Morgan Stanley · NYSE:MS
Morgan Stanley — Q1 2010 Earnings Presentation
10 slides from Morgan Stanley's earnings presentation, May 14, 2010
Slide 1: Morgan Stanley First Quarter 2010 Overview
Free Writing Prospectus Dated May 14, 2010 Registration Statement No. 333-156423 Filed Pursuant to Rule 433 Morgan Stanley First Quarter 2010 Overview May 2010
Slide 2: Notice
Notice The information provided herein may include certain non-GAAP financial measures. The reconciliation of such measures to the comparable GAAP figures are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, 2010 Quarterly Reports on Form 10-Q and Current Re
Slide 3: Index
Index • Consolidated Financial Highlights − Institutional Securities − Global Wealth Management Group − Asset Management • Firmwide Real Estate Investments • Capital Ratios • Funding Diversification 3 This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that
Slide 4: Consolidated Financial Highlights
Consolidated Financial Highlights (1) 1Q10 Net Revenues of $9.1 Bn 1Q 2010 Highlights - Business Mix 1Q10 Asset • First quarter revenues were $9.1 billion, Management up 33% from last quarter in what was a Equities 7% 16% generally stable operating environment despite sovereign credit concerns Globa
Slide 5: Institutional Securities
Institutional Securities Net Revenue 5,344 ($mm) 314 1Q 2010 Highlights - 887 • Revenues of $5.3 billion up substantially 3,239 54 1,419 from 4Q09 from improved Sales and 1,601 1,480 Trading 811 − Immaterial impact from tightening 774 2,724 954 credit spreads 931 440 • Investment Banking delivered s
Slide 6: Global Wealth Management Group
Global Wealth Management Group Net Revenue ($mm) 3,139 3,105 1Q 2010 Highlights - 146 191 319 285 348 • $278 million PBT and 9% PBT margin 256 − Quarterly integration costs of $100 707 682 million 1,299 187 • 18,140 Financial Advisors 232 107 262 1,682 1,628 − FA turnover within top two quintiles 51
Slide 7: Asset Management
Asset Management Net Revenue 653 ($mm) 510 51 1Q 2010 Highlights - 188 22 112 • Core business(2) – Net revenues of $414 million represent fifth consecutive 369 411 414 profitable quarter • Merchant Banking – Net revenues of $239 (13) million were driven by gains in principal (343) investments • Tota
Slide 8: Firmwide Real Estate Investments
Firmwide Real Estate Investments Total Real Estate Investments of $2.5bn (1) Notable Points 3.7 • Total Real Estate Investments exposure 1.5 2.5 as of 1Q10 was $2.5 billion 0.2 − Includes $1.3 billion of contractual 0.5 1.3 commitments and other arrangements 0.2 1.5 0.5 − Revel has been moved to 0.5
Slide 9: Capital Ratios
Capital Ratios Total Assets 1Q10 Key Capital Ratios (Basel I) ($Bn) 943 820 770 771 677 677 Tier 1 Common Ratio 8.3% 626 Tier 1 Capital Ratio 15.1% 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 Source: Morgan Stanley SEC Filings 9 This slide is part of a presentation by Morgan Stanley and
Slide 10: Funding Diversification
Funding Diversification Composition of Funding Liabilities and Equity Shareholders’ Equity Shareholders’ Deposits Equity 5% 5% 9% Long-term Debt Long-term Debt 32% Deposits 36% 12% 1% 52% 6% 42% Secured Commercial Paper Funding & other short term Commercial Paper Secured borrowings & other short ter