Financial Data and Key Metrics Changes - The company generated record revenues of $15.7 billion in Q1 2021, with a return on tangible common equity (ROTCE) of 21.4% and an efficiency ratio of 66% [3][10] - Pre-tax margin was reported at 27.9%, with expectations to exceed 30% as interest rates increase [4] - The provision for credit losses on held-for-investment loans and lending commitments is now presented as a separate line in the income statement [10][11] Business Line Data and Key Metrics Changes - Wealth Management generated approximately $6 billion in revenues, with net new assets of $105 billion, marking the best quarterly flows ever [3][18] - Institutional Securities revenues reached a record $8.6 billion, with fixed income and investment banking revenues also at record levels [5][12] - Investment Management reported pro forma assets under management (AUM) of $1.4 trillion, with pro forma net flows of $53 billion, indicating an annualized organic growth rate of 16% [6][25] Market Data and Key Metrics Changes - The first quarter of 2021 set new records in Asia and Europe for investment banking and fixed income performance, with strong client engagement across regions [12][13] - Equity revenues reached $2.9 billion, the strongest in a decade, driven by elevated global equity market volumes [14] - Fixed income revenues were reported at $3 billion, the highest for a first quarter in a decade, reflecting broad-based performance across products [15] Company Strategy and Development Direction - The company is focused on integrating the acquisitions of E*TRADE and Eaton Vance, which are expected to drive growth in client assets and enhance service offerings [9][23] - The workplace business is seen as a significant growth engine, with a strong pipeline and record participant additions [22] - The company aims to achieve $10 trillion in assets under management, leveraging multiple growth verticals from recent acquisitions [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to navigate complex situations, such as the Archegos collapse, and emphasized the importance of risk management [39][41] - The outlook for net interest income (NII) remains positive, driven by loan growth and funding synergies from the E*TRADE acquisition [20][36] - Management highlighted the strong client engagement and market conditions as supportive of continued performance [66] Other Important Information - The company incurred a net loss of $644 million related to the Archegos situation, with an additional loss of $267 million from derisking positions [7][8] - The integration of Eaton Vance is progressing well, with strong momentum in net flows and AUM growth [25][26] Q&A Session Summary Question: How much of the Wealth Management growth was attributable to E*TRADE? - Management indicated that while E*TRADE contributed to growth, the core business also showed significant organic growth, with a target of 4% to 6% annual growth [30][33] Question: What were the learnings from the Archegos situation? - Management noted the importance of transparency and risk management, particularly regarding family office relationships, and emphasized that the incident would not change their view of the prime brokerage business [38][40] Question: What is the outlook for retail trading volumes post-pandemic? - Management expressed optimism about sustaining elevated trading volumes due to strong client engagement, although they acknowledged that market conditions could change [58][60] Question: What initiatives are in place to drive growth from E*TRADE and Eaton Vance? - Management highlighted the focus on deliberate integration, enhancing client experiences, and leveraging data analytics to improve service delivery [69][70]

Financial Data and Key Metrics Changes - Morgan Stanley reported $48 billion in revenues and $11 billion in net income for the last year, indicating a strong financial performance and validating the firm's strategic transformation over the past decade [10][11] - The European business generated $6.4 billion in revenue, accounting for 14% of the firm's total revenues, highlighting its significance within the global franchise [11] Business Line Data and Key Metrics Changes - The investment banking segment is the mainstay of Morgan Stanley's European business, with significant contributions to overall performance [11] - The firm has seen growth in its asset management business in Europe, which represented 40% of gross inflows, demonstrating strong demand for its products [13] Market Data and Key Metrics Changes - The UK is expected to recover from the pandemic slower than the EU, with GDP dropping 10% in 2020 compared to 7% in Europe and 3.5% in the U.S. [8] - Asia, particularly China, is experiencing a sharp recovery with GDP growth expected to reach 9% in 2021, driven by effective pandemic management and capital formation [30][31] Company Strategy and Development Direction - Morgan Stanley is committed to its European operations and has made investments in talent and infrastructure across the continent, particularly in Frankfurt and Paris [17][18] - The firm aims to capture growth opportunities in Asia, focusing on wealth and asset management, as demand for these services is expected to outpace Europe and the U.S. [34][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the EU's ongoing transformation and integration, particularly with the pandemic recovery fund symbolizing a commitment to future growth [19][24] - The firm anticipates a vibrant UK economy post-Brexit, with London remaining a key hub for global capital markets [18][19] Other Important Information - The Capital Markets Union is seen as crucial for enhancing the efficiency of capital deployment in Europe, with a need for a unified regulatory framework [27][28] - Morgan Stanley's partnership with MUFG in Japan is highlighted as a strategic advantage, leveraging strengths in a market with significant savings and investment opportunities [42][45] Q&A Session Summary Question: How does Morgan Stanley compare with global peers in terms of strengths and opportunities? - Morgan Stanley differentiates itself through a global network with no significant gaps, strong brand trust, and a culture that fosters collaboration across its investment banking divisions [54][55] Question: What is the outlook on SPAC activity? - Management views SPACs as a new asset class that will remain, though they acknowledge current market exuberance and emphasize the importance of quality management for successful SPACs [65]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2020 Commission File Number 1-11758 Morgan Stanley (Exact name of Registrant as specified in its charter) | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------|------------------------------------------------------------------------ ...

Financial Data and Key Metrics Changes - Morgan Stanley generated record revenues of $48 billion in 2020, up from $34 billion in the period from 2010 to 2014, reflecting a significant increase in performance [4][6] - The firm reported a Return on Tangible Common Equity (ROTCE) of 15.4% for the full year and 18.7% for the fourth quarter, with earnings per share (EPS) of $6.58 for the year and $1.92 for the fourth quarter [18][19] - The efficiency ratio improved to 70%, down from 73% in the previous year, indicating better cost management [19][15] Business Line Data and Key Metrics Changes - Institutional Securities achieved record revenues of $26 billion, a 25% increase from the previous best year, with significant contributions from Asia [19][21] - Wealth Management revenues were $5.7 billion in the fourth quarter, with a full-year margin of 24.2%, reflecting strong client engagement and activity [24][25] - Investment Management reported revenues of $1.1 billion in the fourth quarter, with total assets under management (AUM) reaching a record high of $781 billion [30][29] Market Data and Key Metrics Changes - The firm saw over $200 billion in net new assets for the year, representing 6% of beginning period assets on a pro forma basis, indicating strong market demand [11][26] - The investment banking pipeline remains healthy, with robust activity in equity issuance and M&A, particularly in healthcare and technology sectors [20][44] - Fixed income sales and trading revenues increased 59% to $8.8 billion for the year, reflecting heightened client activity amid market volatility [21][22] Company Strategy and Development Direction - Morgan Stanley's strategy focuses on growth through acquisitions, including E*TRADE and Eaton Vance, to enhance its wealth management capabilities and reach younger demographics [6][7] - The company aims to achieve a long-term ROTCE exceeding 17% and maintain an efficiency ratio below 70% while investing in growth [17][15] - The firm is positioned to capitalize on market opportunities and expand its client base through integrated services across its business segments [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic recovery and market activity, driven by fiscal stimulus and vaccine distribution [44][43] - The firm anticipates continued strong performance in 2021, supported by a healthy pipeline and increased client engagement [31][46] - Management highlighted the importance of maintaining expense discipline while pursuing growth opportunities through strategic investments [15][17] Other Important Information - The firm announced a $10 billion share buyback program for 2021, reflecting confidence in its financial position and commitment to returning capital to shareholders [4][15] - Integration costs related to the E*TRADE acquisition are expected to be around $800 million over three years, with significant synergies anticipated [29][14] Q&A Session Summary Question: What is driving the net new asset growth in the wealth business? - Management noted that the growth is due to capturing a greater share of existing clients and expanding the client base, with E*TRADE contributing significantly to this growth [33][34] Question: What is the outlook for the industry wallet in trading? - Management indicated that while it is difficult to predict, there is optimism for continued market activity and share gains, particularly in fixed income and equity markets [42][44] Question: What is the plan for integrating the stock plan platforms? - Management confirmed that the sales teams have been integrated and that they will converge the platforms over time, with expectations of continued growth in corporate relationships [38][39] Question: How does the firm prioritize buybacks versus dividends? - Management emphasized a balanced approach, considering investments in the business, dividends, and share buybacks, with a focus on maintaining a strong capital position [51][55] Question: What are the expectations for organic growth in the wealth management business? - Management expressed caution about projecting growth rates but indicated that the firm is in a growth phase and expects to maintain higher growth levels than in the past [50][49]

Morgan Stanley. (NYSE:MS) Bank of America Future of Financials Virtual Conference 2020 November 9, 2020 1:40 PM ET Company Participants Daniel Simkowitz - Head of Investment Management of Morgan Stanley Conference Call Participants Mike Wilson - Chief U.S. Equity Strategist and Chief Investment Officer. Operator Mike Wilson Next coming up is Morgan Stanley, and with us today is Dan Simkowitz, Head of Investment Management. During the recently announced acquisition of Eaton Vince it should be a well-timed co ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 Commission File Number 1-11758 (Exact name of Registrant as specified in its charter) | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------|---------------------------------- ...

Morgan Stanley (NYSE:MS) Q3 2020 Earnings Conference Call October 15, 2020 8:30 AM ET Company Participants James Gorman - Chairman & CEO Jonathan Pruzan - CFO Conference Call Participants Glenn Schorr - Evercore ISI Steven Chubak - Wolfe Research Brennan Hawken - UBS Investment Bank Michael Carrier - Bank of America Merrill Lynch Michael Mayo - Wells Fargo Securities James Mitchell - Seaport Global Securities Devin Ryan - JMP Securities Gerard Cassidy - RBC Capital Markets Andrew Lim - Societe Generale Oper ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 Commission File Number 1-11758 (Exact name of Registrant as specified in its charter) | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------|---------------------------------------------------------------------------- ...