We've compounded wealth and investment management client assets towards $10 trillion plus. In institutional securities, we gained 100 basis points of wallet share with clients across investment banking and markets, reflecting the strength of our integrated investment bank and global franchise. Please turn to Slide six. We've moved up the firm-wide goals page for review in the context of the last two very strong years. 2025 results in the fourth quarter or on an annual basis broadly met or exceeded our firm- ...

Financial Data and Key Metrics Changes - In 2025, the company achieved record full-year revenues of $70.6 billion and fourth-quarter revenues of $17.9 billion, supported by expanding markets and increasing client demand for advice [31] - The return on tangible common equity (ROTCE) was 21.6% for the full year, with fourth-quarter ROTCE at 21.8% and earnings per share (EPS) reaching $10.21 for the full year and $2.68 for the fourth quarter [32] - The efficiency ratio improved to 68.4% for the full year, indicating disciplined execution and prioritization of investments [32] Business Line Data and Key Metrics Changes - Institutional Securities delivered record full-year revenues of $33.1 billion, including $7.9 billion in the fourth quarter, with strong growth in Investment Banking revenues of $7.6 billion for the full year [33] - Wealth Management achieved full-year revenues of $31.8 billion with margins of 29%, and net new assets of $356 billion for the year [38] - Investment Management generated total revenues of $6.5 billion, reaching a record $1.9 trillion in assets under management (AUM) [46] Market Data and Key Metrics Changes - 25% of the company's revenues came from outside the U.S., with EMEA revenues growing by 40% and Asia by 50% over the last two years [22] - The company has a strong presence in Japan and Hong Kong, with significant growth in the EU and maintained leadership in the U.K. [22] Company Strategy and Development Direction - The company is focused on executing its strategy of being an integrated firm, leveraging technology and human capital across its three business segments: Wealth, Institutional Securities, and Investment Management [15][29] - There is an emphasis on the adoption of AI tools to enhance efficiency and effectiveness across business units [15] - The company aims to compound earnings in a capital-efficient manner while maintaining a strong focus on client relationships and market share [12][29] Management's Comments on Operating Environment and Future Outlook - The management highlighted a resilient U.S. economy and a favorable macro backdrop, with expectations of continued execution at or above firm-wide goals in 2026 [5][7] - There is caution regarding geopolitical uncertainties and higher asset prices, with a focus on not overreaching despite achieving many firm-wide goals [12][29] - The management expressed confidence in the potential for growth in both the Wealth and Investment Management businesses, supported by healthy pipelines and client engagement [49] Other Important Information - The company raised its quarterly dividend to $1 per share, marking four consecutive years of dividend growth [27] - The firm bought back $4.6 billion of common stock in 2025, including $1.5 billion in the fourth quarter [49] Q&A Session Questions and Answers Question: Why no change for the targets despite strong results? - The management emphasized the importance of demonstrating the ability to compound earnings through cycles and maintaining a conservative approach to setting targets [54][56] Question: What are the drivers of margin growth in Wealth Management? - The management indicated that both scaling the business and improving efficiency through technology and fee-based revenues are key drivers for margin growth [61][63] Question: How does the company view the trading business and its future? - The management acknowledged the trading business's current strong performance but noted the potential for volatility in the future, emphasizing the importance of managing risks [100][102] Question: What is the outlook for wallet expansion in institutional trading? - The management expressed optimism about the growth of the wallet, projecting a 5%-10% annual increase, supported by ongoing share gains from established firms [91]

Financial Performance & Goals - Morgan Stanley achieved a Return on Tangible Common Equity (ROTCE) of 21.6%[9] - The firm's Earnings per Share (EPS) reached $10.21[9] - Total Client Assets amounted to $9.3 Trillion[9] - The firm is targeting $10 Trillion+ in Client Assets[19, 57] - The firm is targeting a ROTCE of 20%[19, 57] Wealth Management - Wealth Management's Pre-Tax Margin is targeted at 30%[19, 57] - Wealth Management's net revenues increased from $19 Billion in 2020 to $32 Billion in 2025[26] - Fee-Based Flows in Wealth Management were approximately $735 Billion from 2021-2025, compared to approximately $330 Billion from 2016-2020[26] - Net New Assets in Wealth Management were approximately $1.64 Trillion from 2021-2025, compared to approximately $580 Billion from 2016-2020[26] Institutional Securities & Investment Management - Institutional Securities Wallet Share increased from approximately 14.3% in 2020 to approximately 15.5% in 2025[16]