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See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and Terms, Supplemental Quantitative+Details and Calculations, and Legal Notice. (unaudited) Financial Metrics:Earnings per basic shareEarnings per diluted shareReturn on average common equity(Return on average tangible common equityBook value per common share$Tangible book value per common shareBExcluding intermittent net discrete tax provision / benefit (1)(2)<#Adjusted earnings per diluted share)Adjusted return on average common equity 1Adjusted return on average tangible common equityFinancial Ratios:Pre-tax profit margin0Compensation and benefits as a % of net revenues0Non-compensation expenses as a % of net revenuesFirm expense efficiency ratioEffective tax rate(1)(2)Statistical Data:/Period end common shares outstanding (millions) -- ,Average common shares outstanding (millions)BasicDilutedWorldwide employeesThe End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.=Consolidated and U.S. Bank Supplemental Financial Information (unaudited, dollars in millions)Consolidated Balance sheet Total assets Loans (1)DepositsLiquidity Resources (2)Long-term debt outstanding9Maturities of long-term debt outstanding (next 12 months) Common equity$Less: Goodwill and intangible assetsTangible common equity Preferred equity,U.S. Bank Supplemental Financial Information Total AssetsLoans#Investment securities portfolio (3) Regional revenuesAmericas"EMEA (Europe, Middle East, Africa)AsiaConsolidated net revenuesThe End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and Terms, Supplemental Quantitative EConsolidated Average Common Equity and Regulatory Capital Information (unaudited, dollars in billions)Average Common EquityParentFirmRegulatory CapitalCommon Equity Tier 1 capitalTier 1 capitalStandardized ApproachRisk-weighted assets"Common Equity Tier 1 capital ratioTier 1 capital ratioAdvanced ApproachLeverage-based capitalTier 1 leverage ratio Supplementary Leverage Ratio (1)The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and Terms, F Supplemental Quantitative Details and Calculations, and Legal Notice.:Income Statement Information, Financial Metrics and Ratios07/15/20 14:38Quarter Ended Percentage Revenues:AdvisoryEquity Fixed income UnderwritingInvestment Banking Fixed Income OtherSales and Trading Investments Net revenues Compensation and benefits Non-compensation expensesTotal non-interest expenses Income (loss) before taxes &2Net income (loss) applicable to Morgan Stanley (1)/Return on Average Common Equity,Return on Average Tangible Common Equity (2))-Trading VaR (Average Daily 95% / One-Day VaR)-Report dated:07/15/20 14:39Quarter Ended (Asset management TransactionalNet interest incomeNon-compensation expenses  .Net income (loss) applicable to Morgan Stanley Return on Average Common Equity ,Return on Average Tangible Common Equity (1))Wealth Management *Financial Information and Statistical Data (unaudited)Vs. Report dated03/19/03 18:15Wealth Management Metrics"Wealth Management representatives -Annualized revenue per representative (000's)Client assets (billions),Client assets per representative (millions) Client liabilities (billions)"Fee-based client assets (billions)!Fee-based asset flows (billions) (Fee-based assets as a % of client assetsRetail locationsThe End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance XMetrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.Investments (1) Compensation and benefits &Total non-interest expenses, Details and Calculations, and Legal Notice.,Assets under management or supervision (AUM)Net flows by asset class (1) Fixed IncomeAlternative / OtherLong-Term Net Flows LiquidityTotal net flows<Assets under management or supervision by asset class (2)(3)50Long Term Assets Under Management or Supervision,Total Assets Under Management or SupervisionThe End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and Terms, Supplemental Quantitative Details #and Calculations, and Legal Notice.*Consolidated Loans and Lending CommitmentsLoans: Corporate Secured lending facilities&Commercial and residential real estate"Securities-based lending and other Total LoansLending Commitments7Institutional Securities Loans and Lending Commitments 6(Residential real estate0Wealth Management Loans and Lending Commitments .Consolidated Loans and Lending Commitments (1)+The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and LTerms, Supplemental Quantitative Details and Calculations, and Legal Notice.5Allowance for Credit Losses (ACL) as of June 30, 2020Loans and Lending CommitmentsACL (1)(ACL %Q2 Provision (2) ((Gross)Held For Investment (HFI) CorporateInstitutional Securities - HFIWealth Management - HFIHeld For Investment Held For Sale Fair Value.Consolidated Loans and Lending Commitments (3)+(The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of dPerformance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.(a) 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 c< ertain  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 positions, 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 prospective regulatory capital requirements. 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. In addition to the following notes, please also refer to the Firm's Annual Report on Form 10-K for the year ended December 31, 2019.(b) The following are considered non-GAAP financial measures that the Firm considers useful for analysts, investors and other stakeholders to allow better comparability of operating performance and capital adequacy. These measures are calculated as follows: - Earnings per diluted share, excluding intermittent net discrete tax provision / benefit represents net income (loss) applicable to Morgan Stanley, adjusted for the impact of the intermittent net discrete tax provision / benefit, less preferred dividends divided by the average number of diluted shares outstanding. - The return on average tangible common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity. - The return on average common equity and the return on average tangible common equity excluding intermittent net discrete tax provision / benefit are adjusted in both the numerator and the denominator to exclude the intermittent net discrete tax provision / benefit. - Segment return on average common equity and return on average tangible common equity represents full year net income or annualized net income for the quarter applicable to Morgan Stanley for each segment, less preferred dividend segment allocation, divided by average common equity and average tangible common equity for each respective segment. The segment adjustments to common equity to derive segment average tangible common equity are generally set at the beginning of the year, and will remain fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). - Tangible common equity represents common equity less goodwill and intangible assets net of certain mortgage servicing rights deduction. - Tangible book value per common share represents tangible common equity divided by period end common shares outstanding.+Definition of Performance Metrics and TermsOur earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics which we believe to be useful to us, investors, analystsand other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.Page 1:Net income (loss) applicable to Morgan Stanley represents net income, less net income applicable to nonredeemable noncontrolling interests.Earnings (loss) applicable to Morgan Stanley common shareholders represents net income (loss) applicable to Morgan Stanley, less preferred dividends.Page 2:fBook value per common share represents common equity divided by period end common shares outstanding. (c) yTangible book value per common share represents tangible common equity divided by period end common shares outstanding. (d) fPre-tax profit margin percentages represent income before income taxes as percentages of net revenues.(e) iThe Firm expense efficiency ratio represents total non interest expenses as a percentage of net revenues.Page 3:1Liquidity Resources, which are held within the bank and non-bank operating subsidiaries, are comprised of high quality liquid assets (HQLA) and cash deposits with banks ("Liquidity Resources"). 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. The Firm's goodwill and intangible balances utilized in the calculation of tangible common equity are net of certain mortgage servicing rights deduction.U.S. Bank refers to the Firm's U.S. Bank operating subsidiaries Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association and excludes balances between Bank subsidiaries, as well as deposits from the Parent and affiliates.OFirmwide regional revenues reflect the Firm's consolidated net revenues on a managed basis. Further discussion regarding the geographic methodology for net revenues is disclosed in Note 21 to the consolidated financial statements included in the Firm's Annual Report on Form 10-K for the year ended December 31, 2019 (2019 Form 10-K).Page 4:YThe Firm's 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 use-of-capital measure, which is compared with the Firm's regulatory capital to ensure that the Firm maintains an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The Required Capital framework is based on the Firm's regulatory capital requirements. The Firm defines the difference between its total average common equity and the sum of< the average common equity amounts allocated to its business segments as Parent common equity. The amount of capital allocated to the business segments is generally set at the beginning of the year, and will remain fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). The Required Capital framework is expected to evolve over time in response to changes in the business and regulatory environment, for example, to incorporate changes in stress testing or enhancements to modeling techniques. For further discussion of the framework, refer to "Quantitative and Qualitative Disclosures about Risk" in the Firm's Annual Report on Form 10-K for the year ended December 31, 2019.lSupplementary leverage ratio represents Tier 1 capital divided by the total supplementary leverage exposure.Page 5:Institutional Securities Sales & Trading net revenues includes trading, net interest income (interest income less interest expense), asset management and commissions and fees revenues.VaR represents the loss amount that one would not expect to exceed, on average, more than five times every one hundred trading days in the Firm's trading positions if the portfolio were held constant for a one-day period. Further discussion of the calculation of VaR and the limitations of the Firm's VaR methodology, is disclosed in "Quantitative and Qualitative Disclosures about Risk" included in the Firm's 2019 Form 10-K.+Page 6:Transactional revenues for the Wealth Management segment includes investment banking, trading, and commissions and fee revenues.ENet interest income represents interest income less interest expense.YOther revenues for the Wealth Management segment includes investments and other revenues.Page 7:The average annualized revenue per representative metric represents annualized net revenues divided by average representative headcount.oClient assets per representative represents total client assets divided by period end representative headcount.OClient liabilities reflect U.S. Bank lending and broker dealer margin activity.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.Fee-based asset flows include net new fee-based assets, net account transfers, dividends, interest, and client fees and exclude institutional cash management related activity.Page 8:{Other revenues for the Investment Management segment includes investment banking, trading, net interest and other revenues.Page 9:Investment Management Alternative/Other asset class includes products in Fund of Funds, Real Estate, Private Equity and Credit strategies, as well as Multi-Asset portfolios.-Investment Management net flows include new commitments, investments or reinvestments, net of client redemptions, returns of capital post-fund investment period and dividends not reinvested and excludes the impact of the transition of funds from their commitment period to the invested capital period.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:Corporate loans include relationship and event-driven loans and typically consist of revolving lines of credit, term loans and bridge loans.Secured lending facilities include loans provided to clients, which are primarily secured by loans, which are, in turn, collateralized by various assets including residential real estate, commercial real estate, corporate and financial assets.Securities-based lending and Other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.\Institutional Securities Lending Commitments principally include Corporate lending activity.2Supplemental Quantitative Details and Calculations(1):The Firm non-interest expenses by category are as follows:2Q201Q202Q192Q20 YTD2Q19 YTDCompensation and benefitsNon-compensation expenses:%Brokerage, clearing and exchange fees)Information processing and communicationsProfessional servicesOccupancy and equipment"Marketing and business developmentOther Total non-compensation expensesiThe second quarter ended June 30, 2020 included intermittent net discrete tax expenses of $134 million principally associated with the remeasurement of reserves related to a foreign tax matter. The first quarter ended March 31, 2020 included intermittent net discrete tax benefits of $31 million associated with theremeasurement of prior years' tax liability. The following sets forth the impact of the intermittent net discrete tax items to earnings per diluted share, return on average common equity and return on average tangible common equity (which are excluded):!Earnings per diluted share impact&Return on average common equity impact/Return on average tangible common equity impact(2)The income tax consequences related to employee share-based payments, which are recurring-type tax items, are recognized in Provision for income taxes in the consolidated income statement, and may be either a benefit or a provision. Conversion of employee share-based awards to Firm shares will primarily occur in the first quarter of each year. The impacts of recognizing excess tax benefits / (cost) upon conversion of awards, are as follows: 2Q20 $(5) million; 1Q20: $99 million, 2Q19: $20 million, 2Q20 YTD: $94 million and 2Q19 YTD $127 million. The impact of intermittent net discrete tax provisions and benefits reflected above do not include the recurring-type discrete tax benefits related to employee share based payments as we anticipate conversion activity each year.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. :Beginning in the quarter ended March 31, 2020, the internal measure of liquidity was changed from Global Liquidity Reserve to Liquidity Resources to be more aligned with the current regulatory definition HQLA. June 30, 2019 has been recast. Refer to page 13 for additional information on the change in methodology.(3)For the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019, the U.S. Bank investment securities portfolio included held to maturity investment securities of $28.5 billion, $28.8 billion and $27.2 billion, respectively.eBased on a Federal Reserve interim final rule in effect until March 31, 2021, our Supplementary leverage ratio and Supplementary leverage exposure as of June 30, 2020 reflect the exclusion of U.S. Treasury securities and deposits at Federal Reserve Banks. The exclusion of these assets had the effect of improving our SLR ratio by 0.9% as of June 30, 2020.For the second quarter ended June 30, 2020, the Institutional Securities segment net income ap<Xplicable to Morgan Stanley included intermittent net discrete tax expenses of $125 million principally associated with the remeasurement of reserves related to a foreign tax matter. The first quarter ended March 31, 2020 included intermittent net discrete tax benefits of $27 million associated with theremeasurement of prior years' tax liability. 2Institutional 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: 2Q20: $484mm; 1Q20: $484mm; 2Q19: $536mm; 2Q20 YTD: $484mm, 2Q19 YTD: $536mm5Wealth 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: 2Q20: $7,802mm; 1Q20: $7,802mm; 2Q19: $8,088mm, 2Q20 YTD: $7,802mm; 2Q19 YTD: $8,088mm Includes investment gains or losses for certain funds included in the Firm's consolidated financial statements for which the limited partnership interests in these gains or losses were reported in net income (loss) applicable to nonredeemable noncontrolling interests./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: 2Q20: $932mm; 1Q20: $932mm; 2Q19: $940mm; 2Q20 YTD: $932mm; 2Q19 YTD: $940mm`Net Flows by region for the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019 were:<North America: $17.7 billion, $57.9 billion and $4.3 billion=International: $18.4 billion, $(0.6) billion and $3.6 billion~Assets under management or supervision by region for the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019 were::North America: $268 billion, $359 billion and $277 billion:International: $397 billion, $225 billion and $220 billionFor the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019, the shares of minority stake assets were $5 billion, $6 billion and $6 billion, respectively.Page 10:AFor the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019, Investment Management reflected loan balances of $521 million, $499 million and $27 million, respectively. No material lending commitments were recorded by Investment Management for the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019.Page 11:nFor the quarter ended June 30, 2020 the Allowance Rollforward for Loans and Lending Commitments is as follows:Total!Allowance for Credit Losses (ACL)"Beginning Balance - March 31, 2020Net Charge Offs ProvisionEnding Balance - June 30, 2020The provision for credit losses associated with loans held for investment are reported in other revenues while the provision for credit losses related to lending commitments are reported in other expenses. Legal NoticeThis Financial Supplement contains financial, statistical and business-related information, as well as business and segment trends.yThe information should be read in conjunction with the Firm's second quarter earnings press release issued July 16, 2020.The return on average common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity. The Firm's risk-based capital ratios for purposes of determining regulatory compliance are the lower of the capital ratios computed under the (i) standardized approaches for calculating credit risk and market risk risk-weighted assets (RWAs) (the  Standardized Approach ); and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the  Advanced Approach ). At June 30, 2020 and March 31, 2020, the Firm's ratios are based on the Advanced Approach, while at June 30, 2019 were based on the Standardized Approach. 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