Morgan Stanley · NYSE:MS
Morgan Stanley — Q4 2008 Earnings Presentation
12 slides from Morgan Stanley's earnings presentation, Jan 30, 2009
Slide 1: Morgan Stanley Fourth Quarter 2008 Overview
Free Writing Prospectus Dated January 30, 2009 Registration Statement No. 333-156423 Filed Pursuant to Rule 433 Morgan Stanley Fourth Quarter 2008 Overview
Slide 2: Notice
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 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 Reports on Form 10-K for the fiscal yea
Slide 3: Index
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Index • Financial Results • Institutional Securities • Global Wealth Management • Asset Management • Risk Management • Capital, Liquidity and Funding This slide is part of a presentation by Morgan Stanley and is intended to be view
Slide 4: Consolidated Financial Highlights
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Consolidated Financial Highlights 2008 Full Year Net Revenues of $24.7 Bn Business Mix 2008(1) 4Q08 Highlights Net Revenues ($Bn) 1.8 Asset Management PBT ($Bn) (3.4) 5% Net Income ($Bn) (2.3) Global Tier 1 Capital Ratio 17.9% Weal
Slide 5: Institutional Securities
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Institutional Securities Net Revenue Areas of Strength: ($MM) • Equity sales and trading – record full year results 6,215 • Commodities – record full year results 101 5,919 980 723 • FX – record full year results • Investment Banki
Slide 6: Asset Management
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Asset Management Net Revenue Areas of Strength: ($MM) 543 • Recent launch of Infrastructure Fund 488 647 78 (386) • Diversified hedge fund platform 26 91 144 • Leading global real estate manager 845 779 742 594 Notable 4Q Revenue I
Slide 7: Global Wealth Management
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Global Wealth Management Net Revenue ($MM) Areas of Strength: 2,436 • Stable revenue base 236 • Growing deposit program 207 • Strong FA recruitment 1,606 1,555 211 953 1,422 262 173 225 Notable 4Q Revenue Item: 134 45 143 140 156 •
Slide 8: Risk Management
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Risk Management Net Exposure (1) ($Bn) 19.6 17.5 10.9 5.1 5.6 3.7 4.3 2.9 1.8 (0.1) ABS CDO / CMBS Other Monoline (2) Leveraged Acquisition Subprime Mortgage-Related Finance Pipeline 4Q 2007 4Q 2008 Source: Morgan Stanley Earnings
Slide 9: Substantial Reduction in Leverage – Assets
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Substantial Reduction in Leverage – Assets Total Assets ($Bn) 1,091 1,031 987 659 1Q08 2Q08 3Q08 4Q08 Total Capital (1) 198.2 210.1 202.6 192.3 Total Capital as a % Total Assets 18% 20% 21% 29% Source: Morgan Stanley Earnings confe
Slide 10: Active Capital Management
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Active Capital Management Leverage Ratios(1) 27.4x 25.1x 23.4x 11.4x 1Q08 2Q08 3Q08 4Q08 Tangible Shareholders’ Equity ($Bn) 40 41 42 58 Source: Morgan Stanley Earnings conference Call and SEC Filings (1) Leverage ratio equals tota
Slide 11: Capital Strength
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Capital Strength Risk Weighted Assets & Tier 1 Capital Ratio ($bn) 500 25% 450 17.9% 20% 400 12.4% 12.7% 15% 350 300 10% 250 5% 200 0% 150 299 297 279 -5% 100 50 -10% 0 -15% 2Q08 3Q08 4Q08 Risk Weighted Assets Tier 1 Capital Ratio
Slide 12: Funding Diversification
\EPS\Internal\Morgan Stanley Investor Overview (600825530) 1/30/2009 Funding Diversification Composition of Funding Liabilities and Equity Shareholders’ CP & other short term Equity CP & other short term Shareholders’ borrowings Deposits borrowings Equity 5% 6% 3% 5% 13% Long-term Debt Long-term Deb