Morgan Stanley Investor Presentation Deck
Morgan Stanley
End Notes
These notes refer to the financial metrics and/or defined term presented on Slide 17
1. The calculation of ROTCE for each year utilizes net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity,
respectively. Average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing
rights deduction. The calculation for 2020 ROTCE was adjusted to exclude the impact of integration-related expenses of $231 million on a pre-tax basis or $189 million on an
after-tax basis. The 2014 ROTCE was adjusted to exclude the positive impact of DVA and the negative impacts of Credit Crisis Litigation and Discretionary Incentive
Compensation Actions (refer to note (1) for Slide 3). The adjusted ROTCE is a non-GAAP financial measure.
2. Common Equity Tier 1 capital ratio is based on the Basel III Standardized Approach Fully Phased-in rules for all periods.
These notes refer to the financial metrics and/or defined term presented on Slide 18
1. Firm's 2-Year Objectives and Longer-Term Aspirations include Eaton Vance. The Eaton Vance acquisition is still pending and subject to customary closing conditions.
2. Pre-Tax Margin represents income (loss) from continuing operations before taxes divided by net revenues. The Pre-Tax Margin 2-Year Objective of 26% to 30% and
Longer-Term Aspiration of 30%+ exclude integration-related expenses. The adjusted Pre-Tax Margin is a non-GAAP financial measure.
Efficiency Ratio represents total non-interest expenses as a percentage of net revenues. The Efficiency Ratio 2-Year Objective of 69% to 72% and Longer-Term Aspiration
of <70% exclude integration-related expenses. The adjusted Efficiency Ratio is a non-GAAP financial measure.
The calculation of ROTCE uses net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity. Tangible common
equity (TCE') represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights. The ROTCE 2-Year Objective of 14% to 16% and
Longer-Term Aspiration of 17% + exclude integration-related expenses. The adjusted ROTCE is a non-GAAP financial measure.
3.
4.
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