Slides
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Morgan Stanley Fixed Income Investor Presentation As of August 8, 2025
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2 Notice The information provided in this presentation may include certain non-GAAP financial measures. The definition of and/or reconciliation of such measures to the comparable U.S. GAAP figures are included in this presentation, or in the Company’s Annual Report on Form 10-K (‘Form 10-K’), Definitive Proxy Statement, Quarterly Reports on Form 10-Q and the Current Reports on Form 8-K, as applicable, including any amendments thereto, which are available on www.morganstanley.com. This presentation may contain forward-looking statements including the attainment of certain financial and other targets, objectives and goals. You are cautioned not to place undue reliance on forward- looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations, assumptions, interpretation or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. The Company does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of forward-looking statements. For a discussion of risks and uncertainties that may affect the future results of the Company, please see the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as applicable, which are available on www.morganstanley.com. This document is not an offer to buy or sell any security. The End Notes are an integral part of this presentation. See slides 9 and 10 for information related to the financial metrics and defined terms in this presentation.
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3 75.9 72.5 67.1 66.5 71.6 75.5 92.5 97.7 91.4 90.3 94.8 98.4 2020 2021 2022 2023 2024 2Q25 7.4% 5.6% 5.5% 5.5% 5.6% 5.5% 2020 2021 2022 2023 2024 2Q25 17.4% 16.0% 15.3% 15.2% 15.9% 15.0% 2020 2021 2022 2023 2024 2Q25 11.0 15.0 11.0 9.1 13.4 7.9 2020 2021 2022 2023 2024 1H25 Net Income(1) ($Bn) Common Equity ($Bn) Standardized Common Equity Tier 1 Ratio (%)(2) Supplementary Leverage Ratio (%)(2)(3) Strong Capital Position Tangible Common Equity Common Equity The End Notes are an integral part of this presentation. See slides 9 and 10 for information related to the financial metrics in this presentation. Tier 1 Leverage 8.4% 7.1% 6.7% 6.7% 6.9% 6.8%
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4 16% 51% 24% 8% 0% 2% 152 171 170 177 195 217 174 174 142 138 150 146 326 345 312 315 345 363 2020 2021 2022 2023 2024 2Q25 206 238 239 253 267 293 2020 2021 2022 2023 2024 2Q25 129% 134% 132% 129% 130% 134% 2020 2021 2022 2023 2024 2Q25 $363Bn Strong Liquidity Position Average Daily Balance for three months ended 6/30/25 Liquidity Coverage Ratio(1) (%) Average Eligible High Quality Liquid Assets(2) ($Bn) Average Total Liquidity Resources(3) ($Bn) Liquidity Resources Composition(3) (%) The End Notes are an integral part of this presentation. See slides 9 and 10 for information related to the financial metrics in this presentation. Other investment grade securities Deposits with banks Deposits with central banks U.S. government obligations U.S. agency & agency MBS Non-U.S. sovereign obligations(4) Non-Bank Liquidity Resources Bank Liquidity Resources
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5 102 105 100 99 105 108 311 348 357 352 376 389 217 233 238 264 289 329 74 85 86 90 87 112 2020 2021 2022 2023 2024 2Q25 • Debt issuance diversified across tenors, currencies, distribution channels and structure • Provides durability and flexibility to balance sheet • Weighted average maturity: 6.5 years (2) Borrowings • Primarily sourced from Wealth Management clients Deposits • Well established governance framework promotes funding parameters consistent with asset profile Secured Funding • Strong capital base • Common stock supplemented by $9.8Bn of preferred stock Shareholders’ Equity Morgan Stanley Core Funding ($Bn) Core Funding Overview Diversified and Durable Funding Mix Total GAAP Assets: Core Funding 1,188 The End Notes are an integral part of this presentation. See slides 9 and 10 for information related to the financial metrics in this presentation. BorrowingsShareholders’ Equity Deposits Secured Funding(1) 1,116 1,180 Deposits % Core Funding 44% 1,194 44% 45% 46% 1,215 44% 1,354 41%
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6 56 87 74 75 106 66 45 61 35 61 74 39 2020 2021 2022 2023 2024 1H25 Unsecured Debt Issuance Unsecured Debt Maturities, Retirements, and Calls 18 34 37 34 34 26 24 24 15 15 46 8 11 6 7 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35-'39 '40-'44 '45-'49 '50-'54 2055+Parent Subsidiary 77% 12% 6% 3% 2% USD EUR Other JPY GBP Unsecured Debt Maturity Profile(2) As of 2Q25 | ($Bn) Unsecured Borrowings: Diversified and Durable Funding Structure Unsecured Debt Issuance and Maturities(1) ($Bn) Total Loss-Absorbing Capacity (TLAC) As of 2Q25 | ($Bn) Required Ratio(3) Actual Ratio External TLAC as % of RWA 21.5% 53.8% External TLAC as a % of leverage exposure 9.5% 17.4% Eligible LTD as a % of RWA(4) 9.0% 34.2% Eligible LTD as a % of leverage exposure(4) 4.5% 11.0% The End Notes are an integral part of this presentation. See slides 9 and 10 for information related to the financial metrics in this presentation. 2020-2Q25 Unsecured Debt Issuance (%) By Currency By Tenor 39% 14% 19% 5% 17% 6% <3yrs 3-5yrs 5-7yrs 7-10yrs 10-15yrs ≥15yrs
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7 63 71 76 80 87 98 114 120 120 130 157 165 98 129 146 147 160 169 14 15 17 20 19 20 290 336 359 377 423 452 2020 2021 2022 2023 2024 2Q25 62 15 12 9 69 8 92 0 WM SBL & Other includes ~$8Bn CRE loans of which >95% are fully or partially guaranteed(3) ($Bn), As of June 30, 2025 Total Loans and Lending Commitments(1) ($Bn), Net of ACL High Quality Lending Portfolio with Disciplined Growth Total Loans, net of ACL(1) ISG Loans $98Bn WM Loans $169Bn IM Loans $0.02Bn 1H25 Net Charge-offs(4) 2Q25 Nonaccrual Loans(5) 2Q25 Allowance for Credit Losses(6) 0.02% 0.5% 0.5% The End Notes are an integral part of this presentation. See slides 9 and 10 for information related to the financial metrics in this presentation. WM LoansISG Loans ISG Commitments WM Commitments IM Loans (2) Residential Real Estate Investment Management Loans WM Securities-Based Lending (SBL) & Other Securities-Based Lending & Other Secured Lending Facilities Corporate Commercial & Residential Real Estate
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8 As of August 8, 2025 Credit Ratings Moody’s S&P Fitch Morgan Stanley Outlook Stable Stable Stable Long-Term A1 A- A+ Short-Term P-1 A-2 F1 Subordinated Debt Baa1 BBB+ A- Preferred Stock Baa3 BBB- BBB Morgan Stanley Bank, N.A. Outlook Stable Stable Stable Long-Term Aa3 A+ AA- Morgan Stanley Private Bank, N.A. Outlook Stable Stable Stable Long-Term Aa3 A+ AA- The End Notes are an integral part of this presentation. See slides 9 and 10 for information related to the financial metrics in this presentation.
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9 End Notes This presentation may include certain metrics, including non-GAAP financial measures, which we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results. The End Notes are an integral part of our presentations and other communications. For additional information, refer to the Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations (includes reconciliation of GAAP to non-GAAP), and Legal Notice in the Morgan Stanley Second Quarter 2025 Financial Supplement included in the Current Report on Form 8-K dated July 16, 2025, or to the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Morgan Stanley closed its acquisition of E*TRADE on October 2, 2020, impacting annual comparisons for the Firm and Wealth Management, and closed its acquisition of Eaton Vance on March 1, 2021, impacting annual and period comparisons for the Firm and Investment Management.
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10 End Notes (Continued) These notes refer to the financial metrics presented on slide 3. 1. Net Income Applicable to Morgan Stanley. 2. For further information, refer to ‘Regulatory Requirements’ on pages 22-27 in the Firm’s Quarterly Report on Form 10- Q for the period ended June 30, 2025. 3. At December 31, 2020, our SLR reflects the impact of a Federal Reserve interim final rule that was in effect until March 31, 2021. For further information, see “Liquidity and Capital Resources— Regulatory Requirements” on Form 10-Q for the period ended June 30, 2025. These notes refer to the financial metrics presented on slide 4. 1. Represents average daily balance for the three months ended June 30, 2025. The Firm’s U.S. LCR calculations are based on our current understanding of the U.S. LCR and other factors, which may be subject to change as the Firm receives additional clarification and implementation guidance from regulators relating t o the U.S. LCR, and as the interpretation of the U.S. LCR evolves over time. 2. Represents average daily balance for the three months ended June 30, 2025. Under the LCR rule, Eligible HQLA is calculated us ing weightings and excluding certain HQLA held in subsidiaries. 3. Represents average daily balance for the three months ended June 30, 2025. In the first quarter of 2020, the Firm changed its internal measure of liquidity from the Global Liquidity Reserve to Liquidity Resources, which is more closely aligned with the regulatory definition of HQLA. Daily average balances for 2020- 2Q25 represent the Firm’s new internal Liquidity Resources measure. 4. Primarily composed of unencumbered French, U.K., Japanese, Italian, German, and Spanish government obligations. These notes refer to the financial metrics presented on slide 5. 1. Secured funding is comprised of securities sold under agreements to repurchase, securities loaned and other secured financings. 2. Weighted average maturity only includes borrowings with original maturities greater than one year. These notes refer to the financial metrics presented on slide 6. 1. Unsecured Debt includes senior unsecured debt, subordinated debt and structured notes. 2. Unsecured Debt balances represent current notional values. 3. Required ratios are inclusive of applicable buffers. 4. Consists of TLAC-eligible LTD reduced by 50% for amounts of unpaid principal due to be paid in more than one year but less than two years from the balance sheet date. These notes refer to the financial metrics presented on slide 7. 1. Includes loans held for investment net of ACL, loans held for sale and fair value loans. Note, IM loans are included in these charts and are shown at proportionate scale. 2. IM Loans for years ending 2020, 2021, 2022, 2023, 2024 and 2Q25 were $0.44Bn, $0.14Bn, $0.22Bn, $0.46Bn, $0.20Bn, and $0.02Bn, r espectively. 3. As of June 30, 2025, loans against commercial real estate (“CRE”) properties totaled $7.6Bn (net of ACL) within the Wealth Management busi ness and are included within “WM Securities-Based Lending (SBL) & Other”. At both June 30, 2025, and December 31, 2024, greater than 95% of the commercial real estate loans balance in the Wealth Management business segment benefited from full or partial guarantees from high or ultra-high net worth clients. 4. Represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL for the six months ended June 30, 2025. 5. Represents total nonaccrual loans held for investment, which are loans that are 90 days or more past due, as a percentage of total held for investment loans as of June 30, 2025. 6. Represents allowance for credit losses for loans as a percentage of total loans held for investment for the period ending June 30, 2025.
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Morgan Stanley Fixed Income Investor Presentation As of August 8, 2025