Regulatory Requirements (Tables)

9 Months Ended

Sep. 30, 2022

Regulatory Requirements

Schedule of Regulatory Capital and Capital Ratios

Capital Buffer Requirements

	At September 30, 2022 and December 31, 2021
	Standardized	Advanced
Capital buffers
Capital conservation buffer	—	2.5%
SCB	5.7%	N/A
G-SIB capital surcharge	3.0%	3.0%
CCyB1	0%	0%
Capital buffer requirement	8.7%	5.5%

1.The CCyB can be set up to 2.5%, but is currently set by the Federal Reserve at zero.

Risk-Based Regulatory Capital Ratio Requirements

	Regulatory Minimum		At September 30, 2022 and December 31, 2021
			Standardized	Advanced
Required ratios1
Common Equity Tier 1 capital ratio	4.5	%	13.2%	10.0%
Tier 1 capital ratio	6.0	%	14.7%	11.5%
Total capital ratio	8.0	%	16.7%	13.5%

1.Required ratios represent the regulatory minimum plus the capital buffer requirement.

The Firm’s Regulatory Capital and Capital Ratios

$ in millions	Required Ratio1		At September 30, 2022			At December 31, 2021
Risk-based capital
Common Equity Tier 1 capital			$	67,933		$	75,742
Tier 1 capital			76,428			83,348
Total capital			86,139			93,166
Total RWA			457,911			471,921
Common Equity Tier 1 capital ratio	13.2	%	14.8		%	16.0		%
Tier 1 capital ratio	14.7	%	16.7		%	17.7		%
Total capital ratio	16.7	%	18.8		%	19.7		%
$ in millions	Required Ratio1		At September 30, 2022			At December 31, 2021
Leverage-based capital
Adjusted average assets2			$	1,154,411		$	1,169,939
Tier 1 leverage ratio	4.0	%	6.6		%	7.1		%
Supplementary leverage exposure3			$	1,406,345		$	1,476,962
SLR	5.0	%	5.4		%	5.6		%

1.Required ratios are inclusive of any buffers applicable as of the date presented.

2.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in the Firm’s own capital instruments, certain defined tax assets and other capital deductions.

3.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection, offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.

MSBNA

Regulatory Requirements

Schedule of Regulatory Capital and Capital Ratios

MSBNA’s Regulatory Capital

	Well-Capitalized Requirement		Required Ratio1		At September 30, 2022				At December 31, 2021
$ in millions					Amount		Ratio		Amount		Ratio
Risk-based capital
Common Equity Tier 1 capital	6.5	%	7.0	%	$	18,758	19.5	%	$	18,960	20.5	%
Tier 1 capital	8.0	%	8.5	%	18,758		19.5	%	18,960		20.5	%
Total capital	10.0	%	10.5	%	19,335		20.1	%	19,544		21.1	%
Leverage-based capital
Tier 1 leverage	5.0	%	4.0	%	$	18,758	9.6	%	$	18,960	10.2	%
SLR	6.0	%	3.0	%	18,758		7.6	%	18,960		8.1	%

MSPBNA

Regulatory Requirements

Schedule of Regulatory Capital and Capital Ratios

MSPBNA’s Regulatory Capital

	Well-Capitalized Requirement		Required Ratio1		At September 30, 20222				At December 31, 2021
$ in millions					Amount		Ratio		Amount		Ratio
Risk-based capital
Common Equity Tier 1 capital	6.5	%	7.0	%	$	16,134	29.0	%	$	10,293	24.3	%
Tier 1 capital	8.0	%	8.5	%	16,134		29.0	%	10,293		24.3	%
Total capital	10.0	%	10.5	%	16,261		29.2	%	10,368		24.5	%
Leverage-based capital
Tier 1 leverage	5.0	%	4.0	%	$	16,134	8.1	%	$	10,293	6.9	%
SLR	6.0	%	3.0	%	16,134		7.9	%	10,293		6.7	%

1.Required ratios are inclusive of any buffers applicable as of the date presented. Failure to maintain the buffers would result in restrictions on the ability to make capital distributions, including the payment of dividends.

2.Regulatory capital amounts and ratios as of September 30, 2022 include the amounts from E*TRADE Bank (“ETB”) and E*TRADE Savings Bank (“ETSB”) as a result of the merger described herein.

MS&Co.

Regulatory Requirements

Schedule of Broker-Dealer Regulatory Capital Requirements

MS&Co. Regulatory Capital

$ in millions	At September 30, 2022		At December 31, 2021
Net capital	$	14,886	$	18,383
Excess net capital	10,405		14,208