Morgan Stanley Investor Presentation Deck
Morgan Stanley
End Notes
These notes refer to the financial metrics and/or defined term presented on Slide 3
2. The comparisons of current and prior periods are impacted by the financial results of E*TRADE reported in the Wealth Management Segment. The Firm's fourth quarter
earnings results reflect the completed acquisition of E*TRADE Financial Corporation ('E*TRADE'), which closed on October 2, 2020.
3.
Expense efficiency ratio ('Efficiency Ratio') represents total non-interest expenses as a percentage of net revenues. The 2020 Efficiency Ratio was adjusted to exclude the
impact of integration-related expenses of $231 million on a pre-tax basis. The adjusted Efficiency Ratio is a non-GAAP financial measure.
4.
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6.
These notes refer to the financial metrics and/or defined term presented on Slide 6
1.
Pre-Tax Margin for 2014 is adjusted to exclude the aggregation of the positive DVA adjustment and the negative Credit Crisis Litigation and Discretionary Incentive
Compensation Actions adjustments, ($3.3 billion) (refer to note (1) for Slide 3). Pre-Tax Margin represents Pre-Tax Profit as a percentage of net revenues. The adjusted
Pre-Tax Margin is a non-GAAP financial measure.
2.
3.
4.
Return on average tangible common equity (ROTCE') represents earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible
common equity. The 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 adjusted ROTCE is a non-GAAP financial measure.
Earnings Per Share ('EPS') represents earnings applicable to Morgan Stanley common shareholders divided by diluted common shares outstanding. The 2020 EPS 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 adjusted EPS is a non-GAAP
financial measure.
Common Equity Tier 1 capital ratio is based on the Basel III Standardized Approach Fully Phased-in rules for all periods.
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3.
These notes refer to the financial metrics and/or defined term presented on Slide 7
1.
Wallet represents aggregated reported net revenues of Morgan Stanley and the following peers: Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank,
Goldman Sachs, JP Morgan, and UBS. Morgan Stanley's ISG wallet share represents total ISG segment net revenues. Peer wallet includes revenues that represent
Investment Banking, Equity Sales & Trading and Fixed Income Sales & Trading, where applicable. For firms that disclose results between multiple segments, assumptions
have been made based on company disclosures. Morgan Stanley's 2014 Wallet Share is calculated as the percentage of Morgan Stanley's net revenues, excluding DVA to
the Wallet and has been restated to conform with current reporting methodology. Peer data for 2014 has been adjusted for DVA, where it is reported and where applicable.
European peer results were translated to USD using average exchange rates for the appropriate period; sourced from Bloomberg.
The 2020 Wallet estimates utilize results for peers that have reported full-year 2020 results as of January 19, 2021. For the European peers that have not yet reported, a
2020 full year results estimate is derived assuming the aggregate share of the Wallet for European peers for the first nine months remains constant in the fourth quarter of
2020.
4.
Assets Under Management (AUM) represents Morgan Stanley's Investment Management AUM.
Pro Forma Assets Under Management represents the addition of Morgan Stanley's Investment Management and Eaton Vance's assets under management. Morgan
Stanley's Investment Management assets under management based on Morgan Stanley Fourth Quarter 2020 Financial Supplement. Eaton Vance's assets under
management as of December 31, 2020 based on Eaton Vance's Press Release dated January 15, 2021 available on Eaton Vance's website ('Eaton Vance's January 2021
Press Release'). The Eaton Vance acquisition is still pending and subject to customary closing conditions.
2020 Net Revenues represents Morgan Stanley's Investment Management net revenues.
Pre-Tax Profit Wallet represents Pre-Tax Profit of Morgan Stanley Wealth Management and the following peers: Bank of America Global Wealth and Investment
Management, UBS Wealth Management Americas and Wells Fargo Wealth and Investment Management. Morgan Stanley's Wallet Share is calculated as the percentage of
Morgan Stanley's Pre-Tax Profit to the Wallet. Morgan Stanley's Pre-Tax Profit for 2020 was adjusted to exclude the impact of integration-related expenses of $231 million
on a pre-tax basis. The 2020 Wallet estimates utilize results for peers that have reported full-year 2020 results as of January 19, 2021. For the peers that have not yet
reported, a 2020 full year results estimate is derived assuming the aggregate share of their Wallet for the first nine months remains constant in the fourth quarter of 2020.
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