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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 15, 2025
 
Morgan Stanley
(Exact Name of Registrant
as Specified in Charter)
 
   
 
Delaware1-1175836-3145972
(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)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueMSNew York Stock Exchange

    

Title of each classTrading 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/PANew 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/PENew 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/PFNew 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/PINew 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/PKNew 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/PLNew 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/PONew 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/PPNew 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/PQNew 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/26CNew 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/29New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 
 
 


    

 
Item 2.02 Results of Operations and Financial Condition.

On October 15, 2025, Morgan Stanley (the "Company") released financial information with respect to its quarter ended September 30, 2025. A copy of the press release containing this information is annexed as Exhibit 99.1 to this Report and by this reference incorporated herein and made a part hereof. In addition, a copy of the Company's Financial Data Supplement for its quarter ended September 30, 2025 is annexed as Exhibit 99.2 to this Report and by this reference incorporated herein and made a part hereof.

The information furnished under Item 2.02 of this Report, including Exhibit 99.1 and Exhibit 99.2, shall be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, as amended.


Item 9.01  
Financial Statements and Exhibits. 
 
(d)       Exhibits 
 
Exhibit  
Number
Description  
101Interactive Data Files pursuant to Rule 406 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”).
104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).



    

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
  MORGAN STANLEY
(Registrant)
Date:
October 15, 2025
 By:/s/ Victoria Worster
    Name:Victoria Worster
    Title:Chief Accounting Officer and Controller


    
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Morgan Stanley Third Quarter 2025 Earnings Results

Morgan Stanley Reports Net Revenues of $18.2 Billion, EPS of $2.80 and ROTCE of 23.5%

NEW YORK, October 15, 2025 – Morgan Stanley (NYSE: MS) today reported net revenues of $18.2 billion for the third quarter ended September 30, 2025 compared with $15.4 billion a year ago. Net income applicable to Morgan Stanley was $4.6 billion, or $2.80 per diluted share, compared with $3.2 billion, or $1.88 per diluted share, for the same period a year ago.1

Ted Pick, Chairman and Chief Executive Officer, said, “Our Integrated Firm delivered an outstanding quarter with strong performance in each of our businesses globally. Consistent execution of our strategy led to record revenues of $18.2 billion, EPS of $2.80, and a ROTCE of 23.5%. Wealth Management reported a 30% pre-tax margin while bringing in $81 billion in net new assets. Institutional Securities results were driven by our Equity business and a rebound in Investment Banking activity. Total client assets across Wealth and Investment Management reached $8.9 trillion. Across our global footprint, we remain committed to generating durable growth to drive long-term value for our shareholders.”

Financial Summary2,3
Firm ($ millions, except per share data)
3Q 20253Q 2024
Net revenues$18,224$15,383
Provision for credit losses$0$79
Compensation expense$7,442$6,733
Non-compensation expenses$4,754$4,350
Pre-tax income6
$6,028$4,221
Net income app. to MS$4,610$3,188
Expense efficiency ratio8
67%72%
Earnings per diluted share1
$2.80$1.88
Book value per share$62.98$58.25
Tangible book value per share4
$48.64$43.76
Return on equity18.0%13.1%
Return on tangible common equity4
23.5%17.5%
Institutional Securities
Net revenues$8,523$6,815
Investment Banking$2,108$1,463
Equity$4,116$3,045
Fixed Income$2,169$2,003
Wealth Management
Net revenues$8,234$7,270
Fee-based client assets ($ billions)9
$2,653$2,302
Fee-based asset flows ($ billions)10
$41.9$35.7
Net new assets ($ billions)11
$81.0$63.9
Loans ($ billions)
$173.9$155.2
Investment Management
Net revenues$1,651$1,455
AUM ($ billions)12
$1,807$1,598
Long-term net flows ($ billions)13
$16.5$7.3

Highlights
•Record net revenues for the third quarter were $18.2 billion, demonstrating the strength of our Integrated Firm with strong contributions across each of our businesses and geographies.
•The Firm delivered a strong ROTCE of 23.5%.2,4
•The expense efficiency ratio was 69% year-to-date, demonstrating operating leverage in a constructive market environment.3,8,19
•The Standardized Common Equity Tier 1 capital ratio was 15.2%.16
•Institutional Securities reported net revenues of $8.5 billion reflecting robust performance in Equity and a rebound in Investment Banking activity.
•Wealth Management delivered a pre-tax margin of 30.3% for the quarter. 7 Record net revenues of $8.2 billion reflect our highest asset management revenues, robust levels of client activity and higher net interest income. The business demonstrated continued growth with net new assets of $81 billion and fee-based asset flows of $42 billion for the quarter. 10,11
•Investment Management results reflect net revenues of $1.7 billion, primarily driven by asset management fees on higher average AUM. The quarter included positive long-term net flows of $16.5 billion.13
Media Relations: Wesley McDade 212-761-2430      Investor Relations: Leslie Bazos 212-761-5352

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Third Quarter Results

Institutional Securities

Institutional Securities reported net revenues of $8.5 billion compared with $6.8 billion a year ago. Pre-tax income was $3.2 billion compared with $1.9 billion a year ago.6

Investment Banking net revenues up 44%:

•Advisory revenues increased from a year ago on higher completed M&A transactions.

•Equity underwriting revenues increased from a year ago on higher IPOs and convertible offerings as clients actively engaged in capital-raising opportunities in a more constructive market environment.

•Fixed income underwriting revenues increased from a year ago on higher non-investment grade and investment grade loan issuances reflecting a more favorable financing environment.

Equity net revenues up 35%:

•Equity net revenues reflect increases from a year ago across business lines and regions on robust client activity, with record results in prime brokerage.

Fixed Income net revenues up 8%:

•Fixed Income net revenues increased from a year ago primarily driven by credit on higher client activity and lending growth and commodities on increased structured transactions, partially offset by lower results in foreign exchange.

Other:

•Other revenues decreased from a year ago primarily driven by lower net interest income and fees, following the sale of corporate loans held-for-sale earlier this year, and modestly higher mark-to-market losses on corporate loans inclusive of hedges.

($ millions)3Q 20253Q 2024
Net Revenues$8,523$6,815
Investment Banking$2,108$1,463
Advisory$684$546
Equity underwriting$652$362
Fixed income underwriting$772$555
Equity$4,116$3,045
Fixed Income$2,169$2,003
Other$130$304



Provision for credit losses$1$68
Total Expenses
$5,340$4,836
Compensation$2,422$2,271
Non-compensation$2,918$2,565

Provision for credit losses:

•Provision for credit losses decreased from a year ago primarily due to greater benefit of improved macroeconomic scenario in the quarter and lower provisions related to portfolio growth.

Total Expenses:

•Compensation expense increased from a year ago primarily driven by expenses related to deferred compensation and higher salaries.

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


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Wealth Management

Wealth Management reported net revenues of $8.2 billion compared with $7.3 billion a year ago. Pre-tax income of $2.5 billion resulted in a pre-tax margin of 30.3%.6, 7

Net revenues up 13%:

•Asset management revenues increased from a year ago on elevated asset levels and the cumulative impact of positive fee-based flows.10

•Transactional revenues increased 22% from a year ago excluding the impact of mark-to-market on investments associated with DCP. 5,14 The increase was driven by a broad-based increase in levels of client activity.

•Net interest income increased from a year ago primarily driven by changes in balance sheet mix and the cumulative impact of lending growth.

Total Expenses:

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

•Non-compensation expenses were relatively unchanged compared to a year ago.
($ millions)3Q 20253Q 2024
Net Revenues$8,234$7,270
Asset management$4,789$4,266
Transactional14
$1,308$1,076
Net interest$1,991$1,774
Other$146$154
Provision for credit losses$(1)$11
Total Expenses
$5,736$5,199
Compensation$4,388$3,868
Non-compensation$1,348$1,331

Investment Management

Investment Management reported net revenues of $1.7 billion compared with $1.5 billion a year ago. Pre-tax income was $364 million compared with $260 million a year ago.6

Net revenues up 13%:
•Asset management and related fees increased from a year ago on higher average AUM.

•Performance-based income and other revenues increased from a year ago on higher carried interest.

Total Expenses:
•Compensation expense increased from a year ago primarily driven by compensation associated with carried interest.

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

($ millions)3Q 20253Q 2024
Net Revenues$1,651$1,455
Asset management and related fees$1,534$1,384
Performance-based income and other$117$71
Total Expenses$1,287$1,195
Compensation$632$594
Non-compensation$655$601
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Other Matters

•The Firm repurchased $1.1 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.

•The Board of Directors declared a $1.00 quarterly dividend per share payable on November 14, 2025 to common shareholders of record on October 31, 2025.

•The effective tax rate for the current quarter was 22.8%.

•The Firm’s Standardized Common Equity Tier 1 capital ratio was 15.2%.16 On September 30, 2025, the Federal Reserve announced that it had reduced Morgan Stanley’s Stress Capital Buffer ("SCB") from 5.1% to 4.3%, effective on October 1, 2025 in response to the Firm seeking reconsideration of its preliminary SCB announced in June 2025. Together with other features of the regulatory capital framework, this SCB results in an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 ratio of 11.8%.
3Q 20253Q 2024
Common Stock Repurchases
Repurchases ($MM)
$1,085$750
Number of Shares (MM)
78
Average Price$145.77$99.94
Period End Shares (MM)
1,5911,612
Tax Rate22.8%23.6%
Capital15
Standardized Approach
     CET1 capital16
15.2 %15.1 %
     Tier 1 capital16
17.0 %17.1 %
Advanced Approach
     CET1 capital16
15.7 %14.9 %
     Tier 1 capital16
17.6 %16.9 %
Leverage-based capital
Tier 1 leverage17
6.8 %6.9 %
SLR18
5.5 %5.5 %


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

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


NOTICE:

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

This earnings release may contain forward-looking statements, including the attainment of certain financial and other targets, objectives and goals. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of risks and uncertainties that may affect the future results of the Firm, please see “Forward-Looking Statements” preceding Part I, Item 1, “Competition” and “Supervision and Regulation” in Part I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative and Qualitative Disclosures about Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2024 and other items throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and the Firm’s Current Reports on Form 8-K, including any amendments thereto.


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1 Includes preferred dividends related to the calculation of earnings per share for the third quarter of 2025 and 2024 of approximately $160 million and $160 million, respectively.
2 The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition, operating results, or capital adequacy. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S. GAAP financial measure.
3 Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics which we believe to be useful to us, analysts, investors, and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.
4 Tangible common equity is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance and capital adequacy. Tangible common equity represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. The calculation of return on average tangible common equity, also a non-GAAP financial measure, represents full year or annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity. The calculation of tangible book value per common share, also a non-GAAP financial measure, represents tangible common shareholder’s equity divided by common shares outstanding.
5 “DCP” refers to certain employee deferred cash-based compensation programs. Please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Matters – Deferred Cash-Based Compensation” in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2024.
6 Pre-tax income represents income before provision for income taxes.
7 Pre-tax margin represents income before provision for income taxes divided by net revenues.
8 The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues.
9 Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
10 Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest, and client fees, and exclude institutional cash management related activity.
11 Wealth Management net new assets represent client asset inflows, inclusive of interest, dividends and asset acquisitions, less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees and commissions.
12 AUM is defined as assets under management or supervision.
13 Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes the Liquidity and Overlay Services asset class.
14 Transactional revenues include investment banking, trading, and commissions and fee revenues.
15 Capital ratios are estimates as of the press release date, October 15, 2025.
16 CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each of the (i) standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (the “Standardized Approach”) and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2024.
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17 The Tier 1 leverage ratio is a leverage-based capital requirement that measures the Firm’s leverage. Tier 1 leverage ratio utilizes Tier 1 capital as the numerator and average adjusted assets as the denominator.
18 The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $90.9 billion and $83.7 billion, and supplementary leverage exposure denominator of approximately $1.66 trillion and $1.52 trillion, for the third quarter of 2025 and 2024, respectively.
19 During the first quarter of 2025 as a result of a March employee action, we recognized severance costs associated with a reduction in force (“RIF”) of $144 million, included in Compensation and benefits expense. The RIF occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. The RIF was related to performance management and the alignment of our workforce to our business needs, rather than a change in strategy or exit of businesses. We recorded first quarter severance costs of $78 million in the Institutional Securities business segment, $50 million in the Wealth Management business segment, and $16 million in the Investment Management business segment. These costs were incurred across all regions, with the majority in the Americas.



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Consolidated Income Statement Information
(unaudited, dollars in millions)
Quarter EndedPercentage Change From:Nine Months Ended Percentage
Change
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024
Revenues:
Investment banking$2,266 $1,644 $1,590 38%43%$5,621 $4,914 14%
Trading5,020 4,745 4,002 6%25%14,876 12,985 15%
Investments 374 388 315 (4%)19%1,131 609 86%
Commissions and fees1,473 1,425 1,294 3%14%4,379 3,704 18%
Asset management6,441 5,953 5,747 8%12%18,357 16,440 12%
Other159 290 239 (45%)(33%)1,200 827 45%
Total non-interest revenues15,733 14,445 13,187 9%19%45,564 39,479 15%
Interest income15,456 14,905 14,185 4%9%44,109 40,644 9%
Interest expense12,965 12,558 11,989 3%8%36,918 34,585 7%
Net interest2,491 2,347 2,196 6%13%7,191 6,059 19%
Net revenues18,224 16,792 15,383 9%18%52,755 45,538 16%
Provision for credit losses— 196 79  *  * 331 149 122%
Non-interest expenses:
Compensation and benefits 7,442 7,190 6,733 4%11%22,153 19,889 11%
Non-compensation expenses:
Brokerage, clearing and exchange fees1,141 1,188 1,044 (4%)9%3,551 2,960 20%
Information processing and communications1,119 1,089 1,042 3%7%3,258 3,029 8%
Professional services685 711 711 (4%)(4%)2,070 2,103 (2%)
Occupancy and equipment473 459 473 3%—%1,381 1,378 —%
Marketing and business development280 297 224 (6%)25%815 686 19%
Other 1,056 1,040 856 2%23%3,002 2,654 13%
Total non-compensation expenses4,754 4,784 4,350 (1%)9%14,077 12,810 10%
Total non-interest expenses12,196 11,974 11,083 2%10%36,230 32,699 11%
Income before provision for income taxes6,028 4,622 4,221 30%43%16,194 12,690 28%
Provision for income taxes1,373 1,047 995 31%38%3,593 2,885 25%
Net income$4,655 $3,575 $3,226 30%44%$12,601 $9,805 29%
Net income applicable to noncontrolling interests45 36 38 25%18%137 129 6%
Net income applicable to Morgan Stanley4,610 3,539 3,188 30%45%12,464 9,676 29%
Preferred stock dividends160 147 160 9%—%465 440 6%
Earnings applicable to Morgan Stanley common shareholders$4,450 $3,392 $3,028 31%47%$11,999 $9,236 30%

Notes:
–Firm net revenues excluding mark-to-market gains and losses on deferred cash-based compensation plans (DCP), which represents a non‐GAAP financial measure, were: 3Q25: $17,976 million, 2Q25: $16,415 million, 3Q24: $15,144 million, 3Q25 YTD: $52,279 million, 3Q24 YTD: $45,166 million.
–Firm compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $7,142 million, 2Q25: $6,819 million, 3Q24: $6,457 million, 3Q25 YTD: $21,484 million, 3Q24 YTD: $19,309 million.
–The End Notes are an integral part of this presentation. Refer to pages 12 - 17 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
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Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Quarter EndedPercentage Change From:Nine Months Ended Percentage Change
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024
Financial Metrics:
Earnings per basic share$2.83 $2.15 $1.91 32%48%$7.61 $5.79 31%
Earnings per diluted share$2.80 $2.13 $1.88 31%49%$7.53 $5.73 31%
Return on average common equity18.0%13.9%13.1%16.5%13.5%
Return on average tangible common equity23.5%18.2%17.5%21.6%18.2%
Book value per common share$62.98 $61.59 $58.25 $62.98 $58.25 
Tangible book value per common share$48.64 $47.25 $43.76 $48.64 $43.76 
Financial Ratios:
Pre-tax margin33%28%27%31%28%
Compensation and benefits as a % of net revenues41%43%44%42%44%
Non-compensation expenses as a % of net revenues26%28%28%27%28%
Firm expense efficiency ratio67%71%72%69%72%
Effective tax rate22.8%22.7%23.6%22.2%22.7%
Statistical Data:
Period end common shares outstanding (millions)1,591 1,598 1,612 —%(1%)
Average common shares outstanding (millions)
Basic1,571 1,577 1,588 —%(1%)1,577 1,594 (1%)
Diluted1,590 1,593 1,609 —%(1%)1,594 1,612 (1%)
Worldwide employees82,398 80,393 80,205 2%3%

The End Notes are an integral part of this presentation. Refer to pages 12 - 17 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
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Third Quarter 2025 Earnings Results
Quarterly Financial SupplementPage
Consolidated Financial Summary 1
Consolidated Financial Metrics, Ratios and Statistical Data2
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 Ratios5
Wealth Management Income Statement Information, Financial Metrics and Ratios6
Wealth Management Financial Information and Statistical Data 7
Investment Management Income Statement Information, Financial Metrics and Ratios8
Investment Management Financial Information and Statistical Data 9
Consolidated Loans and Lending Commitments 10
Consolidated Loans and Lending Commitments Allowance for Credit Losses11
Definition of U.S. GAAP to Non-GAAP Measures12
Definitions of Performance Metrics and Terms 13 - 14
Supplemental Quantitative Details and Calculations 15 - 16
Legal Notice 17

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Consolidated Financial Summary
(unaudited, dollars in millions)
Quarter EndedPercentage Change From:Nine Months EndedPercentage
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024Change
Net revenues
Institutional Securities$8,523 $7,643 $6,815 12%25%$25,149 $20,813 21%
Wealth Management8,234 7,764 7,270 6%13%23,325 20,942 11%
Investment Management1,651 1,552 1,455 6%13%4,805 4,218 14%
Intersegment Eliminations(184)(167)(157)(10%)(17%)(524)(435)(20%)
Net revenues (1)
$18,224 $16,792 $15,383 9%18%$52,755 $45,538 16%
Provision for credit losses$— $196 $79  *  * $331 $149 122%
Non-interest expenses
Institutional Securities$5,340 $5,364 $4,836 —%10%$16,315 $14,381 13%
Wealth Management5,736 5,536 5,199 4%10%16,604 15,230 9%
Investment Management1,287 1,229 1,195 5%8%3,795 3,495 9%
Intersegment Eliminations(167)(155)(147)(8%)(14%)(484)(407)(19%)
Non-interest expenses (1)(2)
$12,196 $11,974 $11,083 2%10%$36,230 $32,699 11%
Income before provision for income taxes
Institutional Securities$3,182 $2,111 $1,911 51%67%$8,574 $6,308 36%
Wealth Management2,499 2,200 2,060 14%21%6,650 5,687 17%
Investment Management364 323 260 13%40%1,010 723 40%
Intersegment Eliminations(17)(12)(10)(42%)(70%)(40)(28)(43%)
Income before provision for income taxes$6,028 $4,622 $4,221 30%43%$16,194 $12,690 28%
Net Income applicable to Morgan Stanley
Institutional Securities$2,468 $1,604 $1,436 54%72%$6,601 $4,775 38%
Wealth Management1,889 1,700 1,568 11%20%5,121 4,374 17%
Investment Management266 245 192 9%39%773 549 41%
Intersegment Eliminations(13)(10)(8)(30%)(63%)(31)(22)(41%)
Net Income applicable to Morgan Stanley$4,610 $3,539 $3,188 30%45%$12,464 $9,676 29%
Earnings applicable to Morgan Stanley common shareholders$4,450 $3,392 $3,028 31%47%$11,999 $9,236 30%
Notes:
-Firm net revenues excluding mark-to-market gains and losses on deferred cash-based compensation plans (DCP), which represents a non‐GAAP financial measure, were: 3Q25: $17,976 million, 2Q25: $16,415 million, 3Q24: $15,144 million, 3Q25 YTD: $52,279 million, 3Q24 YTD: $45,166 million.
-Firm compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $7,142 million, 2Q25: $6,819 million, 3Q24: $6,457 million, 3Q25 YTD: $21,484 million, 3Q24 YTD: $19,309 million.
-The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
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Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Quarter EndedPercentage Change From:Nine Months EndedPercentage
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024Change
Financial Metrics:
Earnings per basic share$2.83 $2.15 $1.91 32%48%$7.61 $5.79 31%
Earnings per diluted share$2.80 $2.13 $1.88 31%49%$7.53 $5.73 31%
Return on average common equity18.0%13.9%13.1%16.5%13.5%
Return on average tangible common equity23.5%18.2%17.5%21.6%18.2%
Book value per common share$62.98 $61.59 $58.25 $62.98 $58.25 
Tangible book value per common share$48.64 $47.25 $43.76 $48.64 $43.76 
Financial Ratios:
Pre-tax margin33%28%27%31%28%
Compensation and benefits as a % of net revenues41%43%44%42%44%
Non-compensation expenses as a % of net revenues26%28%28%27%28%
Firm expense efficiency ratio (1)
67%71%72%69%72%
Effective tax rate22.8%22.7%23.6%22.2%22.7%
Statistical Data:
Period end common shares outstanding (millions)1,591 1,598 1,612 —%(1%)
Average common shares outstanding (millions)
Basic1,571 1,577 1,588 —%(1%)1,577 1,594 (1%)
Diluted1,590 1,593 1,609 —%(1%)1,594 1,612 (1%)
Worldwide employees82,398 80,393 80,205 2%3%
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.
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Consolidated and U.S. Bank Supplemental Financial Information
(unaudited, dollars in millions)
Quarter EndedPercentage Change From:Nine Months EndedPercentage
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024Change
Consolidated Balance sheet
Total assets$1,364,806 $1,353,870 $1,258,027 1%8%
Loans (1)
$277,307 $267,395 $239,760 4%16%
Deposits$405,480 $389,377 $363,722 4%11%
Long-term debt outstanding$324,128 $320,127 $291,224 1%11%
Maturities of long-term debt outstanding (next 12 months)$25,439 $23,784 $25,097 7%1%
Average liquidity resources$368,090 $363,389 $342,620 1%7%
Common equity$100,212 $98,434 $93,897 2%7%
Less: Goodwill and intangible assets(22,820)(22,917)(23,354)—%(2%)
Tangible common equity $77,392 $75,517 $70,543 2%10%
Preferred equity$9,750 $9,750 $9,750 —%—%
U.S. Bank Supplemental Financial Information
Total assets$471,733 $450,798 $420,923 5%12%
Loans$263,296 $252,242 $224,276 4%17%
Investment securities portfolio (2)
$132,627 $131,802 $124,551 1%6%
Deposits$397,927 $382,580 $357,548 4%11%
Regional revenues
Americas$13,663 $12,347 $11,557 11%18%$39,113 $34,392 14%
EMEA (Europe, Middle East, Africa)1,939 2,142 1,828 (9%)6%6,372 5,525 15%
Asia2,622 2,303 1,998 14%31%7,270 5,621 29%
Consolidated net revenues$18,224 $16,792 $15,383 9%18%$52,755 $45,538 16%
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.
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Consolidated Average Common Equity and Regulatory Capital Information
(unaudited, dollars in billions)
Quarter EndedPercentage Change From:Nine Months EndedPercentage
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024Change
Average Common Equity
Institutional Securities$48.4 $48.4 $45.0 —%8%$48.4 $45.0 8%
Wealth Management29.4 29.4 29.1 —%1%29.4 29.1 1%
Investment Management10.6 10.6 10.8 —%(2%)10.6 10.8 (2%)
Parent Company10.3 9.1 7.8 13%32%8.76.1 43%
Firm$98.7 $97.5 $92.7 1%6%$97.1 $91.0 7%
Regulatory Capital
Common Equity Tier 1 capital$81.3 $78.7 $73.9 3%10%
Tier 1 capital$90.9 $88.4 $83.7 3%9%
Standardized Approach
Risk-weighted assets$536.0 $523.3 $490.3 2%9%
Common Equity Tier 1 capital ratio15.2 %15.0 %15.1 %
Tier 1 capital ratio17.0 %16.9 %17.1 %
Advanced Approach
Risk-weighted assets$516.3 $502.6 $495.0 3%4%
Common Equity Tier 1 capital ratio15.7 %15.7 %14.9 %
Tier 1 capital ratio17.6 %17.6 %16.9 %
Leverage-based capital
Tier 1 leverage ratio6.8 %6.8 %6.9 %
Supplementary Leverage Ratio5.5 %5.5 %5.5 %
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.
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Institutional Securities
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)
Quarter Ended Percentage Change From:Nine Months EndedPercentage
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024Change
Revenues:
Advisory$684 $508 $546 35%25%$1,755 $1,599 10%
Equity652 500 362 30%80%1,471 1,144 29%
Fixed income772 532 555 45%39%1,981 1,786 11%
Underwriting1,424 1,032 917 38%55%3,452 2,930 18%
Investment banking2,108 1,540 1,463 37%44%5,207 4,529 15%
Equity4,116 3,721 3,045 11%35%11,965 8,905 34%
Fixed income 2,169 2,180 2,003 (1%)8%6,953 6,487 7%
Other130 202 304 (36%)(57%)1,024 892 15%
Net revenues8,523 7,643 6,815 12%25%25,149 20,813 21%
Provision for credit losses1 168 68 (99%)(99%)260 124 110%
Compensation and benefits 2,422 2,430 2,271 —%7%7,706 6,905 12%
Non-compensation expenses2,918 2,934 2,565 (1%)14%8,609 7,476 15%
Total non-interest expenses5,340 5,364 4,836 —%10%16,315 14,381 13%
Income before provision for income taxes3,182 2,111 1,911 51%67%8,574 6,308 36%
Net income applicable to Morgan Stanley$2,468 $1,604 $1,436 54%72%$6,601 $4,775 38%
Pre-tax margin37%28%28%34%30%
Compensation and benefits as a % of net revenues28%32%33%31%33%
Non-compensation expenses as a % of net revenues34%38%38%34%36%
Return on Average Common Equity19%12%12%17%13%
Return on Average Tangible Common Equity (1)
20%12%12%17%13%
Trading VaR (Average Daily 95% / One-Day VaR)$59 $50 $46 
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.
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Wealth Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)
Quarter Ended
Percentage Change From:Nine Months EndedPercentage
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024Change
Revenues:
Asset management$4,789 $4,411 $4,266 9%12%$13,596 $12,084 13%
Transactional1,308 1,264 1,076 3%22%3,445 2,891 19%
Net interest income1,991 1,910 1,774 4%12%5,803 5,428 7%
Other146 179 154 (18%)(5%)481 539 (11%)
Net revenues (1)
8,234 7,764 7,270 6%13%23,325 20,942 11%
Provision for credit losses(1)28 11  *  * 71 25 184%
Compensation and benefits (1)
4,388 4,147 3,868 6%13%12,534 11,257 11%
Non-compensation expenses1,348 1,389 1,331 (3%)1%4,070 3,973 2%
Total non-interest expenses5,736 5,536 5,199 4%10%16,604 15,230 9%
Income before provision for income taxes2,499 2,200 2,060 14%21%6,650 5,687 17%
Net income applicable to Morgan Stanley$1,889 $1,700 $1,568 11%20%$5,121 $4,374 17%
Pre-tax margin30%28%28%29%27%
Compensation and benefits as a % of net revenues53%53%53%54%54%
Non-compensation expenses as a % of net revenues16%18%18%17%19%
Return on Average Common Equity 25%23%21%23%19%
Return on Average Tangible Common Equity (2)
45%41%39%41%37%
Notes:
-Wealth Management net revenues excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $8,028 million, 2Q25: $7,470 million, 3Q24: $7,100 million, 3Q25 YTD: $22,956 million, 3Q24 YTD: $20,677 million.
-Wealth Management compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $4,166 million, 2Q25: $3,883 million, 3Q24: $3,684 million, 3Q25 YTD: $12,065 million, 3Q24 YTD: $10,884 million.
-The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
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Wealth Management
Financial Information and Statistical Data
(unaudited, dollars in billions)
Quarter EndedPercentage Change From:
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024
Wealth Management Metrics
Total client assets$7,054 $6,492 $5,974 9%18%
Net new assets $81.0 $59.2 $63.9 37%27%
U.S. Bank loans$173.9 $168.9 $155.2 3%12%
Margin and other lending (1)
$27.9 $25.9 $25.7 8%9%
Deposits (2)
$398 $383 $358 4%11%
Annualized weighted average cost of deposits
Period end2.72%2.83%2.99%
Period average2.88%2.81%3.19%
Advisor-led channel
Advisor-led client assets$5,414 $5,043 $4,647 7%17%
Fee-based client assets$2,653 $2,478 $2,302 7%15%
Fee-based asset flows$41.9 $42.8 $35.7 (2%)17%
Fee-based assets as a % of advisor-led client assets49%49%50%
 Self-directed channel
Self-directed client assets$1,639 $1,449 $1,327 13%24%
Daily average revenue trades (000's)1,012 983 815 3%24%
Self-directed households (millions)8.4 8.4 8.2 —%2%
Workplace channel
Stock plan unvested assets$534 $491 $461 9%16%
Number of stock plan participants (millions) (3)
6.6 6.7 6.7 (1%)(1%)
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.
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Investment Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)
Quarter EndedPercentage Change From:Nine Months EndedPercentage
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024Change
Revenues:
Asset management and related fees$1,534 $1,434 $1,384 7%11%$4,419 $4,072 9%
Performance-based income and other117 118 71 (1%)65%386 146 164%
Net revenues1,651 1,552 1,455 6%13%4,805 4,218 14%
Compensation and benefits632 613 594 3%6%1,913 1,727 11%
Non-compensation expenses655 616 601 6%9%1,882 1,768 6%
Total non-interest expenses 1,287 1,229 1,195 5%8%3,795 3,495 9%
Income before provision for income taxes364 323 260 13%40%1,010 723 40%
Net income applicable to Morgan Stanley$266 $245 $192 9%39%$773 $549 41%
Pre-tax margin22%21%18%21%17%
Compensation and benefits as a % of net revenues38%39%41%40%41%
Non-compensation expenses as a % of net revenues40%40%41%39%42%
Return on Average Common Equity10%9%7%10%7%
Return on Average Tangible Common Equity (1)
105%97%68%102%65%
The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
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Investment Management
Financial Information and Statistical Data
(unaudited, dollars in billions)
Quarter EndedPercentage Change From:Nine Months EndedPercentage
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024Sep 30, 2025Sep 30, 2024Change
Assets Under Management or Supervision (AUM)
Net Flows by Asset Class
Equity$(6.1)$(2.8)$(5.6)(118%)(9%)$(13.6)$(20.3)33%
Fixed Income8.4 6.8 4.4 24%91%18.2 8.2 122%
Alternatives and Solutions14.2 6.8 8.5 109%67%28.1 25.8 9%
Long-Term Net Flows16.5 10.8 7.3 53%126%32.7 13.7 139%
Liquidity and Overlay Services24.8 (27.3)9.3  * 167%(21.5)(2.3) *
Total Net Flows$41.3 $(16.5)$16.6  * 149%$11.2 $11.4 (2%)
Assets Under Management or Supervision by Asset Class
Equity$329 $327 $316 1%4%
Fixed Income224 212 188 6%19%
Alternatives and Solutions683 636 591 7%16%
Long‐Term Assets Under Management or Supervision1,236 1,175 1,095 5%13%
Liquidity and Overlay Services571 538 503 6%14%
Total Assets Under Management or Supervision$1,807 $1,713 $1,598 5%13%
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.
9
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Consolidated Loans and Lending Commitments
(unaudited, dollars in billions)
Quarter EndedPercentage Change From:
Sep 30, 2025Jun 30, 2025Sep 30, 2024Jun 30, 2025Sep 30, 2024
Institutional Securities
Loans:
Corporate $15.9 $15.1 $15.2 5%5%
Secured lending facilities66.1 62.4 49.2 6%34%
Commercial and residential real estate12.2 12.1 11.8 1%3%
Securities-based lending and other9.2 8.8 7.8 5%18%
Total Loans103.4 98.4 84.0 5%23%
Lending Commitments183.7 165.4 151.9 11%21%
Institutional Securities Loans and Lending Commitments $287.1 $263.8 $235.9 9%22%
Wealth Management
Loans:
Securities-based lending and other$103.1 $99.8 $90.4 3%14%
Residential real estate70.8 69.1 64.9 2%9%
Total Loans173.9 168.9 155.3 3%12%
Lending Commitments18.4 19.5 18.4 (6%)—%
Wealth Management Loans and Lending Commitments $192.3 $188.4 $173.7 2%11%
Consolidated Loans and Lending Commitments (1)
$479.4 $452.2 $409.6 6%17%
The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
10
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Consolidated Loans and Lending Commitments
Allowance for Credit Losses (ACL) as of September 30, 2025
(unaudited, dollars in millions)
Loans and Lending Commitments
ACL (1)
ACL %Q3 Provision
(Gross)
Loans:
Held For Investment (HFI)
Corporate$7,839 $239 3.0%$(22)
Secured lending facilities63,610 200 0.3%25 
Commercial and residential real estate7,853 364 4.6%3 
Other3,486 19 0.5%(1)
Institutional Securities - HFI$82,788 $822 1.0%$5 
Wealth Management - HFI174,288 391 0.2%1 
Held For Investment$257,076 $1,213 0.5%$6 
Held For Sale11,433 
Fair Value9,962 
Total Loans278,471 1,213 6 
Lending Commitments202,141 784 0.4%(6)
Consolidated Loans and Lending Commitments$480,612 $1,997 $— 
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.
11
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Definition of U.S. GAAP to Non-GAAP Measures
(a) We prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non‐GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non‐GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non‐GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non‐GAAP financial measures used by other companies. Whenever we refer to a non‐GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non‐GAAP financial measure. We present certain non‐GAAP financial measures that exclude the impact of mark‐to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period‐to‐period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary” in the 2024 Form 10‐K.
(b) The following are considered non‐GAAP financial measures:
-Tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity (“ROTCE”) and tangible book value per common share, also non‐GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period‐to‐period, respectively.
-ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity.
-Tangible book value per common share represents tangible common equity divided by common shares outstanding.
-Segment return on average common equity and return on average tangible common equity represent net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition).
-Net revenues excluding DCP represents net revenues adjusted for the impact of mark‐to‐market gains and losses on economic hedges associated with certain employee deferred cash‐based compensation plans.
-Compensation expense excluding DCP represents compensation adjusted for the impact related to certain employee deferred cash‐based compensation plans linked to investment performance.
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Definitions of Performance Metrics and Terms
Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.
Page 1:
(a) Provision for credit losses represents the provision for credit losses on loans held for investment and unfunded lending commitments.
(b) Net income applicable to Morgan Stanley represents net income, less net income applicable to nonredeemable noncontrolling interests.
(c) Earnings applicable to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley, less preferred dividends.
Page 2:
(a) Return on average common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity.
(b) Return on average tangible common equity represents a non‐GAAP financial measure.
(c) Book value per common share represents common equity divided by period end common shares outstanding.
(d) Tangible book value per common share represents a non‐GAAP financial measure.
(e) Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
(f)The Firm expense efficiency ratio represents total non‐interest expenses as a percentage of net revenues.
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(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, 2025, June 30, 2025 and September 30, 2024.
(b) Our goodwill and intangible balances utilized in the calculation of tangible common equity are net of allowable mortgage servicing rights deduction.
(c) Tangible common equity represents a non‐GAAP financial measure.
(d) U.S. Bank refers to our U.S. Bank Subsidiaries, Morgan Stanley Bank N.A. and Morgan Stanley Private Bank, National Association, and excludes transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates.
(e)Firmwide regional revenues reflect our consolidated net revenues on a managed basis. Further discussion regarding the geographic methodology for net revenues is disclosed in Note 22 to the consolidated financial statements included in the 2024 Form 10‐K.
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(a) Our attribution of average common equity to the business segments is based on the Required Capital framework, an internal capital adequacy measure. This framework is a risk‐based and leverage‐based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. The Required Capital framework is based on our regulatory capital requirements. We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate. For further discussion of the framework, refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the 2024 Form 10‐K.
(b) Our risk‐based capital ratios are computed under each of (i) the standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (“Standardized Approach”) and (ii) the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the 2024 Form 10‐K.
(c) Supplementary leverage ratio represents Tier 1 capital divided by the total supplementary leverage exposure.
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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 2024 Form 10‐K.
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(a) Transactional revenues for the Wealth Management segment includes investment banking, trading, and commissions and fee revenues.
(b) Net interest income represents interest income less interest expense.
(c) Other revenues for the Wealth Management segment includes investments and other revenues.
(d) Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
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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.
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(a)Client assets represent those for which Wealth Management is providing services including financial advisor‐led brokerage, custody, administrative and investment advisory services; self-directed brokerage and investment advisory services; financial and wealth planning services; workplace services, including stock plan administration, and retirement plan services.
(b) Net new assets represent client asset inflows, inclusive of interest, dividends and asset acquisitions, less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees and commissions.
(c) Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non‐purpose securities‐based lending on non‐bank entities.
(d) Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other deposits, and time deposits.
(e) Annualized weighted average cost of deposits represents the total annualized weighted average cost of the various deposit products. Amounts at September 30, 2025 and June 30, 2025 include the effect of related hedging derivatives. Amounts at September 30, 2024 exclude the effect of related hedging derivatives, which did not have a material impact on the cost of deposits. The period end cost of deposits is based upon balances and rates as of September 30, 2025, June 30, 2025 and September 30, 2024. The period average is based on daily balances and rates for the period.
(f) Advisor‐led client assets represent client assets in accounts that have a Wealth Management representative assigned.
(g) Fee‐based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
(h) Fee‐based asset flows include net new fee‐based assets (including asset acquisitions), net account transfers, dividends, interest and client fees, and exclude institutional cash management related activity. For a description of the Inflows and Outflows included in Fee‐based asset flows, see Fee‐based client assets in the 2024 Form 10‐K.
(i) Self‐directed client assets represent active accounts which are not advisor-led. Active accounts are defined as having at least $25 in assets.
(j) Daily average revenue trades (DARTs) represent the total self‐directed trades in a period divided by the number of trading days during that period.
(k) Self‐directed households represent the total number of households that include at least one active account with self‐directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.
(l) The workplace channel assets includes equity compensation solutions for companies, their executives and employees. Stock plan unvested assets represent the market value of public company securities at the end of the period.
(m)Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.
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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, investment banking, trading, net interest and other revenues as reported on our consolidated income statement.
(c) Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
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(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.
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(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.
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Supplemental Quantitative Details and Calculations
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(1)The following sets forth the net revenue impact of mark‐to‐market gains and losses on investments associated with DCP and compensation expense impact related to DCP:
3Q252Q253Q243Q25 YTD3Q24 YTD
Net revenues$18,224 $16,792 $15,383 $52,755 $45,538 
Adjustment for mark-to-market on DCP(248)(377)(239)(476)(372)
Adjusted Net revenues - non-GAAP$17,976 $16,415 $15,144 $52,279 $45,166 
Compensation expense$7,442 $7,190 $6,733 $22,153 $19,889 
Adjustment for mark-to-market on DCP(300)(371)(276)(669)(580)
Adjusted Compensation expense - non-GAAP$7,142 $6,819 $6,457 $21,484 $19,309 
-Compensation expense for deferred cash‐based compensation plans awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards. The table above presents non-GAAP adjusted Compensation expense which excludes amounts recognized in Compensation expense associated with certain cash-based deferred compensation plans.
-We invest directly, as principal, in financial instruments and other investments to economically hedge certain of our obligations under these deferred cash‐based compensation plans. Changes in the fair value of such investments, net of financing costs, are recorded in net revenues, and included in Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments will generally be offset by changes in the fair value of investments recognized in net revenues, there is typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period. While this timing difference may not be material to our Income before provision for income taxes in any individual period, it may impact the Wealth Management business segment reported ratios and operating metrics in certain periods due to potentially significant impacts to net revenues and compensation expenses. The table above presents non-GAAP adjusted Net revenues which excludes amounts recognized in Net revenues related to mark-to-market gains and losses, net of financing costs, on investments associated with certain cash-based deferred compensation plans.
(2)The Firm non-interest expenses by category are as follows:
3Q252Q253Q243Q25 YTD3Q24 YTD
Compensation and benefits$7,442 $7,190 $6,733 $22,153 $19,889 
Non-compensation expenses:
Brokerage, clearing and exchange fees1,141 1,188 1,044 3,551 2,960 
Information processing and communications1,119 1,089 1,042 3,258 3,029 
Professional services685 711 711 2,070 2,103 
Occupancy and equipment473 459 473 1,381 1,378 
Marketing and business development280 297 224 815 686 
Other1,056 1,040 856 3,002 2,654 
Total non-compensation expenses (a)
4,754 4,784 4,350 14,077 12,810 
Total non-interest expenses$12,196 $11,974 $11,083 $36,230 $32,699 
(a)For the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024 and nine months ended September 30, 2025 and 2024, Firm results included an FDIC Special Assessment of $(8) million, $(3) million, $(10) million, $(8) million and $40 million, respectively. This FDIC Special Assessment was reported in the business segments' results as follows: Institutional Securities: 3Q25: $(3) million, 2Q25: $(1) million, 3Q24: $(4) million, 3Q25 YTD: $(3) million, 3Q24 YTD: $17 million; Wealth Management: 3Q25: $(5) million, 2Q25: $(2) million, 3Q24: $(6) million, 3Q25 YTD: $(5) million, 3Q24 YTD: $23 million.
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(1)Refer to page 1(2) End Notes from above.
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(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, 2025, June 30, 2025 and September 30, 2024, the U.S. Bank investment securities portfolio included held to maturity investment securities of $45.2 billion, $46.1 billion and $48.8 billion, respectively.
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(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: 3Q25: $457mm; 2Q25: $457mm; 3Q24: $482mm; 3Q25 YTD: $457mm; 3Q24 YTD: $482mm.
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Supplemental Quantitative Details and Calculations
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(1)The following sets forth the net revenue impact of mark-to-market gains and losses on investments associated with DCP and compensation expense impact related to DCP:
3Q252Q253Q243Q25 YTD3Q24 YTD
Net revenues$8,234 $7,764 $7,270 $23,325 $20,942 
Adjustment for mark-to-market on DCP(206)(294)(170)(369)(265)
Adjusted Net revenues - non-GAAP$8,028 $7,470 $7,100 $22,956 $20,677 
Compensation expense$4,388 $4,147 $3,868 $12,534 $11,257 
Adjustment for mark-to-market on DCP(222)(264)(184)(469)(373)
Adjusted Compensation expense - non-GAAP$4,166 $3,883 $3,684 $12,065 $10,884 
(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: 3Q25: $13,088mm; 2Q25: $13,088mm; 3Q24: $13,582mm; 3Q25 YTD: $13,088mm; 3Q24 YTD: $13,582mm.
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(1)Wealth Management other lending included $2 billion of non-purpose securities based lending on non-bank entities in each period ended September 30, 2025, June 30, 2025 and September 30, 2024.
(2)Wealth Management deposits details for the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024, are as follows:
3Q252Q253Q24
Brokerage sweep deposits$136 $133 $131 
Other deposits262 250 227 
Total deposits$398 $383 $358 
(3)The number of stock plan participants declined slightly in the third quarter of 2025, primarily as a result of the previously announced dispositions of the Firm’s EMEA stock plan business. The disposition is expected to complete in the fourth quarter of 2025.
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(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: 3Q25: $9,557mm; 2Q25: $9,557mm; 3Q24: $9,676mm; 3Q25 YTD: $9,557mm; 3Q24 YTD: $9,676mm.
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(1)For the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024, Investment Management reflected loan balances of $49 million, $20 million and $507 million, respectively.
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(1)For the quarter ended September 30, 2025, the Allowance Rollforward for Loans and Lending Commitments is as follows:
Institutional SecuritiesWealth ManagementTotal
Loans
Allowance for Credit Losses (ACL)
Beginning Balance - June 30, 2025$865 $406 $1,271 
Net Charge Offs(46)(17)(63)
Provision5 1 6 
Other(2)1 (1)
Ending Balance - September 30, 2025$822 $391 $1,213 
Lending Commitments
Allowance for Credit Losses (ACL)
Beginning Balance - June 30, 2025$772 $18 $790 
Net Charge Offs— — — 
Provision(4)(2)(6)
Other1 (1)— 
Ending Balance - September 30, 2025$769 $15 $784 
Loans and Lending Commitments
Allowance for Credit Losses (ACL)
Beginning Balance - June 30, 2025$1,637 $424 $2,061 
Net Charge Offs(46)(17)(63)
Provision1 (1)— 
Other(1)— (1)
Ending Balance - September 30, 2025$1,591 $406 $1,997 
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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 15, 2025.
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