Morgan Stanley : 2Q22 Fixed Income Investor Presentation

Morgan Stanley

Fixed Income Investor Presentation

August 15, 2022

Notice

The information provided in this presentation may include certain non-GAAP financial measures. The definition of and/or reconciliation of such measures to the comparable U.S. GAAP figures are included in this presentation, or in the Company's Annual Report on Form 10-K ('Form 10-K'), Definitive Proxy Statement, Quarterly Reports on Form 10-Q and the Current Reports on Form 8-K, as applicable, including any amendments thereto, which are available on www.morganstanley.com.

This presentation may contain forward-looking statements including the attainment of certain financial and other targets, objectives and goals. You are cautioned not to place undue reliance on forward- looking statements, which speak only as of the date on which they are made, which reflect management's current estimates, projections, expectations, assumptions, interpretation or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. The Company does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of forward-looking statements.

For a discussion of risks and uncertainties that may affect the future results of the Company, please see the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as applicable, which are available on www.morganstanley.com. This document is not an offer to buy or sell any security.

The End Notes are an integral part of this presentation. See slide 10 for information related to the financial metrics and defined terms in this presentation.

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Strong Capital Position

Net Income(1) ($Bn)							Common Equity ($Bn)
				15.0
											92.5	97.7	93.8
			11.0
	8.7	9.0						68.9	71.7	73.0
6.1					6.2								Common
						Tangible				75.9	72.5	Equity
									69.0
						Common	59.8	62.9	63.8
						Equity(2)
2017	2018	2019	2020	2021	1H22		2017	2018	2019	2020	2021	2Q22

Fully Phased-In Common Equity Tier 1 Ratio (%)(3)(4)	Fully Phased-In U.S. Supplementary Leverage Ratio (%)(3)(4)(5)
						Tier 1 Leverage
	16.9%		17.4%			7.4%
16.1%	16.4%	16.0%
	6.4%	6.5%	6.4%
			15.2%

5.6%	5.4%

2017	2018	2019	2020	2021	2Q22	2017	2018	2019	2020	2021	2Q22
						8.2%	8.4%	8.3%	8.4%	7.1%	6.6%

The End Notes are an integral part of this presentation. See slide 10 for information related to the financial metrics in this presentation.

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Strong Liquidity Position

Liquidity Coverage Ratio(1) (%)				Average Eligible High Quality Liquid Assets(2) ($Bn)
							238	230
							206
						195
	145%					178
128%	134%	129%	134%	128%	159

2017

2018

2019

2020

2021

2Q22

2017

2018

2019

2020

2021

2Q22

Average Liquidity Resources(3) ($Bn)

					326	345	306
	241	224					174
190				174	151
84
	79
73
157			152	171	155
145
117
2017	2018	2019		2020	2021	2Q22
		Non-Bank Liquidity Resources			Bank Liquidity Resources

Liquidity Resources Composition(3) (%)

Average Daily Balance for three months ended 6/30/22

0%

5% 3%	21%
30% $306Bn
			41%
Deposits with central banks			Non-U.S. sovereign obligations(4)
U.S. government obligations				Other investment grade securities
U.S agency & agency MBS				Deposits with banks

The End Notes are an integral part of this presentation. See slide 10 for information related to the financial metrics in this presentation.

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Diversified and Durable Funding Mix

Morgan Stanley Core Funding ($Bn)

Total GAAP
																						1,174
													1,116			1,188
	852			854				895
Assets:
															85				87
														74
														217		233			226
						71		77
			81
			193		190		193
Core												311		348			347
Funding
			159		188		190
			77		80		82			102		105			102
			2017		2018	2019		2020		2021			2Q22
Deposits %	31%		36%	35%		44%		45%			46%
Core Funding
		Shareholders' Equity		Deposits				Borrowings			Secured Funding(1)

Core Funding Overview

Shareholders'

Equity

• Strong capital base
• Common stock supplemented by $8.8Bn of preferred stock(2)

Borrowings

• Debt issuance diversified across tenors, currencies, distribution channels and structure
• Provides durability and flexibility to balance sheet
• Weighted average maturity: 7.0 years(3)

Deposits

• Primarily sourced from Wealth Management clients
• Continue to optimize mix of deposits between retail and wholesale sources

Secured

Funding

• Well established governance framework promotes funding parameters consistent with asset profile
• Weighted average maturity against less liquid assets >120 days

The End Notes are an integral part of this presentation. See slide 10 for information related to the financial metrics in this presentation.

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