Morgan Stanley Investor Presentation Deck
Morgan Stanley
End Notes
These notes refer to the financial metrics and/or defined term presented on Slide 14
1. Wealth Management and Investment Management Client Assets represents Wealth Management client assets and Investment Management assets under management
based on the 2014 Form 10-K and the Morgan Stanley Fourth Quarter 2020 Financial Supplement.
Pro Forma Client Assets represents the addition of Morgan Stanley's client assets and Eaton Vance's client assets. Eaton Vance's client assets based on Eaton Vance's
January 2021 Press Release and represent total assets under management.
Client Assets Ranking based on internal analysis of combined Investment and Wealth Management client assets and assets under management with data aggregated from
public filings for Allianz, Bank of America, BlackRock, Charles Schwab / Ameritrade, Fidelity, JP Morgan, State Street, UBS and Vanguard. Rankings based on the most
recently available data for combined Investment Management and Wealth Management client assets and assets under management. Most recently available data
represents 4Q 2020 for peers that have reported results as of January 19, 2021 (Bank of America, BlackRock, Charles Schwab / Ameritrade, JP Morgan and State Street),
3Q 2020 for peers that have not reported yet (Allianz, Fidelity and UBS) and data as of January 2020 for Vanguard. Rankings exclude assets under custody and assets
under administration. Morgan Stanley's position in the rankings based on Pro Forma Client Assets.
2.
3.
Wealth and Investment Management Revenues Over Client Assets based on internal analysis and represents Net Revenues divided by average client assets. For peers
that have reported results as of January 19, 2021, Net Revenues represent full-year 2020 results for the combination of Wealth Management and Investment Management
and average client assets represents an average of five most recent quarters. For peers that have not reported yet, except for Fidelity and Vanguard, Net Revenues are
based on 2020 revenue estimates derived by annualizing revenues for the first nine months of 2020, divided by average client assets for an average of four most recent
quarters. For Fidelity, Net Revenues represent 2019 total company revenues and average client assets represent an average of 2018 and 2019 total assets under
administration. For Vanguard, Revenues Over Client Assets represents the average expense ratio (U.S. asset-weighted fund expenses as a percentage of 2019 average net
assets) available on its website. Net Revenues for Morgan Stanley represent the addition of Morgan Stanley's Wealth Management and Investment Management Net
Revenues for full-year 2020, E*TRADE's Net Revenues for first nine months of 2020 and Eaton Vance's fiscal 2020 Net Revenues. Morgan Stanley's Wealth Management
and Investment Management Net Revenues represent the aggregation of both segments' net revenues and exclude intersegment activity. Morgan Stanley net revenues
based on the Morgan Stanley Fourth Quarter 2020 Financial Supplement. Eaton Vance's Net Revenues represent total revenue and total non-operating income based on
Eaton Vance's Annual Report on Form 10-K for the fiscal year ended October 31, 2020. E*TRADE's 1Q and 2Q 2020 Net revenues represent Total Net Revenues based on
E*TRADE's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. Client assets used in the calculation for Morgan Stanley include E*TRADE and Eaton
Vance for 2019 and 2020 fiscal quarters based on relevant Form 10-Q and Form 10-K filings.
These notes refer to the financial metrics and/or defined term presented on Slide 15
1. Cost Synergies are Morgan Stanley estimates and are expected to be phased in from the closing dates of the E*TRADE and Eaton Vance acquisitions.
2. Funding Synergies are Morgan Stanley estimates and are expected to be phased in from the closing date of the E*TRADE acquisition.
These notes refer to the financial metrics and/or defined term presented on Slide 16
1.
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 2014 Efficiency Ratio 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 Efficiency Ratio is a non-GAAP financial
2.
measure.
Pre-Tax Profit for 2020 was adjusted to exclude the impact of integration-related expenses of $231 million on a pre-tax basis. Pre-Tax Profit for 2020 including integration-
related expenses was $14.4Bn. 2014 is 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 Pre-Tax Profit is a non-GAAP financial measure.
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