Exhibit 99.1

Morgan Stanley Second Quarter 2022 Earnings Results

Morgan Stanley Reports Net Revenues of $13.1 Billion, EPS of $1.39 and ROTCE of 13.8%

NEW YORK, July 14, 2022 – Morgan Stanley (NYSE: MS) today reported net revenues of $13.1 billion for the second quarter ended June 30, 2022 compared with $14.8 billion a year ago. Net income applicable to Morgan Stanley was $2.5 billion, or $1.39 per diluted share,¹compared with net income of $3.5 billion, or $1.85 per diluted share,¹ for the same period a year ago.

James P. Gorman, Chairman and Chief Executive Officer, said, “Overall the Firm delivered a solid quarter in what was a more volatile market environment than we have seen for some time. Strong results in Equity and Fixed Income helped partially counter weaker investment banking activy. We continue to attract positive flows across our Wealth Management business, and Investment Management continues to benefit from its diversification. Finally, we finished the quarter in a strong capital position to ensure we move forward with confidence.”

Financial Summary^2,3
Firm ($ millions, except per share data)	2Q 2022			2Q 2021

Net revenues	$	13,132		$	14,759
Provision for credit losses	$	101		$	73
Compensation expense	$	5,550		$	6,423
Non-compensation expenses	$	4,162		$	3,697
Pre-tax income⁸	$	3,319		$	4,566
Net income app. to MS	$	2,495		$	3,511
Expense efficiency ratio⁶		74	%		69	%
Earnings per diluted share	$	1.39		$	1.85
Book value per share	$	54.46		$	54.04
Tangible book value per share	$	40.07		$	40.12
Return on equity		10.1	%		13.8	%
Return on tangible equity⁴		13.8	%		18.6	%
Institutional Securities
Net revenues	$	6,119		$	7,092
Investment Banking	$	1,072		$	2,376
Equity	$	2,960		$	2,827
Fixed Income	$	2,500		$	1,682
Wealth Management
Net revenues	$	5,736		$	6,095
Fee-based client assets ($ billions)⁹	$	1,717		$	1,680
Fee-based asset flows ($ billions)¹⁰	$	28.5		$	33.7
Net new assets ($ billions)	$	52.9		$	71.2
Loans ($ billions)	$	143.6		$	114.7
Investment Management
Net revenues	$	1,411		$	1,702
AUM ($ billions)¹¹	$	1,351		$	1,524
Long-term net flows ($ billions)¹²	$	(3.5	)	$	13.5

Highlights

•	The Firm reported solid results with net revenues of $13.1 billion demonstrating the strength of our diversified franchise as the businesses navigated a challenging market environment.

•	The Firm delivered ROTCE of 13.8%, or 14.3% excluding the impact of integration-related expenses.^4,5

•

The Firm’s expense efficiency ratio was 74%, impacted by $200 million related to a specific regulatory matter concerning the use of unapproved personal devices and the Firm’s record-keeping requirements. In the first half of the year, the expense efficiency ratio was 71%, or 70% excluding the impact of integration-related expenses.^5,6

•	The Firm remains in a strong capital position with a Standardized Common Equity Tier 1 capital ratio of 15.2%.

•	Institutional Securities net revenues of $6.1 billion reflect strong performance in Fixed Income and Equity as clients remained engaged in volatile markets, while limited activity in Investment Banking was impacted by the uncertain macroeconomic environment.

•

Wealth Management delivered a pre-tax margin of 26.5% or 28.2% excluding integration-related expenses.^5,7 Net revenues were $5.7 billion, negatively impacted by mark-to-market losses on investments associated with certain employee deferred compensation plans. The business added net new assets of $53 billion in the quarter and $195 billion in the first half of 2022. The quarter also saw continued growth in bank lending and $29 billion of fee-based flows.

•	Investment Management net revenues were $1.4 billion. The diversified business delivered solid results despite lower equity markets.

Media Relations: Wesley McDade 212-761-2430

Investor Relations: Leslie Bazos 212-761-5352

Institutional Securities

Institutional Securities reported net revenues for the current quarter of $6.1 billion compared with $7.1 billion a year ago. Pre-tax income was $1.6 billion compared with $2.5 billion a year ago.⁸

Investment Banking revenues down 55% from a year ago:

•	Advisory revenues decreased from a year ago driven by lower levels of completed M&A transactions.

•	Equity underwriting revenues significantly decreased from a year ago on lower issuances given uncertainty in the markets.

•	Fixed income underwriting revenues decreased from a year ago as macroeconomic conditions contributed to lower issuances.

Equity net revenues up 5% from a year ago:

•	Equity net revenues increased from a year ago on continued strong client engagement and elevated market volatility, with particular strength in derivatives products and prime brokerage.

Fixed Income net revenues up 49% from a year ago:

•	Fixed Income net revenues increased substantially from a year ago reflecting strength in our macro businesses and in commodities on increased client activity and volatility in the markets.

Other:

•

Other revenues decreased from a year ago driven by mark-to-market losses on corporate loans held for sale, net of hedges, reflecting the widening of credit spreads in the quarter. Mark-to-market losses on investments associated with certain employee deferred compensation plans also contributed to the decline.

($ millions)	2Q 2022			2Q 2021
Net Revenues	$	6,119		$	7,092

Investment Banking	$	1,072		$	2,376
Advisory	$	598		$	664
Equity underwriting	$	148		$	1,072
Fixed income underwriting	$	326		$	640

Equity	$	2,960		$	2,827
Fixed Income	$	2,500		$	1,682
Other	$	(413	)	$	207

Provision for credit losses	$	82		$	70

Total Expenses	$	4,483		$	4,524
Compensation	$	2,050		$	2,433
Non-compensation	$	2,433		$	2,091

Total Expenses:

•	Compensation expense decreased from a year ago primarily driven by a decline related to certain deferred compensation plans linked to investment performance and the impact of lower revenues.

•	Non-compensation expenses increased from a year ago primarily driven by higher litigation costs, including $200 million related to a specific regulatory matter concerning the use of unapproved personal devices and the Firm’s record-keeping requirements, and higher volume-related expenses.

Wealth Management

Wealth Management reported net revenues of $5.7 billion compared with $6.1 billion a year ago. Pre-tax income was $1.5 billion compared with $1.6 billion a year ago.⁸ Pre-tax margin was 26.5% in the current quarter, or 28.2% excluding the impact of integration-related expenses.^5,7

Net revenues decreased 6% from a year ago:

•	Asset management revenues increased 2% reflecting higher asset levels driven by continued positive fee-based flows, partially offset by lower market levels compared to a year ago.

•	Transactional revenues¹³ decreased 17% excluding the impact of mark-to-market losses on investments associated with certain employee deferred compensation plans. The decrease was driven by lower client activity from a strong prior year period.

•	Net interest income increased from a year ago on higher interest rates and continued bank lending growth.

Total Expenses:

•	Compensation expense decreased driven by a decline primarily related to certain deferred compensation plans linked to investment performance.

($ millions)	2Q 2022		2Q 2021
Net Revenues	$	5,736	$	6,095
Asset management	$	3,510	$	3,447
Transactional¹³	$	291	$	1,172
Net interest income	$	1,747	$	1,255
Other	$	188	$	221
Provision for credit losses	$	19	$	3
Total Expenses	$	4,196	$	4,456
Compensation	$	2,895	$	3,275
Non-compensation	$	1,301	$	1,181

•	Non-compensation expenses increased from a year ago primarily driven by investments in technology, as well as higher marketing and business development costs and integration-related expenses.

Investment Management

Investment Management reported net revenues of $1.4 billion compared with $1.7 billion a year ago. Pre-tax income was $249 million compared with $430 million a year ago.⁸

Net revenues down 17% from a year ago:

•	Asset management and related fees decreased from a year ago driven by lower AUM, primarily due to the decline in equity markets.

•	Performance-based income and other revenues decreased from a year ago primarily reflecting mark-to-market losses on investments associated with certain employee deferred compensation plans and lower marks on public investments reflecting the decline in the equity markets.

($ millions)	2Q 2022		2Q 2021
Net Revenues	$	1,411	$	1,702
Asset management and related fees	$	1,304	$	1,418
Performance-based income and other	$	107	$	284
Total Expenses	$	1,162	$	1,272
Compensation	$	605	$	715
Non-compensation	$	557	$	557

Total Expenses:

•	Compensation expense decreased from a year ago primarily driven by a decline related to certain deferred compensation plans linked to investment performance.

Other Matters

•	The Firm repurchased $2.7 billion of its outstanding common stock during the quarter, completing our $12 billion buyback plan that we announced last year.

•	The Firm also announced a multi-year repurchase authorization of up to $20 billion of outstanding common stock without a set expiration date.

•	The Board of Directors declared a $0.775 quarterly dividend per share, an 11% increase from the current $0.70 per share dividend, payable on August 15, 2022 to common shareholders of record on July 29, 2022.

•	The Standardized Common Equity Tier 1 capital ratio was 15.2%, 190 basis points above the new aggregate standardized approach CET1 requirement beginning October 1, 2022.

Capital¹⁴	2Q 2022			2Q 2021
Standardized Approach
CET1 capital¹⁵		15.2	%		16.6	%
Tier 1 capital¹⁵		16.9	%		18.3	%
Advanced Approach
CET1 capital¹⁵		15.4	%		17.7	%
Tier 1 capital¹⁵		17.1	%		19.5	%
Leverage-based capital
Tier 1 leverage¹⁶		6.6	%		7.5	%
SLR¹⁷		5.4	%		5.9	%
Common Stock Repurchases
Repurchases ($ millions)	$	2,738		$	2,939
Number of Shares (millions)		33			34
Average Price	$	82.05		$	86.21
Period End Shares (millions)		1,723			1,834
Tax Rate		23.6	%		23.1	%

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 41 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.morganstanley.com.

NOTICE:

The information provided herein and in the financial supplement, including information provided on the Firm’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available on www.morganstanley.com.

This earnings release may contain forward-looking statements, including the attainment of certain financial and other targets, objectives and goals. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of risks and uncertainties that may affect the future results of the Firm, please see “Forward-Looking Statements” preceding Part I, Item 1, “Competition” and “Supervision and Regulation” in Part I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative and Qualitative Disclosures about Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2021 and other items throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and the Firm’s Current Reports on Form 8-K, including any amendments thereto.

¹ Includes preferred dividends related to the calculation of earnings per share of $104 million and $103 million for the second quarter of 2022 and 2021, respectively.

² The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition, operating results, or capital adequacy. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S. GAAP financial measure.

³ Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics which we believe to be useful to us, analysts, investors, and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.

⁴ Return on average tangible common equity and return on average tangible common equity excluding integration-related expenses are non-GAAP financial measures that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance and capital adequacy. The calculation of return on average tangible common equity represents full year or annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity. Tangible common equity, also a non-GAAP financial measure, represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. The calculation of return on average tangible common equity excluding integration-related expenses is adjusted in both the numerator and the denominator to exclude the integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance.

⁵ The Firm’s and business segment’s second quarter results for 2022 and 2021 include integration-related expenses as a result of the E*TRADE and Eaton Vance acquisitions reported in the Wealth Management segment and Investment Management segment, respectively. The amounts are presented as follows (in millions):

	2Q 2022		2Q 2021
Firm
Compensation	$	11	$	25
Non-compensation		109		65
Total non-interest expenses	$	120	$	90
Total non-interest expenses (after-tax)	$	92	$	69

Wealth Management
Compensation	$	4	$	9
Non-compensation		92		51
Total non-interest expenses	$	96	$	60
Total non-interest expenses (after-tax)	$	74	$	46

Investment Management
Compensation	$	7	$	16
Non-compensation		17		14
Total non-interest expenses	$	24	$	30
Total non-interest expenses (after-tax)	$	18	$	23

⁶ The Firm expense efficiency ratio represents total non-interest expenses as a percentage of net revenues. The Firm expense efficiency ratio excluding integration-related expenses is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance.

⁷ Pre-tax margin represents income before taxes divided by net revenues. Wealth Management pre-tax margin excluding the integration-related expenses represents income before taxes less those expenses divided by net revenues. Wealth Management pre-tax margin excluding integration-related expenses is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance.

⁸ Pre-tax income represents income before taxes.

⁹ Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.

¹⁰ Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest, and client fees, and exclude institutional cash management related activity.

¹¹ AUM is defined as assets under management or supervision.

¹² Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes the Liquidity and Overlay Services asset class.

¹³ Transactional revenues include investment banking, trading, and commissions and fee revenues. Transactional revenues excluding the impact of mark-to-market gains/losses on investments associated with certain employee deferred compensation plans is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow better comparability of period-to-period operating performance and capital adequacy.

¹⁴ Capital ratios are estimates as of the press release date, July 14, 2022.

¹⁵ CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each of the (i) standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (the “Standardized Approach”) and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2021 (2021 Form 10-K).

¹⁶ The Tier 1 leverage ratio is a leverage-based capital requirement that measures the Firm’s leverage. Tier 1 leverage ratio utilizes Tier 1 capital as the numerator and average adjusted assets as the denominator.

¹⁷ The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $77.8 billion and $84.6 billion, and supplementary leverage exposure denominator of approximately $1.45 trillion and $1.44 trillion, for the second quarter of 2022 and 2021, respectively.

Consolidated Income Statement Information
(unaudited, dollars in millions)

	Quarter Ended							Percentage Change From:						Six Months Ended					Percentage
	Jun 30, 2022			Mar 31, 2022		Jun 30, 2021		Mar 31, 2022			Jun 30, 2021			Jun 30, 2022		Jun 30, 2021			Change
Revenues:
Investment banking	$	1,150		$	1,758	$	2,560		(35	%)		(55	%)	$	2,908	$	5,400			(46	%)
Trading		3,597			3,983		3,330		(10	%)		8	%		7,580		7,555			--
Investments		23			75		381		(69	%)		(94	%)		98		699			(86	%)
Commissions and fees		1,220			1,416		1,308		(14	%)		(7	%)		2,636		2,934			(10	%)
Asset management		4,912			5,119		4,973		(4	%)		(1	%)		10,031		9,371			7	%
Other		(52	)		234		342		*			*			182		626			(71	%)
Total non-interest revenues		10,850			12,585		12,894		(14	%)		(16	%)		23,435		26,585			(12	%)

Interest income		3,612			2,650		2,212		36	%		63	%		6,262		4,649			35	%
Interest expense		1,330			434		347		*			*			1,764		756			133	%
Net interest		2,282			2,216		1,865		3	%		22	%		4,498		3,893			16	%
Net revenues		13,132			14,801		14,759		(11	%)		(11	%)		27,933		30,478			(8	%)

Provision for credit losses		101			57		73		77	%		38	%		158		(25	)		*

Non-interest expenses:
Compensation and benefits		5,550			6,274		6,423		(12	%)		(14	%)		11,824		13,221			(11	%)

Non-compensation expenses:
Brokerage, clearing and exchange fees		878			882		795		--			10	%		1,760		1,705			3	%
Information processing and communications		857			829		765		3	%		12	%		1,686		1,498			13	%
Professional services		757			705		746		7	%		1	%		1,462		1,370			7	%
Occupancy and equipment		430			427		414		1	%		4	%		857		819			5	%
Marketing and business development		220			175		146		26	%		51	%		395		292			35	%
Other		1,020			864		831		18	%		23	%		1,884		1,688			12	%
Total non-compensation expenses		4,162			3,882		3,697		7	%		13	%		8,044		7,372			9	%

Total non-interest expenses		9,712			10,156		10,120		(4	%)		(4	%)		19,868		20,593			(4	%)

Income before provision for income taxes		3,319			4,588		4,566		(28	%)		(27	%)		7,907		9,910			(20	%)
Provision for income taxes		783			873		1,054		(10	%)		(26	%)		1,656		2,230			(26	%)
Net income	$	2,536		$	3,715	$	3,512		(32	%)		(28	%)	$	6,251	$	7,680			(19	%)
Net income applicable to nonredeemable noncontrolling interests		41			49		1		(16	%)		*			90		49			84	%
Net income applicable to Morgan Stanley		2,495			3,666		3,511		(32	%)		(29	%)		6,161		7,631			(19	%)
Preferred stock dividend		104			124		103		(16	%)		1	%		228		241			(5	%)
Earnings applicable to Morgan Stanley common shareholders	$	2,391		$	3,542	$	3,408		(32	%)		(30	%)	$	5,933	$	7,390			(20	%)

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

Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021			Change

Financial Metrics:

Earnings per basic share	$	1.40		$	2.04		$	1.88			(31	%)		(26	%)	$	3.45		$	4.10			(16	%)
Earnings per diluted share	$	1.39		$	2.02		$	1.85			(31	%)		(25	%)	$	3.41		$	4.04			(16	%)

Return on average common equity		10.1	%		14.7	%		13.8	%								12.4	%		15.3	%
Return on average tangible common equity		13.8	%		19.8	%		18.6	%								16.8	%		19.8	%

Book value per common share	$	54.46		$	54.18		$	54.04								$	54.46		$	54.04
Tangible book value per common share	$	40.07		$	39.91		$	40.12								$	40.07		$	40.12

Excluding integration-related expenses
Adjusted earnings per diluted share	$	1.44		$	2.06		$	1.89			(30	%)		(24	%)	$	3.51		$	4.11			(15	%)
Adjusted return on average common equity		10.5	%		15.0	%		14.1	%								12.8	%		15.6	%
Adjusted return on average tangible common equity		14.3	%		20.3	%		19.0	%								17.3	%		20.1	%


Financial Ratios:

Pre-tax profit margin		25	%		31	%		31	%								28	%		33	%
Compensation and benefits as a % of net revenues		42	%		42	%		44	%								42	%		43	%
Non-compensation expenses as a % of net revenues		32	%		26	%		25	%								29	%		24	%
Firm expense efficiency ratio		74	%		69	%		69	%								71	%		68	%
Firm expense efficiency ratio excluding integration-related expenses		73	%		68	%		68	%								70	%		67	%
Effective tax rate		23.6	%		19.0	%		23.1	%								20.9	%		22.5	%


Statistical Data:

Period end common shares outstanding (millions)		1,723			1,756			1,834			(2	%)		(6	%)
Average common shares outstanding (millions)
Basic		1,704			1,733			1,814			(2	%)		(6	%)		1,718			1,804			(5	%)
Diluted		1,723			1,755			1,841			(2	%)		(6	%)		1,739			1,829			(5	%)

Worldwide employees		78,386			76,541			71,826			2	%		9	%

Notes:
-	For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021, Firm results include pre-tax integration-related expenses of $120 million, $107 million and $90 million ($92 million, $82 million and $69 million after-tax) respectively, reported in the Wealth Management and Investment Management business segments. The six months ended June 30, 2022 and 2021 results include pre-tax integration-related expenses of $227 million and $165 million ($174 million and $127 million after-tax), respectively.
-	The End Notes are an integral part of this presentation. Refer to the Financial Supplement on pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice for additional information.

Exhibit 99.2

Second Quarter 2022 Earnings Results


Quarterly Financial Supplement	Page

Consolidated Financial Summary	1
Consolidated Financial Metrics, Ratios and Statistical Data	2
Consolidated and U.S. Bank Supplemental Financial Information	3
Consolidated Average Common Equity and Regulatory Capital Information	4
Institutional Securities Income Statement Information, Financial Metrics and Ratios	5
Wealth Management Income Statement Information, Financial Metrics and Ratios	6
Wealth Management Financial Information and Statistical Data	7
Investment Management Income Statement Information, Financial Metrics and Ratios	8
Investment Management Financial Information and Statistical Data	9
Consolidated Loans and Lending Commitments	10
Consolidated Loans and Lending Commitments Allowance for Credit Losses	11
Definition of U.S. GAAP to Non-GAAP Measures	12
Definitions of Performance Metrics and Terms	13 - 14
Supplemental Quantitative Details and Calculations	15 - 16
Legal Notice	17

The Firm's earnings results reflect the effect of the acquisition of Eaton Vance Corp. (“Eaton Vance”) prospectively from the March 1, 2021 acquisition date. The comparisons of current year results to certain prior periods are impacted by the acquisition of Eaton Vance reported in the Investment Management segment.

Consolidated Financial Summary
(unaudited, dollars in millions)



	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021			Change
Net revenues
Institutional Securities	$	6,119		$	7,657		$	7,092			(20	%)		(14	%)	$	13,776		$	15,669			(12	%)
Wealth Management		5,736			5,935			6,095			(3	%)		(6	%)		11,671			12,054			(3	%)
Investment Management		1,411			1,335			1,702			6	%		(17	%)		2,746			3,016			(9	%)
Intersegment Eliminations		(134	)		(126	)		(130	)		(6	%)		(3	%)		(260	)		(261	)		--
Net revenues	$	13,132		$	14,801		$	14,759			(11	%)		(11	%)	$	27,933		$	30,478			(8	%)

Provision for credit losses	$	101		$	57		$	73			77	%		38	%	$	158		$	(25	)		*

Non-interest expenses
Institutional Securities	$	4,483		$	4,826		$	4,524			(7	%)		(1	%)	$	9,309		$	9,823			(5	%)
Wealth Management		4,196			4,349			4,456			(4	%)		(6	%)		8,545			8,820			(3	%)
Investment Management		1,162			1,107			1,272			5	%		(9	%)		2,269			2,216			2	%
Intersegment Eliminations		(129	)		(126	)		(132	)		(2	%)		2	%		(255	)		(266	)		4	%
Non-interest expenses ⁽¹⁾	$	9,712		$	10,156		$	10,120			(4	%)		(4	%)	$	19,868		$	20,593			(4	%)

Income before taxes
Institutional Securities	$	1,554		$	2,787		$	2,498			(44	%)		(38	%)	$	4,341		$	5,869			(26	%)
Wealth Management		1,521			1,573			1,636			(3	%)		(7	%)		3,094			3,236			(4	%)
Investment Management		249			228			430			9	%		(42	%)		477			800			(40	%)
Intersegment Eliminations		(5	)		-			2			*			*			(5	)		5			*
Income before taxes	$	3,319		$	4,588		$	4,566			(28	%)		(27	%)	$	7,907		$	9,910			(20	%)

Net Income applicable to Morgan Stanley
Institutional Securities	$	1,121		$	2,191		$	1,904			(49	%)		(41	%)	$	3,312		$	4,505			(26	%)
Wealth Management		1,190			1,272			1,264			(6	%)		(6	%)		2,462			2,506			(2	%)
Investment Management		188			203			341			(7	%)		(45	%)		391			616			(37	%)
Intersegment Eliminations		(4	)		-			2			*			*			(4	)		4			*
Net Income applicable to Morgan Stanley	$	2,495		$	3,666		$	3,511			(32	%)		(29	%)	$	6,161		$	7,631			(19	%)
Earnings applicable to Morgan Stanley common shareholders	$	2,391		$	3,542		$	3,408			(32	%)		(30	%)	$	5,933		$	7,390			(20	%)

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

Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021			Change

Financial Metrics:

Earnings per basic share	$	1.40		$	2.04		$	1.88			(31	%)		(26	%)	$	3.45		$	4.10			(16	%)
Earnings per diluted share	$	1.39		$	2.02		$	1.85			(31	%)		(25	%)	$	3.41		$	4.04			(16	%)

Return on average common equity		10.1	%		14.7	%		13.8	%								12.4	%		15.3	%
Return on average tangible common equity		13.8	%		19.8	%		18.6	%								16.8	%		19.8	%

Book value per common share	$	54.46		$	54.18		$	54.04								$	54.46		$	54.04
Tangible book value per common share	$	40.07		$	39.91		$	40.12								$	40.07		$	40.12

Excluding integration-related expenses
Adjusted earnings per diluted share	$	1.44		$	2.06		$	1.89			(30	%)		(24	%)	$	3.51		$	4.11			(15	%)
Adjusted return on average common equity		10.5	%		15.0	%		14.1	%								12.8	%		15.6	%
Adjusted return on average tangible common equity		14.3	%		20.3	%		19.0	%								17.3	%		20.1	%


Financial Ratios:

Pre-tax profit margin		25	%		31	%		31	%								28	%		33	%
Compensation and benefits as a % of net revenues		42	%		42	%		44	%								42	%		43	%
Non-compensation expenses as a % of net revenues		32	%		26	%		25	%								29	%		24	%
Firm expense efficiency ratio		74	%		69	%		69	%								71	%		68	%
Firm expense efficiency ratio excluding integration-related expenses		73	%		68	%		68	%								70	%		67	%
Effective tax rate		23.6	%		19.0	%		23.1	%								20.9	%		22.5	%


Statistical Data:

Period end common shares outstanding (millions)		1,723			1,756			1,834			(2	%)		(6	%)
Average common shares outstanding (millions)
Basic		1,704			1,733			1,814			(2	%)		(6	%)		1,718			1,804			(5	%)
Diluted		1,723			1,755			1,841			(2	%)		(6	%)		1,739			1,829			(5	%)

Worldwide employees		78,386			76,541			71,826			2	%		9	%

Notes:
-	For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021, Firm results include pre-tax integration-related expenses of $120 million, $107 million and $90 million ($92 million, $82 million and $69 million after-tax) respectively, reported in the Wealth Management and Investment Management business segments. The six months ended June 30, 2022 and 2021 results include pre-tax integration-related expenses of $227 million and $165 million ($174 million and $127 million after-tax), respectively.
-	The End Notes are an integral part of this presentation. Refer to the Financial Supplement on pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice for additional information.

Consolidated and U.S. Bank Supplemental Financial Information
(unaudited, dollars in millions)



	Quarter Ended									Percentage Change From:						Six Months Ended				Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022		Jun 30, 2021		Change

Consolidated Balance sheet

Total assets	$	1,173,776		$	1,222,233		$	1,161,805			(4	%)		1	%
Loans ⁽¹⁾	$	214,573		$	208,750		$	181,204			3	%		18	%
Deposits	$	347,148		$	360,840		$	320,358			(4	%)		8	%
Long-term debt outstanding	$	221,979		$	225,671		$	218,604			(2	%)		2	%
Maturities of long-term debt outstanding (next 12 months)	$	19,737		$	21,335		$	16,891			(7	%)		17	%

Average liquidity resources	$	306,370		$	338,281		$	351,914			(9	%)		(13	%)

Common equity	$	93,846		$	95,151		$	99,120			(1	%)		(5	%)
Less: Goodwill and intangible assets		(24,803	)		(25,068	)		(25,527	)		(1	%)		(3	%)
Tangible common equity	$	69,043		$	70,083		$	73,593			(1	%)		(6	%)

Preferred equity	$	7,750		$	7,750		$	7,750			--			--

U.S. Bank Supplemental Financial Information
Total assets	$	377,724		$	389,978		$	357,488			(3	%)		6	%
Loans	$	201,853		$	194,791		$	167,628			4	%		20	%
Investment securities portfolio ⁽²⁾	$	125,785		$	129,886		$	136,218			(3	%)		(8	%)
Deposits	$	339,575		$	352,078		$	318,689			(4	%)		7	%

Regional revenues
Americas	$	9,662		$	10,464		$	10,885			(8	%)		(11	%)	$	20,126	$	22,076		(9	%)
EMEA (Europe, Middle East, Africa)		1,678			2,311			2,093			(27	%)		(20	%)		3,989		4,252		(6	%)
Asia		1,792			2,026			1,781			(12	%)		1	%		3,818		4,150		(8	%)
Consolidated net revenues	$	13,132		$	14,801		$	14,759			(11	%)		(11	%)	$	27,933	$	30,478		(8	%)

Consolidated Average Common Equity and Regulatory Capital Information
(unaudited, dollars in billions)



	Quarter Ended									Percentage Change From:						Six Months Ended				Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022		Jun 30, 2021		Change

Average Common Equity
Institutional Securities	$	48.8		$	48.8		$	43.5			--			12	%	$	48.8	$	43.5		12	%
Wealth Management		31.0			31.0			28.6			--			8	%		31.0		28.6		8	%
Investment Management		10.6			10.6			10.7			--			(1	%)		10.6		7.1		49	%
Parent		3.9			6.3			16.0			(38	%)		(76	%)		5.1		17.1		(70	%)
Firm	$	94.3		$	96.7		$	98.8			(2	%)		(5	%)	$	95.5	$	96.3		(1	%)



Regulatory Capital ⁽¹⁾

Common Equity Tier 1 capital	$	70.2		$	72.5		$	76.8			(3	%)		(9	%)
Tier 1 capital	$	77.8		$	80.1		$	84.6			(3	%)		(8	%)

Standardized Approach
Risk-weighted assets	$	461.2		$	501.4		$	462.8			(8	%)		--
Common Equity Tier 1 capital ratio		15.2	%		14.5	%		16.6	%
Tier 1 capital ratio		16.9	%		16.0	%		18.3	%

Advanced Approach
Risk-weighted assets	$	455.3		$	456.5		$	434.7			--			5	%
Common Equity Tier 1 capital ratio		15.4	%		15.9	%		17.7	%
Tier 1 capital ratio		17.1	%		17.6	%		19.5	%

Leverage-based capital
Tier 1 leverage ratio		6.6	%		6.8	%		7.5	%
Supplementary Leverage Ratio		5.4	%		5.5	%		5.9	%

Institutional Securities
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)

07/11/22 16:25
	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021			Change
Revenues:

Advisory	$	598		$	944		$	664			(37	%)		(10	%)	$	1,542		$	1,144			35	%
Equity		148			258			1,072			(43	%)		(86	%)		406			2,574			(84	%)
Fixed income		326			432			640			(25	%)		(49	%)		758			1,271			(40	%)
Underwriting		474			690			1,712			(31	%)		(72	%)		1,164			3,845			(70	%)
Investment banking		1,072			1,634			2,376			(34	%)		(55	%)		2,706			4,989			(46	%)

Equity		2,960			3,174			2,827			(7	%)		5	%		6,134			5,702			8	%
Fixed income		2,500			2,923			1,682			(14	%)		49	%		5,423			4,648			17	%
Other		(413	)		(74	)		207			*			*			(487	)		330			*

Net revenues		6,119			7,657			7,092			(20	%)		(14	%)		13,776			15,669			(12	%)

Provision for credit losses		82			44			70			86	%		17	%		126			(23	)		*

Compensation and benefits		2,050			2,604			2,433			(21	%)		(16	%)		4,654			5,547			(16	%)
Non-compensation expenses		2,433			2,222			2,091			9	%		16	%		4,655			4,276			9	%
Total non-interest expenses		4,483			4,826			4,524			(7	%)		(1	%)		9,309			9,823			(5	%)


Income before taxes		1,554			2,787			2,498			(44	%)		(38	%)		4,341			5,869			(26	%)
Net income applicable to Morgan Stanley	$	1,121		$	2,191		$	1,904			(49	%)		(41	%)	$	3,312		$	4,505			(26	%)


Pre-tax profit margin		25	%		36	%		35	%								32	%		37	%
Compensation and benefits as a % of net revenues		34	%		34	%		34	%								34	%		35	%
Non-compensation expenses as a % of net revenues		40	%		29	%		29	%								34	%		27	%

Return on Average Common Equity		9	%		17	%		17	%								13	%		20	%
Return on Average Tangible Common Equity ⁽¹⁾		9	%		17	%		17	%								13	%		20	%

Trading VaR (Average Daily 95% / One-Day VaR)	$	46		$	39		$	48

Wealth Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)
Report dated:07/11/22 16:26

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021			Change
Revenues:
Asset management	$	3,510		$	3,626		$	3,447			(3	%)		2	%	$	7,136		$	6,638			8	%
Transactional		291			635			1,172			(54	%)		(75	%)		926			2,400			(61	%)
Net interest income		1,747			1,540			1,255			13	%		39	%		3,287			2,640			25	%
Other		188			134			221			40	%		(15	%)		322			376			(14	%)
Net revenues		5,736			5,935			6,095			(3	%)		(6	%)		11,671			12,054			(3	%)

Provision for credit losses		19			13			3			46	%		*			32			(2	)		*

Compensation and benefits		2,895			3,125			3,275			(7	%)		(12	%)		6,020			6,445			(7	%)
Non-compensation expenses		1,301			1,224			1,181			6	%		10	%		2,525			2,375			6	%
Total non-interest expenses ⁽¹⁾		4,196			4,349			4,456			(4	%)		(6	%)		8,545			8,820			(3	%)

Income before taxes		1,521			1,573			1,636			(3	%)		(7	%)		3,094			3,236			(4	%)
Net income applicable to Morgan Stanley	$	1,190		$	1,272		$	1,264			(6	%)		(6	%)	$	2,462		$	2,506			(2	%)

Pre-tax profit margin		27	%		27	%		27	%								27	%		27	%
Pre-tax profit margin excluding integration-related expenses		28	%		28	%		28	%								28	%		28	%
Compensation and benefits as a % of net revenues		50	%		53	%		54	%								52	%		53	%
Non-compensation expenses as a % of net revenues		23	%		21	%		19	%								22	%		20	%

Return on Average Common Equity		15	%		16	%		17	%								15	%		17	%
Return on Average Tangible Common Equity ⁽²⁾		29	%		30	%		37	%								29	%		36	%

Notes:
-	For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021, Wealth Management's results include pre-tax integration-related expenses of $96 million, $75 million and $60 million ($74 million, $57 million and $46 million after-tax), respectively. The six months ended June 30, 2022 and 2021 results include pre‐tax integration‐related expenses of $171 million and $124 million ($131 million and $95 million after‐tax), respectively.
-	The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.

Wealth Management
Financial Information and Statistical Data
(unaudited, dollars in billions)
Vs. Report dated03/19/03 18:15


	Quarter Ended									Percentage Change From:
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021


Wealth Management Metrics

Total client assets ⁽¹⁾	$	4,246		$	4,869		$	4,577			(13	%)		(7	%)
Net new assets ⁽²⁾	$	52.9		$	142.0		$	71.2			(63	%)		(26	%)
U.S. Bank loans	$	143.6		$	136.7		$	114.7			5	%		25	%
Margin and other lending⁽³⁾	$	24.8		$	29.2		$	27.0			(15	%)		(8	%)
Deposits ⁽⁴⁾	$	340		$	352		$	319			(3	%)		7	%
Annualized weighted average cost of deposits		0.28	%		0.09	%		0.16	%

Advisor-led channel

Advisor-led client assets	$	3,427		$	3,835		$	3,553			(11	%)		(4	%)

Fee-based client assets	$	1,717		$	1,873		$	1,680			(8	%)		2	%
Fee-based asset flows ⁽²⁾	$	28.5		$	97.2		$	33.7			(71	%)		(15	%)
Fee-based assets as a % of advisor-led client assets		50	%		49	%		47	%

Self-directed channel

Self-directed assets⁽¹⁾	$	819		$	1,034		$	1,024			(21	%)		(20	%)
Daily average revenue trades (000's)		880			1,016			1,042			(13	%)		(16	%)
Self-directed households (millions)		7.8			7.6			7.4			3	%		5	%

Workplace channel

Stock plan unvested assets	$	323		$	454		$	480			(29	%)		(33	%)
Number of stock plan participants (millions)		6.1			5.8			5.2			5	%		17	%

Investment Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)

Report dated:07/11/22 16:27
	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021			Change
Revenues:
Asset management and related fees	$	1,304		$	1,388		$	1,418			(6	%)		(8	%)	$	2,692		$	2,521			7	%
Performance-based income and other		107			(53	)		284			*			(62	%)		54			495			(89	%)
Net revenues		1,411			1,335			1,702			6	%		(17	%)		2,746			3,016			(9	%)

Compensation and benefits		605			545			715			11	%		(15	%)		1,150			1,229			(6	%)
Non-compensation expenses		557			562			557			(1	%)		--			1,119			987			13	%
Total non-interest expenses ⁽¹⁾		1,162			1,107			1,272			5	%		(9	%)		2,269			2,216			2	%

Income before taxes		249			228			430			9	%		(42	%)		477			800			(40	%)
Net income applicable to Morgan Stanley	$	188		$	203		$	341			(7	%)		(45	%)	$	391		$	616			(37	%)

Pre-tax profit margin		18	%		17	%		25	%								17	%		27	%
Pre-tax profit margin excluding integration-related expenses		19	%		19	%		27	%								19	%		28	%
Compensation and benefits as a % of net revenues		43	%		41	%		42	%								42	%		41	%
Non-compensation expenses as a % of net revenues		39	%		42	%		33	%								41	%		33	%

Return on Average Common Equity		7	%		8	%		13	%								7	%		17	%
Return on Average Tangible Common Equity ⁽²⁾		99	%		106	%		172	%								102	%		117	%

Notes:
-	For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021, Investment Management's results include pre-tax integration-related expenses of $24 million, $32 million and $30 million ($18 million, $25 million and $23 million after-tax), respectively. The six months ended June 30, 2022 and 2021 results include pre‐tax integration‐related expenses of $56 million and $41 million ($43 million and $32 million after‐tax), respectively.
-	The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.

Investment Management
Financial Information and Statistical Data
(unaudited, dollars in billions)
Vs. Report dated03/19/03 18:15


	Quarter Ended								Percentage Change From:						Six Months Ended					Percentage
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021		Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021		Change


Assets under management or supervision (AUM)

Net flows by asset class ⁽¹⁾
Equity	$	(7.4	)	$	(7.5	)	$	2.7		1	%		*		$	(14.9	)	$	10.5		*
Fixed Income		(2.6	)		(3.9	)		3.0		33	%		*			(6.5	)		6.9		*
Alternatives and Solutions		6.5			(3.0	)		7.8		*			(17	%)		3.5			12.4		(72	%)
Long-Term Net Flows		(3.5	)		(14.4	)		13.5		76	%		*			(17.9	)		29.8		*

Liquidity and Overlay Services		31.3			(28.1	)		35.0		*			(11	%)		3.2			60.9		(95	%)

Total Net Flows	$	27.8		$	(42.5	)	$	48.5		*			(43	%)	$	(14.7	)	$	90.7		*

Assets under management or supervision by asset class ⁽²⁾
Equity	$	265		$	337		$	404		(21	%)		(34	%)
Fixed Income		181			195			207		(7	%)		(13	%)
Alternatives and Solutions		415			449			445		(8	%)		(7	%)
Long-Term Assets Under Management or Supervision	$	861		$	981		$	1,056		(12	%)		(18	%)

Liquidity and Overlay Services		490			466			468		5	%		5	%

Total Assets Under Management or Supervision	$	1,351		$	1,447		$	1,524		(7	%)		(11	%)

Consolidated Loans and Lending Commitments
(unaudited, dollars in billions)


	Quarter Ended						Percentage Change From:
	Jun 30, 2022		Mar 31, 2022		Jun 30, 2021		Mar 31, 2022			Jun 30, 2021

Institutional Securities

Loans:
Corporate	$	12.9	$	13.0	$	11.6		(1	%)		11	%
Secured lending facilities		36.8		34.4		32.7		7	%		13	%
Commercial and residential real estate		12.7		14.6		11.4		(13	%)		11	%
Securities-based lending and other		8.3		9.7		9.9		(14	%)		(16	%)

Total Loans		70.7		71.7		65.6		(1	%)		8	%

Lending Commitments		125.7		128.0		124.9		(2	%)		1	%

Institutional Securities Loans and Lending Commitments	$	196.4	$	199.7	$	190.5		(2	%)		3	%


Wealth Management

Loans:
Securities-based lending and other	$	93.3	$	89.5	$	75.8		4	%		23	%
Residential real estate		50.4		47.2		38.9		7	%		30	%

Total Loans		143.7		136.7		114.7		5	%		25	%

Lending Commitments		15.4		14.5		14.4		6	%		7	%

Wealth Management Loans and Lending Commitments	$	159.1	$	151.2	$	129.1		5	%		23	%

Consolidated Loans and Lending Commitments ⁽¹⁾	$	355.5	$	350.9	$	319.6		1	%		11	%

Consolidated Loans and Lending Commitments
Allowance for Credit Losses (ACL) as of June 30, 2022
(unaudited, dollars in millions)


	Loans and Lending Commitments		ACL⁽¹⁾		ACL %			Q2 Provision
	(Gross)
Loans:
Held For Investment (HFI)

Corporate	$	6,739	$	212		3.1	%	$	41
Secured lending facilities		32,687		167		0.5	%		(4	)
Commercial and residential real estate		8,434		229		2.7	%		30
Other		2,681		13		0.5	%		6
Institutional Securities - HFI	$	50,541	$	621		1.2	%	$	73

Wealth Management - HFI		143,670		141		0.1	%		19

Held For Investment	$	194,211	$	762		0.4	%	$	92

Held For Sale		13,029

Fair Value		7,875

Total Loans		215,115		762					92

Lending Commitments		141,123		464		0.3	%		9

Consolidated Loans and Lending Commitments	$	356,238	$	1,226				$	101

Definition of U.S. GAAP to Non-GAAP Measures



(a)	The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial positions, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition, operating results, or prospective regulatory capital requirements. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S. GAAP financial measure. In addition to the following notes, please also refer to the Firm's Annual Report on Form 10-K for the year ended December 31, 2021.

(b)	The following are considered non-GAAP financial measures that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of operating performance and capital adequacy. These measures are calculated as follows:
	-	Earnings per diluted share excluding integration-related expenses represents net income applicable to Morgan Stanley, adjusted for the impact of the integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance, less preferred dividends divided by the average number of diluted shares outstanding.
	-	The return on average tangible common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity.
	-	The return on average common equity and the return on average tangible common equity excluding integration-related expenses are adjusted in both the numerator and the denominator to exclude the integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance.
	-	Segment return on average common equity and return on average tangible common equity represent full year net income or annualized net income for the quarter applicable to Morgan Stanley for each segment, less preferred dividend segment allocation, divided by average common equity and average tangible common equity for each respective segment. The segment adjustments to common equity to derive segment average tangible common equity are generally set at the beginning of the year, and will remain fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition).
	-	Tangible common equity represents common equity less goodwill and intangible assets net of certain mortgage servicing rights deduction.
	-	Tangible book value per common share represents tangible common equity divided by period end common shares outstanding.
	-	Pre-tax profit margin excluding integration-related expenses represents income before income taxes less integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance as percentages of net revenues.
	-	The Firm expense efficiency ratio excluding integration-related expenses represents total non‐interest expenses less integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance as a percentage of net revenues.

Definitions of Performance Metrics and Terms

Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics which we believe to be useful to us, analysts, investors and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.


Page 1:
(a)	Provision for credit losses represents the provision for credit losses on loans held for investment and unfunded lending commitments.
(b)	Net income applicable to Morgan Stanley represents net income, less net income applicable to nonredeemable noncontrolling interests.
(c)	Earnings applicable to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley, less preferred dividends.

Page 2:
(a)	The return on average common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity.
(b)	Book value per common share represents common equity divided by period end common shares outstanding.
(c)	Tangible book value per common share represents tangible common equity divided by period end common shares outstanding.
(d)	Pre-tax profit margin percentages represent income before income taxes as percentages of net revenues.
(e)	The Firm expense efficiency ratio represents total non‐interest expenses as a percentage of net revenues.

Page 3:
(a)	Liquidity Resources, which are primarily held within the Parent and its major operating subsidiaries, are comprised of high quality liquid assets (HQLA) and cash deposits with banks ("Liquidity Resources"). The total amount of Liquidity Resources is actively managed by us 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. Average Liquidity Resources represents the average daily balance for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021.
(b)	The Firm's goodwill and intangible balances utilized in the calculation of tangible common equity are net of certain mortgage servicing rights deduction.
(c)	U.S. Bank refers to the Firm's U.S. Bank operating subsidiaries Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association, and excludes balances between Bank subsidiaries, as well as deposits from the Parent and affiliates.
(d)	Firmwide regional revenues reflect the Firm's consolidated net revenues on a managed basis. Further discussion regarding the geographic methodology for net revenues is disclosed in Note 23 to the consolidated financial statements included in the Firm's Annual Report on Form 10-K for the year ended December 31, 2021 (2021 Form 10-K).

Page 4:
(a)	The Firm's attribution of average common equity to the business segments is based on the Required Capital framework, an internal capital adequacy measure. This framework is a risk-based and leverage-based capital measure, which is compared with the Firm's regulatory capital to ensure that the Firm maintains an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The Required Capital Framework is based on the Firm's regulatory capital requirements. The Firm defines the difference between its total average common equity and the sum of the average common equity amounts allocated to its business segments as Parent common equity. The amount of capital allocated to the business segments is generally set at the beginning of the year, and will remain fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). The Firm continues to evaluate its required capital framework with respect to the impact of evolving regulatory requirements, as appropriate. For further discussion of the framework, refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s 2021 Form 10‐K.
(b)	The Firm's risk‐based capital ratios are computed under each of the (i) standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (the “Standardized Approach”) and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s 2021 Form 10‐K.
(c)	Supplementary leverage ratio represents Tier 1 capital divided by the total supplementary leverage exposure.

Page 5:
(a)	Institutional Securities Equity and Fixed income net revenues include trading, net interest income (interest income less interest expense), asset management, commissions and fees, investments and other revenues which are directly attributable to those businesses.
(b)	Pre-tax profit margin percentages represent income before income taxes as percentages of net revenues.
(c)	VaR represents the unrealized loss in portfolio value that one would not expect to exceed, on average, more than five times every one hundred trading days in the Firm's trading positions if the portfolio were held constant for a one-day period. Further discussion of the calculation of VaR and the limitations of the Firm's VaR methodology, is disclosed in "Quantitative and Qualitative Disclosures about Risk" included in the Firm's 2021 Form 10-K.

Definitions of Performance Metrics and Terms

Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics which we believe to be useful to us, analysts, investors and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.


Page 6:
(a)	Transactional revenues for the Wealth Management segment includes investment banking, trading, and commissions and fee revenues.
(b)	Net interest income represents interest income less interest expense.
(c)	Other revenues for the Wealth Management segment includes investments and other revenues.
(d)	Pre-tax profit margin percentages represent income before income taxes as percentages of net revenues.

Page 7:
(a)	Net new assets represent client inflows, including dividends and interest, and asset acquisitions, less client outflows, and exclude activity from business combinations/divestitures and the impact of fees and commissions.
(b)	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.
(c)	Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on the U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other, and time deposits.
(d)	Annualized weighted average cost of deposits reflects deposit balances and costs as of June 30, 2022, March 31, 2022 and June 30, 2021.
(e)	Advisor-led client assets represent client assets in accounts that have a Wealth Management representative assigned.
(f)	Fee‐based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
(g)	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 in the 2021 Form 10-K.
(h)	Self-directed assets represent active accounts which are not advisor led. Active accounts are defined as having at least $25 in assets.
(i)	Daily average revenue trades (DARTs) represent the total self-directed trades in a period divided by the number of trading days during that period.
(j)	Self-directed households represent the total number of households that include at least one 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.
(k)	The workplace channel assets includes equity compensation solutions for companies, their executives and employees. Stock plan unvested assets represent the market value of public company securities at the end of the period.
(l)	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.

Page 8:
(a)	Asset management and related fees represents management and administrative fees, distribution fees, and performance-based fees, not in the form of carried interest. Asset management and related fees represents Asset management as reported on the Firm’s consolidated income statement.
(b)	Performance-based income and other includes performance-based fees in the form of carried interest, gains and losses from investments, gains and losses from hedges on seed capital and certain employee deferred compensation plans, net interest, and other revenues. Performance-based income and other represents investments, investment banking, trading, net interest and other revenues as reported on the Firm’s consolidated income statement.
(c)	Pre-tax profit margin percentages represent income before income taxes as percentages of net revenues.

Page 9:
(a)	Investment Management Alternatives and Solutions asset class includes products in Fund of Funds, Real Estate, Private Equity and Credit strategies, Multi‐Asset portfolios, as well as Custom Separate Account portfolios.
(b)	Investment Management net flows include new commitments, investments or reinvestments, net of client redemptions, returns of capital post-fund investment period and dividends not reinvested and excludes the impact of the transition of funds from their commitment period to the invested capital period.
(c)	Overlay Services represents investment strategies that use passive exposure instruments to obtain, offset, or substitute specific portfolio exposures beyond those provided by the underlying holdings of the fund.
(d)	Total assets under management or supervision excludes shares of minority stake assets which represent the Investment Management business segment’s proportional share of assets managed by third-party asset managers in which we hold investments accounted for under the equity method.

Page 10 and 11:
(a)	Corporate loans include relationship and event-driven loans and typically consist of revolving lines of credit, term loans and bridge loans.
(b)	Secured lending facilities include loans provided to clients, which are primarily secured by loans, which are, in turn, collateralized by various assets including residential real estate, commercial real estate, corporate and financial assets.
(c)	Securities-based lending and other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.
(d)	Institutional Securities Lending Commitments principally include Corporate lending activity.

Supplemental Quantitative Details and Calculations

Page 1:
(1)	The Firm non-interest expenses by category are as follows:

		2Q22		1Q22		2Q21	2Q22 YTD		2Q21 YTD
Compensation and benefits	$	5,550	$	6,274	$	6,423	$	11,824	$	13,221

Non-compensation expenses:
Brokerage, clearing and exchange fees		878		882		795		1,760		1,705
Information processing and communications		857		829		765		1,686		1,498
Professional services		757		705		746		1,462		1,370
Occupancy and equipment		430		427		414		857		819
Marketing and business development		220		175		146		395		292
Other		1,020		864		831		1,884		1,688
Total non-compensation expenses		4,162		3,882		3,697		8,044		7,372

Total non-interest expenses	$	9,712	$	10,156	$	10,120	$	19,868	$	20,593

Page 2:

(1)

For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021, Firm results include pre-tax integration-related expenses of $120 million, $107 million and $90 million ($92 million, $82 million and $69 million after‐tax) respectively, reported in the Wealth Management and Investment Management business segments. The six months ended June 30, 2022 and 2021 results include pre‐tax integration‐related expenses of $227 million and $165 million ($174 million and $127 million after‐tax), respectively. The following sets forth the impact of the integration-related expenses to earnings per diluted share, return on average common equity and return on average tangible common equity (which are excluded):

		2Q22			1Q22			2Q21		2Q22 YTD			2Q21 YTD
Earnings per diluted share - GAAP	$	1.39		$	2.02		$	1.85		$	3.41		$	4.04
Impact of adjustments		0.05			0.04			0.04			0.10			0.07
Earnings per diluted share excluding integration-related expenses - Non-GAAP	$	1.44		$	2.06		$	1.89		$	3.51		$	4.11

Return on average common equity - GAAP		10.1	%		14.7	%		13.8	%		12.4	%		15.3	%
Impact of adjustments		0.4	%		0.3	%		0.3	%		0.4	%		0.3	%
Return on average common equity excluding integration-related expenses - Non-GAAP		10.5	%		15.0	%		14.1	%		12.8	%		15.6	%

Return on average tangible common equity - GAAP		13.8	%		19.8	%		18.6	%		16.8	%		19.8	%
Impact of adjustments		0.5	%		0.5	%		0.4	%		0.5	%		0.3	%
Return on average tangible common equity excluding integration-related expenses - Non-GAAP		14.3	%		20.3	%		19.0	%		17.3	%		20.1	%

Firm expense efficiency ratio - GAAP		74.0	%		68.6	%		68.6	%		71.1	%		67.6	%
Impact of adjustments		(1.0	)%		(0.7	)%		(0.6	)%		(0.8	)%		(0.6	)%
Firm expense efficiency ratio excluding integration-related expenses - Non-GAAP		73.0	%		67.9	%		68.0	%		70.3	%		67.0	%

Page 3:
(1)	Includes loans held for investment (net of allowance), loans held for sale and also includes loans at fair value which are included in Trading assets on the balance sheet.
(2)	As of June 30, 2022, March 31, 2022 and June 30, 2021, the U.S. Bank investment securities portfolio included held to maturity investment securities of $58.7 billion, $60.6 billion and $62.8 billion, respectively.

Page 4:
(1)	The Firm early adopted the standardized approach for counterparty credit risk (SA-CCR) under Basel III on December 1, 2021. SA-CCR replaced the previous exposure method used to measure derivatives counterparty exposure within the Standardized Approach risk-weighted assets (RWAs) and Supplementary Leverage Ratio exposure calculations in the regulatory capital framework.

Page 5:
(1)	Institutional Securities average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 2Q22: $576mm; 1Q22: $576mm; 2Q21: $603mm; 2Q22 YTD: $576mm; 2Q21 YTD: $603mm

Page 6:
(1)	For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021 and six months ended June 30, 2022 and 2021, integration-related compensation and non-compensation expenses associated with the acquisition of E*TRADE are as follows:

		2Q22		1Q22		2Q21	2Q22 YTD		2Q21 YTD
Compensation expenses	$	4	$	1	$	9	$	5	$	39
Non-compensation expenses		92		74		51		166		85
Total non-interest expenses	$	96	$	75	$	60	$	171	$	124
Income tax provision		22		18		14		40		29
Total non-interest expenses (after-tax)	$	74	$	57	$	46	$	131	$	95

(2)

Wealth Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 2Q22: $14,746mm; 1Q22: $14,746mm; 2Q21: $15,270mm; 2Q22 YTD: $14,746mm; 2Q21 YTD: $15,173mm

Supplemental Quantitative Details and Calculations

Page 7:
(1)	The prior periods have been revised to include certain vested client employee stock options on the E*TRADE platform to align the timing of recognition with other existing Morgan Stanley client assets.
(2)	The quarter ended March 31, 2022 includes $75 billion of fee-based assets acquired in an asset acquisition.
(3)	Wealth Management other lending includes $3 billion of non-purpose securities based lending on non-bank entities in each period ended June 30, 2022, March 31, 2022 and June 30, 2021.
(4)	For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021, Wealth Management deposits of $340 billion, $352 billion and $319 billion, respectively, exclude off-balance sheet deposits of $8 billion in each period, held by third parties outside of Morgan Stanley. Total deposits details are as follows:

		2Q22		1Q22		2Q21
Brokerage sweep deposits	$	279	$	309	$	257
Other deposits		61		43		62
Total balance sheet deposits		340		352		319
Off-balance sheet deposits		8		8		8
Total deposits	$	348	$	360	$	327

Page 8:
(1)	For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021 and six months ended June 30, 2022 and 2021, integration-related compensation and non-compensation expenses associated with the acquisition of Eaton Vance are as follows:

		2Q22		1Q22		2Q21	2Q22 YTD		2Q21 YTD
Compensation expenses	$	7	$	9	$	16	$	16	$	19
Non-compensation expenses		17		23		14		40		22
Total non-interest expenses	$	24	$	32	$	30	$	56	$	41
Income tax provision		6		7		7		13		9
Total non-interest expenses (after-tax)	$	18	$	25	$	23	$	43	$	32

(2)

Investment Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 2Q22: $9,815mm; 1Q22: $9,815mm; 2Q21: $9,924mm; 2Q22 YTD: $9,815mm; 2Q21 YTD: $6,067mm

Page 9:
(1)	Net Flows by region for the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021 were: North America: $22.7 billion, $(16.6) billion and $40.5 billion International: $5.1 billion, $(25.9) billion and $8.0 billion
(2)	Assets under management or supervision by region for the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021 were: North America: $1,059 billion, $1,123 billion and $1,142 billion International: $292 billion, $324 billion and $382 billion

Page 10:
(1)	For the quarters ended June 30, 2022, March 31, 2022 and June 30, 2021, Investment Management reflected loan balances of $220 million, $362 million and $865 million, respectively.

Page 11:
(1)	For the quarter ended June 30, 2022, the Allowance Rollforward for Loans and Lending Commitments is as follows:


	Institutional Securities			Wealth Management			Total
Loans

Allowance for Credit Losses (ACL)
Beginning Balance - March 31, 2022	$	554		$	125		$	679
Net Charge Offs		2			(4	)		(2	)
Provision		73			19			92
Other		(8	)		1			(7	)
Ending Balance - June 30, 2022	$	621		$	141		$	762


Lending Commitments

Allowance for Credit Losses (ACL)
Beginning Balance - March 31, 2022	$	443		$	16		$	459
Net Charge Offs		-			-			-
Provision		9			-			9
Other		(3	)		(1	)		(4	)
Ending Balance - June 30, 2022	$	449		$	15		$	464


Loans and Lending Commitments

Allowance for Credit Losses (ACL)
Beginning Balance - March 31, 2022	$	997		$	141		$	1,138
Net Charge Offs		2			(4	)		(2	)
Provision		82			19			101
Other		(11	)		-			(11	)
Ending Balance - June 30, 2022	$	1,070		$	156		$	1,226

Legal Notice

This Financial Supplement contains financial, statistical and business-related information, as well as business and segment trends.

The information should be read in conjunction with the Firm's second quarter earnings press release issued July 14, 2022.

Date of report (Date of earliest event reported): July 14, 2022

Morgan Stanley
(Exact Name of Registrant as Specified in Charter)

Delaware	1-11758	36-3145972
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1585 Broadway, New York, New York		10036
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 761-4000

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Title of each class	Trading Symbol(s)	Name of each exchange on 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 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 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 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 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 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% 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% Non-Cumulative Preferred Stock, Series O, $0.01 par value	MS/PO	New York Stock Exchange
Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)	MS/26C	New York Stock Exchange

Item 9.01	Financial Statements and Exhibits.

(d)	Exhibits

Exhibit Number	Description

99.1	Press release of the Company, dated July 14, 2022, containing financial information for the quarter ended June 30, 2022.

99.2	Financial Data Supplement of the Company for the quarter ended June 30, 2022.

101	Interactive Data Files pursuant to Rule 406 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).

		MORGAN STANLEY (Registrant)
Date:	July 14, 2022	By:	/s/ Raja Akram
			Name:	Raja Akram
			Title:	Deputy Chief Financial Officer