Morgan Stanley Reports Net Revenues of $13.1 Billion, EPS of $1.39 and ROTCE of 13.8%
NEW YORK, July 14, 2022 – Morgan Stanley (NYSE: MS) today reported net revenues of $13.1 billion for the second quarter ended June 30, 2022 compared with $14.8 billion a year ago. Net income applicable to Morgan Stanley was $2.5 billion, or $1.39 per diluted share,1 compared with net income of $3.5 billion, or $1.85 per diluted share,1 for the same period a year ago.
James P. Gorman, Chairman and Chief Executive Officer, said, “Overall the Firm delivered a solid quarter in what was a more volatile market environment than we have seen for some time. Strong results in Equity and Fixed Income helped partially counter weaker investment banking activity. We continue to attract positive flows across our Wealth Management business, and Investment Management continues to benefit from its diversification. Finally, we finished the quarter in a strong capital position to ensure we move forward with confidence.”

Highlights
? The Firm reported solid results with net revenues of $13.1
billion demonstrating the strength of our diversified franchise
as the businesses navigated a challenging market
environment.
? The Firm delivered ROTCE of 13.8%, or 14.3% excluding the
impact of integration-related expenses.4,5
? The Firm’s expense efficiency ratio was 74%, impacted by
$200 million related to a specific regulatory matter
concerning the use of unapproved personal devices and the
Firm’s record-keeping requirements. In the first half of the
year, the expense efficiency ratio was 71%, or 70%
excluding the impact of integration-related expenses.5,6
? The Firm remains in a strong capital position with a
Standardized Common Equity Tier 1 capital ratio of 15.2%.
? Institutional Securities net revenues of $6.1 billion reflect
strong performance in Fixed Income and Equity as clients
remained engaged in volatile markets, while limited activity in
Investment Banking was impacted by the uncertain
macroeconomic environment.
? Wealth Management delivered a pre-tax margin of 26.5% or
28.2% excluding integration-related expenses.5,7 Net
revenues were $5.7 billion, negatively impacted by mark-tomarket losses on investments associated with certain
employee deferred compensation plans. The business added
net new assets of $53 billion in the quarter and $195 billion in
the first half of 2022. The quarter also saw continued growth
in bank lending and $29 billion of fee-based flows.
? Investment Management net revenues were $1.4 billion. The
diversified business delivered solid results despite lower
equity markets.

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