MS 8-K

Morgan Stanley (MS)

8-K 2026-10-14 For: 2026-10-14

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Added on October 14, 2026

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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, 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 October 14, 2026, containing financial information for the quarter ended September 30, 2026.
99.2			Financial Data Supplement of the Company for the quarter ended September 30, 2026.
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).


Financial Summary2,3
Firm ($ millions, except per share data)	3Q 2026		3Q 2025
Net revenues	$20,338		$18,224
Provision for credit losses	$148		$0
Compensation expense	$7,997		$7,442
Non-compensation expenses	$5,715		$4,754
Pre-tax income4	$6,478		$6,028
Net income app. to MS	$4,909		$4,610
Expense efficiency ratio5	67	%	67	%
Earnings per diluted share1	$3.03		$2.80
Book value per share	$68.59		$62.98
Tangible book value per share6	$53.96		$48.64
Return on equity	17.8	%	18.0	%
Return on tangible common equity6	22.6	%	23.5	%
Institutional Securities
Net revenues	$10,029		$8,523
Investment Banking	$2,159		$2,108
Equity	$5,799		$4,116
Fixed Income	$2,011		$2,169
Wealth Management
Net revenues	$9,065		$8,234
Fee-based client assets ($ billions)7	$3,155		$2,653
Fee-based asset flows ($ billions)8	$80.5		$41.9
Net new assets ($ billions)9	$232.4		$81.0
Loans ($ billions)	$201.1		$173.9
Investment Management
Net revenues	$1,459		$1,651
AUM ($ billions)10	$2,046		$1,807
Long-term net flows ($ billions)11	$15.8		$17.9


Ted Pick, Chairman and Chief Executive Officer, said, “Morgan Stanley reported another strong quarter with net revenues of $20.3 billion, EPS of $3.03 and a ROTCE of 22.6%. The Integrated Firm is connecting the full breadth of Morgan Stanley to deliver differentiated solutions and advice for our clients. Institutional Securities benefited from global strength, led by our Equity franchise, and Wealth Management reported record revenues and added $232 billion in net new assets and $80 billion in fee-based flows. Across Wealth and Investment Management, total client assets grew to $10.5 trillion, demonstrating the scale of our platform and the strength of our franchise. We continue to invest for growth while delivering strong returns for shareholders.”


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


($ millions)	3Q 2026	3Q 2025
Net Revenues	$10,029	$8,523

Investment Banking	$2,159	$2,108
Advisory	$887	$684
Equity underwriting	$525	$652
Fixed income underwriting	$747	$772

Equity	$5,799	$4,116
Fixed Income	$2,011	$2,169
Other	$60	$130

Provision for credit losses	$141	$1

Total Expenses	$6,416	$5,340
Compensation	$2,632	$2,422
Non-compensation	$3,784	$2,918


	3Q 2026		3Q 2025
Common Stock Repurchases
Repurchases ($MM)	$1,540		$1,085
Number of Shares (MM)	7		7
Average Price	$212.74		$145.77
Period End Shares (MM)	1,565		1,591
Effective Tax Rate	23.3%		22.8%
Capital17
Standardized Approach
CET1 capital13	14.9	%	15.1	%
Tier 1 capital13	16.6	%	16.9	%
Advanced Approach
CET1 capital13	16.3	%	15.7	%
Tier 1 capital13	18.1	%	17.6	%
Leverage-based capital
Tier 1 leverage18	5.9	%	6.8	%
SLR19	4.8	%	5.5	%


Consolidated Income Statement Information
(unaudited, dollars in millions)
	Quarter Ended						Percentage Change From:				Nine Months Ended				Percentage Change
	Sep 30, 2026		Jun 30, 2026		Sep 30, 2025		Jun 30, 2026		Sep 30, 2025		Sep 30, 2026		Sep 30, 2025

Revenues:
Investment banking	$	2,361	$	2,651	$	2,266	(11	%)	4	%	$	7,301	$	5,621	30	%
Trading	5,601		6,723		5,020		(17	%)	12	%	19,054		14,876		28	%
Investments	(39)		226		374		*		*		333		1,131		(71	%)
Commissions and fees	1,667		1,833		1,473		(9	%)	13	%	5,190		4,379		19	%
Asset management	7,254		6,912		6,441		5	%	13	%	20,896		18,357		14	%
Other	244		223		159		9	%	53	%	759		1,200		(37	%)
Total non-interest revenues	17,088		18,568		15,733		(8	%)	9	%	53,533		45,564		17	%
Interest income	16,188		15,902		15,456		2	%	5	%	47,363		44,109		7	%
Interest expense	12,938		13,122		12,965		(1	%)	—	%	38,630		36,918		5	%
Net interest	3,250		2,780		2,491		17	%	30	%	8,733		7,191		21	%
Net revenues	20,338		21,348		18,224		(5	%)	12	%	62,266		52,755		18	%
Provision for credit losses	148		98		—		51	%	*		344		331		4	%
Non-interest expenses:
Compensation and benefits	7,997		8,187		7,442		(2	%)	7	%	24,726		22,153		12	%
Non-compensation expenses:
Brokerage, clearing and exchange fees	1,467		1,464		1,141		—	%	29	%	4,187		3,551		18	%
Information processing and communications	1,302		1,203		1,119		8	%	16	%	3,653		3,258		12	%
Professional services	700		680		685		3	%	2	%	1,982		2,070		(4	%)
Occupancy and equipment	502		482		473		4	%	6	%	1,467		1,381		6	%
Marketing and business development	347		401		280		(13	%)	24	%	1,058		815		30	%
Other	1,397		1,485		1,056		(6	%)	32	%	4,012		3,002		34	%
Total non-compensation expenses	5,715		5,715		4,754		—	%	20	%	16,359		14,077		16	%
Total non-interest expenses	13,712		13,902		12,196		(1	%)	12	%	41,085		36,230		13	%
Income before provision for income taxes	6,478		7,348		6,028		(12	%)	7	%	20,837		16,194		29	%
Provision for income taxes	1,509		1,695		1,373		(11	%)	10	%	4,577		3,593		27	%
Net income	$	4,969	$	5,653	$	4,655	(12	%)	7	%	$	16,260	$	12,601	29	%
Net income applicable to noncontrolling interests	60		72		45		(17	%)	33	%	203		137		48	%
Net income applicable to Morgan Stanley	4,909		5,581		4,610		(12	%)	6	%	16,057		12,464		29	%
Preferred stock dividends	158		145		160		9	%	(1	%)	459		465		(1	%)
Earnings applicable to Morgan Stanley common shareholders	$	4,751	$	5,436	$	4,450	(13	%)	7	%	$	15,598	$	11,999	30	%


Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
		Quarter Ended									Percentage Change From:				Nine Months Ended						Percentage Change
		Sep 30, 2026			Jun 30, 2026			Sep 30, 2025			Jun 30, 2026		Sep 30, 2025		Sep 30, 2026			Sep 30, 2025

Financial Metrics:

	Earnings per basic share	$	3.07		$	3.50		$	2.83		(12	%)	8	%	$	10.03		$	7.61		32	%
	Earnings per diluted share	$	3.03		$	3.46		$	2.80		(12	%)	8	%	$	9.93		$	7.53		32	%

	Return on average common equity	17.8		%	20.7		%	18.0		%					19.8		%	16.5		%
	Return on average tangible common equity	22.6		%	26.6		%	23.5		%					25.4		%	21.6		%

	Book value per common share	$	68.59		$	67.80		$	62.98						$	68.59		$	62.98
	Tangible book value per common share	$	53.96		$	53.18		$	48.64						$	53.96		$	48.64

Financial Ratios:

	Pre-tax margin	32		%	34		%	33		%					33		%	31		%
	Compensation and benefits as a % of net revenues	39		%	38		%	41		%					40		%	42		%
	Non-compensation expenses as a % of net revenues	28		%	27		%	26		%					26		%	27		%
	Firm expense efficiency ratio	67		%	65		%	67		%					66		%	69		%
	Effective tax rate	23.3		%	23.1		%	22.8		%					22.0		%	22.2		%

Statistical Data:

	Period end common shares outstanding (millions)	1,565			1,572			1,591			—	%	(2	%)
	Average common shares outstanding (millions)
	Basic	1,548			1,554			1,571			—	%	(1	%)	1,554			1,577			(1	%)
	Diluted	1,566			1,569			1,590			—	%	(2	%)	1,571			1,594			(1	%)
	Worldwide employees	83,728			82,944			82,398			1	%	2	%


Third Quarter 2026 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 - 17
Legal Notice			18


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

	Quarter Ended									Percentage Change From:				Nine Months Ended				Percentage
	Sep 30, 2026			Jun 30, 2026			Sep 30, 2025			Jun 30, 2026		Sep 30, 2025		Sep 30, 2026		Sep 30, 2025		Change

Average Common Equity
Institutional Securities	$	48.2		$	48.2		$	48.4		—	%	—	%	$	48.2	$	48.4	—	%
Wealth Management	28.7			28.7			29.4			—	%	(2	%)	28.7		29.4		(2	%)
Investment Management	10.2			10.2			10.6			—	%	(4	%)	10.2		10.6		(4	%)
Parent Company	19.8			17.8			10.3			11	%	92	%	17.7		8.7		103	%
Firm	$	106.9		$	104.9		$	98.7		2	%	8	%	$	104.8	$	97.1	8	%


Regulatory Capital (1)

Common Equity Tier 1 capital	$	88.8		$	87.6		$	81.3		1	%	9	%
Tier 1 capital	$	98.7		$	97.2		$	91.0		2	%	8	%

Standardized Approach
Risk-weighted assets	$	595.8		$	589.4		$	539.3		1	%	10	%
Common Equity Tier 1 capital ratio	14.9		%	14.9		%	15.1		%
Tier 1 capital ratio	16.6		%	16.5		%	16.9		%

Advanced Approach
Risk-weighted assets	$	545.7		$	539.8		$	518.0		1	%	5	%
Common Equity Tier 1 capital ratio	16.3		%	16.2		%	15.7		%
Tier 1 capital ratio	18.1		%	18.0		%	17.6		%

Leverage-based capital
Tier 1 leverage ratio	5.9		%	6.0		%	6.8		%
Supplementary Leverage Ratio	4.8		%	4.9		%	5.5		%



The End Notes are an integral part of this presentation. See pages 12 - 18 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:				Nine Months Ended						Percentage
	Sep 30, 2026			Jun 30, 2026			Sep 30, 2025			Jun 30, 2026		Sep 30, 2025		Sep 30, 2026			Sep 30, 2025			Change
Revenues:

Advisory	$	887		$	798		$	684		11	%	30	%	$	2,663		$	1,755		52	%
Equity	525			851			652			(38	%)	(19	%)	1,772			1,471			20	%
Fixed income	747			788			772			(5	%)	(3	%)	2,277			1,981			15	%
Underwriting	1,272			1,639			1,424			(22	%)	(11	%)	4,049			3,452			17	%
Investment banking	2,159			2,437			2,108			(11	%)	2	%	6,712			5,207			29	%

Equity	5,799			6,300			4,116			(8	%)	41	%	17,247			11,965			44	%
Fixed income	2,011			2,455			2,169			(18	%)	(7	%)	7,824			6,953			13	%
Other	60			(152)			130			*		(54	%)	7			1,024			(99	%)

Net revenues	10,029			11,040			8,523			(9	%)	18	%	31,790			25,149			26	%

Provision for credit losses	141			71			1			99	%	*		304			260			17	%

Compensation and benefits	2,632			2,980			2,422			(12	%)	9	%	8,876			7,706			15	%
Non-compensation expenses	3,784			3,727			2,918			2	%	30	%	10,715			8,609			24	%
Total non-interest expenses	6,416			6,707			5,340			(4	%)	20	%	19,591			16,315			20	%

Income before provision for income taxes	3,472			4,262			3,182			(19	%)	9	%	11,895			8,574			39	%
Net income applicable to Morgan Stanley	$	2,639		$	3,192		$	2,468		(17	%)	7	%	$	9,125		$	6,601		38	%

Pre-tax margin	35		%	39		%	37		%					37		%	34		%
Compensation and benefits as a % of net revenues	26		%	27		%	28		%					28		%	31		%
Non-compensation expenses as a % of net revenues	38		%	34		%	34		%					34		%	34		%

Return on Average Common Equity	21		%	26		%	19		%					24		%	17		%
Return on Average Tangible Common Equity (1)	21		%	26		%	20		%					25		%	17		%

Trading VaR (Average Daily 95% / One-Day VaR)	$	61		$	56		$	59


The End Notes are an integral part of this presentation. See pages 12 - 18 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:
	Sep 30, 2026			Jun 30, 2026			Sep 30, 2025			Jun 30, 2026		Sep 30, 2025

Wealth Management Metrics

Total client assets	$	8,433		$	8,084		$	7,054		4	%	20	%
Net new assets	$	232.4		$	148.1		$	81.0		57	%	187	%
U.S. Bank loans	$	201.1		$	195.7		$	173.9		3	%	16	%
Margin and other lending (1)	$	37.1		$	36.2		$	27.9		2	%	33	%
Deposits (2)	$	465		$	436		$	398		7	%	17	%
Annualized weighted average cost of deposits
Period end	2.85		%	2.60		%	2.72		%
Period average	2.72		%	2.54		%	2.88		%

Advisor-led channel

Advisor-led client assets	$	6,631		$	6,273		$	5,414		6	%	22	%

Fee-based client assets	$	3,155		$	3,022		$	2,653		4	%	19	%
Fee-based asset flows	$	80.5		$	39.1		$	41.9		106	%	92	%
Fee-based assets as a % of advisor-led client assets	48		%	48		%	49		%

Self-directed channel

Self-directed client assets	$	1,802		$	1,811		$	1,639		—	%	10	%
Daily average revenue trades (000's)	1,097			1,278			1,012			(14	%)	8	%
Self-directed households (millions)	8.8			8.7			8.4			1	%	5	%

Workplace channel

Stock plan unvested public assets	$	638		$	658		$	534		(3	%)	19	%
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 - 18 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 September 30, 2026
(unaudited, dollars in millions)

	Loans and Lending Commitments		ACL (1)		ACL %		Q3 Provision
	(Gross)
Loans:
Held For Investment (HFI)

Corporate	$	9,829	$	265	2.7	%	$	48
Secured lending facilities	75,342		265		0.4	%	23
Commercial and residential real estate	7,059		294		4.2	%	26
Other	4,825		30		0.6	%	3
Institutional Securities - HFI	$	97,055	$	854	0.9	%	$	100

Wealth Management - HFI	201,397		390		0.2	%	3

Held For Investment	$	298,452	$	1,244	0.4	%	$	103

Held For Sale	16,508

Fair Value	14,274

Total Loans	329,234		1,244				103

Lending Commitments	246,765		824		0.3	%	45

Consolidated Loans and Lending Commitments	$	575,999	$	2,068			$	148



The End Notes are an integral part of this presentation. See pages 12 - 18 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. In the periods prior to 2026, 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 2025 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 reduced by preferred stock 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 September 30, 2026, June 30, 2026 and September 30, 2025.
(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 2025 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 2025 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 2025 Form 10‐K.
(c)			Supplementary leverage ratio represents Tier 1 capital divided by the total supplementary leverage exposure.

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(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 2025 Form 10‐K.

Page 6:
(a)			Transactional revenues for the Wealth Management segment includes investment banking, trading, and commissions and fees 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, investment advisory, custody, cash management, and administrative 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, including interest, dividends and asset acquisitions, less client asset outflows, and excluding 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, including the effect of related hedging derivatives. The period end cost of deposits is based upon balances and rates as of September 30, 2026, June 30, 2026 and September 30, 2025. 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 client assets 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 rollforwards in the 2025 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 includes equity compensation solutions for companies, their executives and employees.
(m)			Stock plan unvested public assets represent the market value of public company securities at the end of the period, and excludes vested and unvested private company securities.
(n)			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.

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(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, 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, infrastructure, private equity and credit strategies, multi-asset portfolios, and tax-managed solutions, as well as systematic strategies that create custom investment solutions, including those offered by Parametric.
(b)			Investment Management net flows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments, and redemptions from clients’ funds. Net flows exclude both the gross impact of exchanges, whereby a client changes positions within the same asset class, and distributions, which represent returns of capital or returns on investments.
(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 collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other 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 Firm net revenue impact of mark‐to‐market gains and losses on investments associated with DCP and compensation expense impact related to DCP in prior year periods:
			4Q25		3Q25		2Q25		1Q25		4Q25 YTD
		Net revenues	$	17,890	$	18,224	$	16,792	$	17,739	$	70,645
		Adjustment for mark-to-market on DCP	5		(248)		(377)		149		(471)
		Adjusted Net revenues - non-GAAP	$	17,895	$	17,976	$	16,415	$	17,888	$	70,174

		Compensation expense	$	7,063	$	7,442	$	7,190	$	7,521	$	29,216
		Adjustment for mark-to-market on DCP	(95)		(300)		(371)		2		(764)
		Adjusted Compensation expense - non-GAAP	$	6,968	$	7,142	$	6,819	$	7,523	$	28,452

	-	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.
	-	Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments. For certain unvested DCP awards, the Firm designates derivatives in cash flow hedges with changes in fair value recorded in other comprehensive income and later reclassified to compensation expense in line with the vesting period of the DCP awards. For other awards, including vested awards, the Firm uses economic hedging derivatives, with changes in fair value recorded in compensation expense. As a result, the Firm will no longer present non-GAAP measures of net revenues and compensation expense excluding DCP.
	-	Prior to 2026, we hedged DCP award obligations primarily with cash instruments and recorded the changes in the fair value, net of financing costs, within Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments were generally offset by changes in the fair value of investments recognized in net revenues, there was 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.
	-	The use of derivatives as cash flow hedges of DCP awards is expected to substantially mitigate timing differences between the recognition of changes in the fair value of the hedging instruments and the deferred recognition of related DCP compensation expense over the vesting period. The expected mitigation of these timing differences, alongside the associated income statement changes described above, enables us to better present the operating performance and revenue trends without the need for non-GAAP financial measures.
	-	The tables above for the prior periods present non-GAAP adjusted Net revenues which excludes amounts recognized in Net revenues related to fair value gains and losses, net of financing costs, on investments associated with certain cash-based deferred compensation plans and non-GAAP adjusted Compensation expense for 2025 which excludes amounts recognized in Compensation expense associated with certain cash-based deferred compensation plans.

(2)	The Firm non-interest expenses by category are as follows:
			3Q26		2Q26		3Q25		3Q26 YTD		3Q25 YTD
		Compensation and benefits (a)	$	7,997	$	8,187	$	7,442	$	24,726	$	22,153
		Non-compensation expenses:
		Brokerage, clearing and exchange fees (b)	1,467		1,464		1,141		4,187		3,551
		Information processing and communications	1,302		1,203		1,119		3,653		3,258
		Professional services	700		680		685		1,982		2,070
		Occupancy and equipment	502		482		473		1,467		1,381
		Marketing and business development	347		401		280		1,058		815
		Other (b)(c)	1,397		1,485		1,056		4,012		3,002
		Total non-compensation expenses	5,715		5,715		4,754		16,359		14,077
		Total non-interest expenses	$	13,712	$	13,902	$	12,196	$	41,085	$	36,230

	(a)	During the quarter ended March 31, 2026, as a result of March workforce management actions, were recognized severance costs of $178 million in Compensation and benefits expenses.The workforce management action was related to an effort to improve operational efficiency and manage performance, rather than a change in strategy or exit of businesses. The workforce management action occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. We recorded severance costs of $94 million in the Institutional Securities business segment, $61 million in the Wealth Management business segment, and $23 million in the Investment Management business segment for the quarters ended March 31, 2026. These costs were incurred across all regions, with the majority in the Americas.
	(b)	Execution-related expenses represent Brokerage, Clearing and exchange fees and certain expenses reported in the Other expense category such as Regulatory fees, Transaction taxes and other fees which are directly associated with revenue-generating activities.
	(c)	For both the three and nine months ended September 30, 2025, Firm results included an FDIC Special Assessment of $(8) million, of which $(3) million was reported in the Institutional Securities business segment and $(5) million was reported in the Wealth Management business segment.

Page 2:
(1)	Refer to page 1(2) End Notes from above.


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 September 30, 2026, June 30, 2026 and September 30, 2025, the U.S. Bank investment securities portfolio included held to maturity investment securities of $40.4 billion, $41.3 billion and $45.2 billion, respectively.

Page 4:
(1)	Capital ratios are estimates as of the press release date, October 14, 2026 and are subject to change in the Firm's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.


Supplemental Quantitative Details and Calculations

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: 3Q26: $455mm; 2Q26: $455mm; 3Q25: $457mm; 3Q26 YTD: $455mm; 3Q25 YTD: $457mm.

Page 6:
(1)	The following sets forth the Wealth Management segment net revenue impact of mark-to-market gains and losses on investments associated with DCP and compensation expense impact related to DCP in prior year periods:
			4Q25		3Q25		2Q25		1Q25		4Q25 YTD
		Net revenues	$	8,429	$	8,234	$	7,764	$	7,327	$	31,754
		Adjustment for mark-to-market on DCP	21		(206)		(294)		131		(348)
		Adjusted Net revenues - non-GAAP	$	8,450	$	8,028	$	7,470	$	7,458	$	31,406

		Compensation expense	$	4,416	$	4,388	$	4,147	$	3,999	$	16,950
		Adjustment for mark-to-market on DCP	(66)		(222)		(264)		17		(535)
		Adjusted Compensation expense - non-GAAP	$	4,350	$	4,166	$	3,883	$	4,016	$	16,415

	-	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.
	-	Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments. For certain unvested DCP awards, the Firm designates derivatives in cash flow hedges with changes in fair value recorded in other comprehensive income and later reclassified to compensation expense in line with the vesting period of the DCP awards. For other awards, including vested awards, the Firm uses economic hedging derivatives, with changes in fair value recorded in compensation expense. As a result, the Firm will no longer present non-GAAP measures of net revenues and compensation expense excluding DCP.
	-	Prior to 2026, we hedged DCP award obligations primarily with cash instruments and recorded the changes in the fair value, net of financing costs, within Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments were generally offset by changes in the fair value of investments recognized in net revenues, there was 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.
	-	The use of derivatives as cash flow hedges of DCP awards is expected to substantially mitigate timing differences between the recognition of changes in the fair value of the hedging instruments and the deferred recognition of related DCP compensation expense over the vesting period. The expected mitigation of these timing differences, alongside the associated income statement changes described above, enables us to better present the operating performance and revenue trends without the need for non-GAAP financial measures.
	-	The tables above for the prior periods present non-GAAP adjusted Net revenues which excludes amounts recognized in Net revenues related to fair value gains and losses, net of financing costs, on investments associated with certain cash-based deferred compensation plans and non-GAAP adjusted Compensation expense for 2025 which excludes amounts recognized in Compensation expense associated with certain cash-based deferred compensation plans.

(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: 3Q26: $13,220mm; 2Q26: $13,220mm; 3Q25: $13,088mm; 3Q26 YTD: $13,220mm; 3Q25 YTD: $13,088mm.

Page 7:
(1)	Wealth Management other lending included $2 billion of non-purpose securities based lending on non-bank entities in each period ended September 30, 2026, June 30, 2026 and September 30, 2025.
(2)	Details of deposits sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries for the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, are as follows:
			3Q26		2Q26		3Q25
		Brokerage sweep deposits	$	147	$	146	$	136
		Other deposits	318		290		262
		Total deposits	$	465	$	436	$	398


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: 3Q26: $9,467mm; 2Q26: $9,467mm; 3Q25: $9,557mm; 3Q26 YTD: $9,467mm; 3Q25 YTD: $9,557mm.

Page 10:
(1)	For the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, Investment Management reflected loan balances of $368 million, $376 million and $49 million, respectively, and for the quarter ended September 30, 2026, Investment Management reflected lending commitments of $8 million.


Supplemental Quantitative Details and Calculations

Page 11:
(1)	For the quarter ended September 30, 2026, the Allowance Rollforward for Loans and Lending Commitments is as follows:
			Institutional Securities		Wealth Management		Total
		Loans

		Allowance for Credit Losses (ACL)
		Beginning Balance - June 30, 2026	$	860	$	388	$	1,248
		Net Charge Offs	(105)		(1)		(106)
		Provision	100		3		103
		Other	(1)		—		(1)
		Ending Balance - September 30, 2026	$	854	$	390	$	1,244


		Lending Commitments

		Allowance for Credit Losses (ACL)
		Beginning Balance - June 30, 2026	$	777	$	15	$	792
		Net Charge Offs	—		—		—
		Provision	41		4		45
		Other	(13)		—		(13)
		Ending Balance - September 30, 2026	$	805	$	19	$	824


		Loans and Lending Commitments

		Allowance for Credit Losses (ACL)
		Beginning Balance - June 30, 2026	$	1,637	$	403	$	2,040
		Net Charge Offs	(105)		(1)		(106)
		Provision	141		7		148
		Other	(14)		—		(14)
		Ending Balance - September 30, 2026	$	1,659	$	409	$	2,068


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 third quarter earnings press release issued October 14, 2026.