Investor Presentaiton
Morgan Stanley EXTRADE
End Notes
These notes refer to the financial metrics and/or defined term presented on Slide 10
1. Current Morgan Stanley Digital Banking offering is through the broker-dealer entity and not through Morgan Stanley bank entities.
These notes refer to the financial metrics and/or defined term presented on Slide 11
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2.
Net New Retail Accounts are based on quarterly earnings reports included in E*TRADE's Current Reports on Form 8-K for the periods from the first quarter of 2015 through the
fourth quarter of 2019, adjusted in 2018 for the acquisition of approximately one million retail brokerage accounts from Capital One completed on November 6, 2018 as
described in E*TRADE's 2019 Form 10-K.
Wallet Captured is representative of the estimated percentage of assets Morgan Stanley/E*TRADE hold of clients' total wallet in aggregate. Morgan Stanley client wallet share
per IXI as of April 2019. E*TRADE client wallet share is estimated by Morgan Stanley using brokerage assets only and leveraging IXI data as of June 2019 for existing
customers, and for households that joined E*TRADE after June 2019, IXI data is as of their sign up date. For households where E*TRADE's assets are greater than IXI assets,
IXI assets were updated to equal to E*TRADE's assets (making share of wallet 100%).
These notes refer to the financial metrics and/or defined term presented on Slide 12
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2.
$2.6 trillion of Morgan Stanley's Retail Clients' Assets Held Away is estimated using data from IXI as of April 2019. $1.5 trillion of Morgan Stanley's Stock Plan Participants'
Assets Held Away, which includes both legacy Solium and Morgan Stanley participants, is estimated using data from IXI as of November 2018.
$3.2+ trillion of E*TRADE's Retail Clients and Stock Plan Participants Assets Held Away is estimated using data from IXI as of June 2019.
These notes refer to the financial metrics and/or defined term presented on Slide 13
1.
Expected Pre-Tax Run Rate Cost Synergies and Post-closing Restructuring/Integration Costs are Morgan Stanley estimates, expected to be realized three years from the
closing date of the transaction.
These notes refer to the financial metrics and/or defined term presented on Slide 14
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2.
Morgan Stanley and E*TRADE Deposits are as of December 31, 2019. Cost of Deposits is calculated as total interest expense divided by average balances for full-year 2019
for Morgan Stanley, E*TRADE and on a Pro Forma basis. E*TRADE amounts are based on their 2019 Form 10-K.
$39 billion of On-Balance Sheet Deposits at December 31, 2019 consist of: brokerage sweep deposits of $27.9 billion; bank sweep deposits of $6.4 billion; and savings,
checking, and other banking assets of $4.3 billion. Beginning November 2019, bank sweep deposits include E*TRADE's Premium Savings Accounts participating in a sweep
deposit account program. $18 billion of Off-Balance Sheet Deposits at December 31, 2019 represent brokerage sweep deposits of $16.9 billion and bank sweep deposits of
$0.8 billion held at unaffiliated financial institutions. Amounts included in E*TRADE's 2019 Form 10-K.
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