Morgan Stanley Business Profile, Financials & Segment

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025.

Quick Facts / Company Snapshot

Metric / Attribute	Disclosed Value / Fact
Official Corporate Name	Morgan Stanley
Jurisdiction of Incorporation	Delaware, United States
Principal Executive Offices	1585 Broadway, New York, NY 10036
Common Stock Ticker & Exchange	MS (New York Stock Exchange)
I.R.S. Employer Identification No.	36-3145972
SEC Commission File Number	1-11758
Chairman and Chief Executive Officer	Edward Pick
Executive Vice President & Chief Financial Officer	Sharon Yeshaya
Worldwide Workforce	Approximately 83,000 employees
Global Geographic Presence	Operations across 42 countries
Total Net Revenues (FY 2025)	$70,645 million
Net Income Applicable to Morgan Stanley	$16,861 million
Earnings Per Diluted Common Share	$10.21
Total Consolidated Assets	$1,420,270 million
Total Client Assets	$9,276 billion
Total Deposits	$415,523 million
Total Common Equity	$101,882 million
Return on Common Equity (ROE)	16.6%
Return on Tangible Common Equity (ROTCE)	21.6%
Standardized CET1 Capital Ratio	15.0%

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025.

Company Overview

Morgan Stanley is a global financial services firm that operates through a wide network of subsidiaries and affiliates. The firm advises, originates, trades, manages, and distributes capital for governments, institutions, and individuals. It conducts its operations from its global headquarters in New York City, supported by regional branches across the United States and principal offices in London, Frankfurt, Tokyo, Hong Kong, and other international financial hubs.

The firm is structured as a Financial Holding Company (FHC) and a Bank Holding Company (BHC). It operates under comprehensive consolidated supervision, regulation, and examination by the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956. This regulatory classification subjects the enterprise to rigorous systemic risk oversight, prudential capital standards, liquidity requirements, and resolution planning regimes.

Morgan Stanley organizes its business around an “Integrated Firm” operating philosophy. Under this framework, client relationships are served holistically across institutional, wealth, and asset management platforms to maximize commercial synergies.

• The firm is anchored by four primary pillars: Strategy, Culture, Financial Strength, and Growth.
• Workforce culture is governed across all global jurisdictions by three core tenets: rigor, humility, and partnership.
• Total client assets reached $9,276 billion at the end of 2025, representing massive scale across global wealth and investment channels.

The firm maintains significant market positions across three distinct business segments: Institutional Securities, Wealth Management, and Investment Management. Each division functions as a specialized pillar supporting global corporations, financial sponsors, sovereign entities, and individual retail investors.

Business Segments

Morgan Stanley divides its operations into three primary reporting segments. Substantially all operating revenues and expenses are directly attributed or allocated to these divisions.

Business Segment Financial Performance Summary

Business Segment	Net Revenues ($ in millions) PDF	% of Total Net Revenue (Calculated by FirmsWorld)	Income Before Taxes ($ in millions) PDF	Net Income Applicable to MS ($ in millions) PDF	Pre-Tax Margin PDF
Institutional Securities	$33,080	46.83%	$11,237	$8,650	34%
Wealth Management	$31,754	44.95%	$9,293	$7,130	29%
Investment Management	$6,525	9.24%	$1,478	$1,122	23%
Total Consolidated	$70,645	100.00%	$21,954	$16,861	31%

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025. Note: Segment revenues sum to $71,359 million prior to intersegment eliminations of $(714) million.

The data highlights a balanced revenue engine where capital markets operations and wealth management advisory generate nearly equal shares of top-line revenue. Institutional Securities produced the highest profitability margin during the period, capitalizing on elevated client trading volumes and corporate advisory engagements.

• Institutional Securities generated 46.83% of total net revenues, anchoring capital markets execution (Calculated by FirmsWorld).
• Wealth Management delivered 44.95% of total net revenues with pre-tax profit margins reaching 29% (Calculated by FirmsWorld).
• Investment Management contributed 9.24% of net revenues, driven by asset management fees across alternatives and solutions (Calculated by FirmsWorld).

Total Net Revenues ($70,645M)
├── Institutional Securities: $33,080M (46.83%)
├── Wealth Management:        $31,754M (44.95%)
└── Investment Management:     $6,525M  (9.24%)
(Intersegment eliminations reconcile segment gross totals)

Institutional Securities

Institutional Securities provides capital raising, financial advisory, and market-making services to corporations, governments, financial institutions, and ultra-high net worth clients. The division encompasses Investment Banking, Markets (comprising Equity and Fixed Income), Lending activities, and Research.

Investment banking services include financial advisory assignments covering mergers and acquisitions, divestitures, corporate restructurings, and project finance. Underwriting operations originate and distribute public and private debt, equity, and equity-linked instruments. The Markets business acts as a market maker in equity securities, cash debt instruments, foreign currencies, commodities, and derivatives, while providing execution, prime brokerage, and fund administration. Lending activities provide structured lending, corporate revolving credit lines, bridge facilities, and commercial real estate financing.

• Completed M&A volume advised reached $756 billion, expanding from $655 billion in 2024.
• Fixed income underwriting volumes advanced to $414 billion compared to $326 billion in the prior year.
• Equity and equity-related underwriting volume totaled $79 billion, up from $63 billion in 2024.

Wealth Management

Wealth Management delivers comprehensive financial solutions to retail individual investors, high net worth and ultra-high net worth families, businesses, and institutions. The business operates through three primary channels: Advisor-Led, Self-Directed, and Workplace.

The Advisor-Led channel provides full-service financial planning, discretionary portfolio management, brokerage, and administrative services through financial advisors. The Self-Directed channel serves digital-first investors via self-directed trading platforms. The Workplace channel delivers corporate equity plan administration and executive compensation solutions to institutional employer clients and their workforces. The broader segment also provides comprehensive banking, cash management, securities-based lending, and residential real estate mortgage products.

• Total Wealth Management client assets reached $7,381 billion, expanding by $1,187 billion year-over-year.
• Annual Net New Assets (NNA) totaled $356.3 billion, reflecting strong asset gathering momentum.
• Fee-based client assets reached $2,753 billion, supported by $160.1 billion in positive fee-based flows.

Investment Management

Investment Management delivers public and private market strategies across institutional and intermediary client channels. Strategies are offered through diverse investment structures, encompassing open-end mutual funds, closed-end vehicles, collective trusts, separately managed accounts, and private funds.

The segment is organized across four distinct asset classes: Alternatives and Solutions, Liquidity and Overlay Services, Equity, and Fixed Income. Institutional clients include corporate and public pension funds, sovereign wealth entities, foundations, endowments, insurance balance sheets, and third-party fund sponsors. Individual retail investors access strategies via affiliated distribution networks and third-party financial intermediaries.

• Total Assets Under Management (AUM) closed at $1,895 billion, supported by $140 billion in market appreciation.
• Alternatives and Solutions strategies expanded to $703 billion in total assets.
• Liquidity and Overlay Services scaled to $644 billion in assets under management or supervision.

History and Evolution

The foundational roots of Morgan Stanley’s predecessor companies date back to 1924. The modern enterprise was incorporated under the laws of the State of Delaware in 1981. Over decades of structural evolution, the firm transitioned from a pure-play investment banking and trading partnership into a diversified financial holding company.

A fundamental milestone in the firm’s modern structure occurred with its regulatory transformation into a Financial Holding Company governed by the Federal Reserve under the Bank Holding Company Act of 1956. This regulatory framework shifted Morgan Stanley’s capital requirements, liquidity frameworks, and operational supervision into alignment with systemic banking standards.

In recent years, the firm accelerated its strategic transformation by expanding fee-based, capital-light businesses through major corporate transactions and operational integrations:

• Acquisition of E*TRADE Financial Corporation in 2020 integrated massive retail digital direct brokerage scale and stock plan administration capabilities into Wealth Management.
• Integration of Parametric within the customized solutions and retail managed account platform enhanced the Alternatives and Solutions business in 2023.
• Strategic merger of Morgan Stanley Capital Services LLC’s (MSCS) fixed income derivatives portfolio into Morgan Stanley Bank, N.A. on February 14, 2026, streamlined banking asset growth.

Products and Services

Morgan Stanley generates its revenue through distinct operational activities, including asset management advisory, equity market-making, fixed income trading, corporate and consumer lending, investment banking advisory, and underwriting.

Revenue Contribution by Product and Activity

Product / Service Category	Reporting Segment	FY 2025 Revenue ($ in millions) PDF	% of Total Consolidated Revenue (Calculated by FirmsWorld)
Wealth Management Asset Management	Wealth Management	$18,627	26.37%
Equity Sales, Trading & Financing	Institutional Securities	$15,631	22.13%
Fixed Income Sales, Trading & Lending	Institutional Securities	$8,716	12.34%
Wealth Management Net Interest	Wealth Management	$7,911	11.20%
Investment Banking Advisory & Underwriting	Institutional Securities	$7,619	10.78%
Investment Management Fees	Investment Management	$6,068	8.59%
Wealth Management Transactional Services	Wealth Management	$4,588	6.50%
Institutional Securities Other Net Revenues	Institutional Securities	$1,114	1.58%
Wealth Management Other Revenues	Wealth Management	$628	0.89%
IM Performance-Based Fees & Other	Investment Management	$457	0.65%

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025.

Asset management and equity trading represent the dual core of Morgan Stanley’s revenue generation. The predictability of fee-based wealth management balances the volatility of institutional trading and investment banking underwriting cycles.

• Wealth Management asset advisory fees represented 26.37% of firmwide revenue, serving as the single largest revenue stream (Calculated by FirmsWorld).
• Institutional Equity operations delivered 22.13% of consolidated top-line performance, driven by client balances and market execution (Calculated by FirmsWorld).
• Net interest income across Wealth Management contributed 11.20% of net revenue, benefiting from loan portfolio expansion (Calculated by FirmsWorld).

Wealth Management Asset Management and Advisory Services

Wealth Management asset management revenues are derived from recurring advisory fees charged on client account balances. These solutions are structured across distinct account arrangements tailored to investor preference and supervisory discretion:

• Separately Managed Accounts (SMA): Accounts where independent or affiliated asset managers make investment decisions within a single dedicated investment strategy. SMAs held $833 billion in client assets with an average fee rate of 12 basis points.
• Unified Managed Accounts (UMA): Aggregate account vehicles allowing clients to combine separately managed accounts, mutual funds, and exchange-traded funds into a single cohesive portfolio. UMAs held $760 billion in assets with an average fee rate of 90 basis points.
• Portfolio Manager Accounts: Discretionary accounts where financial advisors have client authorization to execute investment decisions without prior transaction-by-transaction approval. These accounts held $861 billion in assets with an average fee rate of 88 basis points.
• Advisor Accounts: Non-discretionary investment advisory accounts where every portfolio rebalancing or trade must receive explicit prior client confirmation. These accounts held $229 billion in assets with an average fee rate of 78 basis points.
• Cash Management Solutions: Discretionary short-term liquidity strategies provided to institutional clients, holding $70 billion in assets at an average fee rate of 6 basis points.

Equity Sales, Trading, and Financing

Equity net revenues encompass financing, prime brokerage, and market execution services. Financing operations provide margin lending, securities lending, and equity swap financing to institutional hedge funds and asset managers. The financing business generated $7,810 million in net revenues, primarily reflecting high average client balances and prime brokerage activity.

Execution services facilitate client transactions across major cash equities and listed derivatives exchanges, as well as over-the-counter (OTC) markets. Execution generated $7,821 million in net revenues, benefiting from trading gains on inventory held to facilitate client transactions and strong commission flows.

Fixed Income Market-Making and Macro Products

Fixed income operations make primary and secondary markets across flow and structured financial instruments. The division operates across three specialized product categories:

• Global Macro Products: Market-making in foreign exchange currencies and interest rate contracts across developed and emerging economies.
• Credit Products: Trading corporate bonds, mortgage-backed securities, structured debt tranches, syndicated loans, and credit derivatives.
• Commodity Products: Market-making and physical facilitation in power, natural gas, crude oil, and precious metals.

Wealth Management Net Interest and Banking Products

Net interest income within Wealth Management is earned by funding investment securities and loans through client deposits. The firm’s banking platforms provide securities-based lending (SBL), allowing clients to access credit backed by marketable securities portfolios. Additionally, the platform originates conforming mortgages, non-conforming jumbo mortgages, and home equity lines of credit (HELOCs).

Investment Banking Advisory and Underwriting

Investment banking provides corporate advisory and capital markets execution. Advisory services generated $2,888 million in revenues, driven by the closing of major M&A transactions and corporate restructuring assignments. Underwriting revenues totaled $4,731 million, comprising $2,766 million in fixed income debt underwriting and $1,965 million in equity underwriting, which experienced strong initial public offering (IPO) and convertible issuance activity.

Investment Management Asset Advisory

Investment Management earns asset fees based on total AUM across public and private market strategies. Long-term strategies generated fees based on average asset fee rates of 69 basis points in Equity, 36 basis points in Fixed Income, and 27 basis points across Alternatives and Solutions. Liquidity and Overlay services operated at an average fee rate of 12 basis points.

Brand Portfolio

Morgan Stanley operates several major financial services brands across its core operating units.

Disclosed Operating Brands

• Morgan Stanley: The core global corporate brand encompassing Institutional Securities investment banking, sales and trading, research, and Advisor-Led wealth management.
• E*TRADE: The self-directed retail digital brokerage platform providing trading, cash management, and automated investing services to 8.5 million self-directed households.
• Parametric: A specialized investment management brand providing customized systematic solutions, direct indexing, and portfolio overlay strategies. Parametric represented $524 billion in long-term period-end AUM within the Alternatives and Solutions asset class.

Geographical Presence

Morgan Stanley conducts business globally across 42 countries, structured under three regional reporting divisions: the Americas, Asia, and EMEA (Europe, Middle East, and Africa).

Regional Revenue Breakdown

Region	Net Revenues ($ in millions) PDF	% of Total Consolidated Revenue (Calculated by FirmsWorld)	Regional Workforce (in thousands) PDF	% of Total Global Workforce (Calculated by FirmsWorld)
Americas	$52,897	74.88%	54	65.06%
Asia	$9,420	13.33%	19	22.89%
EMEA	$8,328	11.79%	10	12.05%
Total Consolidated	$70,645	100.00%	83	100.00%

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025.

The Americas serves as the central operational base, generating roughly three-quarters of consolidated firm revenues and employing nearly two-thirds of the global headcount. Asia delivered the fastest year-over-year revenue expansion at 23%, driven by institutional equity and investment banking growth.

• Americas net revenues increased 13% year-over-year, supported by gains across all three business segments.
• Asia operations produced $9,420 million in net revenues, supported by 19,000 employees and regional trading hubs.
• EMEA generated $8,328 million in net revenues, reflecting a 16% annual advance driven by institutional equity trading.

Americas

The Americas region includes the firm’s global headquarters at 1585 Broadway in New York City, as well as an extensive network of domestic Wealth Management branch offices, commercial banking hubs, and trading desks. It serves as the primary base for the U.S. Bank Subsidiaries, the E*TRADE digital brokerage franchise, and institutional investment banking underwriting.

Asia

Asia operations are managed through principal regional offices in Tokyo and Hong Kong, alongside locations across world financial centers. The region coordinates equity market-making, regional investment banking underwriting, and institutional financing. In Japan, the firm conducts securities and investment banking operations through its long-standing strategic joint venture with Mitsubishi UFJ Financial Group, Inc. (MUFG).

EMEA (Europe, Middle East, and Africa)

EMEA operations are directed through principal corporate headquarters in London and Frankfurt, complemented by offices across European financial jurisdictions. The region focuses on institutional equity execution, sovereign and corporate debt market-making, M&A advisory, and cross-border currency financing.

Top 10 Non-U.S. Country Risk Exposures

Morgan Stanley actively tracks sovereign and non-sovereign country risk exposures based on the ultimate economic impact of obligors.

Country	Sovereign Net Exposure ($ in millions) PDF	Non-Sovereign Net Exposure ($ in millions) PDF	Total Net Exposure ($ in millions) PDF
United Kingdom	$725	$30,584	$31,309
France	$5,163	$7,866	$13,029
Germany	$1,501	$11,393	$12,894
Japan	$5,589	$1,693	$7,282
Brazil	$2,269	$4,411	$6,680
Australia	$162	$3,833	$3,995
Korea	$585	$3,313	$3,898
Spain	$310	$3,343	$3,653
Netherlands	$2,754	$872	$3,626
Canada	$244	$3,325	$3,569

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025.

Profit and Loss

Morgan Stanley demonstrated significant operating leverage during 2025, expanding consolidated net revenues by 14% while limiting non-interest expense growth to 10%.

Consolidated Income Statement Data and Financial Metrics

Metric ($ in millions, except per share data)	FY 2025 PDF	FY 2024 PDF	FY 2023 PDF	YoY Change (%) PDF
Investment Banking Revenues	$7,619	$6,170	$4,578	23%
Trading Revenues	$20,683	$18,367	$15,741	13%
Asset Management Fees	$24,695	$22,128	$19,250	12%
Transactional Revenues	$4,588	$3,864	$3,556	19%
Total Net Revenues	$70,645	$61,761	$54,143	14%
Compensation and Benefits Expense	$29,216	$26,178	$24,558	12%
Non-Compensation Expenses	$19,126	$17,723	$17,240	8%
Total Non-Interest Expenses	$48,342	$43,901	$41,798	10%
Provision for Credit Losses	$349	$264	$401	32%
Income Before Provision for Income Taxes	$21,954	$17,596	$11,944	25%
Provision for Income Taxes	$4,942	$4,070	$2,618	21%
Effective Tax Rate	22.5%	23.1%	21.9%	–
Net Income Applicable to Morgan Stanley	$16,861	$13,390	$9,087	26%
Earnings Applicable to Common Shareholders	$16,249	$12,800	$8,530	27%
Earnings Per Diluted Common Share	$10.21	$7.95	$5.18	28%
Expense Efficiency Ratio	68%	71%	77%	–
Pre-Tax Profit Margin	31%	28%	22%	–
Return on Common Equity (ROE)	16.6%	14.0%	9.4%	–
Return on Tangible Common Equity (ROTCE)	21.6%	18.8%	12.8%	–

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025.

The efficiency ratio improved from 71% to 68%, demonstrating that operating expenses expanded at a slower rate than revenue growth. Increased compensation expenses reflected higher formulaic payouts to wealth advisors and discretionary incentives aligned with institutional trading performance.

• Diluted EPS expanded by 28% to reach $10.21, driven by revenue expansion and share repurchases.
• The firm delivered an ROTCE of 21.6%, exceeding its stated long-term performance target of 20%.
• Severance costs of $144 million were recorded in March 2025, impacting approximately 2% of the global workforce.

Balance Sheet

Morgan Stanley actively manages its consolidated balance sheet to ensure financial strength, robust capital adequacy, and orderly liquidity deployment across business units.

Consolidated Balance Sheet Summary

Balance Sheet Item ($ in millions)	At December 31, 2025 PDF	At December 31, 2024 PDF	Dollar Change ($ in millions)
Cash and Cash Equivalents	$111,695	$105,386	+$6,309
Trading Assets at Fair Value	$428,276	$331,884	+$96,392
Investment Securities (AFS & HTM)	$163,556	$159,679	+$3,877
Securities Purchased Under Resale Agreements	$120,243	$118,565	+$1,678
Securities Borrowed	$151,908	$123,859	+$28,049
Customer and Other Receivables	$114,720	$86,158	+$28,562
Loans (Net of ACL)	$278,094	$238,153	+$39,941
Goodwill	$16,726	$16,706	+$20
Intangible Assets	$6,010	$6,453	-$443
Other Assets	$29,042	$28,228	+$814
Total Consolidated Assets	$1,420,270	$1,215,071	+$205,199
Deposits	$415,523	$376,007	+$39,516
Borrowings	$348,935	$288,819	+$60,116
Preferred Stock Equity	$9,750	$9,750	$0
Common Shareholders’ Equity	$101,882	$94,761	+$7,121
Tangible Common Equity (Non-GAAP)	$79,147	$71,604	+$7,543
Book Value Per Common Share	$64.37	$58.98	+$5.39
Tangible Book Value Per Common Share	$50.00	$44.57	+$5.43
Common Shares Outstanding (millions)	1,583	1,607	-24

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025.

A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities, and short-term receivables arising from institutional financing and wealth management banking operations. Total deposits expanded by $39.5 billion, reflecting client cash allocations into time and savings deposits.

• Total consolidated assets reached $1,420 billion, supported by loan growth across U.S. Bank Subsidiaries.
• Customer deposits reached $415.5 billion, with time deposits increasing to $99.6 billion.
• Long-term borrowings maturing beyond one year totaled $341,681 million, staggered across future maturities.

Regulatory Capital and Liquidity Reserves Summary

Prudential Capital / Liquidity Ratio	Actual (Dec 31, 2025) PDF	Actual (Dec 31, 2024) PDF	Regulatory Requirement (Dec 31, 2025) PDF
Standardized CET1 Capital Ratio	15.0%	15.9%	11.8%
Standardized Tier 1 Capital Ratio	16.8%	18.0%	13.3%
Standardized Total Capital Ratio	18.7%	20.3%	15.3%
Advanced CET1 Capital Ratio	16.2%	15.7%	10.0%
Advanced Tier 1 Capital Ratio	18.0%	17.8%	11.5%
Advanced Total Capital Ratio	19.9%	20.0%	13.5%
Tier 1 Leverage Ratio	6.7%	6.9%	4.0%
Supplementary Leverage Ratio (SLR)	5.4%	5.6%	5.0%
Liquidity Coverage Ratio (LCR)	134%	129%	100%
Net Stable Funding Ratio (NSFR)	121%	120%	100%
Total Average Liquidity Resources	$385,884 million	$345,440 million	Internal Limit

Source: Morgan Stanley Form 10-K For the year ended December 31, 2025.

The firm maintained substantial capital cushions above all minimum regulatory requirements, including the Stress Capital Buffer (SCB) and the Global Systemically Important Bank (G-SIB) capital surcharge.

• Standardized CET1 ratio of 15.0% provided a 320-basis-point buffer above the 11.8% required minimum (Calculated by FirmsWorld).
• The Federal Reserve reduced Morgan Stanley’s SCB to 4.3%, effective October 1, 2025, expected to remain through October 1, 2027.
• Average daily Liquidity Resources reached $385.9 billion, consisting of high-quality liquid assets (HQLA) and central bank cash deposits.

Board of Directors and Leadership Team

Morgan Stanley operates under a comprehensive risk and operational governance structure led by senior executive officers and specialized Board committees.

Executive Officers

• Edward Pick (Age 57): Chairman of the Board of Directors (since January 2025) and Chief Executive Officer (since January 2024). Previously served as Co-President and Co-Head of Corporate Strategy (June 2021 to December 2023), Head of Institutional Securities (July 2018 to December 2023), and Global Head of Sales and Trading (October 2015 to July 2018).
• Sharon Yeshaya (Age 46): Executive Vice President and Chief Financial Officer (since June 2021). Previously served as Head of Investor Relations (June 2016 to May 2021) and Chief of Staff in the Office of the Chairman and CEO (January 2015 to May 2016).
• Andrew M. Saperstein (Age 59): Co-President of Morgan Stanley (since June 2021). Previously served as Head of Wealth Management (April 2019 to December 2023) and Co-Head of Wealth Management (January 2016 to April 2019).
• Daniel A. Simkowitz (Age 60): Co-President of Morgan Stanley (since January 2024). Previously served as Head of Investment Management (October 2015 to December 2023) and Co-Head of Corporate Strategy (June 2021 to December 2023).
• Mandell L. Crawley (Age 50): Executive Vice President and Chief Client Officer (since January 2025). Previously served as Chief Human Resources Officer (February 2021 to January 2025) and Head of Private Wealth Management (June 2017 to January 2021).
• Eric F. Grossman (Age 59): Executive Vice President, Chief Legal Officer (since January 2012), and Chief Administrative Officer (since July 2022). Previously served as Global Head of Legal (September 2010 to January 2012) and Global Head of Litigation (January 2006 to September 2010).
• Michael A. Pizzi (Age 51): Executive Vice President and Head of Technology and Operations (since January 2025). Previously served as Head of U.S. Banks and Head of Technology (January 2023 to January 2025) and Chief Executive Officer of E*TRADE Financial Corporation prior to its acquisition.
• Charles A. Smith (Age 59): Executive Vice President and Chief Risk Officer (since May 2023). Previously served as Head of Institutional Securities Business Development (March 2017 to May 2023) and Chief Financial Officer of Institutional Securities (August 2012 to March 2017).

Board Committees

• Audit Committee (BAC): Oversees the integrity of consolidated financial statements, compliance with legal and regulatory mandates, internal control systems, and the performance and independence of the independent auditor.
• Risk Committee (BRC): Oversees the Enterprise Risk Management (ERM) framework, capital and liquidity planning, the Chief Risk Officer, and financial risk exposures including market, credit, model, and climate risks.
• Operations and Technology Committee (BOTC): Oversees operational risk, IT infrastructure, information security, third-party vendor risk, operational resilience, and cybersecurity strategies.
• Compensation, Management Development and Succession Committee (CMDS): Governs incentive compensation architecture to ensure alignment with sustainable shareholder performance and prevent excessive risk-taking.
• Governance and Sustainability Committee: Oversees corporate governance policies, Board nominations, and environmental sustainability practices.

Internal Risk Governance Committees

• Firm Risk Committee (FRC): Co-chaired by the Chief Executive Officer and Chief Risk Officer, the FRC establishes firmwide risk appetite, limits, and tolerances across credit, market, model, liquidity, and operational exposures.
• Internal Audit Department (IAD): Operates as an independent assurance group reporting directly to the Chair of the Audit Committee and administratively to the CEO.

Subsidiaries, Associates, and Joint Ventures

Morgan Stanley conducts its worldwide business through dedicated bank, broker-dealer, and operational subsidiaries.

Major Disclosed Operating Subsidiaries

• Morgan Stanley & Co. LLC (MS&Co.): Primary U.S. broker-dealer registered with the SEC and CFTC, clearing trades across major exchanges and executing institutional sales, trading, and investment banking underwriting.
• Morgan Stanley Smith Barney LLC (MSSB): Dual-registered broker-dealer and investment adviser delivering advisor-led wealth management, retail brokerage, and investment advisory services.
• Morgan Stanley Bank, N.A. (MSBNA): National bank depository institution regulated by the OCC, holding deposit liabilities, originating corporate and commercial real estate loans, and housing fixed income derivatives.
• Morgan Stanley Private Bank, National Association (MSPBNA): National bank depository institution providing securities-based lending, tailored wealth loans, and residential mortgages.
• Morgan Stanley Holdings LLC (Funding IHC): Wholly owned direct intermediate holding company serving as the primary resolution funding vehicle under the Single Point of Entry (SPOE) resolution framework.
• E*TRADE Futures LLC: Regulated futures commission merchant supporting self-directed client derivative transactions.

Other Investments (Including Minority / Portfolio Holdings)

• Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS): Japanese securities joint venture with Mitsubishi UFJ Financial Group, Inc. (MUFG), accounted for under the equity method. The sensitivity of the Firm’s investment in MUMSS to a 10% market decline was estimated at $129 million.
• Covered Funds and Principal Private Investments: Investments in sponsored private equity, real estate, and infrastructure funds. Deductions from Tier 1 capital for investments in covered funds totaled $998 million at December 31, 2025. Market risk sensitivity across non-MUMSS firm investments to a 10% decline stood at $493 million.

Physical Properties

• Global Corporate Headquarters: Located at 1585 Broadway, New York, NY 10036.
• International Principal Hubs: Principal international corporate offices are situated in London, Frankfurt, Tokyo, and Hong Kong.
• Domestic Branch Footprint: Operating across nationwide regional offices and wealth management advisory branch facilities in the United States.

Parent

Morgan Stanley is the Parent Company incorporated in Delaware. The Parent Company is a financial holding company with no independent business operations. It relies entirely on dividends, loans, and distributions from operating subsidiaries to fund dividend payments and meet obligations on senior debt securities.

To facilitate resolution planning under Title II of the Dodd-Frank Act, the Parent Company has entered into a secured support agreement with its funding vehicle, Morgan Stanley Holdings LLC (Funding IHC). Under this structure, the Parent Company transfers material liquid assets to the Funding IHC to support operating subsidiaries during severe financial stress.

Investments and Capital Expenditure Plans

Morgan Stanley directs capital expenditures toward enterprise technology, operational resilience, and digital brokerage systems.

• Non-compensation expenses expanded 8% to $19,126 million, driven by higher technology investments and execution costs.
• Repurchased 32 million shares of common stock in 2025 at an average price of $141.33 per share, totaling $4,585 million.
• Quarterly common stock dividend was increased to $1.00 per share, announced on January 15, 2026, and paid on February 13, 2026.

Shareholding Pattern

• Common Shares Outstanding: 1,587,860,206 common shares outstanding as of January 31, 2026. At December 31, 2025, common shares outstanding totaled 1,583 million.
• Market Value Held by Non-Affiliates: The aggregate market value of common stock held by non-affiliates of the Registrant was approximately $217,968,854,713 as of June 30, 2025.

Future Strategy

Management’s forward-looking strategic roadmap focuses on compounding fee-based client assets while leveraging institutional market-making strength:

• Return on Tangible Common Equity (ROTCE) Target: Management maintains a firmwide target to deliver a 20% ROTCE in normal market environments (Management target).
• Integrated Firm Model: Deepening collaboration between Wealth Management channels and Institutional Securities underwriting to originate and distribute capital seamlessly.
• Banking Asset Expansion: Ongoing migration and growth of eligible assets at Morgan Stanley Bank, N.A., exemplified by the merger of the fixed income derivatives portfolio from MSCS into MSBNA on February 14, 2026.
• Wealth Channel Convergence: Transitioning self-directed and workplace equity participants into recurring fee-based advisory relationships.

Key Strengths

Morgan Stanley’s operating model is supported by distinct, source-disclosed attributes:

• Balanced Business Diversification: Revenue generation is split between institutional capital markets (46.83%) and recurring wealth management solutions (44.95%) (Calculated by FirmsWorld).
• Massive Asset Scale: Managing and supervising $9,276 billion in total client assets across global platforms.
• Substantial Capital and Liquidity Reserves: Maintaining a 15.0% Standardized CET1 ratio alongside $385.9 billion in average daily Liquidity Resources.
• High Employee Engagement: 93% of employees surveyed expressed pride in working at Morgan Stanley, supported by a 9% voluntary attrition rate.

Key Challenges and Risks

Morgan Stanley operates in an intensely regulated, complex global environment subject to multifaceted operational and financial risks.

Market and Interest Rate Risks

The firm’s trading assets and advisory revenues are exposed to adverse movements in global equity prices, credit spreads, interest rates, and commodity volatility.

Wealth Management net interest income is highly asset-sensitive. An instantaneous downward interest rate shock of 100 basis points was estimated to reduce Wealth Management net interest income by $244 million over a 12-month horizon. Conversely, an instantaneous 200 basis point drop was modeled to reduce net interest income by $803 million.

Credit and Loan Concentration Risks

Total loan exposure stood at $289,038 million (net of ACL) alongside $209,166 million in unfunded lending commitments. Commercial real estate (CRE) lending remains an area of heightened risk focus:

• Institutional Securities CRE loans and commitments totaled $9,303 million, primarily exposed to industrial ($3,721M), office ($2,275M), and multifamily ($1,825M) properties.
• Institutional CRE net charge-off ratio stood at 1.82% during 2025, driving gross loan charge-offs of $173 million within the segment.
• Wealth Management direct CRE loans totaled $7,474 million, though more than 95% of these balances benefit from personal guarantees by ultra-high net worth clients.

Operational, Technology, and Cybersecurity Risks

The firm relies heavily on complex IT infrastructure to process massive daily transactional volumes across global currencies. Cybersecurity risks from state-sponsored actors, ransomware, and artificial intelligence-driven attacks represent critical threats to operational continuity. The firm’s Operations and Technology Committee of the Board (BOTC) maintains oversight over resilience frameworks, third-party vendor vulnerabilities, and data protection.

Legal and Regulatory Resolution Framework

As a U.S. G-SIB, Morgan Stanley is subject to the Single Point of Entry (SPOE) resolution regime. Under this structure, in the event of severe financial distress or bankruptcy, losses will be imposed on holders of eligible external Long-Term Debt (LTD) and Total Loss-Absorbing Capacity (TLAC) before any losses are passed to operating subsidiaries or creditors. The firm maintained $284,259 million in external TLAC at December 31, 2025.

Conclusion and Strategic Outlook

Morgan Stanley’s 2025 results demonstrated the financial power of its integrated business model. The firm achieved record net revenues of $70,645 million and net income applicable to common shareholders of $16,249 million, while surpassing its long-term ROTCE target with a 21.6% return.

Supported by $9,276 billion in client assets, a conservative 15.0% Standardized CET1 capital ratio, and $385.9 billion in liquidity reserves, Morgan Stanley enters subsequent operating periods positioned to weather macroeconomic volatility while executing strategic asset growth across its wealth, institutional, and investment management platforms.

Official Site: Morgan Stanley