Exhibit 99.1

Morgan Stanley Third Quarter 2021 Earnings Results

Morgan Stanley Reports Net Revenues of $14.8 Billion, EPS of $1.98 and ROTCE of 19.6%

NEW YORK, October 14, 2021 – Morgan Stanley (NYSE: MS) today reported net revenues of $14.8 billion for the third quarter ended September 30, 2021 compared with $11.7 billion a year ago. Net income applicable to Morgan Stanley was $3.7 billion, or $1.98 per diluted share,¹compared with net income of $2.7 billion, or $1.66 per diluted share,¹ for the same period a year ago. The comparisons of current year results to prior periods were impacted by the acquisitions of E*TRADE Financial Corporation (“E*TRADE”), reported in the Wealth Management segment, and Eaton Vance Corp. (“Eaton Vance”), reported in the Investment Management segment.

James P. Gorman, Chairman and Chief Executive Officer, said, “The Firm delivered another very strong quarter, with robust revenues and improved efficiency producing an ROTCE of 20%. We had standout performance of our integrated Investment Bank and record net new assets of $135 billion in Wealth Management. Year-to-date, our successful integrations of E*TRADE and Eaton Vance have supported growth of $400 billion in net new client assets across Wealth and Investment Management, bringing our total combined client assets to $6.2 trillion.”

Financial Summary^2,3,4
Firm ($ millions, except per share data)	3Q 2021			3Q 2020

Net revenues	$	14,753		$	11,721
Provision for credit losses	$	24		$	111
Compensation expense	$	5,920		$	5,086
Non-compensation expenses	$	3,935		$	3,037
Pre-tax income¹⁰	$	4,874		$	3,487
Net income app. to MS	$	3,707		$	2,717
Expense efficiency ratio⁷		67	%		69	%
Earnings per diluted share	$	1.98		$	1.66
Book value per share	$	54.56		$	50.67
Tangible book value per share	$	40.47		$	44.81
Return on equity		14.5	%		13.2	%
Return on tangible equity⁵		19.6	%		15.0	%
Institutional Securities
Net revenues	$	7,495		$	6,129
Investment Banking	$	2,849		$	1,707
Equity	$	2,876		$	2,311
Fixed Income	$	1,640		$	1,954
Wealth Management
Net revenues	$	5,935		$	4,654
Fee-based client assets ($ billions)¹¹	$	1,752		$	1,333
Fee-based asset flows ($ billions)¹²	$	70.6		$	23.8
Net new assets ($ billions)⁹	$	134.5		$	51.8
Loans ($ billions)	$	121.2		$	91.3
Investment Management
Net revenues	$	1,453		$	1,056
AUM ($ billions)¹³	$	1,522		$	715
Long-term net flows ($ billions)¹⁴	$	(2.3	)	$	10.4

Highlights

•	Firm net revenues of $14.8 billion and net income of $3.7 billion increased more than 25% year over year reflecting strong performance across all business segments and regions.

•	The Firm delivered ROTCE of 19.6% or 20.2% excluding the impact of integration-related expenses.^5,6

•	The Firm expense efficiency ratio improved to 67% or 66% excluding the impact of integration-related expenses.^6,7

•	Common Equity Tier 1 capital standardized ratio was 16.0%.

•	Institutional Securities net revenues of $7.5 billion reflect record Investment Banking revenues, led by advisory, continued strong performance in Equity, and solid results in Fixed Income.

•	Wealth Management delivered a pre-tax margin of 25.8% or 27.7% excluding integration-related expenses.^6,8 Results reflect record asset management revenues and continued growth in bank lending. The business added record net new assets of $135 billion⁹ representing a year-to-date 10% annualized growth rate from beginning period assets.

•	Investment Management results reflect an increase in fee-based asset management revenues on AUM of $1.5 trillion.

Media Relations: Wesley McDade 212-761-2430

Investor Relations: Leslie Bazos 212-761-5352

Institutional Securities

Institutional Securities reported net revenues for the current quarter of $7.5 billion compared with $6.1 billion a year ago. Pre-tax income was $3.0 billion compared with $2.0 billion a year ago.¹⁰

Investment Banking revenues up 67% from a year ago:

•	Record advisory revenues driven by higher completed M&A transactions.

•	Equity underwriting revenues increased from a year ago primarily from IPOs and blocks driven by more issuances and activity in a constructive market.

•	Fixed income underwriting revenues increased from a year ago driven by higher non-investment grade loan issuances on the back of increased event financing, partially offset by lower investment grade bond volumes.

Equity net revenues up 24% from a year ago:

•	Equity net revenues increased from a year ago reflecting higher results across products driven by strong client engagement in a favorable market environment, with particular strength in Asia.

Fixed Income net revenues down 16% from a year ago:

•

Fixed Income net revenues declined versus a strong prior year quarter. Results reflect a decrease in our macro businesses in a less volatile environment and lower results in our micro businesses driven by tighter bid-offer and credit spreads. The decrease was partially offset by higher revenues in commodities driven by an increase in client activity.

($ millions)	3Q 2021		3Q 2020

Net Revenues	$	7,495	$	6,129

Investment Banking	$	2,849	$	1,707
Advisory	$	1,272	$	357
Equity underwriting	$	1,010	$	874
Fixed income underwriting	$	567	$	476

Equity	$	2,876	$	2,311
Fixed Income	$	1,640	$	1,954
Other	$	130	$	157

Provision for credit losses	$	24	$	113

Total Expenses	$	4,498	$	3,968
Compensation	$	2,248	$	2,001
Non-compensation	$	2,250	$	1,967

Provision for credit losses:

•	Provision for credit losses decreased from a year ago on loans held for investment as a result of an improved macroeconomic environment.

Total Expenses:

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

•	Non-compensation expenses increased from a year ago primarily driven by higher volume related expenses.

Wealth Management

Wealth Management reported net revenues for the current quarter of $5.9 billion compared with $4.7 billion from a year ago. Pre-tax income of $1.5 billion¹⁰ in the current quarter resulted in a reported pre-tax margin of 25.8% or 27.7% excluding the impact of integration-related expenses.^6,8 The comparisons of current year results to prior periods were impacted by the acquisition of E*TRADE.

Net revenues increased 28% from a year ago:

•	Asset management revenues increased from a year ago reflecting higher asset levels driven by market appreciation and strong positive fee-based flows in the advisor-led channel.

•	Transactional revenues¹⁵ increased 38% excluding the impact of lower mark-to-market gains on investments associated with certain employee deferred compensation plans. Results reflect incremental revenues as a result of the E*TRADE acquisition and strong client activity.

•	Net interest income increased from a year ago as a result of the E*TRADE acquisition and strong bank lending growth.

($ millions)	3Q 2021		3Q 2020

Net Revenues	$	5,935	$	4,654
Asset management	$	3,628	$	2,793
Transactional¹⁵	$	832	$	880
Net interest income	$	1,348	$	889
Other	$	127	$	92
Provision for credit losses	$	0	$	(2	)
Total Expenses	$	4,405	$	3,536
Compensation	$	3,159	$	2,684
Non-compensation	$	1,246	$	852

Total Expenses:

•	Compensation expense increased from a year ago driven by higher compensable revenues and incremental compensation as a result of the E*TRADE acquisition⁶ partially offset by decreases in the fair value of certain deferred compensation plan referenced investments.

•	Non-compensation expenses increased from a year ago primarily driven by incremental expenses as a result of the E*TRADE acquisition.⁶

Investment Management

Investment Management reported net revenues of $1.5 billion compared with $1.1 billion a year ago. Pre-tax income was $370 million compared with $315 million a year ago.¹⁰ The comparisons of current year results to prior periods were impacted by the acquisition of Eaton Vance.

Net revenues increased 38% from a year ago:

•	Asset management and related fees increased from a year ago driven by incremental revenues as a result of the Eaton Vance acquisition and higher AUM.

•	Performance-based income and other revenues decreased from a year ago due to overall lower accrued carried interest in the Asia private equity business, primarily driven by an underlying public investment in one of the funds.

($ millions)	3Q 2021			3Q 2020

Net Revenues	$	1,453		$	1,056
Asset management and related fees	$	1,470		$	795
Performance-based income and other	$	(17	)	$	261
Total Expenses	$	1,083		$	741
Compensation	$	513		$	401
Non-compensation	$	570		$	340

Total Expenses:

•	Compensation expense increased from a year ago primarily driven by incremental compensation expenses as a result of the Eaton Vance acquisition,⁶ partially offset by lower compensation associated with carried interest.

•	Non-compensation expenses increased from a year ago primarily driven by incremental expenses as a result of the Eaton Vance acquisition.⁶

Other Matters

•	The Firm repurchased $3.6 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.

•	The Board of Directors declared a $0.70 quarterly dividend per share, payable on November 15, 2021 to common shareholders of record on October 29, 2021.

•

The Firm intends to early adopt the standardized approach for counterparty credit risk (SA-CCR) under Basel III in the fourth quarter. In the absence of further mitigation, our risk-weighted assets (RWAs) under the Standardized Approach could increase by $35 - $45 billion and decrease our Standardized CET1 capital ratio by approximately 120 basis points. ²⁰

	3Q 2021			3Q 2020
Capital¹⁶
Standardized Approach
CET1 capital^17,20		16.0	%		17.4	%
Tier 1 capital¹⁷		17.6	%		19.5	%
Advanced Approach
CET1 capital¹⁷		17.1	%		16.9	%
Tier 1 capital¹⁷		18.9	%		19.0	%
Leverage-based capital
Tier 1 leverage¹⁸		7.3	%		8.3	%
SLR¹⁹		5.7	%		7.4	%
Common Stock Repurchases
Repurchases ($ millions)	$	3,557			N/A
Number of Shares (millions)		36			N/A
Average Price	$	99.44			N/A
Period End Shares (millions)		1,799			1,576
Tax Rate		23.6	%		21.1	%

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

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

NOTICE:

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

This earnings release may contain forward-looking statements, including the attainment of certain financial and other targets, objectives and goals. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of risks and uncertainties that may affect the future results of the Firm, please see “Forward-Looking Statements” preceding Part I, Item 1, “Competition” and “Supervision and Regulation” in Part I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative and Qualitative Disclosures about Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2020 and other items throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and the Firm’s Current Reports on Form 8-K, including any amendments thereto.

¹ Includes preferred dividends related to the calculation of earnings per share of $123 million and $120 million for the third quarter of 2021 and 2020, 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 The provision for credit losses for loans and lending commitments is now presented as a separate line in the consolidated income statements.

⁵ Return on average tangible common equity and return on average tangible common equity excluding integration-related expenses are non-GAAP financial measures that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance and capital adequacy. The calculation of return on average tangible common equity represents full year or annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity. Tangible common equity, also a non-GAAP financial measure, represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. The calculation of return on average tangible common equity excluding integration-related expenses is adjusted in both the numerator and the denominator to exclude the integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance.

⁶ The Firm’s third quarter results include $145 million of integration-related expenses on a pre-tax basis ($111 million after-tax) as a result of the E*TRADE and Eaton Vance acquisitions. The integration-related expenses include $19 million in compensation expense and $126 million in non-compensation expense. Wealth Management and Investment Management integration-related expenses include $9 million and $10 million in compensation expense, respectively, and $104 million and $22 million in non-compensation expense, respectively.

⁷ The Firm expense efficiency ratio of 66.8% represents total non-interest expenses as a percentage of net revenues. The Firm expense efficiency ratio excluding integration-related expenses of 65.8% represents total non-interest expenses adjusted for integration-related expenses as a percentage of net revenues. The Firm expense efficiency ratio excluding integration-related expenses is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance.

⁸ Pre-tax margin represents income before taxes divided by net revenues. Wealth Management pre-tax margin excluding the integration-related expenses represents income before taxes less those expenses divided by net revenues. Wealth Management pre-tax margin excluding integration-related expenses is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance.

⁹ Wealth Management net new assets represent client inflows, including dividends and interest, and asset acquisitions, less client outflows, and exclude activity from business combinations/divestitures and the impact of fees and commissions. The current quarter ended September 30, 2021 includes $43 billion of fee-based assets acquired in an asset acquisition.

¹⁰ Pre-tax income represents income before taxes.

¹¹ 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.

¹² 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. The current quarter ended September 30, 2021 includes $43 billion of fee-based assets acquired in an asset acquisition.

¹³ AUM is defined as assets under management.

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

¹⁵ Transactional revenues include investment banking, trading, and commissions and fee revenues. Transactional revenues excluding the impact of mark-to-market gains on investments associated with employee deferred cash-based compensation plans is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow better comparability of period-to-period operating performance and capital adequacy.

¹⁶ Capital ratios are estimates as of the press release date, October 14, 2021.

¹⁷ 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, 2020 (2020 Form 10-K).

¹⁸ 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.

¹⁹ The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $83.5 billion and $79.9 billion, and supplementary leverage exposure denominator of approximately $1.46 trillion and $1.08 trillion, for the third quarter of 2021 and 2020, respectively. Based on a Federal Reserve interim final rule that was in effect until March 31, 2021, our SLR and supplementary leverage exposure as of September 30, 2020 reflects the exclusion of U.S. Treasury securities and deposits at Federal Reserve Banks. The exclusion of these assets had the effect of increasing our SLR by 0.9% as of September 30, 2020.

²⁰The Firm intends to early adopt the standardized approach for counterparty credit risk (SA-CCR) under Basel III in the fourth quarter. SA-CCR replaces the current exposure method used to measure derivatives counterparty exposure on the Standardized Approach risk-weighted assets (RWAs) and Supplementary Leverage Ratio exposure calculations in the regulatory capital framework. In the absence of further mitigation, our RWAs under the Standardized Approach could increase by $35 - $45 billion and decrease our Standardized CET1 capital ratio by approximately 120 basis points. This preliminary impact is subject to risks and uncertainties as well as the portfolio composition as of the adoption date that may cause the actual impact to differ materially and should not be taken as a projection of what our capital ratios and RWAs will be in future periods.

Consolidated Income Statement Information
(unaudited, dollars in millions)

	Quarter Ended						Percentage Change From:						Nine Months Ended					Percentage
	Sep 30, 2021		Jun 30, 2021		Sep 30, 2020		Jun 30, 2021			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020		Change
Revenues:
Investment banking	$	3,013	$	2,560	$	1,826		18	%		65	%	$	8,413		$	5,239		61	%
Trading		2,861		3,330		3,150		(14	%)		(9	%)		10,416			10,754		(3	%)
Investments		45		381		346		(88	%)		(87	%)		744			659		13	%
Commissions and fees		1,280		1,308		1,037		(2	%)		23	%		4,214			3,499		20	%
Asset management		5,201		4,973		3,664		5	%		42	%		14,572			10,346		41	%
Other		290		342		212		(15	%)		37	%		916			221		*
Total non-interest revenues		12,690		12,894		10,235		(2	%)		24	%		39,275			30,718		28	%

Interest income		2,351		2,212		2,056		6	%		14	%		7,000			7,917		(12	%)
Interest expense		288		347		570		(17	%)		(49	%)		1,044			3,475		(70	%)
Net interest		2,063		1,865		1,486		11	%		39	%		5,956			4,442		34	%
Net revenues		14,753		14,759		11,721		--			26	%		45,231			35,160		29	%

Provision for credit losses		24		73		111		(67	%)		(78	%)		(1	)		757		*

Non-interest expenses:
Compensation and benefits		5,920		6,423		5,086		(8	%)		16	%		19,141			15,404		24	%

Non-compensation expenses:
Brokerage, clearing and exchange fees		825		795		697		4	%		18	%		2,530			2,153		18	%
Information processing and communications		788		765		616		3	%		28	%		2,286			1,768		29	%
Professional services		734		746		542		(2	%)		35	%		2,104			1,526		38	%
Occupancy and equipment		427		414		373		3	%		14	%		1,246			1,103		13	%
Marketing and business development		146		146		78		--			87	%		438			273		60	%
Other		1,015		831		731		22	%		39	%		2,703			2,188		24	%
Total non-compensation expenses		3,935		3,697		3,037		6	%		30	%		11,307			9,011		25	%

Total non-interest expenses		9,855		10,120		8,123		(3	%)		21	%		30,448			24,415		25	%

Income before provision for income taxes		4,874		4,566		3,487		7	%		40	%		14,784			9,988		48	%
Provision for income taxes		1,150		1,054		736		9	%		56	%		3,380			2,221		52	%
Net income	$	3,724	$	3,512	$	2,751		6	%		35	%	$	11,404		$	7,767		47	%
Net income applicable to nonredeemable noncontrolling interests		17		1		34		*			(50	%)		66			156		(58	%)
Net income applicable to Morgan Stanley		3,707		3,511		2,717		6	%		36	%		11,338			7,611		49	%
Preferred stock dividend		123		103		120		19	%		3	%		364			377		(3	%)
Earnings applicable to Morgan Stanley common shareholders	$	3,584	$	3,408	$	2,597		5	%		38	%	$	10,974		$	7,234		52	%

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

Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020			Change

Financial Metrics:

Earnings per basic share	$	2.01		$	1.88		$	1.68			7	%		20	%	$	6.11		$	4.68			31	%
Earnings per diluted share	$	1.98		$	1.85		$	1.66			7	%		19	%	$	6.02		$	4.62			30	%

Return on average common equity		14.5	%		13.8	%		13.2	%								15.1	%		12.6	%
Return on average tangible common equity		19.6	%		18.6	%		15.0	%								19.7	%		14.3	%

Book value per common share	$	54.56		$	54.04		$	50.67								$	54.56		$	50.67
Tangible book value per common share	$	40.47		$	40.12		$	44.81								$	40.47		$	44.81

Excluding integration-related expenses
Adjusted earnings per diluted share	$	2.04		$	1.89		$	1.66			8	%		23	%	$	6.15		$	4.62			33	%
Adjusted return on average common equity		15.0	%		14.1	%		13.2	%								15.4	%		12.6	%
Adjusted return on average tangible common equity		20.2	%		19.0	%		15.0	%								20.2	%		14.3	%


Financial Ratios:

Pre-tax profit margin		33	%		31	%		30	%								33	%		28	%
Compensation and benefits as a % of net revenues		40	%		44	%		43	%								42	%		44	%
Non-compensation expenses as a % of net revenues		27	%		25	%		26	%								25	%		26	%
Firm expense efficiency ratio		67	%		69	%		69	%								67	%		69	%
Firm expense efficiency ratio excluding integration-related expenses		66	%		68	%		69	%								67	%		69	%
Effective tax rate		23.6	%		23.1	%		21.1	%								22.9	%		22.2	%


Statistical Data:

Period end common shares outstanding (millions)		1,799			1,834			1,576			(2	%)		14	%
Average common shares outstanding (millions)
Basic		1,781			1,814			1,542			(2	%)		15	%		1,797			1,546			16	%
Diluted		1,812			1,841			1,566			(2	%)		16	%		1,824			1,565			17	%

Worldwide employees		73,620			71,826			63,051			2	%		17	%

Notes:

Exhibit 99.2

Third Quarter 2021 Earnings Results


Quarterly Financial Supplement	Page

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

The Firm's 2021 earnings results reflect the completed acquisitions of E*TRADE Financial Corporation ("E*TRADE") and Eaton Vance Corp. ("Eaton Vance") prospectively from the dates, October 2, 2020 and March 1, 2021, respectively. Comparisons between current year periods and prior year periods are impacted by the financial results of E*TRADE and Eaton Vance reported in the Wealth Management segment and Investment Management segment, respectively.

Consolidated Financial Summary
(unaudited, dollars in millions)



	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020			Change
Net revenues
Institutional Securities	$	7,495		$	7,092		$	6,129			6	%		22	%	$	23,164		$	19,506			19	%
Wealth Management		5,935			6,095			4,654			(3	%)		28	%		17,989			13,414			34	%
Investment Management		1,453			1,702			1,056			(15	%)		38	%		4,469			2,634			70	%
Intersegment Eliminations		(130	)		(130	)		(118	)		--			(10	%)		(391	)		(394	)		1	%
Net revenues	$	14,753		$	14,759		$	11,721			--			26	%	$	45,231		$	35,160			29	%

Provision for credit losses	$	24		$	73		$	111			(67	%)		(78	%)	$	(1	)	$	757			*

Non-interest expenses
Institutional Securities	$	4,498		$	4,524		$	3,968			(1	%)		13	%	$	14,321		$	12,797			12	%
Wealth Management		4,405			4,456			3,536			(1	%)		25	%		13,225			10,058			31	%
Investment Management		1,083			1,272			741			(15	%)		46	%		3,299			1,960			68	%
Intersegment Eliminations		(131	)		(132	)		(122	)		1	%		(7	%)		(397	)		(400	)		1	%
Non-interest expenses ⁽¹⁾	$	9,855		$	10,120		$	8,123			(3	%)		21	%	$	30,448		$	24,415			25	%

Income before taxes
Institutional Securities	$	2,973		$	2,498		$	2,048			19	%		45	%	$	8,842		$	5,991			48	%
Wealth Management		1,530			1,636			1,120			(6	%)		37	%		4,766			3,317			44	%
Investment Management		370			430			315			(14	%)		17	%		1,170			674			74	%
Intersegment Eliminations		1			2			4			(50	%)		(75	%)		6			6			--
Income before taxes	$	4,874		$	4,566		$	3,487			7	%		40	%	$	14,784		$	9,988			48	%

Net Income applicable to Morgan Stanley
Institutional Securities	$	2,229		$	1,904		$	1,647			17	%		35	%	$	6,734		$	4,590			47	%
Wealth Management		1,157			1,264			842			(8	%)		37	%		3,663			2,559			43	%
Investment Management		320			341			225			(6	%)		42	%		936			457			105	%
Intersegment Eliminations		1			2			3			(50	%)		(67	%)		5			5			--
Net Income applicable to Morgan Stanley	$	3,707		$	3,511		$	2,717			6	%		36	%	$	11,338		$	7,611			49	%
Earnings applicable to Morgan Stanley common shareholders	$	3,584		$	3,408		$	2,597			5	%		38	%	$	10,974		$	7,234			52	%

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:						Nine Months Ended						Percentage
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020			Change

Financial Metrics:

Earnings per basic share	$	2.01		$	1.88		$	1.68			7	%		20	%	$	6.11		$	4.68			31	%
Earnings per diluted share	$	1.98		$	1.85		$	1.66			7	%		19	%	$	6.02		$	4.62			30	%

Return on average common equity		14.5	%		13.8	%		13.2	%								15.1	%		12.6	%
Return on average tangible common equity		19.6	%		18.6	%		15.0	%								19.7	%		14.3	%

Book value per common share	$	54.56		$	54.04		$	50.67								$	54.56		$	50.67
Tangible book value per common share	$	40.47		$	40.12		$	44.81								$	40.47		$	44.81

Excluding integration-related expenses ⁽¹⁾
Adjusted earnings per diluted share	$	2.04		$	1.89		$	1.66			8	%		23	%	$	6.15		$	4.62			33	%
Adjusted return on average common equity		15.0	%		14.1	%		13.2	%								15.4	%		12.6	%
Adjusted return on average tangible common equity		20.2	%		19.0	%		15.0	%								20.2	%		14.3	%


Financial Ratios:

Pre-tax profit margin		33	%		31	%		30	%								33	%		28	%
Compensation and benefits as a % of net revenues		40	%		44	%		43	%								42	%		44	%
Non-compensation expenses as a % of net revenues		27	%		25	%		26	%								25	%		26	%
Firm expense efficiency ratio		67	%		69	%		69	%								67	%		69	%
Firm expense efficiency ratio excluding integration-related expenses ⁽¹⁾		66	%		68	%		69	%								67	%		69	%
Effective tax rate		23.6	%		23.1	%		21.1	%								22.9	%		22.2	%


Statistical Data:

Period end common shares outstanding (millions)		1,799			1,834			1,576			(2	%)		14	%
Average common shares outstanding (millions)
Basic		1,781			1,814			1,542			(2	%)		15	%		1,797			1,546			16	%
Diluted		1,812			1,841			1,566			(2	%)		16	%		1,824			1,565			17	%

Worldwide employees		73,620			71,826			63,051			2	%		17	%

Notes:

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



	Quarter Ended									Percentage Change From:							Nine Months Ended			Percentage
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020				Sep 30, 2021		Sep 30, 2020	Change

Consolidated Balance sheet

Total assets	$	1,190,476		$	1,161,805		$	955,940			2	%		25	%
Loans ⁽¹⁾	$	188,274		$	181,204		$	154,570			4	%		22	%
Deposits	$	329,041		$	320,358		$	239,253			3	%		38	%
Liquidity resources	$	346,289		$	343,776		$	267,292			1	%		30	%
Long-term debt outstanding	$	224,937		$	218,604		$	198,891			3	%		13	%
Maturities of long-term debt outstanding (next 12 months)	$	13,899		$	16,891		$	20,247			(18	%)		(31	%)

Common equity	$	98,153		$	99,120		$	79,874			(1	%)		23	%
Less: Goodwill and intangible assets		(25,345	)		(25,527	)		(9,228	)		(1	%)		175	%
Tangible common equity	$	72,808		$	73,593		$	70,646			(1	%)		3	%

Preferred equity	$	7,750		$	7,750		$	8,520			--			(9	%)

U.S. Bank Supplemental Financial Information
Total assets	$	367,111		$	357,488		$	266,221			3	%		38	%
Loans	$	174,552		$	167,628		$	140,639			4	%		24	%
Investment securities portfolio ⁽²⁾	$	144,056		$	136,218		$	91,096			6	%		58	%
Deposits	$	326,941		$	318,689		$	238,025			3	%		37	%

Regional revenues
Americas	$	11,255		$	10,885		$	8,455			3	%		33	%	$	33,331	$	25,293	32	%
EMEA (Europe, Middle East, Africa)		1,752			2,093			1,472			(16	%)		19	%		6,004		4,778	26	%
Asia		1,746			1,781			1,794			(2	%)		(3	%)		5,896		5,089	16	%
Consolidated net revenues	$	14,753		$	14,759		$	11,721			--			26	%	$	45,231	$	35,160	29	%

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



	Quarter Ended									Percentage Change From:						Nine Months Ended				Percentage
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020			Sep 30, 2021		Sep 30, 2020		Change

Average Common Equity
Institutional Securities	$	43.5		$	43.5		$	42.8			--			2	%	$	43.5	$	42.8		2	%
Wealth Management		28.6			28.6			18.2			--			57	%		28.6		18.2		57	%
Investment Management		10.7			10.7			2.6			--			*			8.2		2.6		*
Parent		15.8			16.0			15.1			(1	%)		5	%		16.6		13.3		25	%
Firm	$	98.6		$	98.8		$	78.7			--			25	%	$	96.9	$	76.9		26	%



Regulatory Capital ⁽¹⁾

Common Equity Tier 1 capital	$	75.8		$	76.8		$	71.2			(1	%)		6	%
Tier 1 capital	$	83.5		$	84.6		$	79.9			(1	%)		5	%

Standardized Approach
Risk-weighted assets	$	474.3		$	462.8		$	408.9			2	%		16	%
Common Equity Tier 1 capital ratio		16.0	%		16.6	%		17.4	%
Tier 1 capital ratio		17.6	%		18.3	%		19.5	%

Advanced Approach
Risk-weighted assets	$	442.5		$	434.7		$	420.1			2	%		5	%
Common Equity Tier 1 capital ratio		17.1	%		17.7	%		16.9	%
Tier 1 capital ratio		18.9	%		19.5	%		19.0	%

Leverage-based capital
Tier 1 leverage ratio		7.3	%		7.5	%		8.3	%
Supplementary Leverage Ratio⁽²⁾		5.7	%		5.9	%		7.4	%

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


	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020			Change
Revenues:

Advisory	$	1,272		$	664		$	357			92	%		*		$	2,416		$	1,181			105	%
Equity		1,010			1,072			874			(6	%)		16	%		3,584			2,092			71	%
Fixed income		567			640			476			(11	%)		19	%		1,838			1,629			13	%
Underwriting		1,577			1,712			1,350			(8	%)		17	%		5,422			3,721			46	%
Investment banking		2,849			2,376			1,707			20	%		67	%		7,838			4,902			60	%

Equity		2,876			2,827			2,311			2	%		24	%		8,578			7,387			16	%
Fixed income		1,640			1,682			1,954			(2	%)		(16	%)		6,288			7,057			(11	%)
Other		130			207			157			(37	%)		(17	%)		460			160			188	%

Net revenues		7,495			7,092			6,129			6	%		22	%		23,164			19,506			19	%

Provision for credit losses		24			70			113			(66	%)		(79	%)		1			718			(100	%)

Compensation and benefits		2,248			2,433			2,001			(8	%)		12	%		7,795			6,767			15	%
Non-compensation expenses		2,250			2,091			1,967			8	%		14	%		6,526			6,030			8	%
Total non-interest expenses		4,498			4,524			3,968			(1	%)		13	%		14,321			12,797			12	%


Income before taxes		2,973			2,498			2,048			19	%		45	%		8,842			5,991			48	%
Net income applicable to Morgan Stanley	$	2,229		$	1,904		$	1,647			17	%		35	%	$	6,734		$	4,590			47	%


Pre-tax profit margin		40	%		35	%		33	%								38	%		31	%
Compensation and benefits as a % of net revenues		30	%		34	%		33	%								34	%		35	%
Non-compensation expenses as a % of net revenues		30	%		29	%		32	%								28	%		31	%

Return on Average Common Equity		20	%		17	%		15	%								20	%		13	%
Return on Average Tangible Common Equity ⁽¹⁾		20	%		17	%		15	%								20	%		14	%

Trading VaR (Average Daily 95% / One-Day VaR)	$	45		$	48		$	58

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

	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020			Change
Revenues:
Asset management	$	3,628		$	3,447		$	2,793			5	%		30	%	$	10,266		$	7,980			29	%
Transactional		832			1,172			880			(29	%)		(5	%)		3,232			2,354			37	%
Net interest income		1,348			1,255			889			7	%		52	%		3,988			2,815			42	%
Other		127			221			92			(43	%)		38	%		503			265			90	%
Net revenues		5,935			6,095			4,654			(3	%)		28	%		17,989			13,414			34	%

Provision for credit losses		-			3			(2	)		*			*			(2	)		39			*

Compensation and benefits		3,159			3,275			2,684			(4	%)		18	%		9,604			7,625			26	%
Non-compensation expenses		1,246			1,181			852			6	%		46	%		3,621			2,433			49	%
Total non-interest expenses ⁽¹⁾		4,405			4,456			3,536			(1	%)		25	%		13,225			10,058			31	%

Income before taxes		1,530			1,636			1,120			(6	%)		37	%		4,766			3,317			44	%
Net income applicable to Morgan Stanley	$	1,157		$	1,264		$	842			(8	%)		37	%	$	3,663		$	2,559			43	%

Pre-tax profit margin		26	%		27	%		24	%								26	%		25	%
Pre-tax profit margin excluding integration-related expenses		28	%		28	%		24	%								28	%		25	%
Compensation and benefits as a % of net revenues		53	%		54	%		58	%								53	%		57	%
Non-compensation expenses as a % of net revenues		21	%		19	%		18	%								20	%		18	%

Return on Average Common Equity		16	%		17	%		18	%								17	%		18	%
Return on Average Tangible Common Equity ⁽²⁾		34	%		37	%		31	%								35	%		32	%

Notes:

-	For the quarters ended September 30, 2021 and June 30, 2021, Wealth Management's results include pre-tax integration-related expenses of $113 million and $60 million ($87 million and $46 million after-tax), respectively. The nine months ended September 30, 2021 results include pre-tax integration-related expenses of $237 million ($182 million after-tax).
-	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 Calculations, and Legal Notice.

Wealth Management
Financial Information and Statistical Data
(unaudited, dollars in billions)


	Quarter Ended									Percentage Change From:
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020


Wealth Management Metrics

Total client assets	$	4,629		$	4,546		$	2,852			2	%		62	%
Net new assets ⁽¹⁾	$	134.5		$	71.2		$	51.8			89	%		160	%
U.S. Bank loans	$	121.2		$	114.7		$	91.3			6	%		33	%
Margin and other lending⁽²⁾	$	28.6		$	27.0		$	9.1			6	%		*
Deposits ⁽³⁾	$	327		$	319		$	234			3	%		40	%
Annualized weighted average cost of deposits		0.13	%		0.16	%		0.38	%

Advisor-led channel

Advisor-led client assets	$	3,647		$	3,553		$	2,759			3	%		32	%

Fee-based client assets	$	1,752		$	1,680		$	1,333			4	%		31	%
Fee-based asset flows ⁽¹⁾	$	70.6		$	33.7		$	23.8			109	%		197	%
Fee-based assets as a % of advisor-led client assets		48	%		47	%		48	%

Self-directed channel

Self-directed assets	$	982		$	993		$	93			(1	%)		*
Daily average revenue trades (000's)		959			1,042			6			(8	%)		*
Self-directed households (millions)		7.4			7.4			1.7			--			*

Workplace channel

Workplace unvested assets	$	495		$	480		$	157			3	%		*
Number of participants (millions)		5.3			5.2			2.7			2	%		96	%

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

Report dated:10/11/21 21:51
	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sep 30, 2021			Jun 30, 2021			Sep 30, 2020			Jun 30, 2021			Sep 30, 2020			Sep 30, 2021			Sep 30, 2020			Change
Revenues:
Asset management and related fees	$	1,470		$	1,418		$	795			4	%		85	%	$	3,991		$	2,144			86	%
Performance-based income and other		(17	)		284			261			*			*			478			490			(2	%)
Net revenues		1,453			1,702			1,056			(15	%)		38	%		4,469			2,634			70	%

Compensation and benefits		513			715			401			(28	%)		28	%		1,742			1,012			72	%
Non-compensation expenses		570			557			340			2	%		68	%		1,557			948			64	%
Total non-interest expenses ⁽¹⁾		1,083			1,272			741			(15	%)		46	%		3,299			1,960			68	%

Income before taxes		370			430			315			(14	%)		17	%		1,170			674			74	%
Net income applicable to Morgan Stanley	$	320		$	341		$	225			(6	%)		42	%	$	936		$	457			105	%

Pre-tax profit margin		25	%		25	%		30	%								26	%		26	%
Pre-tax profit margin excluding integration-related expenses		28	%		27	%		30	%								28	%		26	%
Compensation and benefits as a % of net revenues		35	%		42	%		38	%								39	%		38	%
Non-compensation expenses as a % of net revenues		39	%		33	%		32	%								35	%		36	%

Return on Average Common Equity		12	%		13	%		34	%								15	%		23	%
Return on Average Tangible Common Equity ⁽²⁾		161	%		172	%		53	%								128	%		36	%

Notes:

-	For the quarters ended September 30, 2021 and June 30, 2021, Investment Management's results include pre-tax integration-related expenses of $32 million and $30 million ($24 million and $23 million after-tax), respectively. The nine months ended September 30, 2021 results include pre-tax integration-related expenses of $73 million ($56 million after-tax).
-	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:						Nine Months Ended				Percentage
	Sep 30, 2021			Jun 30, 2021		Sep 30, 2020			Jun 30, 2021			Sep 30, 2020			Sep 30, 2021		Sep 30, 2020		Change

Assets under management or supervision (AUM)

Net flows by asset class ⁽¹⁾
Equity	$	(0.9	)	$	2.7	$	10.0			*			*		$	9.6	$	20.6		(53	%)
Fixed Income		(0.3	)		3.0		3.1			*			*			6.6		8.8		(25	%)
Alternatives and Solutions		(1.1	)		7.8		(2.7	)		*			59	%		11.3		3.1		*
Long-Term Net Flows		(2.3	)		13.5		10.4			*			*			27.5		32.5		(15	%)

Liquidity and Overlay Services		14.6			35.0		2.1			(58	%)		*			75.5		73.4		3	%

Total net flows	$	12.3		$	48.5	$	12.5			(75	%)		(2	%)	$	103.0	$	105.9		(3	%)


Assets under management or supervision by asset class⁽²⁾
Equity	$	391		$	404	$	202			(3	%)		94	%
Fixed Income		206			207		92			--			124	%
Alternatives and Solutions		443			445		150			--			195	%
Long‐Term Assets Under Management or Supervision		1,040			1,056		444			(2	%)		134	%

Liquidity and Overlay Services		482			468		271			3	%		78	%

Total Assets Under Management or Supervision	$	1,522		$	1,524	$	715			--			113	%

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


	Quarter Ended						Percentage Change From:
	Sep 30, 2021		Jun 30, 2021		Sep 30, 2020		Jun 30, 2021			Sep 30, 2020

Institutional Securities

Loans:
Corporate	$	13.6	$	11.6	$	15.8		17	%		(14	%)
Secured lending facilities		31.2		32.7		30.3		(5	%)		3	%
Commercial and residential real estate		12.7		11.4		9.6		11	%		32	%
Securities-based lending and other		9.4		9.9		7.0		(5	%)		34	%

Total Loans		66.9		65.6		62.7		2	%		7	%

Lending Commitments		122.2		124.9		105.5		(2	%)		16	%

Institutional Securities Loans and Lending Commitments	$	189.1	$	190.5	$	168.2		(1	%)		12	%


Wealth Management

Loans:
Securities-based lending and other	$	79.8	$	75.8	$	57.7		5	%		38	%
Residential real estate		41.4		38.9		33.6		6	%		23	%

Total Loans		121.2		114.7		91.3		6	%		33	%

Lending Commitments		15.0		14.4		14.6		4	%		3	%

Wealth Management Loans and Lending Commitments	$	136.2	$	129.1	$	105.9		5	%		29	%

Consolidated Loans and Lending Commitments ⁽¹⁾	$	325.3	$	319.6	$	274.1		2	%		19	%

Consolidated Loans and Lending Commitments
Allowance for Credit Losses (ACL) as of September 30, 2021
(unaudited, dollars in millions)


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

Corporate	$	4,774	$	197		4.1	%	$	4
Secured lending facilities		27,345		175		0.6	%		(2	)
Commercial and residential real estate		6,915		193		2.8	%		-
Other		520		10		1.9	%		1
Institutional Securities - HFI	$	39,554	$	575		1.5	%	$	3

Wealth Management - HFI		121,316		109		0.1	%		2

Held For Investment	$	160,870	$	684		0.4	%	$	5

Held For Sale		13,168

Fair Value		14,788

Total Loans		188,826		684					5

Lending Commitments		137,116		429		0.3	%		19

Consolidated Loans and Lending Commitments	$	325,942	$	1,113				$	24

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


(a)	The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial positions, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition, operating results, or prospective regulatory capital requirements. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S. GAAP financial measure. In addition to the following notes, please also refer to the Firm's Annual Report on Form 10-K for the year ended December 31, 2020.
(b)	The following are considered non-GAAP financial measures that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of operating performance and capital adequacy. These measures are calculated as follows:
	-	Earnings per diluted share excluding integration-related expenses represents net income applicable to Morgan Stanley, adjusted for the impact of the integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance, less preferred dividends divided by the average number of diluted shares outstanding.
	-	The return on average tangible common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity.
	-	The return on average common equity and the return on average tangible common equity excluding integration-related expenses are adjusted in both the numerator and the denominator to exclude the integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance.
	-	Segment return on average common equity and return on average tangible common equity represent full year net income or annualized net income for the quarter applicable to Morgan Stanley for each segment, less preferred dividend segment allocation, divided by average common equity and average tangible common equity for each respective segment. The segment adjustments to common equity to derive segment average tangible common equity are generally set at the beginning of the year, and will remain fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition).
	-	Tangible common equity represents common equity less goodwill and intangible assets net of certain mortgage servicing rights deduction.
	-	Tangible book value per common share represents tangible common equity divided by period end common shares outstanding.
	-	Pre-tax profit margin excluding integration-related expenses represents income before income taxes less integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance as percentages of net revenues.
	-	The Firm expense efficiency ratio excluding integration-related expenses represents total non‐interest expenses less integration-related expenses associated with the acquisitions of E*TRADE and Eaton Vance as a percentage of net revenues.

Definitions of Performance Metrics and Terms

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

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

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

Page 3:
(a)	Liquidity Resources, which are held within the bank and non-bank operating subsidiaries, are comprised of high quality liquid assets (HQLA) and cash deposits with banks ("Liquidity Resources"). The total amount of Liquidity Resources is actively managed by us considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements.
(b)	The Firm's goodwill and intangible balances utilized in the calculation of tangible common equity are net of certain mortgage servicing rights deduction.
(c)	U.S. Bank refers to the Firm's U.S. Bank operating subsidiaries Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association, ETRADE Bank, and ETRADE Savings Bank, and excludes balances between Bank subsidiaries, as well as deposits from the Parent and affiliates.
(d)	Firmwide regional revenues reflect the Firm's consolidated net revenues on a managed basis. Further discussion regarding the geographic methodology for net revenues is disclosed in Note 23 to the consolidated financial statements included in the Firm's Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Form 10-K).

Page 4:
(a)	The Firm's attribution of average common equity to the business segments is based on the Required Capital framework, an internal capital adequacy measure. This framework is a risk-based and leverage-based capital measure, which is compared with the Firm's regulatory capital to ensure that the Firm maintains an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The Required Capital Framework is based on the Firm's regulatory capital requirements. The Firm defines the difference between its total average common equity and the sum of the average common equity amounts allocated to its business segments as Parent common equity. The amount of capital allocated to the business segments is generally set at the beginning of the year, and will remain fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). The Firm has made updates to its required capital framework for 2021 and continues to evaluate with respect to the impact of evolving regulatory requirements, as appropriate. For further discussion of the framework, refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s 2020 Form 10‐K.
(b)	The Firm's risk‐based capital ratios are computed under each of the (i) standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (the “Standardized Approach”) and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s 2020 Form 10‐K.
(c)	Supplementary leverage ratio represents Tier 1 capital divided by the total supplementary leverage exposure.

Page 5:
(a)	Institutional Securities Equity and Fixed income net revenues include trading, net interest income (interest income less interest expense), asset management, commissions and fees, investments and other revenues which are directly attributable to those businesses.
(b)	Pre-tax profit margin percentages represent income before income taxes as percentages of net revenues.
(c)	VaR represents the unrealized loss in portfolio value that one would not expect to exceed, on average, more than five times every one hundred trading days in the Firm's trading positions if the portfolio were held constant for a one-day period. Further discussion of the calculation of VaR and the limitations of the Firm's VaR methodology, is disclosed in "Quantitative and Qualitative Disclosures about Risk" included in the Firm's 2020 Form 10-K.

Definitions of Performance Metrics and Terms

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

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

Page 7:
(a)	Net new assets represent client inflows, including dividends and interest, and asset acquisitions, less client outflows, and exclude activity from business combinations/divestitures and the impact of fees and commissions.
(b)	Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non‐purpose securities-based lending on non‐bank entities.
(c)	Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on the U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other, and time deposits.
(d)	Annualized weighted average cost of deposits reflects deposit balances and costs as of September 30, 2021, June 30, 2021 and September 30, 2020.
(e)	Advisor-led client assets represent client assets in accounts that have a Wealth Management representative assigned.
(f)	Fee‐based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
(g)	Fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest and client fees, and exclude institutional cash management related activity. For a description of the Inflows and Outflows included in Fee-based asset flows, see Fee-based client assets in the 2020 Form 10-K.
(h)	Self-directed assets represent active accounts which are not advisor led. Active accounts are defined as having at least $25 in assets.
(i)	Daily average revenue trades (DARTs) represent the total self-directed trades in a period divided by the number of trading days during that period.
(j)	Self-directed households represent the total number of households that include at least one account with self-directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels will be included in each of the respective channel counts.
(k)	The workplace channel assets includes equity compensation solutions for companies, their executives and employees. Workplace unvested assets represent the market value of public company securities at the end of the period.
(l)	Workplace participants represent total accounts with vested and/or unvested assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.

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

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

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

Supplemental Quantitative Details and Calculations

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

		3Q21		2Q21		3Q20	3Q21 YTD		3Q20 YTD
Compensation and benefits	$	5,920	$	6,423	$	5,086	$	19,141	$	15,404

Non-compensation expenses:
Brokerage, clearing and exchange fees		825		795		697		2,530		2,153
Information processing and communications		788		765		616		2,286		1,768
Professional services		734		746		542		2,104		1,526
Occupancy and equipment		427		414		373		1,246		1,103
Marketing and business development		146		146		78		438		273
Other		1,015		831		731		2,703		2,188
Total non-compensation expenses		3,935		3,697		3,037		11,307		9,011

Total non-interest expenses	$	9,855	$	10,120	$	8,123	$	30,448	$	24,415

Page 2:

(1)

For the quarters ended September 30, 2021 and June 30, 2021, Firm results include pre-tax integration-related expenses of $145 million and $90 million ($111 million and $69 million after-tax) respectively, reported in the Wealth Management and Investment Management business segments. The nine months ended September 30, 2021 results include pre-tax integration-related expenses of $310 million ($238 million after-tax). The following sets forth the impact of the integration-related expenses to earnings per diluted share, return on average common equity and return on average tangible common equity (which are excluded):

		3Q21			2Q21		3Q21 YTD
Earnings per diluted share - GAAP	$	1.98		$	1.85		$	6.02
Impact of adjustments		0.06			0.04			0.13
Earnings per diluted share excluding integration-related expenses - Non-GAAP	$	2.04		$	1.89		$	6.15

Return on average common equity - GAAP		14.5	%		13.8	%		15.1	%
Impact of adjustments		0.5	%		0.3	%		0.3	%
Return on average common equity excluding integration-related expenses - Non-GAAP		15.0	%		14.1	%		15.4	%

Return on average tangible common equity - GAAP		19.6	%		18.6	%		19.7	%
Impact of adjustments		0.6	%		0.4	%		0.5	%
Return on average tangible common equity excluding integration-related expenses - Non-GAAP		20.2	%		19.0	%		20.2	%

Firm expense efficiency ratio - GAAP		66.8	%		68.6	%		67.3	%
Impact of adjustments		(1.0	)%		(0.6	)%		(0.7	)%
Firm expense efficiency ratio excluding integration-related expenses - Non-GAAP		65.8	%		68.0	%		66.6	%

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, 2021, June 30, 2021 and September 30, 2020, the U.S. Bank investment securities portfolio included held to maturity investment securities of $63.0 billion, $62.8 billion and $28.2 billion, respectively.

Page 4:
(1)	The Firm intends to early adopt the standardized approach for counterparty credit risk (SA-CCR) under Basel III in the fourth quarter. SA-CCR replaces the current exposure method used to measure derivatives counterparty exposure on the Standardized Approach risk-weighted assets (RWAs) and Supplementary Leverage Ratio exposure calculations in the regulatory capital framework. In the absence of further mitigation, our RWAs under the Standardized Approach could increase by $35 - $45 billion and decrease our Standardized CET1 capital ratio by approximately 120 basis points. This preliminary impact is subject to risks and uncertainties as well as the portfolio composition as of the adoption date that may cause the actual impact to differ materially and should not be taken as a projection of what our capital ratios and RWAs will be in future periods.
(2)	Based on a Federal Reserve interim final rule that was in effect until March 31, 2021, our SLR and supplementary leverage exposure as of September 30, 2020 reflects the exclusion of U.S. Treasury securities and deposits at Federal Reserve Banks. The exclusion of these assets had the effect of increasing our SLR by 0.9% as of September 30, 2020.

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: 3Q21: $603mm; 2Q21: $603mm; 3Q20: $484mm; 3Q21 YTD: $603mm; 3Q20 YTD: $484mm

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

		3Q21		2Q21	3Q21 YTD
Compensation expenses	$	9	$	9	$	48
Non-compensation expenses		104		51		189
Total non-interest expenses	$	113	$	60	$	237
Income tax provision		26		14		55
Total non-interest expenses (after-tax)	$	87	$	46	$	182

(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: 3Q21: $15,270mm; 2Q21: $15,270mm; 3Q20: $7,802mm; 3Q21 YTD: $15,202mm; 3Q20 YTD: $7,802mm

Supplemental Quantitative Details and Calculations

Page 7:
(1)	Includes $43 billion of fee-based assets acquired in an asset acquisition in the current quarter ended September 30, 2021.
(2)	Wealth Management other lending includes $3 billion of non-purpose securities based lending on non-bank entities in each period ended September 30, 2021, June 30, 2021 and September 30, 2020.
(3)	For the quarters ended September 30, 2021 and June 30, 2021, Wealth Management deposits of $327 billion and $319 billion, respectively, exclude off-balance sheet deposits of $9 billion and $8 billion, respectively, held by third parties outside of Morgan Stanley. Total deposits details are as follows:

		3Q21		2Q21
Brokerage sweep deposits	$	273	$	257
Other deposits		54		62
Total balance sheet deposits		327		319
Off-balance sheet deposits		9		8
Total deposits	$	336	$	327

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

		3Q21		2Q21	3Q21 YTD
Compensation expenses	$	10	$	16	$	29
Non-compensation expenses		22		14		44
Total non-interest expenses	$	32	$	30	$	73
Income tax provision		8		7		17
Total non-interest expenses (after-tax)	$	24	$	23	$	56

(2)

Investment Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 3Q21: $9,924mm; 2Q21: $9,924mm; 3Q20: $932mm; 3Q21 YTD: $7,224mm; 3Q20 YTD: $932mm

Page 9:
(1)	Net Flows by region for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020 were: North America: $12.6 billion, $40.5 billion and $(3.5) billion International: $(0.3) billion, $8.0 billion and $16.0 billion
(2)	Assets under management or supervision by region for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020 were: North America: $1,148 billion, $1,142 billion and $409 billion International: $374 billion, $382 billion and $306 billion

Page 10:
(1)	For the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020, Investment Management reflected loan balances of $132 million, $865 million and $569 million, respectively.

Page 11:
(1)	For the quarter ended September 30, 2021, 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, 2021	$	579		$	108		$	687
Net Charge Offs		(5	)		-			(5	)
Provision		3			2			5
Other		(2	)		(1	)		(3	)
Ending Balance - September 30, 2021	$	575		$	109		$	684


Lending Commitments

Allowance for Credit Losses (ACL)
Beginning Balance - June 30, 2021	$	397		$	15		$	412
Net Charge Offs		-			-			-
Provision		21			(2	)		19
Other		(2	)		-			(2	)
Ending Balance - September 30, 2021	$	416		$	13		$	429


Loans and Lending Commitments

Allowance for Credit Losses (ACL)
Beginning Balance - June 30, 2021	$	976		$	123		$	1,099
Net Charge Offs		(5	)		-			(5	)
Provision		24			-			24
Other		(4	)		(1	)		(5	)
Ending Balance - September 30, 2021	$	991		$	122		$	1,113

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, 2021.

Date of report (Date of earliest event reported): October 14, 2021

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

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

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

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

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	MS	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate Non-Cumulative Preferred Stock, Series A, $0.01 par value	MS/PA	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E, $0.01 par value	MS/PE	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F, $0.01 par value	MS/PF	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I, $0.01 par value	MS/PI	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K, $0.01 par value	MS/PK	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 4.875% Non-Cumulative Preferred Stock, Series L, $0.01 par value	MS/PL	New York Stock Exchange
Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)	MS/26C	New York Stock Exchange

Item 9.01	Financial Statements and Exhibits.

(d)	Exhibits

Exhibit
Number	Description

99.1	Press release of the Company, dated October 14, 2021, containing financial information for the quarter ended September 30, 2021.

99.2	Financial Data Supplement of the Company for the quarter ended September 30, 2021.

101	Interactive Data Files pursuant to Rule 406 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”).

104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

		MORGAN STANLEY (Registrant)
Date:	October 14, 2021	By:	/s/ Raja Akram
			Name:	Raja Akram
			Title:	Deputy Chief Financial Officer