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Morgan Stanley Morgan Stanley First Quarter 2021 Earnings Results Morgan Stanley Reports Net Revenues of $ 15.7 Billion , EPS of $ 2.19 and ROTCE of 21.1 % NEW YORK , April 16 , 2021 - Morgan Stanley ( NYSE : MS ) today reported net revenues of $ 15.7 billion for the first quarter ended March 31 , 2021 compared with $ 9.8 billion a year ago . Net income applicable to Morgan Stanley was $ 4.1 billion , or $ 2.19 per diluted share , 1 compared with net income of $ 1.7 billion , or $ 1.01 per diluted share , 1 for the same period a year ago . The comparisons of current year results to prior periods were impacted by the acquisitions of Eaton Vance Corp. ( " Eaton Vance " ) completed on March 1 , 2021 , reported in the Investment Management segment and E * TRADE Financial Corporation ( " E * TRADE " ) completed in the fourth quarter of 2020 , reported in the Wealth Management segment . James P. Gorman , Chairman and Chief Executive Officer , said , " The Firm delivered record results . The integrated Investment Bank continues to thrive . We closed the acquisition of Eaton Vance which takes Investment Management to over $ 1.4 trillion of assets . Wealth Management brought in record flows of $ 105 billion . The Firm is very well positioned for growth in the years ahead . " Financial Summary2,3,4 Firm ( $ millions , except per share data ) 1Q 2021 1Q 2020 • Net revenues Provision for credit losses $ 15,719 $ ( 98 ) $ 9,779 $ 407 Compensation expense $ 6,798 $ 4,283 Non - compensation expenses $ 3,675 $ 2,943 Pre - tax income 10 $ 5,344 $ 2,146 Net income app . to MS $ 4,120 Expense efficiency ratio 67 % Earnings per diluted share $ 2.19 $ 1,698 74 % $ 1.01 Book value per share $ 52.71 $ 49.09 Tangible book value per share $ 38.97 $ 43.28 Return on equity 16.9 % 8.5 % Return on tangible equity6 21.1 % 9.7 % Institutional Securities Net revenues $ 8,577 $ 5,178 Investment Banking $ 2,613 $ 1,144 Equity Fixed Income $ 2,875 $ 2,449 $ 2,966 $ 2,062 Wealth Management Net revenues $ 5,959 $ 4,056 Fee - based client assets ( $ billions ) 11 $ 1,574 $ 1,134 Fee - based asset flows ( $ billions ) 12 $ 37.2 $ 18.4 Net new assets ( $ billions ) 13 $ 104.9 $ 37.1 Loans ( $ billions ) $ 104.9 $ 82.5 Investment Management Net revenues $ 1,314 $ 692 AUM ( $ billions ) 14 $ 1,419 $ 584 Long - term net flows ( $ billions ) 15 $ 16.3 $ 6.7 Media Relations : Wesley McDade 212-761-2430 Highlights The Firm achieved record net revenues and net income5 with strong contributions across each of our business segments . • The Firm delivered ROTCE of 21.1 % or 21.4 % excluding the impact of integration - related expenses.6,7 • The Firm expense efficiency ratio was 67 % or 66 % excluding the impact of integration - related expenses.7 7,8 • Common Equity Tier 1 capital standardized ratio was 16.8 % . • The Firm repurchased $ 2.1 billion of its outstanding common stock . • • Institutional Securities reported record net revenues up 66 % reflecting strength across businesses and geographies on continued strong client engagement and higher volumes in a constructive market environment , notwithstanding losses related to a single client event in the quarter . Wealth Management delivered a pre - tax margin of 26.9 % or 27.9 % excluding integration - related expenses . 7,9 Results reflect strong levels of client engagement , record net new assets and fee - based flows of $ 105 billion and $ 37 billion , respectively , and growth in bank lending . • Investment Management results reflect strong asset management fees on AUM of $ 1.4 trillion , which include the impact of the Eaton Vance acquisition , along with strong positive net flows across all asset classes . Investor Relations : Sharon Yeshaya 212-761-1632