sales guarantees | **61** | **17** | **—** | **23077** | **—** |
| Securitization representations and warranties<sup>4</sup> | **—** | **—** | **—** | **94468** | **—** |
| General partner guarantees | **208** | **109** | **72** | **20** | **(102)** |
| Client clearing guarantees | **2126** | **—** | **—** | **—** | **—** |

---

1. The carrying amounts of derivative contracts that meet the accounting definition of a guarantee are shown on a gross basis. For further information on derivatives contracts, see Note 6.

2. These amounts include certain issued standby letters of credit participated to third parties, totaling $0.7 billion of notional and collateral/recourse, due to the nature of the Firm's obligations under these arrangements.

3. As of September 30, 2025, the carrying amount of standby letters of credit and other financial guarantees issued includes an allowance for credit losses of $59 million.

4. Related to commercial, residential mortgage and asset backed securitizations.

The Firm has obligations under certain guarantee arrangements, including contracts and indemnification agreements, that contingently require the Firm to make

 63 September 2025 Form 10-Q

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|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

payments to the guaranteed party based on changes in an underlying measure (such as an interest or foreign exchange rate, security or commodity price, an index, or the occurrence or non-occurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Also included as guarantees are contracts that contingently require the Firm to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others.

For more information on the nature of the obligations and related business activities for our guarantees, see Note 14 to the financial statements in the 2024 Form 10-K.

**Other Guarantees and Indemnities**

In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. These provisions generally are standard contractual terms. Certain of these guarantees and indemnifications related to indemnities, market value guarantees, exchange and clearinghouse member guarantees, futures and over-the-counter derivatives clearing guarantees and merger and acquisition guarantees are described in Note 14 to the financial statements in the 2024 Form 10-K.

In addition, in the ordinary course of business, the Firm guarantees the debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the Firm's subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the financial statements.

***Finance Subsidiary***

The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a wholly owned finance subsidiary. No other subsidiary of the Parent Company guarantees these securities.

**Contingencies**

***Legal***

In addition to the matters described below, in the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable

indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our wealth management businesses, sales and trading businesses, and our activities in the capital markets.

The Firm is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental or other regulatory agencies regarding the Firm's business, and involving, among other matters, sales, trading, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by the Firm, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief.

The Firm contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and the Firm can reasonably estimate the amount of that loss or the range of loss, the Firm accrues an estimated loss by a charge to income, including with respect to certain of the individual proceedings or investigations described below.

The Firm's legal expenses can, and may in the future, fluctuate from period to period, given the current environment regarding government or regulatory agency investigations and private litigation affecting global financial services firms, including the Firm.

In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where the Firm has determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, the Firm may be unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal

September 2025 Form 10-Q 64

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|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

questions relevant to the proceedings or investigations in question.

The Firm has identified below any individual proceedings or investigations where the Firm believes a material loss to be reasonably possible. In certain legal proceedings in which the Firm has determined that a material loss is reasonably possible, the Firm is unable to reasonably estimate the loss or range of loss. There are other matters in which the Firm has determined a loss or range of loss to be reasonably possible, but the Firm does not believe, based on current knowledge and after consultation with counsel, that such losses could have a material adverse effect on the Firm's financial statements as a whole, although the outcome of such proceedings or investigations may significantly impact the Firm's business or results of operations for any particular reporting period, or cause significant reputational harm.

While the Firm has identified below certain proceedings or investigations that the Firm believes to be material, individually or collectively, there can be no assurance that material losses will not be incurred from claims that have not yet been asserted or those where potential losses have not yet been determined to be probable or reasonably possible.

**Antitrust Related Matters**

The Firm and other financial institutions are responding to a number of governmental investigations and civil litigation matters related to allegations of anticompetitive conduct in various aspects of the financial services industry, including the matters described below.

Beginning in February of 2016, the Firm was named as a defendant in multiple purported antitrust class actions now consolidated into a single proceeding in the United States District Court for the Southern District of New York ("SDNY") styled *In Re: Interest Rate Swaps Antitrust Litigation*. Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. and New York state antitrust laws from 2008 through December of 2016 in connection with alleged efforts to prevent the development of electronic exchange-based platforms for interest rate swaps trading. Complaints were filed both on behalf of a purported class of investors who purchased interest rate swaps from defendants, as well as on behalf of three operators of swap execution facilities that allegedly were thwarted by the defendants in their efforts to develop such platforms. The consolidated complaints seek, inter alia, certification of the investor class of plaintiffs and treble damages. On July 28, 2017, the court granted in part and denied in part the defendants' motion to dismiss the complaints. On December 15, 2023, the court denied the class plaintiffs' motion for class certification. On December 29, 2023, the class plaintiffs petitioned the United States Court of Appeals for the Second Circuit for leave to appeal that decision. On February 28, 2024, the parties reached an

agreement in principle to settle the class claims. On July 17, 2025, the court granted final approval of the settlement.

The Firm is a defendant in three antitrust class action complaints which have been consolidated into one proceeding in the United States District Court for the SDNY under the caption *City of Philadelphia, et al. v. Bank of America Corporation, et al.* Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws and relevant state laws in connection with alleged efforts to artificially inflate interest rates for Variable Rate Demand Obligations ("VRDO"). The consolidated complaint seeks, inter alia, certification of the class of plaintiffs and treble damages. The complaint was filed on behalf of a class of municipal issuers of VRDO for which defendants served as remarketing agent. On November 2, 2020, the court granted in part and denied in part the defendants' motion to dismiss the consolidated complaint, dismissing state law claims, but denying dismissal of the U.S. antitrust claims. On September 21, 2023, the court granted plaintiffs' motion for class certification. On February 5, 2024, the United States Court of Appeals for the Second Circuit granted leave to appeal that decision and, on August 1, 2025, affirmed the court's decision.

**European Matters**

***Tax***

In matters styled *Case number 15/3637* and *Case number 15/4353*, the Dutch Tax Authority ("Dutch Authority") challenged in the Dutch courts the prior set-off by the Firm of approximately €124 million (approximately $146 million) plus accrued interest of withholding tax credits against the Firm's corporation tax liabilities for the tax years 2007 to 2012. The Dutch Authority alleged that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, that a Firm subsidiary did not hold legal title to certain securities subject to withholding tax on the relevant dates. On April 26, 2018, the District Court in Amsterdam issued a decision dismissing the Dutch Authority's claims with respect to certain of the tax years in dispute. On May 12, 2020, the Court of Appeal in Amsterdam granted the Dutch Authority's appeal in matters re-styled *Case number 18/00318* and *Case number 18/00319*. On January 19, 2024, the Dutch High Court granted the Firm's appeal in matters re-styled *Case number 20/01884* and referred the case to the Court of Appeal in The Hague. On November 11, 2024, the Firm reached an agreement to settle the Dutch Authority's challenges for the tax years 2007 to 2012 and made payment of the prior set-off amounts and interest indicated above. The case has been withdrawn.

On June 22, 2021, Dutch criminal authorities sought various documents in connection with an investigation of the Firm related to the civil claims asserted by the Dutch Authority concerning the accuracy of the Firm subsidiary's tax returns for 2007 to 2012. The Dutch criminal authorities have

 65 September 2025 Form 10-Q

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|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

requested additional information, and the Firm is continuing to respond to them in connection with their ongoing investigation. On September 30, 2025, the Dutch Public Prosecutor served the Firm subsidiaries (Morgan Stanley Derivatives Products (Netherlands) B.V. and Morgan Stanley & Co. International plc) with indictments, bringing charges of filing false tax returns for 2007 to 2012. The Firm disputes these charges and will continue to engage with the Prosecutor as the criminal process progresses.

***U.K. Government Bond Matter***

On February 21, 2025, the U.K. Competition and Markets Authority announced a settlement with the Firm, as well as other financial institutions, in connection with its investigation of suspected anti-competitive arrangements in the financial services sector, specifically regarding the Firm's activities concerning certain liquid fixed income products between 2009 and 2012. Separately, on June 16, 2023, the Firm was named as a defendant in a purported antitrust class action in the United States District Court for the SDNY styled *Oklahoma Firefighters Pension and Retirement System v. Deutsche Bank Aktiengesellschaft, et al.*, alleging, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws in connection with their alleged effort to fix prices of gilts traded in the United States between 2009 and 2013. The complaint seeks, inter alia, certification of the class of plaintiffs and treble damages. On September 16, 2024, the court granted defendants' joint motion to dismiss, and the complaint was dismissed without prejudice. In October of 2024, the Firm and certain other defendants reached an agreement in principle to settle the U.S. litigation. On March 17, 2025, the court granted preliminary approval of the settlement.

**Other**

On August 13, 2021, the plaintiff in *Camelot Event Driven Fund, a Series of Frank Funds Trust v. Morgan Stanley & Co. LLC, et al.* filed in the Supreme Court of the State of New York, New York County ("Supreme Court of NY") a purported class action complaint alleging violations of federal securities laws against ViacomCBS ("Viacom"), certain of its officers and directors, and the underwriters, including the Firm, of two March 2021 Viacom offerings: a $1.7 billion Viacom Class B Common Stock offering and a $1 billion offering of 5.75% Series A Mandatory Convertible Preferred Stock (collectively, the "Offerings"). The complaint seeks certification of the class of plaintiffs and unspecified compensatory damages and alleges, inter alia, that the Viacom offering documents for both issuances contained material misrepresentations and omissions because they did not disclose that certain of the underwriters, including the Firm, had prime brokerage relationships and/or served as counterparties to certain derivative transactions with Archegos Capital Management LP ("Archegos"), a fund with significant exposure to Viacom securities across multiple prime brokers. The complaint also alleges that the offering documents did not adequately disclose the risks associated with Archegos's concentrated Viacom positions at the various prime brokers, including that the unwind of those positions could have a deleterious impact on the stock price of Viacom. On November 5, 2021, the complaint was amended to add allegations that defendants failed to disclose that certain underwriters, including the Firm, had intended to unwind Archegos's Viacom positions while simultaneously distributing the Offerings. On February 6, 2023, the court issued a decision denying motions to dismiss as to the Firm and the other underwriters, but granting the motion to dismiss as to Viacom and the Viacom individual defendants. On February 15, 2023, the underwriters, including the Firm, filed their notices of appeal of the denial of their motions to dismiss. On March 10, 2023, the plaintiff appealed the dismissal of Viacom and the individual Viacom defendants. On April 4, 2024, the Appellate Division upheld the lower court's decision as to the Firm and other underwriter defendants that had prime brokerage relationships and/or served as counterparties to certain derivative transactions with Archegos, dismissed the remaining underwriters, and upheld the dismissal of Viacom and its officers and directors. On July 25, 2024, the Appellate Division denied the plaintiff's and the Firm's respective motions for leave to reargue or appeal the April 4, 2024 decision. On January 4, 2024, the court granted the plaintiff's motion for class certification, which the defendants appealed. In February of 2025, the parties reached an agreement in principle to settle the litigation. On April 3, 2025, the court granted preliminary approval of the settlement and, on August 5, 2025, granted final approval.

On May 17, 2013, the plaintiff in *IKB International S.A. in Liquidation, et al. v. Morgan Stanley, et al.* filed a complaint against the Firm and certain affiliates in the Supreme Court of NY. The complaint alleges that defendants made material

September 2025 Form 10-Q 66

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| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

misrepresentations and omissions in the sale to the plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Firm to the plaintiff was approximately $133 million. The complaint alleges causes of action against the Firm for common law fraud, fraudulent concealment, aiding and abetting fraud, and negligent misrepresentation, and seeks, inter alia, compensatory and punitive damages. On October 29, 2014, the court granted in part and denied in part the Firm's motion to dismiss. All claims regarding four certificates were dismissed. After these dismissals, the remaining amount of certificates allegedly issued by the Firm or sold to the plaintiff by the Firm was approximately $116 million. On August 11, 2016, the Appellate Division affirmed the trial court's order denying in part the Firm's motion to dismiss the complaint. On July 15, 2022, the Firm filed a motion for summary judgment on all remaining claims. On March 1, 2023, the court granted in part and denied in part the Firm's motion for summary judgment, narrowing the alleged misrepresentations at issue in the case. On March 26, 2024, the Appellate Division affirmed the trial court's summary judgment order. On August 27, 2024, the plaintiff notified the court that in light of the court's rulings to exclude certain evidence at trial, the plaintiff could not prove its claims at trial, and requested that the court dismiss the case, subject to its right to appeal the evidentiary rulings. On August 28, 2024, the court dismissed the case, and judgment was entered in the Firm's favor. The plaintiff has appealed.

Beginning in February of 2024, Morgan Stanley Smith Barney LLC ("MSSB") and E\*TRADE Securities LLC ("E\*TRADE Securities"), among others, have been named as defendants in multiple putative class actions pending in the federal district courts for the District of New Jersey and SDNY. The class action claims have been brought on behalf of brokerage, advisory and retirement account holders, alleging various contractual, fiduciary, and statutory claims (including under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §1962(c)-(d)) that MSSB and/or E\*TRADE Securities failed to pay a reasonable rate of interest on its cash sweep products. All matters pending in the SDNY (which focus solely on MSSB's cash sweep program) were consolidated into one action styled *Estate of Sherlip, et al. v. Morgan Stanley, et al.* An amended class action complaint was filed on August 15, 2025. On September 12, 2025, MSSB moved to dismiss the complaint. The matters pending in the District of New Jersey (which includes claims against both MSSB and E\*TRADE Securities) remain subject to requests to consolidate and appoint lead counsel. Together, the complaints seek, inter alia, certification of classes of plaintiffs, unspecified compensatory damages, equitable and injunctive relief, and treble damages. The Firm is also responding to requests from state securities regulators regarding brokerage account cash balances swept to the affiliate bank deposit program.

**14. Variable Interest Entities and Securitization Activities** 

**Consolidated VIE Assets and Liabilities by Type of Activity**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | VIE Assets | VIE Liabilities | VIE Assets | VIE Liabilities |
| MABS<sup>1</sup> | $**237** | $**7** | $575 | $236 |
| Investment vehicles<sup>2</sup> | **224** | **35** | 378 | 189 |
| MTOB | **1827** | **1696** | 619 | 578 |
| Other | **87** | **3** | 156 | 4 |
| **Total** | $**2375** | $**1741** | $1728 | $1007 |

---

MTOB—Municipal tender option bonds

1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets and may be in loan or security form. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable.

2. Amounts include investment funds and CLOs.

**Consolidated VIE Assets and Liabilities by Balance Sheet Caption**

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| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Assets** |  |  |
| Cash and cash equivalents | $**20** | $37 |
| Trading assets at fair value | **936** | 1395 |
| Investment securities | **1402** | 278 |
| Customer and other receivables | **16** | 16 |
| Other assets | **1** | 2 |
| **Total** | $**2375** | $1728 |
| **Liabilities** |  |  |
| Other secured financings | $**1703** | $921 |
| Other liabilities and accrued expenses | **35** | 82 |
| Borrowings | **3** | 4 |
| **Total** | $**1741** | $1007 |
| Noncontrolling interests | $**64** | $42 |

---

Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. Generally, most assets owned by consolidated VIEs cannot be removed unilaterally by the Firm and are not available to the Firm while the related liabilities issued by consolidated VIEs are non-recourse to the Firm. However, in certain consolidated VIEs, the Firm either has the unilateral right to remove assets or provides additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement.

In general, the Firm's exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE net assets recognized in its financial statements, net of amounts absorbed by third-party variable interest holders.

 67 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**Non-consolidated VIEs**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | MABS<sup>1</sup> | CDO | MTOB | OSF | Other<sup>2</sup> |
| VIE assets (UPB) | $**176657** | $**3295** | $**4092** | $**4129** | $**86701** |
| **Maximum exposure to loss**<sup>3</sup> | **Maximum exposure to loss**<sup>3</sup> | **Maximum exposure to loss**<sup>3</sup> | **Maximum exposure to loss**<sup>3</sup> |  |  |
| Debt and equity interests | $**29770** | $**161** | $**—** | $**2455** | $**12101** |
| Derivative and other contracts | **—** | **—** | **2834** | **—** | **4731** |
| Commitments, guarantees and other | **8614** | **—** | **—** | **—** | **231** |
| **Total** | $**38384** | $**161** | $**2834** | $**2455** | $**17063** |
| **Carrying value of variable interests—Assets** | **Carrying value of variable interests—Assets** | **Carrying value of variable interests—Assets** | **Carrying value of variable interests—Assets** |  |  |
| Debt and equity interests | $**29770** | $**161** | $**—** | $**1810** | $**12101** |
| Derivative and other contracts | **—** | **—** | **6** | **—** | **1814** |
| **Total** | $**29770** | $**161** | $**6** | $**1810** | $**13915** |
| Additional VIE assets owned<sup>4</sup> | Additional VIE assets owned<sup>4</sup> |  |  |  | $**16697** |
| **Carrying value of variable interests—Liabilities** | **Carrying value of variable interests—Liabilities** | **Carrying value of variable interests—Liabilities** | **Carrying value of variable interests—Liabilities** |  |  |
| Derivative and other contracts | $**—** | $**—** | $**3** | $**—** | $**633** |
| **Total** | $**—** | $**—** | $**3** | $**—** | $**633** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | MABS<sup>1</sup> | CDO | MTOB | OSF | Other<sup>2</sup> |
| VIE assets (UPB) | $179686 | $1621 | $3654 | $3603 | $74665 |
| **Maximum exposure to loss**<sup>3</sup> | **Maximum exposure to loss**<sup>3</sup> | **Maximum exposure to loss**<sup>3</sup> | **Maximum exposure to loss**<sup>3</sup> |  |  |
| Debt and equity interests | $26974 | $62 | $— | $2267 | $12097 |
| Derivative and other contracts |  |  | 2454 |  | 3936 |
| Commitments, guarantees and other | 8554 |  |  |  | 535 |
| **Total** | $35528 | $62 | $2454 | $2267 | $16568 |
| **Carrying value of variable interests**–**Assets** | **Carrying value of variable interests**–**Assets** | **Carrying value of variable interests**–**Assets** | **Carrying value of variable interests**–**Assets** |  |  |
| Debt and equity interests | $26974 | $62 | $— | $1821 | $12067 |
| Derivative and other contracts |  |  | 6 |  | 1772 |
| **Total** | $26974 | $62 | $6 | $1821 | $13839 |
| Additional VIE assets owned<sup>4</sup> | Additional VIE assets owned<sup>4</sup> |  |  |  | $15777 |
| **Carrying value of variable interests—Liabilities** | **Carrying value of variable interests—Liabilities** | **Carrying value of variable interests—Liabilities** | **Carrying value of variable interests—Liabilities** |  |  |
| Derivative and other contracts | $— | $— | $4 | $— | $448 |

---

OSF–Other structured financings

1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets, and may be in loan or security form.

2. Other primarily includes exposures to commercial real estate property and investment funds.

3. Where notional amounts are utilized in quantifying the maximum exposure related to derivatives, such amounts do not reflect changes in fair value recorded by the Firm.

4. Additional VIE assets owned represents the carrying value of total exposure to non-consolidated VIEs for which the maximum exposure to loss is less than specific thresholds, primarily interests issued by securitization SPEs. The Firm's maximum exposure to loss generally equals the fair value of the assets owned. These assets are primarily included in Trading assets and Investment securities and are measured at fair value (see Note 4). The Firm does not provide additional support in these transactions through contractual facilities, guarantees or similar derivatives.

The previous tables include VIEs sponsored by unrelated parties, as well as VIEs sponsored by the Firm; examples of the Firm's involvement with these VIEs include its secondary market-making activities and the securities held in its Investment securities portfolio (see Note 7).

The Firm's maximum exposure to loss is dependent on the nature of the Firm's variable interest in the VIE and is limited to the notional amounts of certain liquidity facilities and other credit support, total return swaps and written put options, as well as the fair value of certain other derivatives and investments the Firm has made in the VIE.

The Firm's maximum exposure to loss in the previous tables does not include the offsetting benefit of hedges or any reductions associated with the amount of collateral held as part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss.

Liabilities issued by VIEs generally are non-recourse to the Firm.

**Detail of Mortgage- and Asset-Backed Securitization Assets**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | UPB | Debt and Equity Interests | UPB | Debt and Equity Interests |
| Residential mortgages | $**14893** | $**2878** | $17316 | $2497 |
| Commercial mortgages | **42986** | **9592** | 82730 | 8445 |
| U.S. agency collateralized mortgage obligations | **87668** | **7719** | 39317 | 6260 |
| Other consumer or commercial loans | **31110** | **9581** | 40323 | 9772 |
| **Total** | $**176657** | $**29770** | $179686 | $26974 |

---

**Transferred Assets with Continuing Involvement**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** | **At September 30, 2025** |
| *$ in millions* | RML | CML | U.S. Agency CMO | CLN and Other<sup>1</sup> |
| SPE assets (UPB)<sup>2,3</sup> | $**13509** | $**80099** | $**14595** | $**13080** |
| **Retained interests** | **Retained interests** | **Retained interests** | **Retained interests** | **Retained interests** |
| Investment grade | $**268** | $**457** | $**530** | $**—** |
| Non-investment grade | **368** | **1058** | **—** | **119** |
| **Total** | $**636** | $**1515** | $**530** | $**119** |
| **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> |
| Investment grade | $**115** | $**102** | $**154** | $**—** |
| Non-investment grade | **15** | **21** | **—** | **—** |
| **Total** | $**130** | $**123** | $**154** | $**—** |
| Derivative assets | $**—** | $**—** | $**—** | $**1409** |
| Derivative liabilities | **—** | **—** | **—** | **582** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | RML | CML | U.S. Agency CMO | CLN and Other<sup>1</sup> |
| SPE assets (UPB)<sup>2,3</sup> | $6989 | $78232 | $18174 | $12725 |
| **Retained interests** | **Retained interests** | **Retained interests** | **Retained interests** | **Retained interests** |
| Investment grade | $198 | $543 | $967 | $— |
| Non-investment grade | 175 | 923 |  | 71 |
| **Total** | $373 | $1466 | $967 | $71 |
| **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> |
| Investment grade | $45 | $34 | $79 | $— |
| Non-investment grade | 5 | 24 |  |  |
| **Total** | $50 | $58 | $79 | $— |
| Derivative assets | $— | $— | $— | $1408 |
| Derivative liabilities |  |  |  | 400 |

---

September 2025 Form 10-Q 68

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Fair Value At September 30, 2025** | **Fair Value At September 30, 2025** | **Fair Value At September 30, 2025** |
| *$ in millions* | Level 2 | Level 3 | Total |
| **Retained interests** |  |  |  |
| Investment grade | $**724** | $**—** | $**724** |
| Non-investment grade | **117** | **56** | **173** |
| **Total** | $**841** | $**56** | $**897** |
| **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> |
| Investment grade | $**371** | $**—** | $**371** |
| Non-investment grade | **15** | **21** | **36** |
| **Total** | $**386** | $**21** | $**407** |
| Derivative assets | $**1409** | $**—** | $**1409** |
| Derivative liabilities | **582** | **—** | **582** |

---

---

| | | | |
|:---|:---|:---|:---|
| | Fair Value At December 31, 2024 | Fair Value At December 31, 2024 | Fair Value At December 31, 2024 |
| *$ in millions* | Level 2 | Level 3 | Total |
| **Retained interests** |  |  |  |
| Investment grade | $1080 | $— | $1080 |
| Non-investment grade | 71 | 50 | 121 |
| **Total** | $1151 | $50 | $1201 |
| **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> | **Interests purchased in the secondary market**<sup>3</sup> |
| Investment grade | $158 | $— | $158 |
| Non-investment grade | 18 | 11 | 29 |
| **Total** | $176 | $11 | $187 |
| Derivative assets | $1408 | $— | $1408 |
| Derivative liabilities | 400 |  | 400 |

---

RML—Residential mortgage loans

CML—Commercial mortgage loans

1. Amounts include CLO transactions managed by unrelated third parties.

2. Amounts include assets transferred by unrelated transferors.

3. Amounts include transactions where the Firm also holds retained interests as part of the transfer.

The previous tables include transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment. The transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the income statement. The Firm may act as underwriter of the beneficial interests issued by these securitization vehicles, for which Investment banking revenues are recognized. The Firm may retain interests in the securitized financial assets as one or more tranches of the securitization. Certain retained interests are carried at fair value in the balance sheet with changes in fair value recognized in the income statement. Fair value for these interests is measured using techniques that are consistent with the valuation techniques applied to the Firm's major categories of assets and liabilities as described in Note 2 in the 2024 Form 10-K and Note 4 herein. Further, as permitted by applicable guidance, certain transfers of assets where the Firm's only continuing involvement is a derivative are only reported in the following Assets Sold with Retained Exposure table.

**Proceeds from New Securitization Transactions and Sales of Loans**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| New transactions<sup>1</sup> | $**11538** | $7562 | $**37984** | $24160 |
| Retained interests | **5092** | 850 | **10332** | 5041 |

---

1. Net gains on new transactions and sales of corporate loans to CLO entities at the time of the sale were not material for all periods presented.

The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 13).

**Assets Sold with Retained Exposure**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Gross cash proceeds from sale of assets<sup>1</sup> | $**98694** | $92229 |
| **Fair value** |  |  |
| Assets sold | $**100308** | $92580 |
| Derivative assets recognized in the balance sheet | **1915** | 998 |
| Derivative liabilities recognized in the balance sheet | **303** | 648 |

---

1. The carrying value of assets derecognized at the time of sale approximates gross cash proceeds.

The Firm enters into transactions in which it sells securities, primarily equities, and contemporaneously enters into bilateral OTC derivatives with the purchasers of the securities, through which it retains exposure to the sold securities.

For a discussion of the Firm's VIEs, the determination and structure of VIEs and securitization activities, see Note 15 to the financial statements in the 2024 Form 10-K.

**15. Regulatory Requirements** 

**Regulatory Capital Framework and Requirements**

For a discussion of the Firm's regulatory capital framework, see Note 16 to the financial statements in the 2024 Form 10-K.

The Firm is required to maintain minimum risk-based and leverage-based capital ratios under regulatory capital requirements. A summary of the calculations of regulatory capital and RWA follows.

*Risk-Based Regulatory Capital.* Risk-based capital ratio requirements apply to Common Equity Tier 1 ("CET1") capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus the Firm's capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. At September 30, 2025 and December 31, 2024, the differences between the actual and required ratios were lower under the Standardized Approach.

*CECL Deferral.* Beginning on January 1, 2020, the Firm elected to defer the effect of the adoption of CECL on its risk-based and leverage-based capital amounts and ratios, as well as RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022, were phased-in at 75% from January 1, 2024 and were fully phased-in from January 1, 2025.

 69 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**Capital Buffer Requirements**

---

| | | |
|:---|:---|:---|
| | **At September 30, 2025** and December 31, 2024 | **At September 30, 2025** and December 31, 2024 |
| | Standardized | Advanced |
| **Capital buffers** |  |  |
| Capital conservation buffer | **—%** | **2.5%** |
| SCB | **6.0%** | **N/A** |
| G-SIB capital surcharge | **3.0%** | **3.0%** |
| CCyB<sup>1</sup> | **—%** | **—%** |
| Capital buffer requirement | **9.0%** | **5.5%** |

---

1. The CCyB can be set up to 2.5%, but is currently set by the Federal Reserve at zero.

The capital buffer requirement represents the amount of CET1 capital the Firm must maintain above the minimum risk-based capital requirements in order to avoid restrictions on the Firm's ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. The Firm's capital buffer requirement computed under the standardized approaches for calculating credit risk and market risk RWA ("Standardized Approach") is equal to the sum of the SCB, G-SIB capital surcharge and CCyB, and the capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWA ("Advanced Approach") is equal to the sum of the 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB.

**Risk-Based Regulatory Capital Ratio Requirements**

---

| | | | |
|:---|:---|:---|:---|
| | Regulatory Minimum | **At September 30, 2025** and December 31, 2024 | **At September 30, 2025** and December 31, 2024 |
| | Regulatory Minimum | Standardized | Advanced |
| **Required ratios**<sup>1</sup> |  |  |  |
| CET1 capital ratio | **4.5%** | **13.5%** | **10.0%** |
| Tier 1 capital ratio | **6.0%** | **15.0%** | **11.5%** |
| Total capital ratio | **8.0%** | **17.0%** | **13.5%** |

---

1. Required ratios represent the regulatory minimum plus the capital buffer requirement.

**The Firm's Regulatory Capital and Capital Ratios**

**Risk-based capital**

---

| | | |
|:---|:---|:---|
| | **Standardized** | **Standardized** |
| *$ in millions* | **At September 30,<br>2025** | At December 31,<br>2024 |
| **Risk-based capital** |  |  |
| CET1 capital | $**81303** | $75095 |
| Tier 1 capital | **91036** | 84790 |
| Total capital | **101733** | 95567 |
| Total RWA | **539296** | 471834 |
| **Risk-based capital ratio** |  |  |
| CET1 capital | **15.1%** | 15.9% |
| Tier 1 capital | **16.9%** | 18.0% |
| Total capital | **18.9%** | 20.3% |
| **Required ratio**<sup>1</sup> |  |  |
| CET1 capital | **13.5%** | 13.5% |
| Tier 1 capital | **15.0%** | 15.0% |
| Total capital | **17.0%** | 17.0% |

---

1. Required ratios are inclusive of any buffers applicable as of the date presented.

**Leveraged-based capital**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At September 30,<br>2025** | At December 31,<br>2024 |
| **Leveraged-based capital** |  |  |
| Adjusted average assets<sup>1</sup> | $**1340745** | $1223779 |
| Supplementary leverage exposure<sup>2</sup> | **1659985** | 1517687 |
| **Leveraged-based capital ratio** |  |  |
| Tier 1 leverage | **6.8%** | 6.9% |
| SLR | **5.5%** | 5.6% |
| **Required ratio**<sup>3</sup> |  |  |
| Tier 1 leverage | **4.0%** | 4.0% |
| SLR | **5.0%** | 5.0% |

---

1. Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.

2. Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.

3. Required ratios are inclusive of any buffers applicable as of the date presented.

**U.S. Bank Subsidiaries' Regulatory Capital and Capital Ratios**

The OCC establishes capital requirements for the U.S. Bank Subsidiaries, and evaluates their compliance with such capital requirements. Regulatory capital requirements for the U.S. Bank Subsidiaries are calculated in a similar manner to the Firm's regulatory capital requirements, although G-SIB capital surcharge and SCB requirements do not apply to the U.S. Bank Subsidiaries.

The OCC's regulatory capital framework includes Prompt Corrective Action ("PCA") standards, including "well-capitalized" PCA standards that are based on specified regulatory capital ratio minimums. For the Firm to remain an FHC, its U.S. Bank Subsidiaries must remain well-capitalized in accordance with the OCC's PCA standards. In addition,

September 2025 Form 10-Q 70

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

failure by the U.S. Bank Subsidiaries to meet minimum capital requirements may result in certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the U.S. Bank Subsidiaries' and the Firm's financial statements.

At September 30, 2025 and December 31, 2024, MSBNA and MSPBNA risk-based capital ratios are based on the Standardized Approach rules. Beginning on January 1, 2020, MSBNA and MSPBNA elected to defer the effect of the adoption of CECL on risk-based capital amounts and ratios, as well as RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022, were phased-in at 75% from January 1, 2024 and were fully phased-in from January 1, 2025.

**MSBNA's Regulatory Capital**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Well-Capitalized Requirement | Required Ratio<sup>1</sup> | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Well-Capitalized Requirement | Required Ratio<sup>1</sup> | Amount | Ratio | Amount | Ratio |
| **Risk-based capital** | **Risk-based capital** |  |  |  |  |  |
| CET1 capital | **6.5%** | **7.0%** | $**25948** | **19.8%** | $22165 | 20.1% |
| Tier 1 capital | **8.0%** | **8.5%** | **25948** | **19.8%** | 22165 | 20.1% |
| Total capital | **10.0%** | **10.5%** | **26890** | **20.5%** | 22993 | 20.9% |
| **Leverage-based capital** | **Leverage-based capital** |  |  |  |  |  |
| Tier 1 leverage | **5.0%** | **4.0%** | $**25948** | **10.5%** | $22165 | 9.7% |
| SLR | **6.0%** | **3.0%** | **25948** | **7.8%** | 22165 | 7.4% |

---

**MSPBNA's Regulatory Capital**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Well-Capitalized Requirement | Required Ratio<sup>1</sup> | **At September 30, 2025** | **At September 30, 2025** | At December 31, 2024 | At December 31, 2024 |
| *$ in millions* | Well-Capitalized Requirement | Required Ratio<sup>1</sup> | Amount | Ratio | Amount | Ratio |
| **Risk-based capital** | **Risk-based capital** |  |  |  |  |  |
| CET1 capital | **6.5%** | **7.0%** | $**17613** | **26.8%** | $16672 | 26.1% |
| Tier 1 capital | **8.0%** | **8.5%** | **17613** | **26.8%** | 16672 | 26.1% |
| Total capital | **10.0%** | **10.5%** | **18007** | **27.4%** | 17004 | 26.6% |
| **Leverage-based capital** | **Leverage-based capital** |  |  |  |  |  |
| Tier 1 leverage | **5.0%** | **4.0%** | $**17613** | **7.6%** | $16672 | 7.7% |
| SLR | **6.0%** | **3.0%** | **17613** | **7.4%** | 16672 | 7.5% |

---

1. Required ratios are inclusive of any buffers applicable as of the date presented. Failure to maintain the buffers would result in restrictions on the ability to make capital distributions, including the payment of dividends.

Additionally, MSBNA is conditionally registered with the SEC as a security-based swap dealer and is registered with the CFTC as a swap dealer. However, as MSBNA is prudentially regulated as a bank, its capital requirements continue to be determined by the OCC.

**Other Regulatory Capital Requirements**

**MS&Co. Regulatory Capital**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At September 30,<br>2025** | At December 31,<br>2024 |
| Net capital | $**18526** | $18483 |
| Excess net capital | **13135** | 13883 |

---

MS&Co. is registered as a broker-dealer and a futures commission merchant with the SEC and the CFTC,

respectively, and is registered as a swap dealer with the CFTC.

As an Alternative Net Capital broker-dealer, and in accordance with Securities Exchange Act of 1934 ("Exchange Act") Rule 15c3-1, Appendix E, MS&Co. is subject to minimum net capital and tentative net capital requirements and operates with capital in excess of its regulatory capital requirements. As a futures commission merchant and registered swap dealer, MS&Co. is subject to CFTC capital requirements. In addition, MS&Co. must notify the SEC if its tentative net capital falls below certain levels. At September 30, 2025 and December 31, 2024, MS&Co. exceeded its net capital requirement and had tentative net capital in excess of the minimum and notification requirements.

**Other Regulated Subsidiaries** 

Certain other subsidiaries are also subject to various regulatory capital requirements. Such subsidiaries include the following, each of which operated with capital in excess of their respective regulatory capital requirements as of September 30, 2025 and December 31, 2024, as applicable:

• MSSB,

• MSIP,

• MSESE,

• MSMS,

• MSCS, and

• MSCG.

See Note 16 to the financial statements in the 2024 Form 10-K for further information.

**16. Total Equity**

**Preferred Stock**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Shares Outstanding | | Carrying Value | Carrying Value |
| *$ in millions, except per share data* | **At<br>September 30,<br>2025** | Liquidation<br>Preference<br>per Share | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| **Series** |  |  |  |  |
| A | **44000** | $**25000** | $**1100** | $1100 |
| C<sup>1</sup> | **519882** | **1000** | **408** | 408 |
| E | **34500** | **25000** | **862** | 862 |
| F | **34000** | **25000** | **850** | 850 |
| I | **40000** | **25000** | **1000** | 1000 |
| K | **40000** | **25000** | **1000** | 1000 |
| L | **20000** | **25000** | **500** | 500 |
| M | **400000** | **1000** | **430** | 430 |
| N | **3000** | **100000** | **300** | 300 |
| O | **52000** | **25000** | **1300** | 1300 |
| P | **40000** | **25000** | **1000** | 1000 |
| Q | **40000** | **25000** | **1000** | 1000 |
| **Total** | **Total** | **Total** | $**9750** | $9750 |
| Shares authorized | Shares authorized | Shares authorized |  | 30000000 |

---

1. Series C preferred stock is held by MUFG.

For a description of Series A through Series Q preferred stock, see Note 17 to the financial statements in the 2024

 71 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

Form 10-K. The Firm's preferred stock has a preference over its common stock upon liquidation. The Firm's preferred stock qualifies as and is included in Tier 1 capital in accordance with regulatory capital requirements (see Note 15).

**Share Repurchases**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Repurchases of common stock under the Firm's Share Repurchase Authorization | $**1085** | $750 | $**3085** | $2500 |

---

On July 1, 2025, the Firm announced that its Board of Directors reauthorized a multi-year repurchase program of up to $20 billion of outstanding common stock (the "Share Repurchase Authorization"), without a set expiration date, beginning in the third quarter of 2025, which will be exercised from time to time as conditions warrant and is subject to limitations on distributions from the Federal Reserve. For more information on share repurchases, see Note 17 to the financial statements in the 2024 Form 10-K.

**Common Shares Outstanding for Basic and Diluted EPS** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *in millions* | **2025** | 2024 | **2025** | 2024 |
| Weighted average common shares outstanding, basic | **1571** | 1588 | **1577** | 1594 |
| Effect of dilutive RSUs and PSUs | **19** | 21 | **17** | 18 |
| Weighted average common shares outstanding and common stock equivalents, diluted | **1590** | 1609 | **1594** | 1612 |
| Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | **—** |  | **2** |  |

---

**Dividends**

---

| | | | | |
|:---|:---|:---|:---|:---|
| *$ in millions, except per<br>share data* | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, |
| *$ in millions, except per<br>share data* | **2025** | **2025** | 2024 | 2024 |
| *$ in millions, except per<br>share data* | Per Share<sup>1</sup> | Total | Per Share<sup>1</sup> | Total |
| **Preferred stock series** |  |  |  |  |
| A | $**337** | $**15** | $400 | $17 |
| C | **25** | **13** | 25 | 13 |
| E | **455** | **16** | 455 | 16 |
| F | **439** | **15** | 439 | 15 |
| I | **407** | **16** | 398 | 16 |
| K | **366** | **14** | 366 | 15 |
| L | **305** | **6** | 305 | 6 |
| M<sup>2</sup> | **29** | **12** | 30 | 12 |
| N | **1957** | **6** | 2215 | 6 |
| O | **266** | **14** | 266 | 13 |
| P | **406** | **16** | 406 | 17 |
| Q | **414** | **17** | 345 | 14 |
| **Total Preferred stock** |  | $**160** |  | $160 |
| **Common stock** | $**1.00** | $**1592** | $0.925 | $1492 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *$ in millions, except per<br>share data* | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| *$ in millions, except per<br>share data* | **2025** | **2025** | 2024 | 2024 |
| *$ in millions, except per<br>share data* | Per Share<sup>1</sup> | Total | Per Share<sup>1</sup> | Total |
| **Preferred stock series** |  |  |  |  |
| A | $**996** | $**44** | $1190 | $52 |
| C | **75** | **39** | 75 | 39 |
| E | **1351** | **47** | 1351 | 47 |
| F | **1303** | **44** | 1308 | 44 |
| I | **1209** | **48** | 1195 | 48 |
| K | **1097** | **44** | 1097 | 44 |
| L | **914** | **18** | 914 | 18 |
| M<sup>2</sup> | **59** | **24** | 59 | 24 |
| N | **5875** | **18** | 6726 | 20 |
| O | **797** | **41** | 797 | 41 |
| P | **1219** | **48** | 1219 | 49 |
| Q | **1242** | **50** | 345 | 14 |
| **Total Preferred stock** |  | $**465** |  | $440 |
| **Common stock** | $**2.85** | $**4562** | $2.625 | $4259 |

---

1. Common and Preferred Stock dividends are payable quarterly unless otherwise noted.

2. Series M is payable semiannually until September 15, 2026 and thereafter will be payable quarterly.

September 2025 Form 10-Q 72

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**Accumulated Other Comprehensive Income (Loss) Rollforward**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| *$ in millions* | CTA | AFS Securities | Pension and Other | DVA | Cash Flow Hedges | Total |
| Beginning Balance | $(1164) | $(2173) | $(579) | $(1995) | $(2) | $(5913) |
| OCI activity: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-Tax Gain (Loss) | **29** | **462** | **(1)** | **(1125)** | **15** | **(620)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect | **(50)** | **(111)** | **—** | **273** | **(3)** | **109** |
| &nbsp;&nbsp;After-tax Gain (Loss) | **(21)** | **351** | **(1)** | **(852)** | **12** | **(511)** |
| &nbsp;&nbsp;Non-Controlling Interests | **(22)** | **—** | **—** | **(19)** | **—** | **(41)** |
| **OCI Activity** | **1** | **351** | **(1)** | **(833)** | **12** | **(470)** |
| Reclassified to Earnings: |  |  |  |  |  |  |
| &nbsp;&nbsp;Pre-tax Reclass. | **—** | **(3)** | **6** | **5** | **40** | **48** |
| &nbsp;&nbsp;Tax effect | **—** | **1** | **(1)** | **(1)** | **(10)** | **(11)** |
| **Reclass. After-tax** | **—** | **(2)** | **5** | **4** | **30** | **37** |
| **Net OCI Activity** | **1** | **349** | **4** | **(829)** | **42** | **(433)** |
| **Ending Balance** | $**(1163)** | $**(1824)** | $**(575)** | $**(2824)** | $**40** | $**(6346)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 |
| *$ in millions* | CTA | AFS Securities | Pension and Other | DVA | Cash Flow Hedges | Total |
| Beginning Balance | $(1355) | $(2917) | $(582) | $(1894) | $(12) | $(6760) |
| OCI activity: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-Tax Gain (Loss) | 124 | 947 | 1 | (234) | 33 | 871 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect | 160 | (224) |  | 57 | (8) | (15) |
| &nbsp;&nbsp;After-tax Gain (Loss) | 284 | 723 | 1 | (177) | 25 | 856 |
| &nbsp;&nbsp;Non-Controlling Interests | 100 |  |  | (5) |  | 95 |
| OCI Activity | 184 | 723 | 1 | (172) | 25 | 761 |
| Reclassified to Earnings: |  |  |  |  |  |  |
| &nbsp;&nbsp;Pre-tax Reclass. |  |  | 5 | 4 | 11 | 20 |
| &nbsp;&nbsp;Tax effect |  |  | (3) | (2) | (2) | (7) |
| Reclass. After-tax |  |  | 2 | 2 | 9 | 13 |
| Net OCI Activity | 184 | 723 | 3 | (170) | 34 | 774 |
| Ending Balance | $(1171) | $(2194) | $(579) | $(2064) | $22 | $(5986) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| *$ in millions* | CTA | AFS Securities | Pension and Other | DVA | Cash Flow Hedges | Total |
| Beginning Balance | $(1477) | $(2573) | $(583) | $(2146) | $(35) | $(6814) |
| OCI activity: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-Tax Gain (Loss) | **4** | **1008** | **(2)** | **(922)** | **28** | **116** |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect | **367** | **(241)** | **—** | **225** | **(6)** | **345** |
| &nbsp;&nbsp;After-tax Gain (Loss) | **371** | **767** | **(2)** | **(697)** | **22** | **461** |
| &nbsp;&nbsp;Non-Controlling Interests | **57** | **—** | **—** | **(6)** | **—** | **51** |
| **OCI Activity** | **314** | **767** | **(2)** | **(691)** | **22** | **410** |
| Reclassified to Earnings: |  |  |  |  |  |  |
| &nbsp;&nbsp;Pre-tax Reclass. | **—** | **(24)** | **16** | **17** | **70** | **79** |
| &nbsp;&nbsp;Tax effect | **—** | **6** | **(6)** | **(4)** | **(17)** | **(21)** |
| **Reclass. After-tax** | **—** | **(18)** | **10** | **13** | **53** | **58** |
| **Net OCI Activity** | **314** | **749** | **8** | **(678)** | **75** | **468** |
| **Ending Balance** | $**(1163)** | $**(1824)** | $**(575)** | $**(2824)** | $**40** | $**(6346)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| *$ in millions* | CTA | AFS Securities | Pension and Other | DVA | Cash Flow Hedges | Total |
| Beginning Balance | $(1153) | $(3094) | $(595) | $(1595) | $16 | $(6421) |
| OCI activity: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-Tax Gain (Loss) | (5) | 1229 | 6 | (630) | (26) | 574 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect | (26) | (291) |  | 151 | 6 | (160) |
| &nbsp;&nbsp;After-tax Gain (Loss) | (31) | 938 | 6 | (479) | (20) | 414 |
| &nbsp;&nbsp;Non-Controlling Interests | (13) |  |  | 6 |  | (7) |
| OCI Activity | (18) | 938 | 6 | (485) | (20) | 421 |
| Reclassified to Earnings: |  |  |  |  |  |  |
| &nbsp;&nbsp;Pre-tax Reclass. |  | (50) | 15 | 21 | 34 | 20 |
| &nbsp;&nbsp;Tax effect |  | 12 | (5) | (5) | (8) | (6) |
| Reclass. After-tax |  | (38) | 10 | 16 | 26 | 14 |
| Net OCI Activity | (18) | 900 | 16 | (469) | 6 | 435 |
| Ending Balance | $(1171) | $(2194) | $(579) | $(2064) | $22 | $(5986) |

---

**17. Interest Income and Interest Expense**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| **Interest income** |  |  |  |  |
| Cash and cash equivalents | $**608** | $680 | $**1894** | $2316 |
| Investment securities | **1379** | 1335 | **3983** | 3809 |
| Loans | **3620** | 3557 | **10406** | 10345 |
| Securities purchased under agreements to resell<sup>1</sup> | **3837** | 3580 | **11033** | 9121 |
| Securities borrowed<sup>2</sup> | **1701** | 1384 | **4990** | 4118 |
| Trading assets, net of Trading liabilities | **1593** | 1577 | **4605** | 4490 |
| Customer receivables and Other | **2718** | 2072 | **7198** | 6445 |
| **Total interest income** | $**15456** | $14185 | $**44109** | $40644 |
| **Interest expense** |  |  |  |  |
| Deposits | $**2823** | $2751 | $**7948** | $7777 |
| Borrowings | **3181** | 3434 | **9398** | 9985 |
| Securities sold under agreements to repurchase<sup>3</sup> | **3394** | 2994 | **9824** | 8120 |
| Securities loaned<sup>4</sup> | **864** | 274 | **2318** | 767 |
| Customer payables and Other | **2703** | 2536 | **7430** | 7936 |
| **Total interest expense** | $**12965** | $11989 | $**36918** | $34585 |
| **Net interest** | $**2491** | $2196 | $**7191** | $6059 |

---

1. Includes interest paid on Securities purchased under agreements to resell.

2. Includes fees paid on Securities borrowed.

3. Includes interest received on Securities sold under agreements to repurchase.

4. Includes fees received on Securities loaned.

Interest income and Interest expense are classified in the income statement based on the nature of the instrument and related market conventions. When included as a component of the instrument's fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense.

**Accrued Interest**

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At September 30,<br>2025** | At December 31,<br>2024 |
| Customer and other receivables | $**4126** | $3322 |
| Customer and other payables | **4395** | 3938 |

---

 73 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

**18. Income Taxes** 

The Firm is routinely under examination by the IRS and other tax authorities in certain countries, such as the U.K., and in states and localities in which it has significant business operations, such as New York.

The Firm believes that the resolution of these tax examinations will not have a material effect on the annual financial statements, although a resolution could have a material impact in the income statement and on the effective tax rate for any period in which such resolutions occur.

**19. Segment, Geographic and Revenue Information**

**Selected Financial Information by Business Segment**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| *$ in millions* | IS | WM | IM | I/E | Total |
| Investment banking | $**2108** | $**204** | $**—** | $**(46)** | $**2266** |
| Trading | **4681** | **338** | **(15)** | **16** | **5020** |
| Investments | **176** | **41** | **157** | **—** | **374** |
| Commissions and fees<sup>1</sup> | **796** | **766** | **—** | **(89)** | **1473** |
| Asset management<sup>1,2</sup> | **192** | **4789** | **1534** | **(74)** | **6441** |
| Other | **53** | **105** | **3** | **(2)** | **159** |
| Total non-interest revenues | **8006** | **6243** | **1679** | **(195)** | **15733** |
| Interest income | **11506** | **4151** | **12** | **(213)** | **15456** |
| Interest expense | **10989** | **2160** | **40** | **(224)** | **12965** |
| Net interest | **517** | **1991** | **(28)** | **11** | **2491** |
| **Net revenues** | $**8523** | $**8234** | $**1651** | $**(184)** | $**18224** |
| **Provision for credit losses** | $**1** | $**(1)** | $**—** | $**—** | $**—** |
| Compensation and benefits | **2422** | **4388** | **632** | **—** | **7442** |
| Non-compensation expenses<sup>3</sup> | **2918** | **1348** | **655** | **(167)** | **4754** |
| **Total non-interest expenses** | $**5340** | $**5736** | $**1287** | $**(167)** | $**12196** |
| Income before provision for income taxes | **3182** | **2499** | **364** | **(17)** | **6028** |
| Provision for income taxes | **672** | **610** | **95** | **(4)** | **1373** |
| Net income | **2510** | **1889** | **269** | **(13)** | **4655** |
| Net income applicable to noncontrolling interests | **42** | **—** | **3** | **—** | **45** |
| **Net income applicable to Morgan Stanley** | $**2468** | $**1889** | $**266** | $**(13)** | $**4610** |
| Pre-tax margin<sup>4</sup> | **37%** | **30%** | **22%** | **N/M** | **33%** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 |
| *$ in millions* | IS | WM | IM | I/E | Total |
| Investment banking | $1463 | $167 | $— | $(40) | $1590 |
| Trading | 3708 | 300 | (24) | 18 | 4002 |
| Investments | 179 | 13 | 123 |  | 315 |
| Commissions and fees<sup>1</sup> | 760 | 609 |  | (75) | 1294 |
| Asset management<sup>1,2</sup> | 167 | 4266 | 1384 | (70) | 5747 |
| Other | 99 | 141 | 3 | (4) | 239 |
| Total non-interest revenues | 6376 | 5496 | 1486 | (171) | 13187 |
| Interest income | 10423 | 4148 | 33 | (419) | 14185 |
| Interest expense | 9984 | 2374 | 64 | (433) | 11989 |
| Net interest | 439 | 1774 | (31) | 14 | 2196 |
| **Net revenues** | $6815 | $7270 | $1455 | $(157) | $15383 |
| **Provision for credit losses** | $68 | $11 | $— | $— | $79 |
| Compensation and benefits | 2271 | 3868 | 594 |  | 6733 |
| Non-compensation expenses<sup>3</sup> | 2565 | 1331 | 601 | (147) | 4350 |
| **Total non-interest expenses** | $4836 | $5199 | $1195 | $(147) | $11083 |
| Income before provision for income taxes | 1911 | 2060 | 260 | (10) | 4221 |
| Provision for income taxes | 438 | 492 | 67 | (2) | 995 |
| Net income | 1473 | 1568 | 193 | (8) | 3226 |
| Net income applicable to noncontrolling interests | 37 |  | 1 |  | 38 |
| **Net income applicable to Morgan Stanley** | $1436 | $1568 | $192 | $(8) | $3188 |
| Pre-tax margin<sup>4</sup> | 28% | 28% | 18% | N/M | 27% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| *$ in millions* | IS | WM | IM | I/E | Total |
| Investment banking | $**5207** | $**537** | $**—** | $**(123)** | $**5621** |
| Trading | **14144** | **759** | **(78)** | **51** | **14876** |
| Investments | **481** | **99** | **551** | **—** | **1131** |
| Commissions and fees<sup>1</sup> | **2479** | **2149** | **—** | **(249)** | **4379** |
| Asset management<sup>1,2</sup> | **566** | **13596** | **4419** | **(224)** | **18357** |
| Other | **821** | **382** | **8** | **(11)** | **1200** |
| Total non-interest revenues | **23698** | **17522** | **4900** | **(556)** | **45564** |
| Interest income | **32719** | **12110** | **45** | **(765)** | **44109** |
| Interest expense | **31268** | **6307** | **140** | **(797)** | **36918** |
| Net interest | **1451** | **5803** | **(95)** | **32** | **7191** |
| **Net revenues** | $**25149** | $**23325** | $**4805** | $**(524)** | $**52755** |
| **Provision for credit losses** | $**260** | $**71** | $**—** | $**—** | $**331** |
| Compensation and benefits<sup>3</sup> | **7706** | **12534** | **1913** | **—** | **22153** |
| Non-compensation expenses<sup>3</sup> | **8609** | **4070** | **1882** | **(484)** | **14077** |
| **Total non-interest expenses** | $**16315** | $**16604** | $**3795** | $**(484)** | $**36230** |
| Income before provision for income taxes | **8574** | **6650** | **1010** | **(40)** | **16194** |
| Provision for income taxes | **1840** | **1529** | **233** | **(9)** | **3593** |
| Net income | **6734** | **5121** | **777** | **(31)** | **12601** |
| Net income applicable to noncontrolling interests | **133** | **—** | **4** | **—** | **137** |
| **Net income applicable to Morgan Stanley** | $**6601** | $**5121** | $**773** | $**(31)** | $**12464** |
| Pre-tax margin<sup>4</sup> | **34%** | **29%** | **21%** | **N/M** | **31%** |

---

September 2025 Form 10-Q 74

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| *$ in millions* | IS | WM | IM | I/E | Total |
| Investment banking | $4529 | $483 | $— | $(98) | $4914 |
| Trading | 12338 | 638 | (34) | 43 | 12985 |
| Investments | 282 | 56 | 271 |  | 609 |
| Commissions and fees<sup>1</sup> | 2135 | 1770 |  | (201) | 3704 |
| Asset management<sup>1,2</sup> | 484 | 12084 | 4072 | (200) | 16440 |
| Other | 343 | 483 | 10 | (9) | 827 |
| Total non-interest revenues | 20111 | 15514 | 4319 | (465) | 39479 |
| Interest income | 29642 | 12147 | 86 | (1231) | 40644 |
| Interest expense | 28940 | 6719 | 187 | (1261) | 34585 |
| Net interest | 702 | 5428 | (101) | 30 | 6059 |
| **Net revenues** | $20813 | $20942 | $4218 | $(435) | $45538 |
| **Provision for credit losses** | $124 | $25 | $— | $— | $149 |
| Compensation and benefits<sup>3</sup> | 6905 | 11257 | 1727 |  | 19889 |
| Non-compensation expenses<sup>3</sup> | 7476 | 3973 | 1768 | (407) | 12810 |
| **Total non-interest expenses** | $14381 | $15230 | $3495 | $(407) | $32699 |
| Income before provision for income taxes | 6308 | 5687 | 723 | (28) | 12690 |
| Provision for income taxes | 1406 | 1313 | 172 | (6) | 2885 |
| Net income | 4902 | 4374 | 551 | (22) | 9805 |
| Net income applicable to noncontrolling interests | 127 |  | 2 |  | 129 |
| **Net income applicable to Morgan Stanley** | $4775 | $4374 | $549 | $(22) | $9676 |
| Pre-tax margin<sup>4</sup> | 30% | 27% | 17% | N/M | 28% |

---

1. Substantially all revenues are from contracts with customers.

2. Includes certain fees that may relate to services performed in prior periods.

3. The significant expense categories and amounts align with the segment-level information that is regularly provided to the Firm's chief operating decision maker ("CODM").

4. Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.

For a discussion about the Firm's business segments, see Note 22 to the financial statements in the 2024 Form 10-K.

**Detail of Investment Banking Revenues** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Institutional Securities Advisory | $**684** | $546 | $**1755** | $1599 |
| Institutional Securities Underwriting | **1424** | 917 | **3452** | 2930 |
| Firm Investment banking revenues from contracts with customers | **83%** | 91% | **84%** | 90% |

---

**Trading Revenues by Product Type**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Interest rate | $**1039** | $1450 | $**3448** | $4771 |
| Foreign exchange | **303** | 352 | **1487** | 893 |
| Equity<sup>1</sup> | **3225** | 2100 | **9239** | 6726 |
| Commodity and other | **803** | 451 | **1673** | 1528 |
| Credit | **(350)** | (351) | **(971)** | (933) |
| **Total** | $**5020** | $4002 | $**14876** | $12985 |

---

1. Dividend income is included within equity contracts.

The previous table summarizes realized and unrealized gains and losses primarily related to the Firm's Trading assets and

liabilities, from derivative and non-derivative financial instruments, included in Trading revenues in the income statement. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes.

**Investment Management Investments Revenues—Net Cumulative Unrealized Carried Interest** 

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Net cumulative unrealized performance-based fees at risk of reversing | $**924** | $796 |

---

The Firm's portion of net cumulative performance-based fees in the form of unrealized carried interest, for which the Firm is not obligated to pay compensation, is at risk of reversing when the returns in certain funds fall below specified performance targets. See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received.

**Investment Management Asset Management Revenues—Reduction of Fees Due to Fee Waivers** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Fee waivers | $**29** | $25 | $**85** | $70 |

---

The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940.

***Certain Other Fee Waivers***

Separately, the Firm's employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees.

**Other Expenses—Transaction Taxes**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Transaction taxes | $**376** | $217 | $**945** | $658 |

---

Transaction taxes are composed of securities transaction taxes and stamp duties, which are levied on the sale or purchase of securities listed on recognized stock exchanges in certain markets. These taxes are imposed mainly on trades of equity securities in Asia and EMEA. Similar transaction taxes are

 75 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Notes to Consolidated Financial Statements<br>(Unaudited)** | ![Image27.jpg](ms-20250930_g1.jpg) |

---

levied on trades of listed derivative instruments in certain countries.

**Net Revenues by Region**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Americas | $**13663** | $11557 | $**39113** | $34392 |
| EMEA | **1939** | 1828 | **6372** | 5525 |
| Asia | **2622** | 1998 | **7270** | 5621 |
| **Total** | $**18224** | $15383 | $**52755** | $45538 |

---

For a discussion about the Firm's geographic net revenues, see Note 22 to the financial statements in the 2024 Form 10-K.

**Revenues Recognized from Prior Services**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| *$ in millions* | **2025** | 2024 | **2025** | 2024 |
| Non-interest revenues | $**697** | $566 | $**1614** | $1416 |

---

The previous table includes revenues from contracts with customers recognized where some or all services were performed in prior periods. These revenues primarily include investment banking advisory fees.

**Receivables from Contracts with Customers** 

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Customer and other receivables | $**2776** | $2628 |

---

Receivables from contracts with customers, which are included within Customer and other receivables in the balance sheet, arise when the Firm has both recorded revenues and the right per the contract to bill the customer.

**Assets by Business Segment** 

---

| | | |
|:---|:---|:---|
| *$ in millions* | **At<br>September 30,<br>2025** | At<br>December 31,<br>2024 |
| Institutional Securities | $**928131** | $796608 |
| Wealth Management | **418992** | 400848 |
| Investment Management | **17683** | 17615 |
| **Total**<sup>1</sup> | $**1364806** | $1215071 |

---

1. Parent assets have been fully allocated to the business segments.

September 2025 Form 10-Q 76

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Financial Data Supplement<br>(Unaudited)** | ![Image28.jpg](ms-20250930_g1.jpg) |

---

**Average Balances and Interest Rates and Net Interest Income**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, |
| | **2025** | **2025** | **2025** | 2024 | 2024 | 2024 |
| *$ in millions* | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate |
| **Interest earning assets** | **Interest earning assets** | **Interest earning assets** | **Interest earning assets** | **Interest earning assets** | **Interest earning assets** | **Interest earning assets** |
| Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: |
| &nbsp;&nbsp;U.S. | $**49585** | $**407** | **3.3%** | $39915 | $405 | 4.0% |
| &nbsp;&nbsp;Non-U.S. | **46120** | **201** | **1.7%** | 43911 | 275 | 2.5% |
| Investment securities<sup>1</sup> | **166501** | **1379** | **3.3%** | 158115 | 1335 | 3.4% |
| Loans<sup>1</sup> | **263730** | **3620** | **5.4%** | 229399 | 3557 | 6.2% |
| Securities purchased under agreements to resell<sup>2:</sup> | Securities purchased under agreements to resell<sup>2:</sup> | Securities purchased under agreements to resell<sup>2:</sup> | Securities purchased under agreements to resell<sup>2:</sup> | Securities purchased under agreements to resell<sup>2:</sup> | Securities purchased under agreements to resell<sup>2:</sup> | Securities purchased under agreements to resell<sup>2:</sup> |
| &nbsp;&nbsp;U.S. | **69372** | **2727** | **15.6%** | 76150 | 2069 | 10.8% |
| &nbsp;&nbsp;Non-U.S. | **41496** | **1110** | **10.6%** | 47101 | 1511 | 12.8% |
| Securities borrowed<sup>3:</sup> | Securities borrowed<sup>3:</sup> | Securities borrowed<sup>3:</sup> | Securities borrowed<sup>3:</sup> | Securities borrowed<sup>3:</sup> | Securities borrowed<sup>3:</sup> | Securities borrowed<sup>3:</sup> |
| &nbsp;&nbsp;U.S. | **120238** | **1649** | **5.4%** | 109809 | 1289 | 4.7% |
| &nbsp;&nbsp;Non-U.S. | **20995** | **52** | **1.0%** | 18388 | 95 | 2.1% |
| Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: |
| &nbsp;&nbsp;U.S. | **111643** | **1330** | **4.7%** | 111904 | 1317 | 4.7% |
| &nbsp;&nbsp;Non-U.S. | **24810** | **263** | **4.2%** | 19250 | 260 | 5.4% |
| Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: |
| &nbsp;&nbsp;U.S. | **70117** | **2158** | **12.2%** | 55738 | 1506 | 10.7% |
| &nbsp;&nbsp;Non-U.S. | **20060** | **560** | **11.1%** | 15710 | 566 | 14.3% |
| Total | $**1004667** | $**15456** | **6.1%** | $925390 | $14185 | 6.1% |
| **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** |
| Deposits<sup>1</sup> | $**391352** | $**2823** | **2.9%** | $350784 | $2751 | 3.1% |
| Borrowings<sup>1,4</sup> | **312311** | **3181** | **4.0%** | 274562 | 3434 | 5.0% |
| Securities sold under agreements to repurchase<sup>5,7:</sup> | Securities sold under agreements to repurchase<sup>5,7:</sup> | Securities sold under agreements to repurchase<sup>5,7:</sup> | Securities sold under agreements to repurchase<sup>5,7:</sup> | Securities sold under agreements to repurchase<sup>5,7:</sup> | Securities sold under agreements to repurchase<sup>5,7:</sup> | Securities sold under agreements to repurchase<sup>5,7:</sup> |
| &nbsp;&nbsp;U.S. | **15240** | **2144** | **55.8%** | 14484 | 1413 | 38.8% |
| &nbsp;&nbsp;Non-U.S. | **53878** | **1250** | **9.2%** | 52804 | 1581 | 11.9% |
| Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: |
| &nbsp;&nbsp;U.S. | **9466** | **628** | **26.3%** | 11507 | 34 | 1.2% |
| &nbsp;&nbsp;Non-U.S. | **7770** | **236** | **12.1%** | 5837 | 240 | 16.4% |
| Customer payables and Other: | Customer payables and Other: | Customer payables and Other: | Customer payables and Other: | Customer payables and Other: | Customer payables and Other: | Customer payables and Other: |
| &nbsp;&nbsp;U.S. | **137417** | **1900** | **5.5%** | 140966 | 1622 | 4.6% |
| &nbsp;&nbsp;Non-U.S. | **66891** | **803** | **4.8%** | 60460 | 914 | 6.0% |
| Total | $**994325** | $**12965** | **5.2%** | $911404 | $11989 | 5.2% |
| **Net interest income and net interest rate spread** | **Net interest income and net interest rate spread** | $**2491** | **0.9%** |  | $2196 | 0.9% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| | **2025** | **2025** | **2025** | 2024 | 2024 | 2024 |
| *$ in millions* | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate |
| **Interest earning assets** | **Interest earning assets** | **Interest earning assets** | **Interest earning assets** | **Interest earning assets** | **Interest earning assets** | **Interest earning assets** |
| Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: |
| &nbsp;&nbsp;U.S. | $**51847** | $**1268** | **3.3%** | $45116 | $1486 | 4.4% |
| &nbsp;&nbsp;Non-U.S. | **44047** | **626** | **1.9%** | 43953 | 830 | 2.5% |
| Investment securities<sup>1</sup> | **162383** | **3983** | **3.3%** | 155737 | 3809 | 3.3% |
| Loans<sup>1</sup> | **252810** | **10406** | **5.5%** | 224134 | 10345 | 6.2% |
| Securities purchased under agreements to resell<sup>2</sup>: | Securities purchased under agreements to resell<sup>2</sup>: | Securities purchased under agreements to resell<sup>2</sup>: | Securities purchased under agreements to resell<sup>2</sup>: | Securities purchased under agreements to resell<sup>2</sup>: | Securities purchased under agreements to resell<sup>2</sup>: | Securities purchased under agreements to resell<sup>2</sup>: |
| &nbsp;&nbsp;U.S. | **70131** | **7488** | **14.3%** | 62127 | 5259 | 11.3% |
| &nbsp;&nbsp;Non-U.S. | **43331** | **3545** | **10.9%** | 48678 | 3862 | 10.6% |
| Securities borrowed<sup>3</sup>: | Securities borrowed<sup>3</sup>: | Securities borrowed<sup>3</sup>: | Securities borrowed<sup>3</sup>: | Securities borrowed<sup>3</sup>: | Securities borrowed<sup>3</sup>: | Securities borrowed<sup>3</sup>: |
| &nbsp;&nbsp;U.S. | **119056** | **4799** | **5.4%** | 108510 | 3798 | 4.7% |
| &nbsp;&nbsp;Non-U.S. | **19321** | **191** | **1.3%** | 18817 | 320 | 2.3% |
| Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: | Trading assets, net of Trading liabilities: |
| &nbsp;&nbsp;U.S. | **111744** | **3905** | **4.7%** | 106242 | 3783 | 4.8% |
| &nbsp;&nbsp;Non-U.S. | **23039** | **700** | **4.1%** | 14628 | 707 | 6.5% |
| Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: | Customer receivables and Other: |
| &nbsp;&nbsp;U.S. | **62936** | **5614** | **11.9%** | 52726 | 4759 | 12.1% |
| &nbsp;&nbsp;Non-U.S. | **17899** | **1584** | **11.8%** | 15791 | 1686 | 14.3% |
| Total | $**978544** | $**44109** | **6.0%** | $896459 | $40644 | 6.1% |
| **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** | **Interest bearing liabilities** |
| Deposits<sup>1</sup> | $**379031** | $**7948** | **2.8%** | $347548 | $7777 | 3.0% |
| Borrowings<sup>1,4</sup> | **299973** | **9398** | **4.2%** | 261239 | 9985 | 5.1% |
| Securities sold under agreements to repurchase<sup>5,7</sup>: | Securities sold under agreements to repurchase<sup>5,7</sup>: | Securities sold under agreements to repurchase<sup>5,7</sup>: | Securities sold under agreements to repurchase<sup>5,7</sup>: | Securities sold under agreements to repurchase<sup>5,7</sup>: | Securities sold under agreements to repurchase<sup>5,7</sup>: | Securities sold under agreements to repurchase<sup>5,7</sup>: |
| &nbsp;&nbsp;U.S. | **17504** | **5929** | **45.3%** | 19104 | 3928 | 27.6% |
| &nbsp;&nbsp;Non-U.S. | **52571** | **3895** | **9.9%** | 55603 | 4192 | 10.1% |
| Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: | Securities loaned<sup>6,7</sup>: |
| &nbsp;&nbsp;U.S. | **9967** | **1621** | **21.7%** | 9355 | 75 | 1.1% |
| &nbsp;&nbsp;Non-U.S. | **7103** | **697** | **13.1%** | 6889 | 692 | 13.5% |
| Customer payables and Other: | Customer payables and Other: | Customer payables and Other: | Customer payables and Other: | Customer payables and Other: | Customer payables and Other: | Customer payables and Other: |
| &nbsp;&nbsp;U.S. | **130464** | **5117** | **5.2%** | 133046 | 5148 | 5.2% |
| &nbsp;&nbsp;Non-U.S. | **62652** | **2313** | **4.9%** | 61571 | 2788 | 6.1% |
| Total | $**959265** | $**36918** | **5.1%** | $894355 | $34585 | 5.2% |
| **Net interest income and net interest rate spread** | **Net interest income and net interest rate spread** | $**7191** | **0.9%** |  | $6059 | 0.9% |

---

1. Amounts include primarily U.S. balances.

2. Includes interest paid on Securities purchased under agreements to resell.

3. Includes fees paid on Securities borrowed.

4. Average daily balance includes borrowings carried at fair value but, for certain borrowings, interest expense is considered part of fair value and is recorded in Trading revenues.

5. Includes interest received on Securities sold under agreements to repurchase.

6. Includes fees received on Securities loaned.

7. The annualized average rate was calculated using (a) interest expense incurred on all securities sold under agreements to repurchase and securities-loaned transactions, whether or not such transactions were reported in the balance sheet and (b) net average on-balance sheet balances, which exclude certain securities-for-securities transactions.

 77 September 2025 Form 10-Q

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| **Glossary of Common Terms and Acronyms** | ![Image29.jpg](ms-20250930_g1.jpg) |

---

---

| | |
|:---|:---|
| **2024 Form 10-K** | Annual report on Form 10-K for year ended December 31, 2024 filed with the SEC |
| **ABS** | Asset-backed securities |
| **ACL** | Allowance for credit losses |
| **AFS** | Available-for-sale |
| **AML** | Anti-money laundering |
| **AOCI** | Accumulated other comprehensive income (loss) |
| **AUM** | Assets under management or supervision |
| **Balance sheet** | Consolidated balance sheet |
| **BHC** | Bank holding company |
| **bps** | Basis points; one basis point equals 1/100th of 1% |
| **Cash flow statement** | Consolidated cash flow statement |
| **CCAR** | Comprehensive Capital Analysis and Review |
| **CCyB** | Countercyclical capital buffer |
| **CDO** | Collateralized debt obligation(s), including Collateralized loan obligation(s) |
| **CDS** | Credit default swaps |
| **CECL** | Current Expected Credit Losses, as calculated under the Financial Instruments—Credit Losses accounting update |
| **CET1** | Common Equity Tier 1 |
| **CFTC** | U.S. Commodity Futures Trading Commission |
| **CLN** | Credit-linked note(s) |
| **CLO** | Collateralized loan obligation(s) |
| **CMBS** | Commercial mortgage-backed securities |
| **CMO** | Collateralized mortgage obligation(s) |
| **CRE** | Commercial real estate |
| **CRM** | Credit Risk Management Department |
| **CTA** | Cumulative foreign currency translation adjustments |
| **DCP** | Employee deferred cash-based compensation plans linked to investment performance |
| **DCP investments** | Investments associated with certain DCP |
| **DVA** | Debt valuation adjustment |
| **EBITDA** | Earnings before interest, taxes, depreciation and amortization |
| **EMEA** | Europe, Middle East and Africa |
| **EPS** | Earnings per common share |
| **FDIC** | Federal Deposit Insurance Corporation |
| **FFELP** | Federal Family Education Loan Program |
| **FHC** | Financial holding company |
| **FICO** | Fair Isaac Corporation |
| **Financial statements** | Consolidated financial statements |
| **FVO** | Fair value option |
| **G-SIB** | Global systemically important bank |
| **HFI** | Held-for-investment |
| **HFS** | Held-for-sale |
| **HQLA** | High-quality liquid assets |
| **HTM** | Held-to-maturity |
| **I/E** | Intersegment eliminations |
| **IM** | Investment Management |
| **Income statement** | Consolidated income statement |

---

---

| | |
|:---|:---|
| **IRS** | Internal Revenue Service |
| **IS** | Institutional Securities |
| **LCR** | Liquidity coverage ratio, as adopted by the U.S. banking agencies |
| **LTV** | Loan-to-value |
| **M&A** | Merger, acquisition and restructuring transaction |
| **MSBNA** | Morgan Stanley Bank, N.A. |
| **MS&Co.** | Morgan Stanley & Co. LLC |
| **MSCG** | Morgan Stanley Capital Group Inc. |
| **MSCS** | Morgan Stanley Capital Services LLC |
| **MSESE** | Morgan Stanley Europe SE |
| **MSIP** | Morgan Stanley & Co. International plc |
| **MSMS** | Morgan Stanley MUFG Securities Co., Ltd. |
| **MSPBNA** | Morgan Stanley Private Bank, National Association |
| **MSSB** | Morgan Stanley Smith Barney LLC |
| **MUFG** | Mitsubishi UFJ Financial Group, Inc. |
| **MUMSS** | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
| **MWh** | Megawatt hour |
| **N/A** | Not Applicable |
| **N/M** | Not Meaningful |
| **NAV** | Net asset value |
| **Non-GAAP** | Non-generally accepted accounting principles in the U.S.  |
| **NSFR** | Net stable funding ratio, as adopted by the U.S. banking agencies |
| **OCC** | Office of the Comptroller of the Currency |
| **OCI** | Other comprehensive income (loss) |
| **OTC** | Over-the-counter |
| **PSU** | Performance-based stock unit |
| **ROE** | Return on average common equity |
| **ROTCE** | Return on average tangible common equity |
| **ROU** | Right-of-use |
| **RSU** | Restricted stock unit |
| **RWA** | Risk-weighted assets |
| **SCB** | Stress capital buffer |
| **SEC** | U.S. Securities and Exchange Commission |
| **SLR** | Supplementary leverage ratio |
| **S&P** | Standard & Poor's |
| **SPE** | Special purpose entity |
| **SPOE** | Single point of entry |
| **TLAC** | Total loss-absorbing capacity |
| **U.K.** | United Kingdom |
| **UPB** | Unpaid principal balance |
| **U.S.** | United States of America |
| **U.S. Bank Subsidiaries** | MSBNA and MSPBNA |
| **U.S. GAAP** | Accounting principles generally accepted in the U.S. |
| **VaR** | Value-at-Risk |
| **VIE** | Variable interest entity |
| **WACC** | Implied weighted average cost of capital |
| **WM** | Wealth Management |

---

September 2025 Form 10-Q 78

------

---

| | |
|:---|:---|
| <u>[**Table of Contents**](#i19725df28446465794a1a8db90131935_7)</u> | |
| | ![Image30.jpg](ms-20250930_g1.jpg) |

---

**Controls and Procedures**

Under the supervision and with the participation of the Firm's management, including the Chief Executive Officer and Chief Financial Officer, the Firm conducted an evaluation of the effectiveness of the Firm's disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Firm's disclosure controls and procedures were effective as of the end of the period covered by this report.

No change in the Firm's internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) occurred during the period covered by this report that materially affected, or is reasonably likely to materially affect, the Firm's internal control over financial reporting.

**Legal Proceedings**

See "Contingencies—Legal" in Note 13 to the Financial Statements for information about our material legal proceedings.

**Risk Factors**

For a discussion of the risk factors affecting the Firm, see "Risk Factors" in Part I, Item 1A of the 2024 Form 10-K.

**Unregistered Sales of Equity Securities and Use of Proceeds**

**Issuer Purchases of Equity Securities** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| *$ in millions, except per share data* | Total Number of Shares Purchased<sup>1</sup> | Average Price Paid per Share<sup>2</sup> | Total Shares Purchased as Part of Share Repurchase Authorization<sup>3,4</sup> | Dollar Value of Remaining Authorized Repurchase |
| July | 2335883 | $141.74 | 2267500 | $19679 |
| August | 2917652 | $143.53 | 2572433 | $19309 |
| September | 2622552 | $151.35 | 2600099 | $18915 |
| **Three Months Ended September 30, 2025** | **7876087** | $**145.60** | **7440032** |  |

---

1. Includes 436,055 shares acquired by the Firm in satisfaction of the tax withholding obligations on stock-based awards granted under the Firm's stock-based compensation plans during the three months ended September 30, 2025.

2. Excludes excise tax of $10 million levied on share repurchases, net of issuances, payable in April 2026.

3. Share purchases under publicly announced authorizations are made pursuant to open-market purchases, Rule 10b5-1 plans or privately negotiated transactions (including with employee benefit plans) as market conditions warrant and at prices the Firm deems appropriate and may be suspended at any time.

4. On July 1, 2025, the Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock (the "Share Repurchase Authorization"), without a set expiration date, beginning in the third quarter of 2025, which will be exercised from time to time as conditions warrant and is subject to limitations on distributions from the Federal Reserve. The Share Repurchase Authorization is for capital management purposes and considers, among other things, business segment capital needs, as well as equity-based compensation and benefit plan requirements. For further information, see "Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer."

**Other Information**

None.

**Exhibits**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 4.1 | Form of Master Note for Morgan Stanley Global Medium-Term Notes, Series I (<u>[Exhibit 4.1](https://www.sec.gov/Archives/edgar/data/895421/000095010325012045/dp234752_ex0401.htm)</u> to Morgan Stanley's current report on Form 8-K dated September 23, 2025). |
| 4.2 | Form of Master Note for Morgan Stanley Finance LLC Global Medium-Term Notes, Series A (Fully and Unconditionally Guaranteed by Morgan Stanley) (<u>[Exhibit 4.2](https://www.sec.gov/Archives/edgar/data/895421/000095010325012045/dp234752_ex0402.htm)</u> to Morgan Stanley's current report on Form 8-K dated September 23, 2025). |
| 15 | <u>[Letter of awareness from Deloitte & Touche LLP, dated](exhibit15q32025_10-q.htm)[November 3,](exhibit15q32025_10-q.htm)[202](exhibit15q32025_10-q.htm)[5](exhibit15q32025_10-q.htm)[, concerning unaudited interim financial information.](exhibit15q32025_10-q.htm)</u> |
| 31.1 | <u>[Rule 13a-14(a) Certification of Chief Executive Officer.](exhibit311q32025_10-q.htm)</u> |
| 31.2 | <u>[Rule 13a-14(a) Certification of Chief Financial Officer.](exhibit312q32025_10-q.htm)</u> |
| 32.1 | <u>[Section 1350 Certification of Chief Executive Officer.](exhibit321q32025_10-q.htm)</u> |
| 32.2 | <u>[Section 1350 Certification of Chief Financial Officer.](exhibit322q32025_10-q.htm)</u> |
| 101 | Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language ("Inline XBRL"). |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |

---

**Signatures**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| MORGAN STANLEY<br>**(Registrant)** | MORGAN STANLEY<br>**(Registrant)** |
| By: | /s/ SHARON YESHAYA |
|  | **Sharon Yeshaya<br>Executive Vice President and<br>Chief Financial Officer** |
| By: | /s/ VICTORIA WORSTER |
|  | **Victoria Worster**<br>**Chief Accounting Officer and Controller** |

---

Date: November 3, 2025

 79 September 2025 Form 10-Q

## Ex-15

**EXHIBIT 15**

To the Shareholders and the Board of Directors of Morgan Stanley:

We are aware that our report dated November 3, 2025, on our review of the interim financial information of Morgan Stanley appearing in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, is incorporated by reference in the following Registration Statements of the Firm:

**Filed on Form S-3:** 

Registration Statement No. 333-253728

Registration Statement No. 333-275587

Registration Statement No. 333-275587-01

**Filed on Form S-8:** 

Registration Statement No. 33-63024

Registration Statement No. 33-63026

Registration Statement No. 33-78038

Registration Statement No. 33-79516

Registration Statement No. 33-82240

Registration Statement No. 33-82242

Registration Statement No. 33-82244

Registration Statement No. 333-04212

Registration Statement No. 333-28141

Registration Statement No. 333-28263

Registration Statement No. 333-62869

Registration Statement No. 333-78081

Registration Statement No. 333-95303

Registration Statement No. 333-55972

Registration Statement No. 333-85148

**Filed on Form S-8:** 

Registration Statement No. 333-85150

Registration Statement No. 333-108223

Registration Statement No. 333-142874

Registration Statement No. 333-146954

Registration Statement No. 333-159503

Registration Statement No. 333-159504

Registration Statement No. 333-159505

Registration Statement No. 333-168278

Registration Statement No. 333-172634

Registration Statement No. 333-177454

Registration Statement No. 333-183595

Registration Statement No. 333-188649

Registration Statement No. 333-192448

Registration Statement No. 333-204504

Registration Statement No. 333-211723

Registration Statement No. 333-218377

Registration Statement No. 333-231913

Registration Statement No. 333-256493

Registration Statement No. 333-266612

Registration Statement No. 333-287621

---

| |
|:---|
| /s/ Deloitte & Touche LLP |
| New York, New York |
| November 3, 2025 |

---

## Exhibit 31.1

**EXHIBIT 31.1**

Certification

I, Edward Pick, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Morgan Stanley;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 3, 2025

---

| |
|:---|
| /s/ EDWARD PICK |
| Edward Pick |
| Chairman of the Board and Chief Executive Officer |

---

## Exhibit 31.2

**EXHIBIT 31.2**

Certification

I, Sharon Yeshaya, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Morgan Stanley;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 3, 2025

---

| |
|:---|
| /s/ SHARON YESHAYA |
| Sharon Yeshaya |
| Executive Vice President and Chief Financial Officer |

---

## Exhibit 32.1

**EXHIBIT 32.1**

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morgan Stanley (the "Firm") on Form 10-Q for the quarter ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Edward Pick, Chairman of the Board and Chief Executive Officer of the Firm, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Firm.

---

| |
|:---|
| /s/ EDWARD PICK |
| Edward Pick |
| Chairman of the Board and |
| Chief Executive Officer |

---

Date: November 3, 2025

## Exhibit 32.2

**EXHIBIT 32.2**

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Morgan Stanley (the "Firm") on Form 10-Q for the quarter ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Sharon Yeshaya, Executive Vice President and Chief Financial Officer of the Firm, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Firm.

---

| |
|:---|
| /s/ SHARON YESHAYA |
| Sharon Yeshaya |
| Executive Vice President and |
| Chief Financial Officer |

---

Date: November 3, 2025

<br>