MORGAN STANLEY - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - MORGAN STANLEY 8-K - MORGAN STANLEY	a50730825.htm
EX-99.1 - EXHIBIT 99.1 - MORGAN STANLEY	a50730825_ex99-1.htm

Exhibit 99.2

MORGAN STANLEY
Quarterly Financial Summary (1)
(unaudited, dollars in millions)



	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change
Net revenues
Institutional Securities	$	3,686		$	4,346		$	1,481			(15	%)		149	%	$	12,121		$	7,948			53	%
Wealth Management		3,481			3,531			3,222			(1	%)		8	%		10,482			9,709			8	%
Investment Management		828			673			631			23	%		31	%		2,146			1,620			32	%
Intersegment Eliminations		(63	)		(47	)		(54	)		(34	%)		(17	%)		(156	)		(131	)		(19	%)
Consolidated net revenues	$	7,932		$	8,503		$	5,280			(7	%)		50	%	$	24,593		$	19,146			28	%

Income (loss) from continuing operations before tax
Institutional Securities	$	371		$	960		$	(1,928	)		(61	%)		*		$	2,129		$	(1,769	)		*
Wealth Management		668			655			247			2	%		170	%		1,920			1,060			81	%
Investment Management		300			160			198			88	%		52	%		647			369			75	%
Intersegment Eliminations		0			0			0			--			--			0			(4	)		*
Consolidated income (loss) from continuing operations before tax	$	1,339		$	1,775		$	(1,483	)		(25	%)		*		$	4,696		$	(344	)		*

Income (loss) applicable to Morgan Stanley (2)
Institutional Securities	$	323		$	582		$	(1,273	)		(45	%)		*		$	1,546		$	(1,201	)		*
Wealth Management		430			326			161			32	%		167	%		1,012			537			88	%
Investment Management		135			101			104			34	%		30	%		320			143			124	%
Intersegment Eliminations		0			0			0			--			--			0			(4	)		*
Consolidated income (loss) applicable to Morgan Stanley	$	888		$	1,009		$	(1,008	)		(12	%)		*		$	2,878		$	(525	)		*


Financial Metrics:
Return on average common equity
from continuing operations (3)		5.6	%		5.4	%		*									5.8	%		*
Return on average common equity (3)		5.7	%		5.2	%		*									5.7	%		*

Return on average common equity
from continuing operations excluding DVA (3)		6.2	%		4.6	%		3.5	%								6.1	%		4.9	%
Return on average common equity excluding DVA (3)		6.4	%		4.4	%		3.4	%								6.0	%		4.9	%

Tier 1 common capital ratio (4)		12.6	%		11.8	%		13.9	%
Tier 1 capital ratio (5)		15.3	%		14.1	%		16.9	%

Book value per common share (6)	$	32.1	3	$	31.4	8	$	30.5	3
Tangible book value per common share (7)	$	26.9	6	$	26.2	7	$	26.6	5

Notes:	-	Effective January 1, 2013, in accordance with U.S. banking regulators’ rules, the Firm implemented the Basel Committee’s market risk capital framework, commonly referred to as “Basel 2.5”.
	-	Results for the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012, include positive (negative) revenue of $(171) million, $175 million and $(2,262) million, respectively, related to the movement in Morgan Stanley's
		credit spreads and other credit factors on certain long-term and short-term debt (Debt Valuation Adjustment, DVA).
	-	The return on average common equity metrics, return on average common equity excluding DVA metrics and tangible book value per common share are non-GAAP measures that the Firm considers to be useful measures to assess operating performance and capital adequacy.
	-	See page 4 of the financial supplement and end notes for additional information related to the calculation of the financial metrics.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY

Quarterly Consolidated Income Statement Information

(unaudited, dollars in millions)



	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change
Revenues:
Investment banking	$	1,160		$	1,303		$	1,152			(11	%)		1	%	$	3,687		$	3,319			11	%
Trading		2,259			2,894			607			(22	%)		*			7,847			5,478			43	%
Investments		728			188			290			*			151	%		1,254			438			186	%
Commissions and fees		1,080			1,217			988			(11	%)		9	%		3,465			3,205			8	%
Asset management, distribution and admin. fees		2,390			2,404			2,257			(1	%)		6	%		7,140			6,677			7	%
Other		204			293			141			(30	%)		45	%		700			403			74	%
Total non-interest revenues		7,821			8,299			5,435			(6	%)		44	%		24,093			19,520			23	%

Interest income		1,311			1,422			1,379			(8	%)		(5	%)		4,131			4,244			(3	%)
Interest expense		1,200			1,218			1,534			(1	%)		(22	%)		3,631			4,618			(21	%)
Net interest		111			204			(155	)		(46	%)		*			500			(374	)		*
Net revenues		7,932			8,503			5,280			(7	%)		50	%		24,593			19,146			28	%

Non-interest expenses:
Compensation and benefits		3,968			4,105			3,928			(3	%)		1	%		12,289			11,989			3	%

Non-compensation expenses:
Occupancy and equipment		375			377			386			(1	%)		(3	%)		1,131			1,152			(2	%)
Brokerage, clearing and exchange fees		416			456			359			(9	%)		16	%		1,300			1,167			11	%
Information processing and communications		405			470			493			(14	%)		(18	%)		1,323			1,439			(8	%)
Marketing and business development		151			163			138			(7	%)		9	%		448			439			2	%
Professional services		449			458			476			(2	%)		(6	%)		1,347			1,365			(1	%)
Other		829			699			983			19	%		(16	%)		2,059			1,939			6	%
Total non-compensation expenses		2,625			2,623			2,835			--			(7	%)		7,608			7,501			1	%

Total non-interest expenses		6,593			6,728			6,763			(2	%)		(3	%)		19,897			19,490			2	%

Income (loss) from continuing operations before taxes		1,339			1,775			(1,483	)		(25	%)		*			4,696			(344	)		*
Income tax provision / (benefit) from continuing operations		339			555			(525	)		(39	%)		*			1,226			(247	)		*
Income (loss) from continuing operations		1,000			1,220			(958	)		(18	%)		*			3,470			(97	)		*
Gain (loss) from discontinued operations after tax (1)		18			(29	)		2			*			*			(30	)		25			*
Net income (loss)	$	1,018		$	1,191		$	(956	)		(15	%)		*		$	3,440		$	(72	)		*
Net income applicable to redeemable noncontrolling interests (2)		0			100			8			*			*			222			8			*
Net income applicable to nonredeemable noncontrolling interests (2)		112			111			59			1	%		90	%		370			446			(17	%)
Net income (loss) applicable to Morgan Stanley		906			980			(1,023	)		(8	%)		*			2,848			(526	)		*
Preferred stock dividend / Other		26			177			24			(85	%)		8	%		229			73			*
Earnings (loss) applicable to Morgan Stanley common shareholders	$	880		$	803		$	(1,047	)		10	%		*		$	2,619		$	(599	)		*

Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations		888			1,009			(1,008	)		(12	%)		*			2,878			(525	)		*
Gain (loss) from discontinued operations after tax		18			(29	)		(15	)		*			*			(30	)		(1	)		*
Net income (loss) applicable to Morgan Stanley	$	906		$	980		$	(1,023	)		(8	%)		*		$	2,848		$	(526	)		*

Pre-tax profit margin (3)		17	%		21	%		*									19	%		*
Compensation and benefits as a % of net revenues		50	%		48	%		74	%								50	%		63	%
Non-compensation expenses as a % of net revenues		33	%		31	%		54	%								31	%		39	%

Effective tax rate from continuing operations		25.3	%		31.3	%		35.4	%								26.1	%		71.8	%


Notes:	-	Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure to assess operating performance.
	-	The quarter ended September 30, 2013 includes a discrete net tax benefit of $73 million that is attributable to tax planning strategies to optimize foreign tax credit utilization as a result of the anticipated
		repatriation of earnings from certain non-U.S. subsidiaries.
	-	The quarter ended September 30, 2012 included an out-of-period net income tax provision of approximately $82 million, primarily related to the overstatement of tax benefits associated with
		repatriated earnings of a foreign subsidiary in 2010.
	-	Preferred stock dividend / other includes allocation of earnings to Participating Restricted Stock Units (RSUs). In the quarter ended June 30, 2013 and nine months ended September 30, 2013, the Firm
		recorded a negative adjustment of approximately $151 million related to the purchase of the remaining interest in the Morgan Stanley Smith Barney Joint Venture. This adjustment negatively impacted the
		calculation of basic and fully diluted earnings per share.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Earnings Per Share
(unaudited, dollars in millions, except for per share data)


	Quarter Ended								Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013		June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change


Income (loss) from continuing operations	$	1,000	$	1,220		$	(958	)		(18	%)		*		$	3,470		$	(97	)		*
Net income applicable to redeemable noncontrolling interests		0		100			8			*			*			222			8			*
Net income applicable to nonredeemable noncontrolling interests		112		111			42			1	%		168	%		370			420			(12	%)
Net income (loss) from continuing operations applicable to noncontrolling interests		112		211			50			(47	%)		124	%		592			428			38	%
Income (loss) from continuing operations applicable to Morgan Stanley		888		1,009			(1,008	)		(12	%)		*			2,878			(525	)		*
Less: Preferred Dividends		24		24			24			--			--			72			72			--
Less: Morgan Stanley Smith Barney Joint Venture Redemption Adjustment		-		151			-			*			--			151			-			*
Income from continuing operations applicable to Morgan Stanley, prior to allocation of income to Participating Restricted Stock Units		864		834			(1,032	)		4	%		*			2,655			(597	)		*

Basic EPS Adjustments:
Less: Allocation of earnings to Participating Restricted Stock Units		2		2			0			--			*			6			1			*
Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	862	$	832		$	(1,032	)		4	%		*		$	2,649		$	(598	)		*

Gain (loss) from discontinued operations after tax		18		(29	)		2			*			*			(30	)		25			*
Less: Gain (loss) from discontinued operations after tax applicable to noncontrolling interests		0		0			17			--			*			0			26			*
Gain (loss) from discontinued operations after tax applicable to Morgan Stanley		18		(29	)		(15	)		*			*			(30	)		(1	)		*
Less: Allocation of earnings to Participating Restricted Stock Units		0		0			0			--			--			0			0			--
Earnings (loss) from discontinued operations applicable to Morgan Stanley common shareholders		18		(29	)		(15	)		*			*			(30	)		(1	)		*

Earnings (loss) applicable to Morgan Stanley common shareholders	$	880	$	803		$	(1,047	)		10	%		*		$	2,619		$	(599	)		*

Average basic common shares outstanding (millions)		1,909		1,908			1,889			--			1	%		1,906			1,884			1	%

Earnings per basic share:
Income from continuing operations	$	0.45	$	0.44		$	(0.55	)		2	%		*		$	1.39		$	(0.32	)		*
Discontinued operations	$	0.01	$	(0.02	)	$	-			*			*		$	(0.02	)	$	-			*
Earnings per basic share	$	0.46	$	0.42		$	(0.55	)		10	%		*		$	1.37		$	(0.32	)		*

Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	862	$	832		$	(1,032	)		4	%		*		$	2,649		$	(598	)		*

Earnings (loss) from discontinued operations applicable to Morgan Stanley common shareholders		18		(29	)		(15	)		*			*			(30	)		(1	)		*

Earnings (loss) applicable to Morgan Stanley common shareholders	$	880	$	803		$	(1,047	)		10	%		*		$	2,619		$	(599	)		*

Average diluted common shares outstanding and common stock equivalents (millions)		1,965		1,951			1,889			1	%		4	%		1,952			1,884			4	%

Earnings per diluted share:
Income from continuing operations	$	0.44	$	0.43		$	(0.55	)		2	%		*		$	1.36		$	(0.32	)		*
Discontinued operations	$	0.01	$	(0.02	)	$	-			*			*		$	(0.02	)	$	-			*
Earnings per diluted share	$	0.45	$	0.41		$	(0.55	)		10	%		*		$	1.34		$	(0.32	)		*

Notes:	-	The Firm calculates earnings per share using the two-class method as described under the accounting guidance for earnings per share. For further discussion of the Firm's earnings per share calculations, see page 14 of the financial supplement and Note 15 to the consolidated financial statements in the Firm's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
	-	Refer to Legal Notice on page 18.

MORGAN STANLEY
Quarterly Consolidated Financial Information and Statistical Data
(unaudited)


	Quarter Ended									Percentage Change From:						Nine Months Ended				Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013		Sept 30, 2012		Change


Regional revenues (1)
Americas	$	5,665		$	6,014		$	4,744			(6	%)		19	%	$	17,635	$	14,632		21	%
EMEA (Europe, Middle East, Africa)		1,148			1,132			296			1	%		*			3,346		2,422		38	%
Asia		1,119			1,357			240			(18	%)		*			3,612		2,092		73	%
Consolidated net revenues	$	7,932		$	8,503		$	5,280			(7	%)		50	%	$	24,593	$	19,146		28	%

Worldwide employees		56,101			55,610			57,726			1	%		(3	%)
Global representatives		16,901			16,705			16,829			1	%		--

Firmwide deposits	$	104,807		$	81,514		$	70,757			29	%		48	%
Total assets	$	832,223		$	802,691		$	764,985			4	%		9	%
Risk-weighted assets (2)	$	385,536		$	403,425		$	314,770			(4	%)		22	%
Global liquidity reserve (billions) (3)	$	198		$	181		$	170			9	%		16	%
Long-term debt outstanding	$	157,805		$	161,098		$	168,444			(2	%)		(6	%)
Maturities of long-term debt outstanding (next 12 months)	$	24,232		$	26,921		$	20,214			(10	%)		20	%

Common equity		62,758			61,673			60,291			2	%		4	%
Preferred equity		2,370			1,508			1,508			57	%		57	%
Morgan Stanley shareholders' equity		65,128			63,181			61,799			3	%		5	%
Junior subordinated debt issued to capital trusts		4,812			4,825			4,833			--			--
Less: Goodwill and intangible assets (4)		(10,098	)		(10,194	)		(7,665	)		1	%		(32	%)
Tangible Morgan Stanley shareholders' equity	$	59,842		$	57,812		$	58,967			4	%		1	%
Tangible common equity (5)	$	52,660		$	51,479		$	52,626			2	%		--


Tier 1 common capital (2)	$	48,701		$	47,603		$	43,728			2	%		11	%
Tier 1 capital (2)	$	58,907		$	56,780		$	53,352			4	%		10	%

Tier 1 common capital ratio		12.6	%		11.8	%		13.9	%
Tier 1 capital ratio		15.3	%		14.1	%		16.9	%
Tier 1 leverage ratio (6)		7.3	%		7.1	%		7.2	%

Period end common shares outstanding (000's)		1,953,351			1,959,326			1,975,040			--			(1	%)

Book value per common share	$	32.13		$	31.48		$	30.53
Tangible book value per common share	$	26.96		$	26.27		$	26.65

Notes:	-	All data presented in millions except number of employees, liquidity, ratios and book values.
	-	For the quarter ended September 30, 2013, global representatives included 384 representatives associated with the International Wealth Management business reported in the Institutional Securities
		business segment.
	-	During the quarter ended September 30, 2013, firmwide deposits increased by approximately $21 billion as a result of the contractual transfer of deposits from Citi subsequent to the closing of the
		acquisition of the remaining 35% interest of the Morgan Stanley Smith Barney Joint Venture.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Consolidated Financial Information and Statistical Data
(unaudited, dollars in billions)



	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change
Average Tier 1 Common Capital (1)
Institutional Securities	$	32.0		$	33.1		$	22.1			(3	%)		45	%	$	33.1		$	22.2			49	%
Wealth Management		4.4			4.2			3.8			5	%		16	%		4.2			3.7			14	%
Investment Management		1.7			1.7			1.3			--			31	%		1.7			1.3			31	%
Parent capital		10.2			8.1			16.2			26	%		(37	%)		8.0			15.1			(47	%)
Total - continuing operations		48.3			47.1			43.4			3	%		11	%		47.0			42.3			11	%
Discontinued operations		0.0			0.0			0.0			--			--			0.0			0.0			--
Firm	$	48.3		$	47.1		$	43.4			3	%		11	%	$	47.0		$	42.3			11	%

Average Common Equity (1)
Institutional Securities	$	37.0		$	38.3		$	28.8			(3	%)		28	%	$	38.5		$	29.3			31	%
Wealth Management		13.1			13.3			13.2			(2	%)		(1	%)		13.3			13.3			--
Investment Management		2.8			2.8			2.4			--			17	%		2.8			2.4			17	%
Parent capital		9.2			7.1			16.6			30	%		(45	%)		6.9			16.0			(57	%)
Total - continuing operations		62.1			61.5			61.0			1	%		2	%		61.5			61.0			1	%
Discontinued operations		0.0			0.0			0.0			--			--			0.0			0.0			--
Firm	$	62.1		$	61.5		$	61.0			1	%		2	%	$	61.5		$	61.0			1	%

Return on average Tier 1 common capital
Institutional Securities		4	%		7	%		*									6	%		*
Wealth Management		39	%		16	%		17	%								27	%		19	%
Investment Management		32	%		24	%		32	%								25	%		14	%
Total - continuing operations		7	%		7	%		*									8	%		*
Firm		7	%		7	%		*									7	%		*

Return on average common equity
Institutional Securities		3	%		6	%		*									5	%		*
Wealth Management		13	%		5	%		5	%								9	%		5	%
Investment Management		19	%		14	%		17	%								15	%		8	%
Total - continuing operations		6	%		5	%		*									6	%		*
Firm		6	%		5	%		*									6	%		*

Notes:	-	Effective January 1, 2013, in accordance with U.S. banking regulators’ rules, the Firm implemented the Basel Committee’s market risk capital framework, commonly referred to as “Basel 2.5”.
	-	The return on average common equity and average Tier 1 common capital are non-GAAP measures that the Firm considers to be useful measures to assess operating performance.
	-	In the quarter ended June 30, 2013, the Firm and Wealth Management business segment included a negative adjustment of approximately $151 million (net of tax) related to the purchase of the remaining 35% interest in the
		Morgan Stanley Smith Barney Joint Venture. This adjustment was included in the numerator for the purposes of calculating the return on average common equity and Tier 1 common capital.
		Excluding this negative adjustment, these calculations would have been as follows:
		Return on average Tier 1 common capital:
			June 30, 2013 QTD:	Firm: 8%, Wealth Management: 31%
			September 30, 2013 YTD:	Firm: 8%, Wealth Management: 32%
		Return on average common equity:
			June 30, 2013 QTD :	Firm: 6%, Wealth Management: 10%
			September 30, 2013 YTD:	Firm: 6%, Wealth Management: 10%
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Institutional Securities Income Statement Information
(unaudited, dollars in millions)


	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change
Revenues:
Investment banking	$	992		$	1,078		$	969			(8	%)		2	%	$	3,015		$	2,704			12	%
Trading		1,959			2,598			352			(25	%)		*			6,971			4,714			48	%
Investments		337			51			74			*			*			530			71			*
Commissions and fees		572			650			510			(12	%)		12	%		1,831			1,660			10	%
Asset management, distribution and admin. fees		73			69			62			6	%		18	%		208			175			19	%
Other		138			140			64			(1	%)		116	%		415			156			166	%
Total non-interest revenues		4,071			4,586			2,031			(11	%)		100	%		12,970			9,480			37	%

Interest income		897			1,029			1,017			(13	%)		(12	%)		2,950			3,158			(7	%)
Interest expense		1,282			1,269			1,567			1	%		(18	%)		3,799			4,690			(19	%)
Net interest		(385	)		(240	)		(550	)		(60	%)		30	%		(849	)		(1,532	)		45	%
Net revenues		3,686			4,346			1,481			(15	%)		149	%		12,121			7,948			53	%

Compensation and benefits		1,619			1,766			1,717			(8	%)		(6	%)		5,277			5,426			(3	%)
Non-compensation expenses		1,696			1,620			1,692			5	%		--			4,715			4,291			10	%
Total non-interest expenses		3,315			3,386			3,409			(2	%)		(3	%)		9,992			9,717			3	%


Income (loss) from continuing operations before taxes		371			960			(1,928	)		(61	%)		*			2,129			(1,769	)		*
Income tax provision / (benefit) from continuing operations		0			288			(662	)		*			*			348			(699	)		*
Income (loss) from continuing operations		371			672			(1,266	)		(45	%)		*			1,781			(1,070	)		*
Gain (loss) from discontinued operations after tax		(2	)		(18	)		(15	)		89	%		87	%		(39	)		(59	)		34	%
Net income (loss)		369			654			(1,281	)		(44	%)		*			1,742			(1,129	)		*
Net income applicable to redeemable noncontrolling interests (1)		-			-			-			--			--			1			-			*
Net income applicable to nonredeemable noncontrolling interests (1)		48			90			8			(47	%)		*			234			132			77	%
Net income (loss) applicable to Morgan Stanley	$	321		$	564		$	(1,289	)		(43	%)		*		$	1,507		$	(1,261	)		*

Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations		323			582			(1,273	)		(45	%)		*			1,546			(1,201	)		*
Gain (loss) from discontinued operations after tax		(2	)		(18	)		(16	)		89	%		88	%		(39	)		(60	)		35	%
Net income (loss) applicable to Morgan Stanley	$	321		$	564		$	(1,289	)		(43	%)		*		$	1,507		$	(1,261	)		*

Return on average common equity
from continuing operations		3	%		6	%		*									5	%		*
Pre-tax profit margin (2)		10	%		22	%		*									18	%		*
Compensation and benefits as a % of net revenues		44	%		41	%		116	%								44	%		68	%

Notes:	-	Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure to assess operating performance.
	-	The quarter ended September 30, 2013 includes a discrete net tax benefit of $73 million that is attributable to tax planning strategies to optimize foreign tax credit utilization as a result of the anticipated
		repatriation of earnings from certain non-U.S. subsidiaries.
	-	The quarter ended September 30, 2012, included an out-of-period net income tax provision of approximately $82 million, primarily related to the overstatement of tax benefits associated with repatriated
		earnings of a foreign subsidiary in 2010.
	-	For the nine months ended September 30, 2012, discontinued operations included operating results related to Saxon.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Institutional Securities
(unaudited, dollars in millions)



	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change

Investment Banking
Advisory revenues	$	275		$	333		$	339			(17	%)		(19	%)	$	859		$	915			(6	%)
Underwriting revenues
Equity		236			327			199			(28	%)		19	%		846			654			29	%
Fixed income		481			418			431			15	%		12	%		1,310			1,135			15	%
Total underwriting revenues		717			745			630			(4	%)		14	%		2,156			1,789			21	%

Total investment banking revenues	$	992		$	1,078		$	969			(8	%)		2	%	$	3,015		$	2,704			12	%

Sales & Trading
Equity	$	1,680		$	1,920		$	700			(13	%)		140	%	$	5,115		$	3,601			42	%
Fixed Income & Commodities		694			1,214			(163	)		(43	%)		*			3,185			1,877			70	%
Other		(155	)		(57	)		(163	)		(172	%)		5	%		(139	)		(461	)		70	%
Total sales & trading net revenues	$	2,219		$	3,077		$	374			(28	%)		*		$	8,161		$	5,017			63	%

Investments & Other
Investments	$	337		$	51		$	74			*			*		$	530		$	71			*
Other		138			140			64			(1	%)		116	%		415			156			166	%
Total investments & other revenues	$	475		$	191		$	138			149	%		*		$	945		$	227			*

Total Institutional Securities net revenues	$	3,686		$	4,346		$	1,481			(15	%)		149	%	$	12,121		$	7,948			53	%


Average Daily 95% / One-Day Value-at-Risk ("VaR") (1)
Primary Market Risk Category ($ millions, pre-tax)
Interest rate and credit spread	$	37		$	46		$	53
Equity price	$	18		$	19		$	26
Foreign exchange rate	$	13		$	13		$	12
Commodity price	$	20		$	24		$	22

Aggregation of Primary Risk Categories	$	46		$	55		$	58

Credit Portfolio VaR	$	15		$	14		$	23

Trading VaR	$	52		$	61		$	63

Notes:	-	For the periods noted below, sales and trading net revenues included positive (negative) revenue related to DVA as follows:
		September 30, 2013: Total QTD: $(171) million; Fixed Income & Commodities: $(141) million; Equity: $(30) million
		June 30, 2013: Total QTD: $175 million; Fixed Income & Commodities: $61 million; Equity: $114 million
		September 30, 2012: Total QTD: $(2,262) million; Fixed Income & Commodities: $(1,621) million; Equity: $(641) million
		September 30, 2013: Total YTD: $(313) million; Fixed Income & Commodities: $(318) million; Equity: $5 million
		September 30, 2012: Total YTD: $(3,891) million; Fixed Income & Commodities: $(2,942) million; Equity: $(949) million
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Wealth Management Income Statement Information
(unaudited, dollars in millions)


	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change
Revenues:
Investment banking	$	185		$	258		$	199			(28	%)		(7	%)	$	717		$	627			14	%
Trading		317			223			274			42	%		16	%		838			798			5	%
Investments		4			2			4			100	%		--			9			7			29	%
Commissions and fees		507			567			479			(11	%)		6	%		1,633			1,547			6	%
Asset management, distribution and admin. fees		1,900			1,896			1,789			--			6	%		5,654			5,337			6	%
Other		75			139			78			(46	%)		(4	%)		279			214			30	%
Total non-interest revenues		2,988			3,085			2,823			(3	%)		6	%		9,130			8,530			7	%

Interest income		532			511			476			4	%		12	%		1,531			1,390			10	%
Interest expense		39			65			77			(40	%)		(49	%)		179			211			(15	%)
Net interest		493			446			399			11	%		24	%		1,352			1,179			15	%
Net revenues		3,481			3,531			3,222			(1	%)		8	%		10,482			9,709			8	%

Compensation and benefits		2,017			2,042			1,970			(1	%)		2	%		6,124			5,890			4	%
Non-compensation expenses		796			834			1,005			(5	%)		(21	%)		2,438			2,759			(12	%)
Total non-interest expenses		2,813			2,876			2,975			(2	%)		(5	%)		8,562			8,649			(1	%)

Income (loss) from continuing operations before taxes		668			655			247			2	%		170	%		1,920			1,060			81	%
Income tax provision / (benefit) from continuing operations		238			229			93			4	%		156	%		687			364			89	%
Income (loss) from continuing operations		430			426			154			1	%		179	%		1,233			696			77	%
Gain (loss) from discontinued operations after tax		0			0			5			--			*			(1	)		67			*
Net income (loss)		430			426			159			1	%		170	%		1,232			763			61	%
Net income applicable to redeemable noncontrolling interests (1)		0			100			8			*			*			221			8			*
Net income applicable to nonredeemable noncontrolling interests (1)		0			0			1			--			*			-			176			*
Net income (loss) applicable to Morgan Stanley	$	430		$	326		$	150			32	%		187	%	$	1,011		$	579			75	%

Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations		430			326			161			32	%		167	%		1,012			537			88	%
Gain (loss) from discontinued operations after tax		0			0			(11	)		--			*			(1	)		42			*
Net income (loss) applicable to Morgan Stanley	$	430		$	326		$	150			32	%		187	%	$	1,011		$	579			75	%

Return on average common equity
from continuing operations		13	%		5	%		5	%								9	%		5	%
Pre-tax profit margin (2)		19	%		19	%		8	%								18	%		11	%
Compensation and benefits as a % of net revenues		58	%		58	%		61	%								58	%		61	%

Notes:	-	Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure to assess operating performance.
	-	The quarter and nine months ended September 30, 2012, included non-recurring costs of $193 million related to the Wealth Management integration and the purchase of an additional 14% stake in the
		Morgan Stanley Smith Barney Joint Venture.
	-	For the nine months ended September 30, 2012, discontinued operations included a pre-tax gain of $108 million and other operating income related to the sale of Quilter.
	-	In the quarter ended June 30, 2013, the return on average common equity included a negative adjustment related to the purchase of the remaining 35% interest in the
		Morgan Stanley Smith Barney Joint Venture. This adjustment was included in the numerator for the purposes of calculating the return on average common equity. Excluding this negative
		adjustment, the return on average common equity would have been 10% and 10% for the quarter ended June 30, 2013 and the nine months ended September 30, 2013, respectively.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Wealth Management
(unaudited)



	Quarter Ended									Percentage Change From:
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012


Wealth Management representatives		16,517			16,321			16,378			1	%		1	%

Annualized revenue per representative (000's) (1)	$	848		$	866		$	785			(2	%)		8	%

Assets by client segment (billions)
$10m or more		631			604			528			4	%		20	%
$1m - $10m		741			720			699			3	%		6	%
Subtotal - > $1m		1,372			1,324			1,227			4	%		12	%
$100k - $1m		411			410			418			--			(2	%)
< $100k		42			44			46			(5	%)		(9	%)
Total client assets (billions)	$	1,825		$	1,778		$	1,691			3	%		8	%

% of assets by client segment > $1m		75	%		74	%		73	%

Fee-based client account assets (billions) (2)	$	652		$	629		$	536			4	%		22	%
Fee-based assets as a % of client assets		36	%		35	%		32	%


Bank deposit program (millions)	$	129,537		$	126,879		$	117,552			2	%		10	%

Client assets per representative (millions) (3)	$	110		$	109		$	103			1	%		7	%

Fee based asset flows (billions)	$	15.0		$	10.0		$	6.8			50	%		121	%

Retail locations		650			676			709			(4	%)		(8	%)

Notes:	-	For the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012, approximately $94 billion, $70 billion and $60 billion, respectively, of the assets in the bank deposit program are attributable to Morgan Stanley.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Investment Management Income Statement Information
(unaudited, dollars in millions)


	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change
Revenues:
Investment banking	$	1		$	1		$	4			--			(75	%)	$	7		$	12			(42	%)
Trading		(21	)		53			(17	)		*			(24	%)		26			(26	)		*
Investments (1)		387			135			212			187	%		83	%		715			360			99	%
Commissions and fees		0			0			0			--			--			0			0			--
Asset management, distribution and admin. fees		450			473			437			(5	%)		3	%		1,378			1,256			10	%
Other		11			12			(1	)		(8	%)		*			25			39			(36	%)
Total non-interest revenues		828			674			635			23	%		30	%		2,151			1,641			31	%

Interest income		2			3			2			(33	%)		--			7			7			--
Interest expense		2			4			6			(50	%)		(67	%)		12			28			(57	%)
Net interest		0			(1	)		(4	)		*			*			(5	)		(21	)		76	%
Net revenues		828			673			631			23	%		31	%		2,146			1,620			32	%

Compensation and benefits		332			297			241			12	%		38	%		888			673			32	%
Non-compensation expenses		196			216			192			(9	%)		2	%		611			578			6	%
Total non-interest expenses		528			513			433			3	%		22	%		1,499			1,251			20	%

Income (loss) from continuing operations before taxes		300			160			198			88	%		52	%		647			369			75	%
Income tax provision / (benefit) from continuing operations		101			38			44			166	%		130	%		191			88			117	%
Income (loss) from continuing operations		199			122			154			63	%		29	%		456			281			62	%
Gain (loss) from discontinued operations after tax		8			0			12			*			(33	%)		9			13			(31	%)
Net income (loss)		207			122			166			70	%		25	%		465			294			58	%
Net income applicable to redeemable noncontrolling interests (1)		0			0			0			--			--			-			-			--
Net income applicable to nonredeemable noncontrolling interests (1)		64			21			50			*			28	%		136			138			(1	%)
Net income (loss) applicable to Morgan Stanley	$	143		$	101		$	116			42	%		23	%	$	329		$	156			111	%

Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations		135			101			104			34	%		30	%		320			143			124	%
Gain (loss) from discontinued operations after tax		8			0			12			*			(33	%)		9			13			(31	%)
Net income (loss) applicable to Morgan Stanley	$	143		$	101		$	116			42	%		23	%	$	329		$	156			111	%

Return on average common equity
from continuing operations		19	%		14	%		17	%								15	%		8	%
Pre-tax profit margin (2)		36	%		24	%		31	%								30	%		23	%
Compensation and benefits as a % of net revenues		40	%		44	%		38	%								41	%		42	%

Notes:	-	Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure to assess operating performance.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Investment Management
(unaudited)

	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sept 30, 2013			June 30, 2013			Sept 30, 2012			June 30, 2013			Sept 30, 2012			Sept 30, 2013			Sept 30, 2012			Change

Net Revenues (millions)
Traditional Asset Management	$	369		$	419		$	372			(12	%)		(1	%)	$	1,189		$	1,051			13	%
Real Estate Investing (1)		233			140			125			66	%		86	%		530			393			35	%
Merchant Banking		226			114			134			98	%		69	%		427			176			143	%
Total Investment Management	$	828		$	673		$	631			23	%		31	%	$	2,146		$	1,620			32	%

Assets under management or supervision (billions)

Net flows by asset class (2)
Traditional Asset Management
Equity	$	-		$	0.2		$	(1.8	)		*			*		$	-		$	(1.5	)		*
Fixed Income		(2.5	)		(1.8	)		(3.4	)		(39	%)		26	%		(2.5	)		(4.5	)		44	%
Liquidity		3.9			11.2			15.9			(65	%)		(75	%)		10.1			28.6			(65	%)
Alternatives		0.5			0.5			0.3			--			67	%		1.5			1.0			50	%
Total Traditional Asset Management		1.9			10.1			11.0			(81	%)		(83	%)		9.1			23.6			(61	%)

Real Estate Investing		(0.3	)		(0.7	)		(0.2	)		57	%		(50	%)		(1.0	)		0.5			*
Merchant Banking		0.2			0.4			0.0			(50	%)		*			1.0			0.0			*
Total net flows	$	1.8		$	9.8		$	10.8			(82	%)		(83	%)	$	9.1		$	24.1			(62	%)

Assets under management or supervision by asset class (3)
Traditional Asset Management
Equity	$	133		$	125		$	117			6	%		14	%
Fixed Income		58			59			57			(2	%)		2	%
Liquidity		110			106			102			4	%		8	%
Alternatives		30			29			27			3	%		11	%
Total Traditional Asset Management		331			319			303			4	%		9	%

Real Estate Investing		20			20			19			--			5	%
Merchant Banking		9			8			9			13	%		--
Total Assets Under Management or Supervision	$	360		$	347		$	331			4	%		9	%
Share of minority stake assets		6			6			5			--			20	%

Notes:	-	The alternatives asset class includes a range of investment products such as funds of hedge funds, funds of private equity funds and funds of real estate funds.
	-	The share of minority stake assets represents Investment Management's proportional share of assets managed by entities in which it owns a minority stake.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

MORGAN STANLEY
Quarterly Financial Information
Loans and Lending Commitments
(unaudited, dollars in billions)


	Quarter Ended						Percentage Change From:
	Sept 30, 2013		June 30, 2013		Sept 30, 2012		June 30, 2013			Sept 30, 2012

Institutional Securities

Corporate Funded Loans
Loans held for investment, net of allowance	$	7.3	$	6.6	$	5.0		11	%		46	%
Loans held for sale		4.5		5.5		2.6		(18	%)		73	%
Loans held at fair value (1)		3.9		4.5		10.7		(13	%)		(64	%)
Total corporate funded loans	$	15.7	$	16.6	$	18.3		(5	%)		(14	%)

Corporate Lending Commitments
Loans held for investment	$	55.7	$	51.3	$	35.4		9	%		57	%
Loans held for sale		11.0		12.3		7.8		(11	%)		41	%
Loans held at fair value (2)		13.1		16.3		32.3		(20	%)		(59	%)
Total corporate lending commitments	$	79.8	$	79.9	$	75.5		--			6	%

Corporate Loans and Lending Commitments (3) (4)	$	95.5	$	96.5	$	93.8		(1	%)		2	%

Other Funded Loans
Loans held for investment, net of allowance	$	3.1	$	2.1	$	1.0		48	%		*
Loans held for sale		0.1		0.0		0.0		*			*
Loans held at fair value		9.6		9.7		8.8		(1	%)		9	%
Total other funded loans	$	12.8	$	11.8	$	9.8		8	%		31	%

Other Lending Commitments
Loans held for investment	$	0.9	$	0.5	$	0.2		80	%		*
Loans held for sale		0.0		0.0		0.0		--			--
Loans held at fair value		1.6		1.2		1.4		33	%		14	%
Total other lending commitments	$	2.5	$	1.7	$	1.6		47	%		56	%

Total Other Loans and Lending Commitments (5)	$	15.3	$	13.5	$	11.4		13	%		34	%

Institutional Securities Loans and Lending Commitments (3)	$	110.8	$	110.0	$	105.2		1	%		5	%


Wealth Management

Funded Loans
Loans held for investment, net of allowance	$	22.6	$	20.2	$	15.6		12	%		45	%
Loans held for sale		0.1		0.1		0.1		--			--
Total funded loans	$	22.7	$	20.3	$	15.7		12	%		45	%

Lending Commitments
Loans held for investment	$	3.9	$	4.4	$	2.5		(11	%)		56	%
Loans held for sale		0.0		0.2		0.2		*			*
Total lending commitments	$	3.9	$	4.6	$	2.7		(15	%)		44	%

Wealth Management Loans and Lending Commitments (6)	$	26.6	$	24.9	$	18.4		7	%		45	%

Firm Loans and Lending Commitments	$	137.4	$	134.9	$	123.6		2	%		11	%

- Refer to End Notes on pages 15-17 and Legal Notice on page 18.

This page represents an addendum to the 3Q 2013 Financial Supplement, Appendix I


MORGAN STANLEY
Country Risk Exposure - European Peripherals and France
As of September 30, 2013
(unaudited, dollars in millions)



				Net									Exposure
	Net			Counterparty			Funded		Unfunded		CDS		Before
	Inventory (1)			Exposure (2) (3)			Lending		Commitments		Adjustment (4)		Hedges			Hedges (5)			Net Exposure
Greece
Sovereigns	$	11		$	49		$	-	$	-	$	-	$	60		$	-		$	60
Non-sovereigns		50			9			-		-		-		59			(44	)		15
Sub-total		61			58			-		-		-		119			(44	)		75
Ireland
Sovereigns		54			2			-		-		5		61			36			97
Non-sovereigns		151			20			-		-		12		183			(7	)		176
Sub-total		205			22			-		-		17		244			29			273
Italy
Sovereigns		733			246			-		-		498		1,477			(210	)		1,267
Non-sovereigns		243			466			270		964		97		2,040			(426	)		1,614
Sub-total		976			712			270		964		595		3,517			(636	)		2,881
Spain
Sovereigns		261			8			-		-		17		286			9			295
Non-sovereigns		(284	)		353			97		1,091		142		1,399			(358	)		1,041
Sub-total		(23	)		361			97		1,091		159		1,685			(349	)		1,336
Portugal
Sovereigns		(209	)		(1	)		-		-		46		(164	)		-			(164	)
Non-sovereigns		(65	)		22			100		-		31		88			(4	)		84
Sub-total		(274	)		21			100		-		77		(76	)		(4	)		(80	)
Total Euro Peripherals (6)
Sovereigns		850			304			-		-		566		1,720			(165	)		1,555
Non-sovereigns		95			870			467		2,055		282		3,769			(839	)		2,930
Sub-total	$	945		$	1,174		$	467	$	2,055	$	848	$	5,489		$	(1,004	)	$	4,485

France (6)
Sovereigns		(266	)		12			-		-		34		(220	)		(237	)		(457	)
Non-sovereigns		(560	)		3,117			199		2,021		133		4,910			(616	)		4,294
Sub-total	$	(826	)	$	3,129		$	199	$	2,021	$	167	$	4,690		$	(853	)	$	3,837

Notes:	-	Country risk exposure is measured in accordance with the Firm’s internal risk management standards and includes obligations from sovereign and non-sovereigns, which includes governments, corporations, clearinghouses and financial institutions.
	-	Refer to End Notes on pages 15-17 and Legal Notice on page 18.

This page represents an addendum to the 3Q 2013 Financial Supplement, Appendix II


MORGAN STANLEY
Earnings Per Share Calculation Under Two-Class Method
Three Months Ended September 30, 2013
(unaudited, in millions, except for per share data)




	Allocation of net income from continuing operations
	(A)	(B)	(C)	(D)	(E)	(F)		(G)
						(D)+(E)		(F)/(A)
	Weighted Average # of Shares	% Allocation (2)	Net income from continuing operations applicable to Morgan Stanley (3)	Distributed Earnings (4)	Undistributed Earnings (5)	Total Earnings Allocated		Basic EPS (8)
Basic Common Shares	1,909	100%		$95	$767	$862	(6)	$0.45
Participating Restricted Stock Units (1)	4	0%		$0	$2	$2	(7)	N/A
	1,913	100%	$864	$95	$769	$864


	Allocation of gain (loss) from discontinued operations
	(A)	(B)	(C)	(D)	(E)	(F)		(G)
						(D)+(E)		(F)/(A)
	Weighted Average # of Shares	% Allocation (2)	Gain (loss) from Discontinued Operations Applicable to Common Shareholders, after Tax (3)	Distributed Earnings (4)	Undistributed Earnings (5)	Total Earnings Allocated		Basic EPS (8)
Basic Common Shares	1,909	100%		$0	$18	$18	(6)	$0.01
Participating Restricted Stock Units (1)	4	0%		$0	$0	$0	(7)	N/A
	1,913	100%	$18	$0	$18	$18


	Allocation of net income applicable to common shareholders
	(A)	(B)	(C)	(D)	(E)	(F)		(G)
						(D)+(E)		(F)/(A)
	Weighted Average # of Shares	% Allocation (2)	Net income applicable to Morgan Stanley (3)	Distributed Earnings (4)	Undistributed Earnings (5)	Total Earnings Allocated		Basic EPS (8)
Basic Common Shares	1,909	100%		$95	$785	$880	(6)	$0.46
Participating Restricted Stock Units (1)	4	0%		$0	$2	$2	(7)	N/A
	1,913	100%	$882	$95	$787	$882

__________________________________

Note:

Refer to End Notes on pages 15-17 and Legal Notice on page 18.


	MORGAN STANLEY
	End Notes

Page 1:
(1)	From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls,
	financial presentations and otherwise. For these purposes, “GAAP” refers to generally accepted accounting principles in the United States. The
	Securities and Exchange Commission (SEC) 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 GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information
	to investors in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition and operating results.
	These measures are not in accordance with, or a substitute for 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 present the most directly comparable financial measure
	calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we
	reference and such comparable GAAP financial measure.
(2)	Income (loss) applicable to Morgan Stanley represents income (loss) from continuing operations, adjusted for the portion of net income (loss) applicable
	to noncontrolling interests related to continuing operations. For the quarter and nine months ended September 30, 2012 net income (loss) applicable to noncontrolling
	interests included $17 million and $26 million respectively, reported as a gain in discontinued operations.
(3)	The return on average common equity equals income applicable to Morgan Stanley less preferred dividends as a percentage of average common equity.
	The return on average common equity excluding DVA is adjusted for DVA in the numerator and denominator. For the quarter ended June 30, 2013 and nine months
	ended September 30, 2013, the Firm included a negative adjustment of approximately $151 million (net of tax) to reflect the difference between the purchase price
	of the 35% redeemable noncontrolling interest in the Morgan Stanley Smith Barney Joint Venture and its carrying value.
(4)	Tier 1 common capital ratio equals Tier 1 common equity divided by risk-weighted assets (RWAs).
(5)	Tier 1 capital ratio equals Tier 1 capital divided by RWAs.
(6)	Book value per common share equals common equity divided by period end common shares outstanding.
(7)	Tangible book value per common share equals tangible common equity divided by period end common shares outstanding.

Page 2:
(1)	For the nine months ended September 30, 2012, discontinued operations included operating results related to Saxon (reported in the Institutional Securities business
	segment) and a pre-tax gain of $108 million and other operating income related to the sale of Quilter & Co. Ltd. (Quilter) (reported in the Wealth Management
	business segment).
(2)	On June 28, 2013, the Firm completed the purchase of the remaining 35% interest in the Morgan Stanley Smith Barney Joint Venture from Citigroup Inc. (Citi), increasing
	the Firm's interest from 65% to 100%. During the quarter ended September 30, 2012, Morgan Stanley completed the purchase of an additional 14% stake in Morgan
	Stanley Smith Barney Joint Venture from Citi, increasing the Firm’s interest from 51% to 65%. Prior to September 17, 2012, Citi’s results related to its 49% interest
	were reported in net income (loss) applicable to nonredeemable noncontrolling interests. Due to the terms of the revised agreement with Citi, subsequent to the
	purchase of the additional 14% stake, Citi’s results related to the 35% interest are reported in net income (loss) applicable to redeemable noncontrolling interests.
(3)	Pre-tax profit margin percentages represent income from continuing operations before income taxes as a percentage of net revenues.

Page 4:
(1)	Reflects the regional view of the Firm's consolidated net revenues, on a managed basis. Further discussion regarding the geographic methodology for net
	revenues is disclosed in Note 19 to the consolidated financial statements included in the Firm's 10-Q for the quarter ended June 30, 2013.
(2)	The Firm calculates its Tier 1 capital, Tier 1 capital ratios and risk-weighted assets (“RWAs”) in accordance with the capital adequacy standards for financial
	holding companies adopted by the Federal Reserve Board. These standards are based upon a framework described in the International Convergence of Capital
	Measurement and Capital Standards, July 1988, as amended, also referred to as Basel I. On January 1, 2013, the U.S. banking regulators’ rules to implement
	the Basel Committee’s market risk capital framework, commonly referred to as “Basel 2.5”, became effective, which increases capital requirements for
	securitizations and correlation trading within the Firm's trading book, as well as incorporating add-ons for stressed VaR and incremental risk requirement.
	The Firm's Tier 1 capital, Tier 1 capital ratios and RWAs for the quarters ended September 30, 2013 and June 30, 2013 were calculated under this revised framework.
	The Firm's Tier 1 capital, Tier 1 capital ratios and RWAs for prior quarters have not been recalculated under this revised framework. Further discussion of Tier 1 capital,
	Tier 1 common capital and RWAs is disclosed in Part I, Item 2 "Regulatory Requirements" included in the Firm's 2Q 2013 Form 10-Q. These computations are
	preliminary estimates as of October 18, 2013 (the date of this release) and could be subject to revision in Morgan Stanley’s Quarterly Report on Form 10-Q for the
	quarter ended September 30, 2013.
(3)	The global liquidity reserve, which is held within the bank and non-bank operating subsidiaries, is comprised of highly liquid and diversified cash and
	cash equivalents and unencumbered securities. Eligible unencumbered securities include U.S. government securities, U.S. agency securities, U.S.
	agency mortgage-backed securities, FDIC-guaranteed corporate debt and non-U.S. government securities.
(4)	The Firm's interest in the Morgan Stanley Smith Barney Joint Venture for the quarters ended September 30, 2013 and June 30, 2013 was 100% and for the
	quarter ended September 30, 2012 was 65%. Goodwill and intangible balances included only the Firm's share of the Morgan Stanley Smith Barney Joint
	Venture's goodwill and intangible assets, net of allowable mortgage servicing rights deduction for quarters ended September 30, 2013, June 30, 2013 and
	September 30, 2012 of $7 million, $8 million and $6 million, respectively.
(5)	Tangible common equity equals common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction and includes only
	the Firm’s share of the Morgan Stanley Smith Barney Joint Venture’s goodwill and intangible assets. The Firm's interest in the Morgan Stanley Smith Barney
	Joint Venture for the quarters ended September 30, 2013 and June 30, 2013 was 100% and for the quarter ended September 30, 2012 was 65%.
(6)	Tier 1 leverage ratio equals Tier 1 capital divided by adjusted average total assets (which reflects adjustments for disallowed goodwill, certain intangible
	assets, deferred tax assets and financial and non-financial equity investments).

MORGAN STANLEY

End Notes


Page 5:
(1)	The Firm’s capital estimation is based on the Required Capital framework, an internal capital adequacy measure which considers a risk-based
	going concern capital after absorbing potential losses from extreme stress events at a point in time. Further discussion of the framework is disclosed in
	Part I, Item 2 "Required Capital" included in the Firm's 2Q 2013 Form 10-Q. On January 1, 2013, the U.S. banking regulators’ rules to implement the Basel
	Committee’s market risk capital framework, commonly referred to as “Basel 2.5”, became effective, which increased capital requirements for securitizations
	and correlation trading within the Company's trading book, as well as incorporating add-ons for stressed VaR and incremental risk requirement.

Page 6:
(1)	Net income applicable to noncontrolling interests primarily represents the allocation to MUFG of Morgan Stanley MUFG Securities Co., Ltd, which the Firm
	consolidates.
(2)	Pre-tax profit margin percentages represent income from continuing operations before income taxes as a percentage of net revenues.

Page 7:
(1)	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 Part II, Item 7A "Quantitative and Qualitative Disclosures about Market Risk" included in the
	Firm's 2012 Form 10-K.

Page 8:
(1)	On June 28, 2013, the Firm completed the purchase of the remaining 35% interest in the Morgan Stanley Smith Barney Joint Venture from Citigroup Inc. (Citi),
	increasing the Firm's interest from 65% to 100%. During the quarter ended September 30, 2012, Morgan Stanley completed the purchase of an additional 14%
	stake in the Morgan Stanley Smith Barney Joint Venture from Citi, increasing the Firm’s interest from 51% to 65%. Due to the terms of the revised agreement
	with Citi, subsequent to the purchase of the additional 14% stake, Citi’s results related to the 35% interest are reported in net income (loss) applicable to
	redeemable noncontrolling interests.
(2)	Pre-tax profit margin percentages represent income from continuing operations before income taxes as a percentage of net revenues.

Page 9:
(1)	Annualized revenue per representative is defined as annualized revenue divided by average representative headcount.
(2)	Fee-based client account assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
(3)	Client assets per representative represents total client assets divided by period end representative headcount.

Page 10:
(1)	The quarters ended September 30, 2013, June 30, 2013 and September 30, 2012 include investment gains (losses) for certain funds included in
	the Firm's consolidated financial statements. The limited partnership interests in these gains were reported in net income (loss) applicable to
	noncontrolling interests.
(2)	Pre-tax profit margin percentages represent income from continuing operations before income taxes as a percentage of net revenues.

Page 11:
(1)	Real Estate Investing revenues include gains or losses related to investments held by certain consolidated real estate funds.
	These gains or losses are offset in net income (loss) applicable to noncontrolling interest. The investment gains (losses) for the quarters
	ended September 30, 2013, June 30, 2013 and September 30, 2012 are $67 million, $21 million and $51 million, respectively.
(2)	Net Flows by region [inflow / (outflow)] for the quarters ended September 30, 2012, June 30, 2013 and September 30, 2012 are:
	North America: $3.8 billion, $7.4 billion and $9.1 billion
	International: $(2.0) billion, $2.4 billion and $1.7 billion
(3)	Assets under management or supervision by region for the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012 are:
	North America: $230 billion, $219 billion and $212 billion
	International: $130 billion, $128 billion and $119 billion

Page 12:
(1)	For the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012 the percentage of Institutional Securities corporate funded loans held at fair
	value by credit rating was as follows:
	- % investment grade: 53%, 53% and 43%
	- % non-investment grade: 47%, 47% and 57%
(2)	For the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012 the percentage of Institutional Securities corporate lending commitments held at
	fair value by credit rating was as follows:
	- % investment grade: 76%, 74% and 75%
	- % non-investment grade: 24%, 26% and 25%
(3)	For the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012, Institutional Securities recorded $40.5 million, $6.0 million and $30.9 million,
	respectively, related to the provision for funded loans and $13.4 million, $16.8 million and $33.4 million related to the provision for unfunded commitments, respectively.
(4)	On September 30, 2013, June 30, 2013 and September 30, 2012, the "event-driven" portfolio of pipeline commitments and closed deals to non-investment grade
	borrowers were $7.6 billion, $10.3 billion and $6.5 billion, respectively.
(5)	In addition to primary corporate lending activity, the Institutional Securities business segment engages in other lending activity. These loans include corporate
	loans purchased in the secondary market, commercial and residential mortgage loans, asset-backed loans and financing extended to equities and
	commodities customers.
(6)	For the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012, Wealth Management recorded $0.6 million, $1 million and $0.7 million,
	respectively, related to the provision for funded loans and there was no material provision recorded related to the unfunded commitments for each of the quarterly
	periods presented.

MORGAN STANLEY

End Notes


Page 13:
(1)	Net inventory represents exposure to both long and short single-name and index positions (i.e., bonds and equities at fair value and CDS
	based on notional amount assuming zero recovery adjusted for any fair value receivable or payable). At September 30, 2013, net exposures related to
	purchased and sold single-name and index credit derivatives for the European Peripherals and France were $(111) million and $(1,403) million, respectively.
(2)	Net counterparty exposure (i.e., repurchase transactions, securities lending and OTC derivatives) takes into consideration legally enforceable
	master netting agreements and collateral.
(3)	At September 30, 2013, the benefit of collateral received against counterparty credit exposure was $3.8 billion in the European Peripherals with 93% of
	collateral consisting of cash and German government obligations and $5.7 billion in France with nearly all collateral consisting of cash and U.S.
	government obligations. These amounts do not include collateral received on secured financing transactions.
(4)	CDS adjustment represents credit protection purchased from European Peripherals’ banks on European Peripherals’ sovereign and financial
	institution risk or French banks on French sovereign and financial institution risk. Based on the CDS notional amount assuming zero recovery
	adjusted for any fair value receivable or payable.
(5)	Represents CDS hedges (purchased and sold) on net counterparty exposure and funded lending executed by trading desks responsible for
	hedging counterparty and lending credit risk exposures for the Firm. Based on the CDS notional amount assuming zero recovery adjusted
	for any fair value receivable or payable.
(6)	In addition, at September 30, 2013, the Firm had European Peripherals and French exposure for overnight deposits with banks of approximately
	$155 million and $87 million, respectively.

Page 14:
(1)	Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid)
	are participating securities and are included in the computation of EPS pursuant to the two-class method. Restricted Stock Units ("RSUs")
	that pay dividend equivalents subject to vesting are not deemed participating securities and are included in diluted shares outstanding
	(if dilutive) under the treasury stock method.
(2)	The percentage of weighted basic common shares and participating RSUs to the total weighted average of basic common shares
	and participating RSUs.
(3)	Represents net income from continuing operations, gain (loss) from discontinued operations (after-tax), and net income applicable
	to Morgan Stanley for the quarter ended September 30, 2013 prior to allocations to participating RSUs.
(4)	Distributed earnings represent the dividends declared on common shares and participating RSUs for the quarter ended September 30, 2013.
	The amount of dividends declared is based upon the number of common shares outstanding as of the dividend record date. During
	the quarter ended September 30, 2013, a $0.05 dividend was declared on common shares outstanding and participating RSUs.
(5)	The two-class method assumes all of the earnings for the reporting period are distributed and allocated to the participating RSUs
	what they would be entitled to based on their contractual rights and obligations of the participating security.
(6)	Total income applicable to common shareholders to be allocated to the common shares in calculating basic and diluted EPS for
	common shares.
(7)	Total income applicable to common shareholders to be allocated to the participating RSUs reflected as a deduction to the numerator in
	determining basic and diluted EPS for common shares.
(8)	Basic and diluted EPS data are required to be presented only for classes of common stock, as described under the accounting guidance
	for earnings per share.

MORGAN STANLEY

Legal Notice

This Financial Supplement contains financial, statistical and business-related information, as well as business and segment trends.

The information should be read in conjunction with the Firm's third quarter earnings press release issued October 18, 2013.

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MORGAN STANLEY
Financial Supplement - 3Q 2013
Table of Contents
Page #

1	…………….	Quarterly Financial Summary
2	…………….	Quarterly Consolidated Income Statement Information
3	…………….	Quarterly Earnings Per Share Summary
4 - 5	…………….	Quarterly Consolidated Financial Information and Statistical Data
6	…………….	Quarterly Institutional Securities Income Statement Information
7	…………….	Quarterly Institutional Securities Financial Information and Statistical Data
8	…………….	Quarterly Wealth Management Income Statement Information
9	…………….	Quarterly Wealth Management Financial Information and Statistical Data
10	…………….	Quarterly Investment Management Income Statement Information
11	…………….	Quarterly Investment Management Financial Information and Statistical Data
12	…………….	Quarterly Firm Loans and Lending Commitments Financial Information
13	…………….	Country Risk Exposure - European Peripherals and France Appendix I
14	…………….	Earnings Per Share Appendix II
15 - 17	…………….	End Notes
18	…………….	Legal Notice