摩根士丹利3Q26营收203亿美元、EPS 3.03美元超预期，但财报当日股价收跌2.75%，利好被市场拒绝

----- ms-20261014.htm -----
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
October 14, 2026
Morgan Stanley
(Exact Name of Registrant
as Specified in Charter)
Delaware
1-11758
36-3145972
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
1585 Broadway
,
New York
,
New York
10036
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: (
212
)
761-4000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
MS
New York Stock Exchange
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate
Non-Cumulative Preferred Stock, Series A, $0.01 par value
MS/PA
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate
Non-Cumulative Preferred Stock, Series E, $0.01 par value
MS/PE
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate
Non-Cumulative Preferred Stock, Series F, $0.01 par value
MS/PF
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate
Non-Cumulative Preferred Stock, Series I, $0.01 par value
MS/PI
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate
Non-Cumulative Preferred Stock, Series K, $0.01 par value
MS/PK
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 4.875%
Non-Cumulative Preferred Stock, Series L, $0.01 par value
MS/PL
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 4.250%
Non-Cumulative Preferred Stock, Series O, $0.01 par value
MS/PO
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 6.500%
Non-Cumulative Preferred Stock, Series P, $0.01 par value
MS/PP
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 6.625%
Non-Cumulative Preferred Stock, Series Q, $0.01 par value
MS/PQ
New York Stock Exchange
Global Medium-Term Notes, Series A, Floating Rate Notes Due 2029
of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)
MS/29
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02 Results of Operations and Financial Condition.
On October 14, 2026, Morgan Stanley (the “Company”) released financial information with respect to its quarter ended September 30, 2026. A copy of the press release containing this information is annexed as Exhibit 99.1 to this Report and by this reference incorporated herein and made a part hereof. In addition, a copy of the Company’s Financial Data Supplement for its quarter ended September 30, 2026 is annexed as Exhibit 99.2 to this Report and by this reference incorporated herein and made a part hereof.
The information furnished under Item 2.02 of this Report, including Exhibit 99.1 and Exhibit 99.2, shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits
Exhibit
Number
Description
99.1
Press release of the Company, dated
October 14, 2026
, containing financial information for the quarter
ended
September 30, 2026
.
99.2
Financial Data Supplement of the Company for the quarter
ended
September 30, 2026
.
101
Interactive Data Files pursuant to Rule 406 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”).
104
Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
MORGAN STANLEY
(Registrant)
Date:
October 14, 2026
By:
/s/ Victoria Worster
Name:
Victoria Worster
Title:
Chief Accounting Officer and Controller

----- a3q26msearningsrelease.htm -----
EX-99.1
2
a3q26msearningsrelease.htm
EX-99.1
Document
Morgan Stanley Third Quarter 2026 Earnings Results
Morgan Stanley Reports Net Revenues of $20.3 Billion, EPS of $3.03 and ROTCE of 22.6%
NEW YORK, October 14, 2026 – Morgan Stanley (NYSE: MS)
today reported net revenues of $20.3 billion for the third quarter ended September 30, 2026 compared with $18.2 billion a year ago. Net income applicable to Morgan Stanley was $4.9 billion, or $3.03 per diluted share, compared with $4.6 billion, or $2.80 per diluted share, for the same period a year ago.
1
Ted Pick,
Chairman and Chief Executive Officer, said,
“Morgan Stanley reported another strong quarter with net revenues of $20.3 billion, EPS of $3.03 and a ROTCE of 22.6%. The Integrated Firm is connecting the full breadth of Morgan Stanley to deliver differentiated solutions and advice for our clients. Institutional Securities benefited from global strength, led by our Equity franchise, and Wealth Management reported record revenues and added $232 billion in net new assets and $80 billion in fee-based flows. Across Wealth and Investment Management, total client assets grew to $10.5 trillion, demonstrating the scale of our platform and the strength of our franchise. We continue to invest for growth while delivering strong returns for shareholders.”
Financial Summary
2,3
Firm
($ millions, except per share data)
3Q 2026
3Q 2025
Net revenues
$20,338
$18,224
Provision for credit losses
$148
$0
Compensation expense
$7,997
$7,442
Non-compensation expenses
$5,715
$4,754
Pre-tax income
4
$6,478
$6,028
Net income app. to MS
$4,909
$4,610
Expense efficiency ratio
5
67
%
67
%
Earnings per diluted share
1
$3.03
$2.80
Book value per share
$68.59
$62.98
Tangible book value per share
6
$53.96
$48.64
Return on equity
17.8
%
18.0
%
Return on tangible common equity
6
22.6
%
23.5
%
Institutional Securities
Net revenues
$10,029
$8,523
Investment Banking
$2,159
$2,108
Equity
$5,799
$4,116
Fixed Income
$2,011
$2,169
Wealth Management
Net revenues
$9,065
$8,234
Fee-based client assets ($ billions)
7
$3,155
$2,653
Fee-based asset flows ($ billions)
8
$80.5
$41.9
Net new assets ($ billions)
9
$232.4
$81.0
Loans ($ billions)
$201.1
$173.9
Investment Management
Net revenues
$1,459
$1,651
AUM ($ billions)
10
$2,046
$1,807
Long-term net flows ($ billions)
11
$15.8
$17.9
Highlights
•
The Firm reported strong net revenues of $20.3 billion and pre-tax income of $6.5 billion demonstrating the continued momentum of our Integrated Firm.
4
•
The Firm delivered a strong ROTCE of 22.6%.
2,6
•
The expense efficiency ratio was 66% year to date, demonstrating operating leverage while we continued to invest in our businesses.
3,5,12
•
The Standardized Common Equity Tier 1 capital ratio was 14.9%.
13
•
Institutional Securities reported net revenues of $10.0 billion reflecting strong performance in Equity driven by client engagement and strength in Advisory.
•
Wealth Management delivered record net revenues of $9.1 billion on robust asset management fees and higher net interest income, generating a pre-tax margin of 30.4%.
14
The business attracted net new assets of $232 billion and fee-based flows of $80 billion for the quarter.
8,9
•
Investment Management results reflect net revenues of $1.5 billion, primarily driven by asset management fees on higher average AUM.
10
The quarter included positive long-term net flows of $15.8 billion.
11
Media Relations: Wesley McDade 212-761-2430      Investor Relations: Leslie Bazos 212-761-5352
Third Quarter Results
Institutional Securities
Institutional Securities reported net revenues of $10.0 billion compared with $8.5 billion a year ago. Pre-tax income was $3.5 billion compared with $3.2 billion a year ago.
4
Investment Banking net revenues up 2%:
•
Advisory revenues increased from a year ago on higher completed M&A activity in the Americas.
•
Equity underwriting revenues decreased from a year ago on lower IPOs and blocks, partially offset by higher follow-on offerings.
•
Fixed income underwriting revenues were modestly lower than the prior year period reflecting continued strength in investment grade and non-investment grade issuances.
Equity net revenues up 41%:
•
Equity net revenues increased on strong performance across businesses and regions driven by client engagement and strength in Asia.
Fixed Income net revenues down 7%:
•
Fixed Income net revenues decreased from a year ago primarily due to declines in credit on lower performance in securitized products and in commodities on lower structured activity.
Other:
•
Other net revenues decreased from a year ago primarily due to higher funding costs, partially offset by lower mark-to-market losses on corporate loans, inclusive of hedges.
($ millions)
3Q 2026
3Q 2025
Net Revenues
$10,029
$8,523
Investment Banking
$2,159
$2,108
Advisory
$887
$684
Equity underwriting
$525
$652
Fixed income underwriting
$747
$772
Equity
$5,799
$4,116
Fixed Income
$2,011
$2,169
Other
$60
$130
Provision for credit losses
$141
$1
Total Expenses
$6,416
$5,340
Compensation
$2,632
$2,422
Non-compensation
$3,784
$2,918
Provision for credit losses:
•
Provision for credit losses in the quarter was primarily driven by growth in our corporate and secured lending portfolios. The quarter also included charge-offs of
$105 million
related to certain corporate and commercial real estate loans which had been largely provisioned for in prior quarters.
Total Expenses:
•
Compensation expense increased from a year ago primarily driven by higher revenues.
•
Non-compensation expenses increased from a year ago primarily driven by higher execution-related expenses and increased technology spend.
2
Wealth Management
Wealth Management reported record net revenues of $9.1 billion compared with $8.2 billion a year ago. Record pre-tax income of $2.8 billion resulted in a pre-tax margin of 30.4%.
4,14
Record net new assets were $232 billion, with just over half associated with IPO-related flows.
9
Fee-based flows were $80 billion, demonstrating continued strength in our Advisor-led channel, and included a new corporate retirement mandate.
8
Net revenues up 10%:
•
Record asset management revenues increased from a year ago on asset growth primarily driven by higher market levels and the cumulative impact of strong fee-based flows.
8
•
Transactional revenues increased from a year ago excluding the impact of mark-to-market gains on investments associated with DCP in the prior year quarter which are no longer presented in net revenues.
15
The increase was driven by continued client engagement supported by the breadth of our product offering.
•
Net interest income increased from a year ago primarily driven by the cumulative impact of lending growth and higher average sweep deposits.
Total Expenses:
•
Compensation expense increased from a year ago primarily driven by higher compensable revenues.
•
Non-compensation expenses increased from a year ago primarily driven by higher technology spend and marketing and business development expenses.
($ millions)
3Q 2026
3Q 2025
Net Revenues
$9,065
$8,234
Asset management
$5,544
$4,789
Transactional
16
$1,166
$1,308
Net interest
$2,228
$1,991
Other
$127
$146
Provision for credit losses
$7
$(1)
Total Expenses
$6,304
$5,736
Compensation
$4,860
$4,388
Non-compensation
$1,444
$1,348
Investment Management
Investment Management reported net revenues of $1.5 billion compared with $1.7 billion a year ago. Pre-tax income was $259 million compared with $364 million a year ago.
4
Net revenues down 12%:
•
Asset management and related fees increased from a year ago on higher average AUM driven by the cumulative impact of positive flows and higher market levels.
10
•
Performance-based income and other revenues decreased from a year ago, driven by the reversal of accrued carried interest related primarily to certain investments in one of our private funds.
Total Expenses:
•
Compensation expense decreased from a year ago primarily due to lower compensation associated with carried interest.
•
Non-compensation expenses increased from a year ago primarily driven by higher brokerage and clearing expenses and increased technology spend.
($ millions)
3Q 2026
3Q 2025
Net Revenues
$1,459
$1,651
Asset management and related fees
$1,565
$1,534
Performance-based income and other
$(106)
$117
Total Expenses
$1,200
$1,287
Compensation
$505
$632
Non-compensation
$695
$655
3
Other Matters
•
The Firm repurchased $1.5 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.
•
The Board of Directors declared a $1.15 quarterly dividend per share payable on November 13, 2026 to common shareholders of record on October 30, 2026.
•
The effective tax rate for the current quarter was 23.3%.
3Q 2026
3Q 2025
Common Stock Repurchases
Repurchases
($MM)
$1,540
$1,085
Number of Shares
(MM)
7
7
Average Price
$212.74
$145.77
Period End Shares
(MM)
1,565
1,591
Effective Tax Rate
23.3%
22.8%
Capital
17
Standardized Approach
CET1 capital
13
14.9
%
15.1
%
Tier 1 capital
13
16.6
%
16.9
%
Advanced Approach
CET1 capital
13
16.3
%
15.7
%
Tier 1 capital
13
18.1
%
17.6
%
Leverage-based capital
Tier 1 leverage
18
5.9
%
6.8
%
SLR
19
4.8
%
5.5
%
4
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit
www.morganstanley.com
.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at
www.morganstanley.com
.
NOTICE:
The information provided herein and in the financial supplement, including information provided on the Firm’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available on
www.morganstanley.com
.
This earnings release may contain forward-looking statements, including the attainment of certain financial and other targets, objectives and goals. Readers 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, interpretations or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of risks and uncertainties that may affect the future results of the Firm, please see “Forward-Looking Statements” preceding Part I, Item 1, “Competition” and “Supervision and Regulation” in Part I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative and Qualitative Disclosures about Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2025 and other items throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and the Firm’s Current Reports on Form 8-K, including any amendments thereto.
5
1
Includes preferred dividends related to the calculation of earnings per share for the third quarter of 2026 and 2025 of approximately $158 million and $160 million, respectively.
2
The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition, operating results, or capital adequacy. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S. GAAP financial measure.
3
Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics which we believe to be useful to us, analysts, investors, and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.
4
Pre-tax income represents income before provision for income taxes.
5
The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues.
6
Tangible common equity is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance and capital adequacy. Tangible common equity represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. The calculation of return on average tangible common equity, also a non-GAAP financial measure, represents full year or annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity. The calculation of tangible book value per common share, also a non-GAAP financial measure, represents tangible common shareholder’s equity divided by common shares outstanding.
7
Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
8
Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest, and client fees, and exclude institutional cash management related activity.
9
Wealth Management net new assets represent client asset inflows, including interest, dividends and asset acquisitions, less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees and commissions.
10
AUM is defined as assets under management or supervision.
11
Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes the Liquidity and Overlay Services asset class. During the first quarter of 2026, certain changes were made to the presentation of Investment Management AUM classifications and Net Flows. These changes had no impact on Total AUM and were made to more closely align reporting with underlying investment strategies and to conform reporting of Net Flows, excluding distributions, which for long-term products were $3 billion and $2 billion for the quarters ended September 30, 2026 and September 30, 2025, respectively, with the relevant presentations in our SEC Forms 10-K and 10-Q. For additional information, please refer to the Addendums in the Firm’s first quarter 2026 financial supplement and in "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investment Management" in the Firm's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 available online in the Investor Relations section at
www.morganstanley.com
.
12
During the first quarter of 2026, as a result of a March workforce management action, we recognized severance costs of $178 million in Compensation and benefits expense. The workforce management action was related to an effort to improve operational efficiency and manage performance, rather than a change in strategy or exit of businesses. The action occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. We recorded severance costs of $94 million in the Institutional Securities business segment, $61 million in the Wealth Management business segment, and $23 million in the Investment Management business segment. These costs were incurred across all regions, with the majority in the Americas.
13
CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each of the (i) standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (the “Standardized
6
Approach”) and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2025.
14
Pre-tax margin represents income before provision for income taxes divided by net revenues.
15
“DCP” refers to certain employee deferred cash-based compensation programs. Please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Matters – Deferred Cash-Based Compensation” in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2025.
Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments with changes in fair value recorded in compensation expense or in other comprehensive income within shareholder's equity and later reclassified to compensation expense in the same period as the related DCP award vests. As a result, the Firm no longer presents non-GAAP measures of net revenues and compensation expense excluding DCP. Wealth Management net revenues included mark-to-market gains associated with DCP of $206 million in the third quarter of 2025.
16
Wealth Management transactional revenues include investment banking, trading, and commissions and fee revenues.
17
Capital ratios are estimates as of the press release date, October 14, 2026 and are subject to change in the Firm's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
18
The Tier 1 leverage ratio is a leverage-based capital requirement that measures the Firm’s leverage. Tier 1 leverage ratio utilizes Tier 1 capital as the numerator and average adjusted assets as the denominator.
19
The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $98.7 billion and $91.0 billion, and supplementary leverage exposure denominator of approximately $2.04 trillion and $1.66 trillion, for the third quarter of 2026 and 2025, respectively.
7
Consolidated Income Statement Information
(unaudited, dollars in millions)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Change
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Revenues:
Investment banking
$
2,361
$
2,651
$
2,266
(11
%)
4
%
$
7,301
$
5,621
30
%
Trading
5,601
6,723
5,020
(17
%)
12
%
19,054
14,876
28
%
Investments
(39)
226
374
*
*
333
1,131
(71
%)
Commissions and fees
1,667
1,833
1,473
(9
%)
13
%
5,190
4,379
19
%
Asset management
7,254
6,912
6,441
5
%
13
%
20,896
18,357
14
%
Other
244
223
159
9
%
53
%
759
1,200
(37
%)
Total non-interest revenues
17,088
18,568
15,733
(8
%)
9
%
53,533
45,564
17
%
Interest income
16,188
15,902
15,456
2
%
5
%
47,363
44,109
7
%
Interest expense
12,938
13,122
12,965
(1
%)
—
%
38,630
36,918
5
%
Net interest
3,250
2,780
2,491
17
%
30
%
8,733
7,191
21
%
Net revenues
20,338
21,348
18,224
(5
%)
12
%
62,266
52,755
18
%
Provision for credit losses
148
98
—
51
%
*
344
331
4
%
Non-interest expenses:
Compensation and benefits
7,997
8,187
7,442
(2
%)
7
%
24,726
22,153
12
%
Non-compensation expenses:
Brokerage, clearing and exchange fees
1,467
1,464
1,141
—
%
29
%
4,187
3,551
18
%
Information processing and communications
1,302
1,203
1,119
8
%
16
%
3,653
3,258
12
%
Professional services
700
680
685
3
%
2
%
1,982
2,070
(4
%)
Occupancy and equipment
502
482
473
4
%
6
%
1,467
1,381
6
%
Marketing and business development
347
401
280
(13
%)
24
%
1,058
815
30
%
Other
1,397
1,485
1,056
(6
%)
32
%
4,012
3,002
34
%
Total non-compensation expenses
5,715
5,715
4,754
—
%
20
%
16,359
14,077
16
%
Total non-interest expenses
13,712
13,902
12,196
(1
%)
12
%
41,085
36,230
13
%
Income before provision for income taxes
6,478
7,348
6,028
(12
%)
7
%
20,837
16,194
29
%
Provision for income taxes
1,509
1,695
1,373
(11
%)
10
%
4,577
3,593
27
%
Net income
$
4,969
$
5,653
$
4,655
(12
%)
7
%
$
16,260
$
12,601
29
%
Net income applicable to noncontrolling interests
60
72
45
(17
%)
33
%
203
137
48
%
Net income applicable to Morgan Stanley
4,909
5,581
4,610
(12
%)
6
%
16,057
12,464
29
%
Preferred stock dividends
158
145
160
9
%
(1
%)
459
465
(1
%)
Earnings applicable to Morgan Stanley common shareholders
$
4,751
$
5,436
$
4,450
(13
%)
7
%
$
15,598
$
11,999
30
%
Notes:
–
In the periods prior to 2026, the Firm presented non-GAAP financial measures to adjust net revenues and compensation expense for mark-to-market gains and losses on deferred cash-based compensation plans (DCP). Firm net revenues excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $17,976 million, 3Q25 YTD: $52,279 million. Firm compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $7,142 million, 3Q25 YTD: $21,484 million.
–
Beginning in the first quarter of 2026, the Firm utilizes derivatives to hedge certain DCP awards and as a result will no longer present non-GAAP financial measures excluding DCP.
–
The End Notes are an integral part of this presentation. Refer to pages 12 - 18 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
8
Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage Change
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Financial Metrics:
Earnings per basic share
$
3.07
$
3.50
$
2.83
(12
%)
8
%
$
10.03
$
7.61
32
%
Earnings per diluted share
$
3.03
$
3.46
$
2.80
(12
%)
8
%
$
9.93
$
7.53
32
%
Return on average common equity
17.8
%
20.7
%
18.0
%
19.8
%
16.5
%
Return on average tangible common equity
22.6
%
26.6
%
23.5
%
25.4
%
21.6
%
Book value per common share
$
68.59
$
67.80
$
62.98
$
68.59
$
62.98
Tangible book value per common share
$
53.96
$
53.18
$
48.64
$
53.96
$
48.64
Financial Ratios:
Pre-tax margin
32
%
34
%
33
%
33
%
31
%
Compensation and benefits as a % of net revenues
39
%
38
%
41
%
40
%
42
%
Non-compensation expenses as a % of net revenues
28
%
27
%
26
%
26
%
27
%
Firm expense efficiency ratio
67
%
65
%
67
%
66
%
69
%
Effective tax rate
23.3
%
23.1
%
22.8
%
22.0
%
22.2
%
Statistical Data:
Period end common shares outstanding (millions)
1,565
1,572
1,591
—
%
(2
%)
Average common shares outstanding (millions)
Basic
1,548
1,554
1,571
—
%
(1
%)
1,554
1,577
(1
%)
Diluted
1,566
1,569
1,590
—
%
(2
%)
1,571
1,594
(1
%)
Worldwide employees
83,728
82,944
82,398
1
%
2
%
The End Notes are an integral part of this presentation. Refer to pages 12 - 18 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
9

----- a3q26msfinancialsupplement.htm -----
EX-99.2
3
a3q26msfinancialsupplement.htm
EX-99.2
Document
Third Quarter 2026 Earnings Results
Quarterly Financial Supplement
Page
Consolidated Financial Summary
1
Consolidated Financial Metrics, Ratios and Statistical Data
2
Consolidated and U.S. Bank Supplemental Financial Information
3
Consolidated Average Common Equity and Regulatory Capital Information
4
Institutional Securities Income Statement Information, Financial Metrics and Ratios
5
Wealth Management Income Statement Information, Financial Metrics and Ratios
6
Wealth Management Financial Information and Statistical Data
7
Investment Management Income Statement Information, Financial Metrics and Ratios
8
Investment Management Financial Information and Statistical Data
9
Consolidated Loans and Lending Commitments
10
Consolidated Loans and Lending Commitments Allowance for Credit Losses
11
Definition of U.S. GAAP to Non-GAAP Measures
12
Definitions of Performance Metrics and Terms
13 - 14
Supplemental Quantitative Details and Calculations
15 - 17
Legal Notice
18
Consolidated Financial Summary
(unaudited, dollars in millions)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Change
Net revenues
Institutional Securities
$
10,029
$
11,040
$
8,523
(9
%)
18
%
$
31,790
$
25,149
26
%
Wealth Management
9,065
8,856
8,234
2
%
10
%
26,440
23,325
13
%
Investment Management
1,459
1,646
1,651
(11
%)
(12
%)
4,640
4,805
(3
%)
Intersegment Eliminations
(215)
(194)
(184)
(11
%)
(17
%)
(604)
(524)
(15
%)
Net revenues
(1)
$
20,338
$
21,348
$
18,224
(5
%)
12
%
$
62,266
$
52,755
18
%
Provision for credit losses
$
148
$
98
$
—
51
%
*
$
344
$
331
4
%
Non-interest expenses
Institutional Securities
$
6,416
$
6,707
$
5,340
(4
%)
20
%
$
19,591
$
16,315
20
%
Wealth Management
6,304
6,132
5,736
3
%
10
%
18,358
16,604
11
%
Investment Management
1,200
1,242
1,287
(3
%)
(7
%)
3,697
3,795
(3
%)
Intersegment Eliminations
(208)
(179)
(167)
(16
%)
(25
%)
(561)
(484)
(16
%)
Non-interest expenses
(1)(2)
$
13,712
$
13,902
$
12,196
(1
%)
12
%
$
41,085
$
36,230
13
%
Income before provision for income taxes
Institutional Securities
$
3,472
$
4,262
$
3,182
(19
%)
9
%
$
11,895
$
8,574
39
%
Wealth Management
2,754
2,697
2,499
2
%
10
%
8,042
6,650
21
%
Investment Management
259
404
364
(36
%)
(29
%)
943
1,010
(7
%)
Intersegment Eliminations
(7)
(15)
(17)
53
%
59
%
(43)
(40)
(8
%)
Income before provision for income taxes
$
6,478
$
7,348
$
6,028
(12
%)
7
%
$
20,837
$
16,194
29
%
Net Income applicable to Morgan Stanley
Institutional Securities
$
2,639
$
3,192
$
2,468
(17
%)
7
%
$
9,125
$
6,601
38
%
Wealth Management
2,085
2,097
1,889
(1
%)
10
%
6,229
5,121
22
%
Investment Management
190
304
266
(38
%)
(29
%)
736
773
(5
%)
Intersegment Eliminations
(5)
(12)
(13)
58
%
62
%
(33)
(31)
(6
%)
Net Income applicable to Morgan Stanley
$
4,909
$
5,581
$
4,610
(12
%)
6
%
$
16,057
$
12,464
29
%
Earnings applicable to Morgan Stanley common shareholders
$
4,751
$
5,436
$
4,450
(13
%)
7
%
$
15,598
$
11,999
30
%
Notes:
-
In the periods prior to 2026, the Firm presented non-GAAP financial measures to adjust net revenues and compensation expense for mark-to-market gains and losses on deferred cash-based compensation plans (DCP). Firm net revenues excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $17,976 million, 3Q25 YTD: $52,279 million. Firm compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $7,142 million, 3Q25 YTD: $21,484 million.
-
Beginning in the first quarter of 2026, the Firm utilizes derivatives to hedge certain DCP awards and as a result will no longer present non-GAAP financial measures excluding DCP.
-
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
1
Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Change
Financial Metrics:
Earnings per basic share
$
3.07
$
3.50
$
2.83
(12
%)
8
%
$
10.03
$
7.61
32
%
Earnings per diluted share
$
3.03
$
3.46
$
2.80
(12
%)
8
%
$
9.93
$
7.53
32
%
Return on average common equity
17.8
%
20.7
%
18.0
%
19.8
%
16.5
%
Return on average tangible common equity
22.6
%
26.6
%
23.5
%
25.4
%
21.6
%
Book value per common share
$
68.59
$
67.80
$
62.98
$
68.59
$
62.98
Tangible book value per common share
$
53.96
$
53.18
$
48.64
$
53.96
$
48.64
Financial Ratios:
Pre-tax margin
32
%
34
%
33
%
33
%
31
%
Compensation and benefits as a % of net revenues
39
%
38
%
41
%
40
%
42
%
Non-compensation expenses as a % of net revenues
28
%
27
%
26
%
26
%
27
%
Firm expense efficiency ratio
(1)
67
%
65
%
67
%
66
%
69
%
Effective tax rate
23.3
%
23.1
%
22.8
%
22.0
%
22.2
%
Statistical Data:
Period end common shares outstanding (millions)
1,565
1,572
1,591
—
%
(2
%)
Average common shares outstanding (millions)
Basic
1,548
1,554
1,571
—
%
(1
%)
1,554
1,577
(1
%)
Diluted
1,566
1,569
1,590
—
%
(2
%)
1,571
1,594
(1
%)
Worldwide employees
83,728
82,944
82,398
1
%
2
%
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
2
Consolidated and U.S. Bank Supplemental Financial Information
(unaudited, dollars in millions)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Change
Consolidated Balance sheet
Total assets
$
1,692,273
$
1,675,057
$
1,364,806
1
%
24
%
Loans
(1)
$
328,358
$
315,653
$
277,307
4
%
18
%
Deposits
$
478,377
$
446,068
$
405,480
7
%
18
%
Long-term debt outstanding
$
378,090
$
383,155
$
324,128
(1
%)
17
%
Maturities of long-term debt outstanding (next 12 months)
$
29,395
$
34,304
$
25,439
(14
%)
16
%
Average liquidity resources
$
439,909
$
404,077
$
368,090
9
%
20
%
Common equity
$
107,359
$
106,579
$
100,212
1
%
7
%
Less: Goodwill and intangible assets
(22,894)
(22,977)
(22,820)
—
%
—
%
Tangible common equity
$
84,465
$
83,602
$
77,392
1
%
9
%
Preferred equity
$
9,750
$
9,750
$
9,750
—
%
—
%
U.S. Bank Supplemental Financial Information
Total assets
$
654,055
$
613,172
$
582,532
7
%
12
%
Loans
$
312,195
$
302,171
$
264,933
3
%
18
%
Investment securities portfolio
(2)
$
120,097
$
122,347
$
132,627
(2
%)
(9
%)
Deposits
$
466,897
$
436,497
$
398,370
7
%
17
%
Regional revenues
Americas
$
14,442
$
15,046
$
13,663
(4
%)
6
%
$
44,079
$
39,113
13
%
EMEA (Europe, Middle East, Africa)
1,830
2,372
1,939
(23
%)
(6
%)
6,843
6,372
7
%
Asia
4,066
3,930
2,622
3
%
55
%
11,344
7,270
56
%
Consolidated net revenues
$
20,338
$
21,348
$
18,224
(5
%)
12
%
$
62,266
$
52,755
18
%
Notes:
-
During the first quarter of 2026, the U.S. Bank implemented a reorganization of its operations, merging certain fixed income businesses and acquiring certain legal entities of Morgan Stanley. As the reorganization involved subsidiaries under the common control of the Firm, assets and liabilities were recognized at their carrying values, and historical financial statements of the U.S. Bank will reflect the reorganization as having occurred at the beginning of 2025.
-
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
3
Consolidated Average Common Equity and Regulatory Capital Information
(unaudited, dollars in billions)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Change
Average Common Equity
Institutional Securities
$
48.2
$
48.2
$
48.4
—
%
—
%
$
48.2
$
48.4
—
%
Wealth Management
28.7
28.7
29.4
—
%
(2
%)
28.7
29.4
(2
%)
Investment Management
10.2
10.2
10.6
—
%
(4
%)
10.2
10.6
(4
%)
Parent Company
19.8
17.8
10.3
11
%
92
%
17.7
8.7
103
%
Firm
$
106.9
$
104.9
$
98.7
2
%
8
%
$
104.8
$
97.1
8
%
Regulatory Capital
(1)
Common Equity Tier 1 capital
$
88.8
$
87.6
$
81.3
1
%
9
%
Tier 1 capital
$
98.7
$
97.2
$
91.0
2
%
8
%
Standardized Approach
Risk-weighted assets
$
595.8
$
589.4
$
539.3
1
%
10
%
Common Equity Tier 1 capital ratio
14.9
%
14.9
%
15.1
%
Tier 1 capital ratio
16.6
%
16.5
%
16.9
%
Advanced Approach
Risk-weighted assets
$
545.7
$
539.8
$
518.0
1
%
5
%
Common Equity Tier 1 capital ratio
16.3
%
16.2
%
15.7
%
Tier 1 capital ratio
18.1
%
18.0
%
17.6
%
Leverage-based capital
Tier 1 leverage ratio
5.9
%
6.0
%
6.8
%
Supplementary Leverage Ratio
4.8
%
4.9
%
5.5
%
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
4
Institutional Securities
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Change
Revenues:
Advisory
$
887
$
798
$
684
11
%
30
%
$
2,663
$
1,755
52
%
Equity
525
851
652
(38
%)
(19
%)
1,772
1,471
20
%
Fixed income
747
788
772
(5
%)
(3
%)
2,277
1,981
15
%
Underwriting
1,272
1,639
1,424
(22
%)
(11
%)
4,049
3,452
17
%
Investment banking
2,159
2,437
2,108
(11
%)
2
%
6,712
5,207
29
%
Equity
5,799
6,300
4,116
(8
%)
41
%
17,247
11,965
44
%
Fixed income
2,011
2,455
2,169
(18
%)
(7
%)
7,824
6,953
13
%
Other
60
(152)
130
*
(54
%)
7
1,024
(99
%)
Net revenues
10,029
11,040
8,523
(9
%)
18
%
31,790
25,149
26
%
Provision for credit losses
141
71
1
99
%
*
304
260
17
%
Compensation and benefits
2,632
2,980
2,422
(12
%)
9
%
8,876
7,706
15
%
Non-compensation expenses
3,784
3,727
2,918
2
%
30
%
10,715
8,609
24
%
Total non-interest expenses
6,416
6,707
5,340
(4
%)
20
%
19,591
16,315
20
%
Income before provision for income taxes
3,472
4,262
3,182
(19
%)
9
%
11,895
8,574
39
%
Net income applicable to Morgan Stanley
$
2,639
$
3,192
$
2,468
(17
%)
7
%
$
9,125
$
6,601
38
%
Pre-tax margin
35
%
39
%
37
%
37
%
34
%
Compensation and benefits as a % of net revenues
26
%
27
%
28
%
28
%
31
%
Non-compensation expenses as a % of net revenues
38
%
34
%
34
%
34
%
34
%
Return on Average Common Equity
21
%
26
%
19
%
24
%
17
%
Return on Average Tangible Common Equity
(1)
21
%
26
%
20
%
25
%
17
%
Trading VaR (Average Daily 95% / One-Day VaR)
$
61
$
56
$
59
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
5
Wealth Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Change
Revenues:
Asset management
$
5,544
$
5,261
$
4,789
5
%
16
%
$
15,884
$
13,596
17
%
Transactional
1,166
1,167
1,308
—
%
(11
%)
3,460
3,445
—
%
Net interest income
2,228
2,254
1,991
(1
%)
12
%
6,652
5,803
15
%
Other
127
174
146
(27
%)
(13
%)
444
481
(8
%)
Net revenues
(1)
9,065
8,856
8,234
2
%
10
%
26,440
23,325
13
%
Provision for credit losses
7
27
(1)
(74
%)
*
40
71
(44
%)
Compensation and benefits
(1)
4,860
4,648
4,388
5
%
11
%
14,156
12,534
13
%
Non-compensation expenses
1,444
1,484
1,348
(3
%)
7
%
4,202
4,070
3
%
Total non-interest expenses
6,304
6,132
5,736
3
%
10
%
18,358
16,604
11
%
Income before provision for income taxes
2,754
2,697
2,499
2
%
10
%
8,042
6,650
21
%
Net income applicable to Morgan Stanley
$
2,085
$
2,097
$
1,889
(1
%)
10
%
$
6,229
$
5,121
22
%
Pre-tax margin
30
%
30
%
30
%
30
%
29
%
Compensation and benefits as a % of net revenues
54
%
52
%
53
%
54
%
54
%
Non-compensation expenses as a % of net revenues
16
%
17
%
16
%
16
%
17
%
Return on Average Common Equity
28
%
29
%
25
%
28
%
23
%
Return on Average Tangible Common Equity
(2)
53
%
53
%
45
%
53
%
41
%
Notes:
-
In the periods prior to 2026, the Firm presented non-GAAP financial measures to adjust net revenues and compensation expense for mark-to-market gains and losses on DCP. Wealth Management net revenues excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $8,028 million, 3Q25 YTD: $22,956 million. Wealth Management compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 3Q25: $4,166 million, 3Q25 YTD: $12,065 million.
-
Beginning in the first quarter of 2026, the Firm utilizes derivatives to hedge certain DCP awards and as a result will no longer present non-GAAP financial measures excluding DCP.
-
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
6
Wealth Management
Financial Information and Statistical Data
(unaudited, dollars in billions)
Quarter Ended
Percentage Change From:
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Wealth Management Metrics
Total client assets
$
8,433
$
8,084
$
7,054
4
%
20
%
Net new assets
$
232.4
$
148.1
$
81.0
57
%
187
%
U.S. Bank loans
$
201.1
$
195.7
$
173.9
3
%
16
%
Margin and other lending
(1)
$
37.1
$
36.2
$
27.9
2
%
33
%
Deposits
(2)
$
465
$
436
$
398
7
%
17
%
Annualized weighted average cost of deposits
Period end
2.85
%
2.60
%
2.72
%
Period average
2.72
%
2.54
%
2.88
%
Advisor-led channel
Advisor-led client assets
$
6,631
$
6,273
$
5,414
6
%
22
%
Fee-based client assets
$
3,155
$
3,022
$
2,653
4
%
19
%
Fee-based asset flows
$
80.5
$
39.1
$
41.9
106
%
92
%
Fee-based assets as a % of advisor-led client assets
48
%
48
%
49
%
Self-directed channel
Self-directed client assets
$
1,802
$
1,811
$
1,639
—
%
10
%
Daily average revenue trades (000's)
1,097
1,278
1,012
(14
%)
8
%
Self-directed households (millions)
8.8
8.7
8.4
1
%
5
%
Workplace channel
Stock plan unvested public assets
$
638
$
658
$
534
(3
%)
19
%
Number of stock plan participants (millions)
6.7
6.6
6.6
2
%
2
%
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
7
Investment Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Change
Revenues:
Asset management and related fees
$
1,565
$
1,516
$
1,534
3
%
2
%
$
4,577
$
4,419
4
%
Performance-based income and other
(106)
130
117
*
*
63
386
(84
%)
Net revenues
1,459
1,646
1,651
(11
%)
(12
%)
4,640
4,805
(3
%)
Compensation and benefits
505
559
632
(10
%)
(20
%)
1,694
1,913
(11
%)
Non-compensation expenses
695
683
655
2
%
6
%
2,003
1,882
6
%
Total non-interest expenses
1,200
1,242
1,287
(3
%)
(7
%)
3,697
3,795
(3
%)
Income before provision for income taxes
259
404
364
(36
%)
(29
%)
943
1,010
(7
%)
Net income applicable to Morgan Stanley
$
190
$
304
$
266
(38
%)
(29
%)
$
736
$
773
(5
%)
Pre-tax margin
18
%
25
%
22
%
20
%
21
%
Compensation and benefits as a % of net revenues
35
%
34
%
38
%
37
%
40
%
Non-compensation expenses as a % of net revenues
48
%
41
%
40
%
43
%
39
%
Return on Average Common Equity
7
%
12
%
10
%
10
%
10
%
Return on Average Tangible Common Equity
(1)
99
%
159
%
105
%
128
%
102
%
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
8
Investment Management
Financial Information and Statistical Data
(unaudited, dollars in billions)
Quarter Ended
Percentage Change From:
Nine Months Ended
Percentage
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Sep 30, 2026
Sep 30, 2025
Change
Assets Under Management or Supervision (AUM)
Net Flows by Asset Class
Equity
$
(9.4)
$
(12.5)
$
(6.2)
25
%
(52
%)
$
(33.5)
$
(13.1)
(156
%)
Fixed Income
10.0
7.3
7.5
37
%
33
%
21.6
18.6
16
%
Alternatives and Solutions
15.2
12.7
16.6
20
%
(8
%)
38.5
33.2
16
%
Long-Term Net Flows
15.8
7.5
17.9
111
%
(12
%)
26.6
38.7
(31
%)
Liquidity and Overlay Services
28.5
27.0
29.3
6
%
(3
%)
63.8
(8.8)
*
Total Net Flows
$
44.3
$
34.5
$
47.2
28
%
(6
%)
$
90.4
$
29.9
*
Assets Under Management or Supervision by Asset Class
Equity
$
224
$
235
$
270
(5
%)
(17
%)
Fixed Income
232
229
208
1
%
12
%
Alternatives and Solutions
870
852
752
2
%
16
%
Long‐Term Assets Under Management or Supervision
1,326
1,316
1,230
1
%
8
%
Liquidity and Overlay Services
720
688
577
5
%
25
%
Total Assets Under Management or Supervision
$
2,046
$
2,004
$
1,807
2
%
13
%
Notes:
-
During the first quarter of 2026, certain changes were made to the presentation of Investment Management AUM classifications and Net Flows. These changes had no impact on Total AUM and were made to more closely align reporting with underlying investment strategies and to conform reporting of Net Flows, excluding distributions, with the relevant presentations in our SEC Forms 10-K and 10-Q. Distributions for Long-term products were: 3Q26: $3 billion, 2Q26: $3 billion, 3Q25: $2 billion, 3Q26 YTD: $9 billion, 3Q25 YTD: $7 billion and distributions for Liquidity and Overlay were: 3Q26: $4 billion, 2Q26: $4 billion, 3Q25: $4 billion, 3Q26 YTD: $11 billion, 3Q25 YTD: $12 billion. For additional information, please refer to the Addendums in the Firm’s first quarter 2026 financial supplement and in "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investment Management" in the Firm's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 available online in the Investor Relations section at www.morganstanley.com.
-
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
9
Consolidated Loans and Lending Commitments
(unaudited, dollars in billions)
Quarter Ended
Percentage Change From:
Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Jun 30, 2026
Sep 30, 2025
Institutional Securities
Loans:
Corporate
$
23.0
$
19.6
$
15.9
17
%
45
%
Secured lending facilities
77.3
75.2
66.1
3
%
17
%
Commercial and residential real estate
14.5
14.2
12.2
2
%
19
%
Securities-based lending and other
12.1
10.6
9.2
14
%
32
%
Total Loans
126.9
119.6
103.4
6
%
23
%
Lending Commitments
225.1
205.5
183.7
10
%
23
%
Institutional Securities Loans and Lending Commitments
$
352.0
$
325.1
$
287.1
8
%
23
%
Wealth Management
Loans:
Securities-based lending and other
$
123.8
$
120.2
$
103.1
3
%
20
%
Residential real estate
77.3
75.5
70.8
2
%
9
%
Total Loans
201.1
195.7
173.9
3
%
16
%
Lending Commitments
21.7
20.9
18.4
4
%
18
%
Wealth Management Loans and Lending Commitments
$
222.8
$
216.6
$
192.3
3
%
16
%
Consolidated Loans and Lending Commitments
(1)
$
574.8
$
541.7
$
479.4
6
%
20
%
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
10
Consolidated Loans and Lending Commitments
Allowance for Credit Losses (ACL) as of September 30, 2026
(unaudited, dollars in millions)
Loans and Lending Commitments
ACL
(1)
ACL %
Q3 Provision
(Gross)
Loans:
Held For Investment (HFI)
Corporate
$
9,829
$
265
2.7
%
$
48
Secured lending facilities
75,342
265
0.4
%
23
Commercial and residential real estate
7,059
294
4.2
%
26
Other
4,825
30
0.6
%
3
Institutional Securities - HFI
$
97,055
$
854
0.9
%
$
100
Wealth Management - HFI
201,397
390
0.2
%
3
Held For Investment
$
298,452
$
1,244
0.4
%
$
103
Held For Sale
16,508
Fair Value
14,274
Total Loans
329,234
1,244
103
Lending Commitments
246,765
824
0.3
%
45
Consolidated Loans and Lending Commitments
$
575,999
$
2,068
$
148
The End Notes are an integral part of this presentation. See pages 12 - 18 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.
11
Definition of U.S. GAAP to Non-GAAP Measures
(a)
We prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non‐GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non‐GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non‐GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non‐GAAP financial measures used by other companies. Whenever we refer to a non‐GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non‐GAAP financial measure. In the periods prior to 2026, we present certain non‐GAAP financial measures that exclude the impact of mark‐to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period‐to‐period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary” in the 2025 Form 10‐K.
(b)
The following are considered non‐GAAP financial measures:
-
Tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity (“ROTCE”) and tangible book value per common share, also non‐GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period‐to‐period, respectively.
-
ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity.
-
Tangible book value per common share represents tangible common equity divided by common shares outstanding.
-
Segment return on average common equity and return on average tangible common equity represent net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition).
-
Net revenues excluding DCP represents net revenues adjusted for the impact of mark‐to‐market gains and losses on economic hedges associated with certain employee deferred cash‐based compensation plans.
-
Compensation expense excluding DCP represents compensation adjusted for the impact related to certain employee deferred cash‐based compensation plans linked to investment performance.
12
Definitions of Performance Metrics and Terms
Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics that 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.
Page 1:
(a)
Provision for credit losses represents the provision for credit losses on loans held for investment and unfunded lending commitments.
(b)
Net income applicable to Morgan Stanley represents net income less net income applicable to nonredeemable noncontrolling interests.
(c)
Earnings applicable to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley reduced by preferred stock dividends.
Page 2:
(a)
Return on average common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity.
(b)
Return on average tangible common equity represents a non‐GAAP financial measure.
(c)
Book value per common share represents common equity divided by period end common shares outstanding.
(d)
Tangible book value per common share represents a non‐GAAP financial measure.
(e)
Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
(f)
The Firm expense efficiency ratio represents total non‐interest expenses as a percentage of net revenues.
Page 3:
(a)
Liquidity Resources, which are primarily held within the Parent Company and its major operating subsidiaries, are comprised of high quality liquid assets (HQLA) and cash deposits with banks. The total amount of Liquidity Resources is actively managed by us considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements. Average Liquidity Resources represents the average daily balance for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025.
(b)
Our goodwill and intangible balances utilized in the calculation of tangible common equity are net of allowable mortgage servicing rights deduction.
(c)
Tangible common equity represents a non‐GAAP financial measure.
(d)
U.S. Bank refers to our U.S. Bank Subsidiaries, Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association, and excludes transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates.
(e)
Firmwide regional revenues reflect our consolidated net revenues on a managed basis. Further discussion regarding the geographic methodology for net revenues is disclosed in Note 22 to the consolidated financial statements included in the 2025 Form 10‐K.
Page 4:
(a)
Our attribution of average common equity to the business segments is based on the Required Capital framework, an internal capital adequacy measure. This framework is a risk‐based and leverage‐based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. The Required Capital framework is based on our regulatory capital requirements. We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate. For further discussion of the framework, refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the 2025 Form 10‐K.
(b)
Our risk‐based capital ratios are computed under each of (i) the standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (“Standardized Approach”) and (ii) the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the 2025 Form 10‐K.
(c)
Supplementary leverage ratio represents Tier 1 capital divided by the total supplementary leverage exposure.
Page 5:
(a)
Institutional Securities Equity and Fixed income net revenues include trading, net interest income (interest income less interest expense), asset management, commissions and fees, investments, and other revenues which are directly attributable to those businesses.
(b)
Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
(c)
VaR represents the unrealized loss in portfolio value that, based on historically observed market risk factor movements, would have been exceeded with a frequency of 5%, or five times in every 100 trading days, if the portfolio were held constant for one day. Further discussion of the calculation of VaR and the limitations of our VaR methodology, is disclosed in "Quantitative and Qualitative Disclosures about Risk" included in the 2025 Form 10‐K.
Page 6:
(a)
Transactional revenues for the Wealth Management segment includes investment banking, trading, and commissions and fees revenues.
(b)
Net interest income represents interest income less interest expense.
(c)
Other revenues for the Wealth Management segment includes investments and other revenues.
(d)
Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
13
Definitions of Performance Metrics and Terms
Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics that 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.
Page 7:
(a)
Client assets represent those for which Wealth Management is providing services including financial advisor‐led brokerage, investment advisory, custody, cash management, and administrative services; self-directed brokerage and investment advisory services; financial and wealth planning services; workplace services, including stock plan administration, and retirement plan services.
(b)
Net new assets represent client asset inflows, including interest, dividends and asset acquisitions, less client asset outflows, and excluding the impact of business combinations/divestitures and the impact of fees and commissions.
(c)
Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non‐purpose securities‐based lending on non‐bank entities.
(d)
Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other deposits, and time deposits.
(e)
Annualized weighted average cost of deposits represents the total annualized weighted average cost of the various deposit products, including the effect of related hedging derivatives. The period end cost of deposits is based upon balances and rates as of September 30, 2026, June 30, 2026 and September 30, 2025. The period average is based on daily balances and rates for the period.
(f)
Advisor‐led client assets represent client assets in accounts that have a Wealth Management representative assigned.
(g)
Fee‐based client assets represent the amount of client assets where the basis of payment for services is a fee calculated on those assets.
(h)
Fee‐based asset flows include net new fee‐based assets (including asset acquisitions), net account transfers, dividends, interest and client fees, and exclude institutional cash management related activity. For a description of the Inflows and Outflows included in Fee‐based asset flows, see Fee‐based client assets rollforwards in the 2025 Form 10‐K.
(i)
Self‐directed client assets represent active accounts which are not advisor-led. Active accounts are defined as having at least $25 in assets.
(j)
Daily average revenue trades (DARTs) represent the total self‐directed trades in a period divided by the number of trading days during that period.
(k)
Self‐directed households represent the total number of households that include at least one active account with self‐directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.
(l)
The workplace channel includes equity compensation solutions for companies, their executives and employees.
(m)
Stock plan unvested public assets represent the market value of public company securities at the end of the period, and excludes vested and unvested private company securities.
(n)
Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.
Page 8:
(a)
Asset management and related fees represents management and administrative fees, distribution fees, and performance‐based fees not in the form of carried interest. Asset management and related fees represents Asset management as reported on our consolidated income statement.
(b)
Performance‐based income and other includes performance‐based fees in the form of carried interest, gains and losses from investments, gains and losses from hedges on seed capital and certain employee deferred compensation plans, net interest, and other revenues. Performance‐based income and other represents investments, trading, net interest, and other revenues as reported on our consolidated income statement.
(c)
Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
Page 9:
(a)
Investment Management Alternatives and Solutions asset class includes products in fund of funds, real estate, infrastructure, private equity and credit strategies, multi-asset portfolios, and tax-managed solutions, as well as systematic strategies that create custom investment solutions, including those offered by Parametric.
(b)
Investment Management net flows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments, and redemptions from clients’ funds. Net flows exclude both the gross impact of exchanges, whereby a client changes positions within the same asset class, and distributions, which represent returns of capital or returns on investments.
(c)
Overlay Services represents investment strategies that use passive exposure instruments to obtain, offset or substitute specific portfolio exposures, beyond those provided by the underlying holdings of the fund.
(d)
Total assets under management or supervision excludes shares of minority stake assets which represent the Investment Management business segment’s proportional share of assets managed by third-party asset managers in which we hold investments accounted for under the equity method.
Page 10 and 11:
(a)
Corporate loans include relationship and event-driven loans and typically consist of revolving lines of credit, term loans and bridge loans.
(b)
Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets.
(c)
Securities-based lending and other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.
(d)
Institutional Securities Lending Commitments principally include Corporate lending activity.
14
Supplemental Quantitative Details and Calculations
Page 1:
(1)
The following sets forth the Firm net revenue impact of mark‐to‐market gains and losses on investments associated with DCP and compensation expense impact related to DCP in prior year periods:
4Q25
3Q25
2Q25
1Q25
4Q25 YTD
Net revenues
$
17,890
$
18,224
$
16,792
$
17,739
$
70,645
Adjustment for mark-to-market on DCP
5
(248)
(377)
149
(471)
Adjusted Net revenues - non-GAAP
$
17,895
$
17,976
$
16,415
$
17,888
$
70,174
Compensation expense
$
7,063
$
7,442
$
7,190
$
7,521
$
29,216
Adjustment for mark-to-market on DCP
(95)
(300)
(371)
2
(764)
Adjusted Compensation expense - non-GAAP
$
6,968
$
7,142
$
6,819
$
7,523
$
28,452
-
Compensation expense for deferred cash-based compensation plans awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards.
-
Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments. For certain unvested DCP awards, the Firm designates derivatives in cash flow hedges with changes in fair value recorded in other comprehensive income and later reclassified to compensation expense in line with the vesting period of the DCP awards. For other awards, including vested awards, the Firm uses economic hedging derivatives, with changes in fair value recorded in compensation expense. As a result, the Firm will no longer present non-GAAP measures of net revenues and compensation expense excluding DCP.
-
Prior to 2026, we hedged DCP award obligations primarily with cash instruments and recorded the changes in the fair value, net of financing costs, within Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments were generally offset by changes in the fair value of investments recognized in net revenues, there was typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period.
-
The use of derivatives as cash flow hedges of DCP awards is expected to substantially mitigate timing differences between the recognition of changes in the fair value of the hedging instruments and the deferred recognition of related DCP compensation expense over the vesting period. The expected mitigation of these timing differences, alongside the associated income statement changes described above, enables us to better present the operating performance and revenue trends without the need for non-GAAP financial measures.
-
The tables above for the prior periods present non-GAAP adjusted Net revenues which excludes amounts recognized in Net revenues related to fair value gains and losses, net of financing costs, on investments associated with certain cash-based deferred compensation plans and non-GAAP adjusted Compensation expense for 2025 which excludes amounts recognized in Compensation expense associated with certain cash-based deferred compensation plans.
(2)
The Firm non-interest expenses by category are as follows:
3Q26
2Q26
3Q25
3Q26 YTD
3Q25 YTD
Compensation and benefits
(a)
$
7,997
$
8,187
$
7,442
$
24,726
$
22,153
Non-compensation expenses:
Brokerage, clearing and exchange fees
(b)
1,467
1,464
1,141
4,187
3,551
Information processing and communications
1,302
1,203
1,119
3,653
3,258
Professional services
700
680
685
1,982
2,070
Occupancy and equipment
502
482
473
1,467
1,381
Marketing and business development
347
401
280
1,058
815
Other
(b)(c)
1,397
1,485
1,056
4,012
3,002
Total non-compensation expenses
5,715
5,715
4,754
16,359
14,077
Total non-interest expenses
$
13,712
$
13,902
$
12,196
$
41,085
$
36,230
(a)
During the quarter ended March 31, 2026, as a result of March workforce management actions, were recognized severance costs of $178 million in Compensation and benefits expenses.The workforce management action was related to an effort to improve operational efficiency and manage performance, rather than a change in strategy or exit of businesses. The workforce management action occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. We recorded severance costs of $94 million in the Institutional Securities business segment, $61 million in the Wealth Management business segment, and $23 million in the Investment Management business segment for the quarters ended March 31, 2026. These costs were incurred across all regions, with the majority in the Americas.
(b)
Execution-related expenses represent Brokerage, Clearing and exchange fees and certain expenses reported in the Other expense category such as Regulatory fees, Transaction taxes and other fees which are directly associated with revenue-generating activities.
(c)
For both the three and nine months ended September 30, 2025, Firm results included an FDIC Special Assessment of $(8) million, of which $(3) million was reported in the Institutional Securities business segment and $(5) million was reported in the Wealth Management business segment.
Page 2:
(1)
Refer to page 1(2) End Notes from above.
Page 3:
(1)
Includes loans held for investment (net of allowance), loans held for sale and also includes loans at fair value which are included in Trading assets on the balance sheet.
(2)
As of September 30, 2026, June 30, 2026 and September 30, 2025, the U.S. Bank investment securities portfolio included held to maturity investment securities of $40.4 billion, $41.3 billion and $45.2 billion, respectively.
Page 4:
(1)
Capital ratios are estimates as of the press release date, October 14, 2026 and are subject to change in the Firm's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
15
Supplemental Quantitative Details and Calculations
Page 5:
(1)
Institutional Securities average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 3Q26: $455mm; 2Q26: $455mm; 3Q25: $457mm; 3Q26 YTD: $455mm; 3Q25 YTD: $457mm.
Page 6:
(1)
The following sets forth the Wealth Management segment net revenue impact of mark-to-market gains and losses on investments associated with DCP and compensation expense impact related to DCP in prior year periods:
4Q25
3Q25
2Q25
1Q25
4Q25 YTD
Net revenues
$
8,429
$
8,234
$
7,764
$
7,327
$
31,754
Adjustment for mark-to-market on DCP
21
(206)
(294)
131
(348)
Adjusted Net revenues - non-GAAP
$
8,450
$
8,028
$
7,470
$
7,458
$
31,406
Compensation expense
$
4,416
$
4,388
$
4,147
$
3,999
$
16,950
Adjustment for mark-to-market on DCP
(66)
(222)
(264)
17
(535)
Adjusted Compensation expense - non-GAAP
$
4,350
$
4,166
$
3,883
$
4,016
$
16,415
-
Compensation expense for deferred cash-based compensation plans awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards.
-
Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments. For certain unvested DCP awards, the Firm designates derivatives in cash flow hedges with changes in fair value recorded in other comprehensive income and later reclassified to compensation expense in line with the vesting period of the DCP awards. For other awards, including vested awards, the Firm uses economic hedging derivatives, with changes in fair value recorded in compensation expense. As a result, the Firm will no longer present non-GAAP measures of net revenues and compensation expense excluding DCP.
-
Prior to 2026, we hedged DCP award obligations primarily with cash instruments and recorded the changes in the fair value, net of financing costs, within Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments were generally offset by changes in the fair value of investments recognized in net revenues, there was typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period.
-
The use of derivatives as cash flow hedges of DCP awards is expected to substantially mitigate timing differences between the recognition of changes in the fair value of the hedging instruments and the deferred recognition of related DCP compensation expense over the vesting period. The expected mitigation of these timing differences, alongside the associated income statement changes described above, enables us to better present the operating performance and revenue trends without the need for non-GAAP financial measures.
-
The tables above for the prior periods present non-GAAP adjusted Net revenues which excludes amounts recognized in Net revenues related to fair value gains and losses, net of financing costs, on investments associated with certain cash-based deferred compensation plans and non-GAAP adjusted Compensation expense for 2025 which excludes amounts recognized in Compensation expense associated with certain cash-based deferred compensation plans.
(2)
Wealth Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 3Q26: $13,220mm; 2Q26: $13,220mm; 3Q25: $13,088mm; 3Q26 YTD: $13,220mm; 3Q25 YTD: $13,088mm.
Page 7:
(1)
Wealth Management other lending included $2 billion of non-purpose securities based lending on non-bank entities in each period ended September 30, 2026, June 30, 2026 and September 30, 2025.
(2)
Details of deposits sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries for the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, are as follows:
3Q26
2Q26
3Q25
Brokerage sweep deposits
$
147
$
146
$
136
Other deposits
318
290
262
Total deposits
$
465
$
436
$
398
Page 8:
(1)
Investment Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 3Q26: $9,467mm; 2Q26: $9,467mm; 3Q25: $9,557mm; 3Q26 YTD: $9,467mm; 3Q25 YTD: $9,557mm.
Page 10:
(1)
For the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, Investment Management reflected loan balances of $368 million, $376 million and $49 million, respectively, and for the quarter ended September 30, 2026, Investment Management reflected lending commitments of $8 million.
16
Supplemental Quantitative Details and Calculations
Page 11:
(1)
For the quarter ended September 30, 2026, the Allowance Rollforward for Loans and Lending Commitments is as follows:
Institutional Securities
Wealth
Management
Total
Loans
Allowance for Credit Losses (ACL)
Beginning Balance - June 30, 2026
$
860
$
388
$
1,248
Net Charge Offs
(105)
(1)
(106)
Provision
100
3
103
Other
(1)
—
(1)
Ending Balance - September 30, 2026
$
854
$
390
$
1,244
Lending Commitments
Allowance for Credit Losses (ACL)
Beginning Balance - June 30, 2026
$
777
$
15
$
792
Net Charge Offs
—
—
—
Provision
41
4
45
Other
(13)
—
(13)
Ending Balance - September 30, 2026
$
805
$
19
$
824
Loans and Lending Commitments
Allowance for Credit Losses (ACL)
Beginning Balance - June 30, 2026
$
1,637
$
403
$
2,040
Net Charge Offs
(105)
(1)
(106)
Provision
141
7
148
Other
(14)
—
(14)
Ending Balance - September 30, 2026
$
1,659
$
409
$
2,068
17
Legal Notice
This Financial Supplement contains financial, statistical and business-related information, as well as business and segment trends.
The information should be read in conjunction with the Firm's third quarter earnings press release issued October 14, 2026.
18