ms-20250411

Morgan Stanley First Quarter 2025 Earnings Results

Morgan Stanley Reports Net Revenues of $17.7 Billion, EPS of $2.60 and ROTCE of 23.0%

NEW YORK, April 11, 2025 – Morgan Stanley (NYSE: MS) today reported net revenues of $17.7 billion for the first quarter ended March 31, 2025 compared with $15.1 billion a year ago. Net income applicable to Morgan Stanley was $4.3 billion, or $2.60 per diluted share,1 compared with $3.4 billion, or $2.02 per diluted share,1 for the same period a year ago.


Ted Pick, Chairman and Chief Executive Officer, said, “The Integrated Firm delivered a very strong quarter with record net revenues of $17.7 billion and EPS of $2.60, and an ROTCE of 23.0%. Institutional Securities strong performance was led by our Markets business with Equity reporting a record $4.1 billion in revenues. Total client assets of $7.7 trillion across Wealth and Investment Management were supported by $94 billion in net new assets. These results demonstrate the consistent execution of our clear strategy to drive durable growth across our global footprint.”


Financial Summary2,3
Firm ($ millions, except per share data)	1Q 2025		1Q 2024
Net revenues	$17,739		$15,136
Provision for credit losses	$135		$(6)
Compensation expense	$7,521		$6,696
Non-compensation expenses	$4,539		$4,051
Pre-tax income6	$5,544		$4,395
Net income app. to MS	$4,315		$3,412
Expense efficiency ratio8	68	%	71	%
Earnings per diluted share1	$2.60		$2.02
Book value per share	$60.41		$55.60
Tangible book value per share4	$46.08		$41.07
Return on equity	17.4	%	14.5	%
Return on tangible common equity4	23.0	%	19.7	%
Institutional Securities
Net revenues	$8,983		$7,016
Investment Banking	$1,559		$1,447
Equity	$4,128		$2,842
Fixed Income	$2,604		$2,485
Wealth Management
Net revenues	$7,327		$6,880
Fee-based client assets ($ billions)9	$2,349		$2,124
Fee-based asset flows ($ billions)10	$29.8		$26.2
Net new assets ($ billions)11	$93.8		$94.9
Loans ($ billions)	$162.5		$147.4
Investment Management
Net revenues	$1,602		$1,377
AUM ($ billions)12	$1,647		$1,505
Long-term net flows ($ billions)13	$5.4		$7.6

Highlights

•Net revenues for the first quarter were a record $17.7 billion, demonstrating the strength of our Integrated Firm with robust results across our business segments.20

•The Firm delivered ROTCE of 23.0% during the first quarter.2,4

•The Firm expense efficiency ratio was 68% for the first quarter. Expenses for the quarter included $144 million of severance costs related to a March employee action across our business segments.3,8,19

•During the quarter, the Firm accreted $1.9 billion of Common Equity Tier 1 capital and ended the quarter with a Standardized Common Equity Tier 1 capital ratio of 15.3%.16

•Institutional Securities reported record net revenues of $9.0 billion reflecting record performance in Equity and strong Investment Banking results on higher fixed income underwriting.20

•Wealth Management delivered a pre-tax margin of 26.6% for the quarter.7 Net revenues of $7.3 billion reflect strong asset management revenues and higher levels of client activity. The business added net new assets of $94 billion and fee-based asset flows were $30 billion for the quarter.10,11

•Investment Management results reflect net revenues of $1.6 billion, primarily driven by asset management fees on higher average AUM of $1.7 trillion. The quarter included positive long-term net flows of $5.4 billion.13


Media Relations: Wesley McDade 212-761-2430 Investor Relations: Leslie Bazos 212-761-5352

First Quarter Results

Institutional Securities

Institutional Securities reported record net revenues for the current quarter of $9.0 billion compared with $7.0 billion a year ago.20 Pre-tax income was $3.3 billion compared with $2.4 billion a year ago.6

Investment Banking revenues up 8%:

•Advisory revenues increased on higher completed M&A transactions.

•Equity underwriting revenues decreased from a year ago as issuers and investors evaluated market uncertainty.

•Fixed income underwriting revenues increased from a year ago on higher non-investment grade loan issuances.

Equity net revenues up 45%:

•Record Equity net revenues reflect increases across business lines and regions, particularly in Asia, with outperformance in prime brokerage and derivatives driven by strong client activity amid a more volatile trading environment.20

Fixed Income net revenues up 5%:

•Fixed Income net revenues reflect strong results in foreign exchange in a more volatile trading environment and in securitized products on higher lending revenues, partially offset by lower results in credit products.

Other:

•Other revenues increased principally driven by realized gains on the sale of corporate loans held-for-sale compared to mark-to-market losses, net of hedges, a year ago.


($ millions)	1Q 2025	1Q 2024
Net Revenues	$8,983	$7,016

Investment Banking	$1,559	$1,447
Advisory	$563	$461
Equity underwriting	$319	$430
Fixed income underwriting	$677	$556

Equity	$4,128	$2,842
Fixed Income	$2,604	$2,485
Other	$692	$242

Provision for credit losses	$91	$2

Total Expenses	$5,611	$4,663
Compensation	$2,854	$2,343
Non-compensation	$2,757	$2,320

Provision for credit losses:

•Provision for credit losses increased from a year ago, primarily driven by growth in secured lending facilities and in the corporate loan portfolio as well as the impact of a weakening macroeconomic forecast.

Total Expenses:

•Compensation expense increased from a year ago on higher revenues.19

•Non-compensation expenses increased from a year ago on higher execution-related expenses.


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Wealth Management

Wealth Management reported net revenues of $7.3 billion in the current quarter compared with $6.9 billion a year ago. Pre-tax income of $2.0 billion in the current quarter resulted in a pre-tax margin of 26.6%.6, 7

Net revenues up 6%:

•Asset management revenues increased on higher asset levels and the cumulative impact of positive fee-based flows.10

•Transactional revenues increased 13% excluding the impact of mark-to-market on investments associated with DCP.5,14 The increase was driven by higher levels of client activity, particularly in equity-related products.

•Net interest income increased from a year ago primarily driven by lending growth and higher yields on the investment portfolio, partially offset by lower average sweep deposits.

Provision for credit losses:

•Provision for credit losses increased from a release a year ago driven by higher individual assessments in our loan portfolio, inclusive of residential mortgages related to the California wildfires.

Total Expenses:

•Compensation expense increased from a year ago on higher compensable revenues, partially offset by lower expenses related to DCP.5, 19

•Non-compensation expenses were essentially unchanged from a year ago.


($ millions)	1Q 2025	1Q 2024
Net Revenues	$7,327	$6,880
Asset management	$4,396	$3,829
Transactional14	$873	$1,033
Net interest	$1,902	$1,856
Other	$156	$162
Provision for credit losses	$44	$(8)
Total Expenses	$5,332	$5,082
Compensation	$3,999	$3,788
Non-compensation	$1,333	$1,294

Investment Management

Investment Management reported net revenues of $1.6 billion compared with $1.4 billion a year ago. Pre-tax income was $323 million compared with $241 million a year ago.6

Net revenues up 16%:

•Asset management and related fees increased from a year ago on higher average AUM primarily driven by higher market levels.12

•Performance-based income and other revenues increased from a year ago on higher accrued carried interest in our infrastructure funds.

Total Expenses:

•Compensation expense increased from a year ago primarily driven by higher compensation associated with carried interest.5, 19

•Non-compensation expenses increased from a year ago primarily driven by higher distribution expenses on higher average AUM.


($ millions)	1Q 2025	1Q 2024
Net Revenues	$1,602	$1,377
Asset management and related fees	$1,451	$1,346
Performance-based income and other	$151	$31
Total Expenses	$1,279	$1,136
Compensation	$668	$565
Non-compensation	$611	$571


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Other Matters

•The Firm repurchased $1.0 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.

•The Board of Directors declared a $0.925 quarterly dividend per share, payable on May 15, 2025 to common shareholders of record on April 30, 2025.

•The effective tax rate for the current quarter was 21.2%, which reflects a benefit associated with employee share-based compensation payments.21


	1Q 2025		1Q 2024
Common Stock Repurchases
Repurchases ($MM)	$1,000		$1,000
Number of Shares (MM)	8		12
Average Price	$125.88		$86.79
Period End Shares (MM)	1,607		1,627
Tax Rate	21.2%		21.2%
Capital15
Standardized Approach
CET1 capital16	15.3	%	15.0	%
Tier 1 capital16	17.2	%	16.9	%
Advanced Approach
CET1 capital16	15.7	%	15.4	%
Tier 1 capital16	17.7	%	17.3	%
Leverage-based capital
Tier 1 leverage17	6.9	%	6.7	%
SLR18	5.6	%	5.4	%


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Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

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

NOTICE:

The information provided herein and in the financial supplement, including information provided on the Firm’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or 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, 2024 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.


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1 Includes preferred dividends related to the calculation of earnings per share for the first quarter of 2025 and 2024 of approximately $158 million and $146 million, 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 Tangible common equity 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 and capital adequacy. Tangible common equity represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. The calculation of return on average tangible common equity, also a non-GAAP financial measure, represents full year or annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity. The calculation of tangible book value per common share, also a non-GAAP financial measure, represents tangible common shareholder’s equity divided by common shares outstanding.

5 “DCP” refers to certain employee deferred cash-based compensation programs. Please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Matters – Deferred Cash-Based Compensation” in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2024.

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

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

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

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

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

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

12 AUM is defined as assets under management or supervision.

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

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

15 Capital ratios are estimates as of the press release date, April 11, 2025.

16 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, 2024.


6

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

18 The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $86.7 billion and $79.0 billion, and supplementary leverage exposure denominator of approximately $1.55 trillion and $1.46 trillion, for the first quarter of 2025 and 2024, respectively.

19 During the current quarter as a result of a March employee action, we recognized severance costs associated with a reduction in force (“RIF”) of $144 million, included in Compensation and benefits expenses. The RIF occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. The RIF was related to performance management and the alignment of our workforce to our business needs, rather than a change in strategy or exit of businesses. We recorded severance costs of $78 million in the Institutional Securities business segment, $50 million in the Wealth Management business segment, and $16 million in the Investment Management business segment for the current quarter. These costs were incurred across all regions, with the majority in the Americas.

20 Institutional Securities and Equity net revenues represent records for a reported quarterly period after excluding the impact of debt valuation adjustments (DVA), which were previously reflected in net revenues in prior periods before 2016, and reflecting the current reporting structure of the Firm (i.e. exclusive of discontinued operations). Net revenues and net income applicable to Morgan Stanley, excluding the impact of DVA, were non-GAAP financial measures in those prior periods that were reconciled to the comparable GAAP financial measures in the respective quarterly reports filed on Form 10-Q.

21 The income tax consequences related to employee share‐based compensation payments are recognized in Provision for income taxes in the consolidated income statement, and may be either a benefit or a provision. The impacts of recognizing excess tax benefits upon conversion of awards are $208 million and $77 million for the first quarter of 2025 and 2024, respectively.


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Consolidated Income Statement Information
(unaudited, dollars in millions)
	Quarter Ended						Percentage Change From:
	Mar 31, 2025		Dec 31, 2024		Mar 31, 2024		Dec 31, 2024		Mar 31, 2024

Revenues:
Investment banking	$	1,711	$	1,791	$	1,589	(4	%)	8	%
Trading	5,111		3,778		4,852		35	%	5	%
Investments	369		215		137		72	%	169	%
Commissions and fees	1,481		1,390		1,227		7	%	21	%
Asset management	5,963		6,059		5,269		(2	%)	13	%
Other	751		438		266		71	%	182	%
Total non-interest revenues	15,386		13,671		13,340		13	%	15	%
Interest income	13,748		13,491		12,930		2	%	6	%
Interest expense	11,395		10,939		11,134		4	%	2	%
Net interest	2,353		2,552		1,796		(8	%)	31	%
Net revenues	17,739		16,223		15,136		9	%	17	%
Provision for credit losses	135		115		(6)		17	%	*
Non-interest expenses:
Compensation and benefits	7,521		6,289		6,696		20	%	12	%
Non-compensation expenses:
Brokerage, clearing and exchange fees	1,222		1,180		921		4	%	33	%
Information processing and communications	1,050		1,059		976		(1	%)	8	%
Professional services	674		798		639		(16	%)	5	%
Occupancy and equipment	449		527		441		(15	%)	2	%
Marketing and business development	238		279		217		(15	%)	10	%
Other	906		1,070		857		(15	%)	6	%
Total non-compensation expenses	4,539		4,913		4,051		(8	%)	12	%
Total non-interest expenses	12,060		11,202		10,747		8	%	12	%
Income before provision for income taxes	5,544		4,906		4,395		13	%	26	%
Provision for income taxes	1,173		1,182		933		(1	%)	26	%
Net income	$	4,371	$	3,724	$	3,462	17	%	26	%
Net income applicable to nonredeemable noncontrolling interests	56		10		50		*		12	%
Net income applicable to Morgan Stanley	4,315		3,714		3,412		16	%	26	%
Preferred stock dividend	158		150		146		5	%	8	%
Earnings applicable to Morgan Stanley common shareholders	$	4,157	$	3,564	$	3,266	17	%	27	%

Notes:

–Firm net revenues excluding mark-to-market gains and losses on deferred cash-based compensation plans (DCP), which represents a non‐GAAP financial measure, were: 1Q25: $17,888 million, 4Q24: $16,232 million, 1Q24: $14,949 million.

–Firm compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 1Q25: $7,523 million, 4Q24: $6,197 million, 1Q24: $6,447 million.

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


Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
		Quarter Ended									Percentage Change From:
		Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Dec 31, 2024		Mar 31, 2024

Financial Metrics:

	Earnings per basic share	$	2.62		$	2.25		$	2.04		16	%	28	%
	Earnings per diluted share	$	2.60		$	2.22		$	2.02		17	%	29	%

	Return on average common equity	17.4		%	15.2		%	14.5		%
	Return on average tangible common equity	23.0		%	20.2		%	19.7		%

	Book value per common share	$	60.41		$	58.98		$	55.60
	Tangible book value per common share	$	46.08		$	44.57		$	41.07

Financial Ratios:

	Pre-tax margin	31		%	30		%	29		%
	Compensation and benefits as a % of net revenues	42		%	39		%	44		%
	Non-compensation expenses as a % of net revenues	26		%	30		%	27		%
	Firm expense efficiency ratio	68		%	69		%	71		%
	Effective tax rate	21.2		%	24.1		%	21.2		%

Statistical Data:

	Period end common shares outstanding (millions)	1,607			1,607			1,627			—	%	(1	%)
	Average common shares outstanding (millions)
	Basic	1,584			1,583			1,601			—	%	(1	%)
	Diluted	1,600			1,608			1,616			—	%	(1	%)
	Worldwide employees	81,023			80,478			79,610			1	%	2	%

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


First Quarter 2025 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


Consolidated Financial Summary
(unaudited, dollars in millions)

		Quarter Ended						Percentage Change From:
		Mar 31, 2025		Dec 31, 2024		Mar 31, 2024		Dec 31, 2024		Mar 31, 2024
Net revenues
	Institutional Securities	$	8,983	$	7,267	$	7,016	24	%	28	%
	Wealth Management	7,327		7,478		6,880		(2	%)	6	%
	Investment Management	1,602		1,643		1,377		(2	%)	16	%
	Intersegment Eliminations	(173)		(165)		(137)		(5	%)	(26	%)
	Net revenues (1)	$	17,739	$	16,223	$	15,136	9	%	17	%

Provision for credit losses		$	135	$	115	$	(6)	17	%	*

Non-interest expenses
	Institutional Securities	$	5,611	$	4,748	$	4,663	18	%	20	%
	Wealth Management	5,332		5,388		5,082		(1	%)	5	%
	Investment Management	1,279		1,229		1,136		4	%	13	%
	Intersegment Eliminations	(162)		(163)		(134)		1	%	(21	%)
	Non-interest expenses (1)(2)	$	12,060	$	11,202	$	10,747	8	%	12	%

Income before provision for income taxes
	Institutional Securities	$	3,281	$	2,441	$	2,351	34	%	40	%
	Wealth Management	1,951		2,053		1,806		(5	%)	8	%
	Investment Management	323		414		241		(22	%)	34	%
	Intersegment Eliminations	(11)		(2)		(3)		*		*
	Income before provision for income taxes	$	5,544	$	4,906	$	4,395	13	%	26	%

Net Income applicable to Morgan Stanley
	Institutional Securities	$	2,529	$	1,891	$	1,819	34	%	39	%
	Wealth Management	1,532		1,514		1,403		1	%	9	%
	Investment Management	262		310		192		(15	%)	36	%
	Intersegment Eliminations	(8)		(1)		(2)		*		*
	Net Income applicable to Morgan Stanley	$	4,315	$	3,714	$	3,412	16	%	26	%
Earnings applicable to Morgan Stanley common shareholders		$	4,157	$	3,564	$	3,266	17	%	27	%


Notes:
-	Firm net revenues excluding mark-to-market gains and losses on deferred cash-based compensation plans (DCP), which represents a non‐GAAP financial measure, were: 1Q25: $17,888 million, 4Q24: $16,232 million, 1Q24: $14,949 million.
-	Firm compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 1Q25: $7,523 million, 4Q24: $6,197 million, 1Q24: $6,447 million.
-	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:
		Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Dec 31, 2024		Mar 31, 2024

Financial Metrics:

	Earnings per basic share	$	2.62		$	2.25		$	2.04		16	%	28	%
	Earnings per diluted share	$	2.60		$	2.22		$	2.02		17	%	29	%

	Return on average common equity	17.4		%	15.2		%	14.5		%
	Return on average tangible common equity	23.0		%	20.2		%	19.7		%

	Book value per common share	$	60.41		$	58.98		$	55.60
	Tangible book value per common share	$	46.08		$	44.57		$	41.07

Financial Ratios:

	Pre-tax margin	31		%	30		%	29		%
	Compensation and benefits as a % of net revenues	42		%	39		%	44		%
	Non-compensation expenses as a % of net revenues	26		%	30		%	27		%
	Firm expense efficiency ratio (1)	68		%	69		%	71		%
	Effective tax rate (2)	21.2		%	24.1		%	21.2		%

Statistical Data:

	Period end common shares outstanding (millions)	1,607			1,607			1,627			—	%	(1	%)
	Average common shares outstanding (millions)
	Basic	1,584			1,583			1,601			—	%	(1	%)
	Diluted	1,600			1,608			1,616			—	%	(1	%)

	Worldwide employees	81,023			80,478			79,610			1	%	2	%


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

	Quarter Ended						Percentage Change From:
	Mar 31, 2025		Dec 31, 2024		Mar 31, 2024		Dec 31, 2024		Mar 31, 2024

Consolidated Balance sheet

Total assets	$	1,300,296	$	1,215,071	$	1,228,503	7	%	6	%
Loans (1)	$	258,969	$	246,814	$	227,145	5	%	14	%
Deposits	$	381,563	$	376,007	$	352,494	1	%	8	%
Long-term debt outstanding	$	296,997	$	284,307	$	266,150	4	%	12	%
Maturities of long-term debt outstanding (next 12 months)	$	22,963	$	21,924	$	19,701	5	%	17	%

Average liquidity resources	$	351,740	$	345,440	$	318,664	2	%	10	%

Common equity	$	97,062	$	94,761	$	90,448	2	%	7	%
Less: Goodwill and intangible assets	(23,018)		(23,157)		(23,635)		(1	%)	(3	%)
Tangible common equity	$	74,044	$	71,604	$	66,813	3	%	11	%

Preferred equity	$	9,750	$	9,750	$	8,750	—	%	11	%

U.S. Bank Supplemental Financial Information
Total assets	$	442,423	$	434,812	$	400,856	2	%	10	%
Loans	$	244,727	$	232,903	$	211,290	5	%	16	%
Investment securities portfolio (2)	$	125,421	$	124,343	$	115,951	1	%	8	%
Deposits	$	375,499	$	369,730	$	346,609	2	%	8	%

Regional revenues
Americas	$	13,103	$	12,537	$	11,567	5	%	13	%
EMEA (Europe, Middle East, Africa)	2,291		1,672		1,826		37	%	25	%
Asia	2,345		2,014		1,743		16	%	35	%
Consolidated net revenues	$	17,739	$	16,223	$	15,136	9	%	17	%



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

	Quarter Ended									Percentage Change From:
	Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Dec 31, 2024		Mar 31, 2024

Average Common Equity
Institutional Securities	$	48.4		$	45.0		$	45.0		8	%	8	%
Wealth Management	29.4			29.1			29.1			1	%	1	%
Investment Management	10.6			10.8			10.8			(2	%)	(2	%)
Parent Company	7.1			9.0			5.0			(21	%)	42	%
Firm	$	95.5		$	93.9		$	89.9		2	%	6	%


Regulatory Capital

Common Equity Tier 1 capital	$	77.0		$	75.1		$	70.3		3	%	10	%
Tier 1 capital	$	86.7		$	84.8		$	79.0		2	%	10	%

Standardized Approach
Risk-weighted assets	$	502.9		$	471.8		$	467.8		7	%	8	%
Common Equity Tier 1 capital ratio	15.3		%	15.9		%	15.0		%
Tier 1 capital ratio	17.2		%	18.0		%	16.9		%

Advanced Approach
Risk-weighted assets	$	490.8		$	477.3		$	456.5		3	%	8	%
Common Equity Tier 1 capital ratio	15.7		%	15.7		%	15.4		%
Tier 1 capital ratio	17.7		%	17.8		%	17.3		%

Leverage-based capital
Tier 1 leverage ratio	6.9		%	6.9		%	6.7		%
Supplementary Leverage Ratio	5.6		%	5.6		%	5.4		%



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.


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

	Quarter Ended									Percentage Change From:
	Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Dec 31, 2024		Mar 31, 2024
Revenues:

Advisory	$	563		$	779		$	461		(28	%)	22	%
Equity	319			455			430			(30	%)	(26	%)
Fixed income	677			407			556			66	%	22	%
Underwriting	996			862			986			16	%	1	%
Investment banking	1,559			1,641			1,447			(5	%)	8	%

Equity	4,128			3,325			2,842			24	%	45	%
Fixed income	2,604			1,931			2,485			35	%	5	%
Other	692			370			242			87	%	186	%

Net revenues	8,983			7,267			7,016			24	%	28	%

Provision for credit losses	91			78			2			17	%	*

Compensation and benefits	2,854			1,764			2,343			62	%	22	%
Non-compensation expenses	2,757			2,984			2,320			(8	%)	19	%
Total non-interest expenses	5,611			4,748			4,663			18	%	20	%

Income before provision for income taxes	3,281			2,441			2,351			34	%	40	%
Net income applicable to Morgan Stanley	$	2,529		$	1,891		$	1,819		34	%	39	%

Pre-tax margin	37		%	34		%	34		%
Compensation and benefits as a % of net revenues	32		%	24		%	33		%
Non-compensation expenses as a % of net revenues	31		%	41		%	33		%

Return on Average Common Equity	20		%	16		%	15		%
Return on Average Tangible Common Equity (1)	20		%	16		%	15		%

Trading VaR (Average Daily 95% / One-Day VaR)	$	50		$	46		$	54


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

		Quarter Ended									Percentage Change From:
		Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Dec 31, 2024		Mar 31, 2024
Revenues:
Asset management		$	4,396		$	4,417		$	3,829		—	%	15	%
Transactional		873			973			1,033			(10	%)	(15	%)
Net interest income		1,902			1,885			1,856			1	%	2	%
Other		156			203			162			(23	%)	(4	%)
Net revenues (1)		7,327			7,478			6,880			(2	%)	6	%

Provision for credit losses		44			37			(8)			19	%	*

Compensation and benefits (1)		3,999			3,950			3,788			1	%	6	%
Non-compensation expenses		1,333			1,438			1,294			(7	%)	3	%
Total non-interest expenses		5,332			5,388			5,082			(1	%)	5	%

Income before provision for income taxes		1,951			2,053			1,806			(5	%)	8	%
Net income applicable to Morgan Stanley		$	1,532		$	1,514		$	1,403		1	%	9	%

Pre-tax margin		27		%	27		%	26		%
Compensation and benefits as a % of net revenues		55		%	53		%	55		%
Non-compensation expenses as a % of net revenues		18		%	19		%	19		%

Return on Average Common Equity		20		%	20		%	19		%
Return on Average Tangible Common Equity (2)		37		%	38		%	35		%



Notes:
-	Wealth Management net revenues excluding DCP, which represents a non‐GAAP financial measure, were: 1Q25: $7,458 million, 4Q24: $7,504 million, 1Q24: $6,740 million.
-	Wealth Management compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 1Q25: $4,016 million, 4Q24: $3,892 million, 1Q24: $3,632 million.
-	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)

	Quarter Ended									Percentage Change From:
	Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Dec 31, 2024		Mar 31, 2024

Wealth Management Metrics

Total client assets	$	6,015		$	6,194		$	5,495		(3	%)	9	%
Net new assets	$	93.8		$	56.5		$	94.9		66	%	(1	%)
U.S. Bank loans	$	162.5		$	159.5		$	147.4		2	%	10	%
Margin and other lending (1)	$	28.3		$	28.3		$	23.4		—	%	21	%
Deposits (2)	$	375		$	370		$	347		1	%	8	%
Annualized weighted average cost of deposits
Period end	2.77		%	2.73		%	2.96		%
Period average	2.77		%	2.94		%	2.92		%

Advisor-led channel

Advisor-led client assets	$	4,719		$	4,758		$	4,302		(1	%)	10	%

Fee-based client assets	$	2,349		$	2,347		$	2,124		—	%	11	%
Fee-based asset flows	$	29.8		$	35.2		$	26.2		(15	%)	14	%
Fee-based assets as a % of advisor-led client assets	50		%	49		%	49		%

Self-directed channel

Self-directed client assets	$	1,295		$	1,437		$	1,194		(10	%)	8	%
Daily average revenue trades (000's)	1,003			911			841			10	%	19	%
Self-directed households (millions)	8.3			8.3			8.1			—	%	2	%

Workplace channel

Stock plan unvested assets	$	431		$	475		$	457		(9	%)	(6	%)
Number of stock plan participants (millions)	6.7			6.6			6.6			2	%	2	%


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

	Quarter Ended									Percentage Change From:
	Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Dec 31, 2024		Mar 31, 2024
Revenues:
Asset management and related fees	$	1,451		$	1,555		$	1,346		(7	%)	8	%
Performance-based income and other	151			88			31			72	%	*
Net revenues	1,602			1,643			1,377			(2	%)	16	%

Compensation and benefits	668			575			565			16	%	18	%
Non-compensation expenses	611			654			571			(7	%)	7	%
Total non-interest expenses	1,279			1,229			1,136			4	%	13	%

Income before provision for income taxes	323			414			241			(22	%)	34	%
Net income applicable to Morgan Stanley	$	262		$	310		$	192		(15	%)	36	%

Pre-tax margin	20		%	25		%	18		%
Compensation and benefits as a % of net revenues	42		%	35		%	41		%
Non-compensation expenses as a % of net revenues	38		%	40		%	41		%

Return on Average Common Equity	10		%	11		%	7		%
Return on Average Tangible Common Equity (1)	104		%	109		%	68		%


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)

	Quarter Ended						Percentage Change From:
	Mar 31, 2025		Dec 31, 2024		Mar 31, 2024		Dec 31, 2024		Mar 31, 2024

Assets Under Management or Supervision (AUM)

Net Flows by Asset Class
Equity	$	(4.7)	$	(6.7)	$	(5.5)	30	%	15	%
Fixed Income	3.0		8.0		2.8		(63	%)	7	%
Alternatives and Solutions	7.1		3.0		10.3		137	%	(31	%)
Long-Term Net Flows	5.4		4.3		7.6		26	%	(29	%)

Liquidity and Overlay Services	(19.0)		66.8		(12.9)		*		(47	%)

Total Net Flows	$	(13.6)	$	71.1	$	(5.3)	*		(157	%)

Assets Under Management or Supervision by Asset Class
Equity	$	301	$	312	$	310	(4	%)	(3	%)
Fixed Income	199		192		174		4	%	14	%
Alternatives and Solutions	591		593		543		—	%	9	%
Long‐Term Assets Under Management or Supervision	1,091		1,097		1,027		(1	%)	6	%

Liquidity and Overlay Services	556		569		478		(2	%)	16	%

Total Assets Under Management or Supervision	$	1,647	$	1,666	$	1,505	(1	%)	9	%


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 Loans and Lending Commitments
(unaudited, dollars in billions)

	Quarter Ended						Percentage Change From:
	Mar 31, 2025		Dec 31, 2024		Mar 31, 2024		Dec 31, 2024		Mar 31, 2024

Institutional Securities

Loans:
Corporate	$	19.5	$	15.9	$	16.6	23	%	17	%
Secured lending facilities	54.9		51.2		42.1		7	%	30	%
Commercial and residential real estate	11.9		11.1		12.9		7	%	(8	%)
Securities-based lending and other	9.9		8.9		7.7		11	%	29	%

Total Loans	96.2		87.1		79.3		10	%	21	%

Lending Commitments	160.7		157.2		138.8		2	%	16	%

Institutional Securities Loans and Lending Commitments	$	256.9	$	244.3	$	218.1	5	%	18	%


Wealth Management

Loans:
Securities-based lending and other	$	95.0	$	92.9	$	86.1	2	%	10	%
Residential real estate	67.5		66.6		61.3		1	%	10	%

Total Loans	162.5		159.5		147.4		2	%	10	%

Lending Commitments	19.4		19.3		18.9		1	%	3	%

Wealth Management Loans and Lending Commitments	$	181.9	$	178.8	$	166.3	2	%	9	%

Consolidated Loans and Lending Commitments (1)	$	438.8	$	423.1	$	384.4	4	%	14	%



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 Loans and Lending Commitments
Allowance for Credit Losses (ACL) as of March 31, 2025
(unaudited, dollars in millions)

	Loans and Lending Commitments		ACL (1)		ACL %		Q1 Provision
	(Gross)
Loans:
Held For Investment (HFI)

Corporate	$	7,733	$	205	2.7	%	$	2
Secured lending facilities	51,329		149		0.3	%	7
Commercial and residential real estate	8,610		379		4.4	%	24
Other	3,372		20		0.6	%	4
Institutional Securities - HFI	$	71,044	$	753	1.1	%	$	37

Wealth Management - HFI	162,877		380		0.2	%	44

Held For Investment	$	233,921	$	1,133	0.5	%	$	81

Held For Sale	16,111

Fair Value	9,815

Total Loans	259,847		1,133				81

Lending Commitments	180,060		718		0.4	%	54

Consolidated Loans and Lending Commitments	$	439,907	$	1,851			$	135



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.


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

(a)	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 more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary” in the 2024 Form 10‐K.
(b)	The following are considered non‐GAAP financial measures:
	-	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.
	-	ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity.
	-	Tangible book value per common share represents tangible common equity divided by common shares outstanding.
	-	Segment return on average common equity and return on average tangible common equity represent 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. 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).
	-	Net revenues excluding DCP represents net revenues adjusted for the impact of mark‐to‐market gains and losses on economic hedges associated with certain employee deferred cash‐based compensation plans.
	-	Compensation expense excluding DCP represents compensation adjusted for the impact related to certain employee deferred cash‐based compensation plans linked to investment performance.


Definitions of Performance Metrics and Terms

Our earnings releases, earnings conference calls, financial presentations and other communications may also include 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.

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)			Return on average common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity.
(b)			Return on average tangible common equity represents a non‐GAAP financial measure.
(c)			Book value per common share represents common equity divided by period end common shares outstanding.
(d)			Tangible book value per common share represents a non‐GAAP financial measure.
(e)			Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
(f)			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 Company and its major operating subsidiaries, are comprised of high quality liquid assets (HQLA) and cash deposits with banks. 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 March 31, 2025, December 31, 2024 and March 31, 2024.
(b)			Our goodwill and intangible balances utilized in the calculation of tangible common equity are net of allowable mortgage servicing rights deduction.
(c)			Tangible common equity represents a non‐GAAP financial measure.
(d)			U.S. Bank refers to our U.S. Bank Subsidiaries, Morgan Stanley Bank N.A. and Morgan Stanley Private Bank, National Association, and excludes transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates.
(e)			Firmwide regional revenues reflect our consolidated net revenues on a managed basis. Further discussion regarding the geographic methodology for net revenues is disclosed in Note 22 to the consolidated financial statements included in the 2024 Form 10‐K.

Page 4:
(a)			Our 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 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. The Required Capital framework is based on our regulatory capital requirements. We continue to evaluate our 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 2024 Form 10‐K.
(b)			Our risk‐based capital ratios are computed under each of (i) the standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (“Standardized Approach”) and (ii) the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“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 2024 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 margin represents income before provision for income taxes as a percentage of net revenues.
(c)			VaR represents the unrealized loss in portfolio value that, based on historically observed market risk factor movements, would have been exceeded with a frequency of 5%, or five times in every 100 trading days, if the portfolio were held constant for one day. Further discussion of the calculation of VaR and the limitations of our VaR methodology, is disclosed in "Quantitative and Qualitative Disclosures about Risk" included in the 2024 Form 10‐K.

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 margin represents income before provision for income taxes 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 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.

Page 7:
(a)			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.
(b)			Net new assets represent client asset inflows, inclusive of interest, dividends and asset acquisitions, less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees and commissions.
(c)			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.
(d)			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.
(e)			Annualized weighted average cost of deposits represents the total annualized weighted average cost of the various deposit products. Amounts at March 31, 2025 and December 31, 2024 include the effect of related hedging derivatives. Amounts at March 31, 2024 exclude the effect of related hedging derivatives, which did not have a material impact on the cost of deposits. The period end cost of deposits is based upon balances and rates as of March 31, 2025, December 31, 2024 and March 31, 2024. The period average is based on daily balances and rates for the period.
(f)			Advisor‐led client assets represent client assets in accounts that have a Wealth Management representative assigned.
(g)			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.
(h)			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 2024 Form 10‐K.
(i)			Self‐directed client assets represent active accounts which are not advisor-led. Active accounts are defined as having at least $25 in assets.
(j)			Daily average revenue trades (DARTs) represent the total self‐directed trades in a period divided by the number of trading days during that period.
(k)			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.
(l)			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.
(m)			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 our 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 our consolidated income statement.
(c)			Pre‐tax margin represents income before provision for income taxes as a percentage 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 following sets forth the net revenue impact of mark‐to‐market gains and losses on investments associated with DCP and compensation expense impact related to DCP:
			1Q25		4Q24		1Q24
		Net revenues	$	17,739	$	16,223	$	15,136
		Adjustment for mark-to-market on DCP	149		9		(187)
		Adjusted Net revenues - non-GAAP	$	17,888	$	16,232	$	14,949

		Compensation expense	$	7,521	$	6,289	$	6,696
		Adjustment for mark-to-market on DCP	2		(92)		(249)
		Adjusted Compensation expense - non-GAAP	$	7,523	$	6,197	$	6,447

	-	Compensation expense for deferred cash‐based compensation plans awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards. The table above presents non-GAAP adjusted Compensation expense which excludes amounts recognized in Compensation expense associated with certain cash-based deferred compensation plans.
	-	We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these deferred cash‐based compensation plans. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. The table above presents non-GAAP adjusted Net revenues which excludes amounts recognized in Net revenues related to mark-to-market gains and losses, net of financing costs, on investments associated with certain cash-based deferred compensation plans.

(2)	The Firm non-interest expenses by category are as follows:
			1Q25		4Q24		1Q24
		Compensation and benefits (a)	$	7,521	$	6,289	$	6,696
		Non-compensation expenses:
		Brokerage, clearing and exchange fees	1,222		1,180		921
		Information processing and communications	1,050		1,059		976
		Professional services	674		798		639
		Occupancy and equipment	449		527		441
		Marketing and business development	238		279		217
		Other	906		1,070		857
		Total non-compensation expenses (b)	4,539		4,913		4,051
		Total non-interest expenses	$	12,060	$	11,202	$	10,747



	(a)	During the current quarter as a result of a March employee action, we recognized severance costs associated with a reduction in force (“RIF”) of $144 million, included in Compensation and benefits expenses. The RIF occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. The RIF was related to performance management and the alignment of our workforce to our business needs, rather than a change in strategy or exit of businesses. We recorded severance costs of $78 million in the Institutional Securities business segment, $50 million in the Wealth Management business segment, and $16 million in the Investment Management business segment for the current quarter. These costs were incurred across all regions, with the majority in the Americas.

	(b)	For the quarters ended March 31, 2025, December 31, 2024 and March 31, 2024, Firm results included an FDIC Special Assessment of $3 million, $(4) million and $42 million, respectively. This FDIC Special Assessment was reported in the business segments' results as follows: Institutional Securities: 1Q25: $1 million, 4Q24: $(2) million, 1Q24: $18 million; Wealth Management: 1Q25: $2 million, 4Q24: $(2) million, 1Q24: $24 million.

Page 2:
(1)	Refer to page 1(2) End Notes from above.
(2)	The income tax consequences related to employee share-based compensation payments are recognized in Provision for income taxes in the consolidated income statement, and may be either a benefit or a provision. The impacts of recognizing excess tax benefits upon conversion of awards are $208 million and $77 million for the first quarter of 2025 and 2024, respectively.

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 March 31, 2025, December 31, 2024 and March 31, 2024, the U.S. Bank investment securities portfolio included held to maturity investment securities of $47.2 billion, $47.8 billion and $50.7 billion, respectively.

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: 1Q25: $457mm; 4Q24: $482mm; 1Q24: $482mm.


Supplemental Quantitative Details and Calculations

Page 6:
(1)	The following sets forth the net revenue impact of mark-to-market gains and losses on investments associated with DCP and compensation expense impact related to DCP:
			1Q25		4Q24		1Q24
		Net revenues	$	7,327	$	7,478	$	6,880
		Adjustment for mark-to-market on DCP	131		26		(140)
		Adjusted Net revenues - non-GAAP	$	7,458	$	7,504	$	6,740

		Compensation expense	$	3,999	$	3,950	$	3,788
		Adjustment for mark-to-market on DCP	17		(58)		(156)
		Adjusted Compensation expense - non-GAAP	$	4,016	$	3,892	$	3,632

(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: 1Q25: $13,088mm; 4Q24: $13,582mm; 1Q24: $13,582mm.

Page 7:
(1)	Wealth Management other lending included $2 billion of non-purpose securities based lending on non-bank entities in each period ended March 31, 2025, December 31, 2024 and March 31, 2024.
(2)	Wealth Management deposits details for the quarters ended March 31, 2025, December 31, 2024 and March 31, 2024, are as follows:
			1Q25		4Q24		1Q24
		Brokerage sweep deposits	$	136	$	140	$	139
		Other deposits	239		230		208
		Total deposits	$	375	$	370	$	347

Page 8:
(1)	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: 1Q25: $9,557mm; 4Q24: $9,676mm; 1Q24: $9,676mm.

Page 10:
(1)	For the quarters ended March 31, 2025, December 31, 2024 and March 31, 2024, Investment Management reflected loan balances of $255 million, $204 million and $465 million, respectively.

Page 11:
(1)	For the quarter ended March 31, 2025, the Allowance Rollforward for Loans and Lending Commitments is as follows:
			Institutional Securities		Wealth Management		Total
		Loans

		Allowance for Credit Losses (ACL)
		Beginning Balance - December 31, 2024	$	730	$	336	$	1,066
		Net Charge Offs	(23)		—		(23)
		Provision	37		44		81
		Other	9		—		9
		Ending Balance - March 31, 2025	$	753	$	380	$	1,133


		Lending Commitments

		Allowance for Credit Losses (ACL)
		Beginning Balance - December 31, 2024	$	640	$	16	$	656
		Net Charge Offs	—		—		—
		Provision	54		—		54
		Other	8		—		8
		Ending Balance - March 31, 2025	$	702	$	16	$	718


		Loans and Lending Commitments

		Allowance for Credit Losses (ACL)
		Beginning Balance - December 31, 2024	$	1,370	$	352	$	1,722
		Net Charge Offs	(23)		—		(23)
		Provision	91		44		135
		Other	17		—		17
		Ending Balance - March 31, 2025	$	1,455	$	396	$	1,851


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 first quarter earnings press release issued April 11, 2025.



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


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
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
Depositary Shares, each representing 1/1,000th interest in a share of 6.500% 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% 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 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 of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)	MS/29	New York Stock Exchange


Item 9.01			Financial Statements and Exhibits.
(d)			Exhibits
Exhibit
Number			Description

99.1			Press release of the Company, dated April 11, 2025, containing financial information for the quarter ended March 31, 2025.
99.2			Financial Data Supplement of the Company for the quarter ended March 31, 2025.
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).