EX-99.2 3 a50611759_ex99-2.htm EXHIBIT 99.2 a50611759_ex99-2.htm
 
Exhibit 99.2
 
GRAPHIC
MORGAN STANLEY
Financial Supplement - 1Q 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 - 8
 
…………….
Quarterly Institutional Securities Financial Information and Statistical Data
9
 
…………….
Quarterly Global Wealth Management Group Income Statement Information
10
 
…………….
Quarterly Global Wealth Management Group Financial Information and Statistical Data
11
 
…………….
Quarterly Asset Management Income Statement Information
12
 
…………….
Quarterly Asset Management Financial Information and Statistical Data
13
 
…………….
Country Risk Exposure - European Peripherals and France Appendix I
14
 
…………….
Earnings Per Share Appendix II
15 - 17
 
…………….
End Notes
18
 
…………….
Legal Notice
 
 
 
 

 
 
GRAPHIC
MORGAN STANLEY
Quarterly Financial Summary (1)
(unaudited, dollars in millions)
                               
                               
                               
   
Quarter Ended
 
Percentage Change From:
   
Mar 31, 2013
 
Dec 31, 2012
 
Mar 31, 2012
 
Dec 31, 2012
 
Mar 31, 2012
Net revenues
                             
   Institutional Securities
  $ 4,089     $ 3,087     $ 3,135       32 %     30 %
   Global Wealth Management Group
    3,470       3,325       3,291       4 %     5 %
   Asset Management
    645       599       533       8 %     21 %
   Intersegment Eliminations
    (46 )     (45 )     (35 )     (2 %)     (31 %)
   Consolidated net revenues
  $ 8,158     $ 6,966     $ 6,924       17 %     18 %
                                         
Income (loss) from continuing operations before tax
                                 
   Institutional Securities
  $ 830     $ 76     $ (329 )     *       *  
   Global Wealth Management Group
    597       562       403       6 %     48 %
   Asset Management
    187       221       128       (15 %)     46 %
   Intersegment Eliminations
    0       0       0       --       --  
   Consolidated income (loss) from continuing operations before tax
  $ 1,614     $ 859     $ 202       88 %     *  
                                         
Income (loss) applicable to Morgan Stanley (2)  
                                       
   Institutional Securities
  $ 663     $ 401     $ (302 )     65 %     *  
   Global Wealth Management Group
    256       266       198       (4 %)     29 %
   Asset Management
    84       (7 )     25       *       *  
   Intersegment Eliminations
    0       0       0       --       --  
   Consolidated income (loss) applicable to Morgan Stanley
  $ 1,003     $ 660     $ (79 )     52 %     *  
                                         
                                         
Financial Metrics:
                                       
   Return on average common equity
                                       
   from continuing operations (3)
    6.4 %     4.2 %     *                  
   Return on average common equity (3)
    6.3 %     3.8 %     *                  
                                         
   Return on average common equity
                                       
   from continuing operations excluding DVA (3)
    7.6 %     6.3 %     9.2 %                
   Return on average common equity excluding DVA (3)
    7.5 %     5.8 %     9.1 %                
                                         
   Tier 1 common capital ratio (4)
    11.5 %     14.6 %     13.3 %                
   Tier 1 capital ratio (5)
    13.9 %     17.7 %     16.9 %                
                                         
   Book value per common share (6)
  $ 31.22     $ 30.70     $ 30.74                  
   Tangible book value per common share (7)
  $ 27.39     $ 26.86     $ 27.37                  
 

 
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 March 31, 2013, December 31, 2012 and March 31, 2012, include positive (negative) revenue of $(317) million, $(511) million and $(1,978) 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, return on average common equity excluding DVA 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.
 
 
 
1

 
 
GRAPHIC
MORGAN STANLEY
Quarterly Consolidated Income Statement Information
(unaudited, dollars in millions)
                               
                               
   
Quarter Ended
 
Percentage Change From:
   
Mar 31, 2013
 
Dec 31, 2012
 
Mar 31, 2012
 
Dec 31, 2012
 
Mar 31, 2012
Revenues:
                             
      Investment banking
  $ 1,224     $ 1,439     $ 1,063       (15 %)     15 %
      Trading     2,694       1,513       2,402       78 %     12 %
      Investments
    338       304       85       11 %     *  
      Commissions and fees
    1,168       1,052       1,177       11 %     (1 %)
      Asset management, distribution and admin. fees
    2,346       2,331       2,152       1 %     9 %
      Other     203       152       104       34 %     95 %
            Total non-interest revenues
    7,973       6,791       6,983       17 %     14 %
                                         
      Interest income
    1,398       1,481       1,542       (6 %)     (9 %)
      Interest expense
    1,213       1,306       1,601       (7 %)     (24 %)
            Net interest
    185       175       (59 )     6 %     *  
                  Net revenues
    8,158       6,966       6,924       17 %     18 %
                                         
Non-interest expenses:
                                       
      Compensation and benefits
    4,216       3,633       4,430       16 %     (5 %)
                                         
      Non-compensation expenses:
                                       
            Occupancy and equipment
    379       394       388       (4 %)     (2 %)
            Brokerage, clearing and exchange fees
    428       369       403       16 %     6 %
            Information processing and communications
    448       474       459       (5 %)     (2 %)
            Marketing and business development
    134       163       146       (18 %)     (8 %)
            Professional services
    440       558       412       (21 %)     7 %
            Other     499       516       484       (3 %)     3 %
                  Total non-compensation expenses 
    2,328       2,474       2,292       (6 %)     2 %
                                         
                        Total non-interest expenses
    6,544       6,107       6,722       7 %     (3 %)
                                         
Income (loss) from continuing operations before taxes
    1,614       859       202       88 %     *  
      Income tax provision / (benefit) from continuing operations   (1)(2)
    342       8       54       *       *  
Income (loss) from continuing operations
    1,272       851       148       49 %     *  
Gain (loss) from discontinued operations after tax   (3)
    (19 )     (63 )     (14 )     70 %     (36 %)
Net income (loss)
  $ 1,253     $ 788     $ 134       59 %     *  
      Net income applicable to redeemable noncontrolling interests
    122       116       0       5 %     *  
      Net income applicable to nonredeemable noncontrolling interests
    147       78       228       88 %     (36 %)
Net income (loss) applicable to Morgan Stanley
    984       594       (94 )     66 %     *  
Preferred stock dividend / Other
    26       26       25       --       4 %
Earnings (loss) applicable to Morgan Stanley common shareholders
  $ 958     $ 568     $ (119 )     69 %     *  
                                         
Amounts applicable to Morgan Stanley:
                                       
Income (loss) from continuing operations
    1,003       660       (79 )     52 %     *  
Gain (loss) from discontinued operations after tax
    (19 )     (66 )     (15 )     71 %     (27 %)
Net income (loss) applicable to Morgan Stanley
  $ 984     $ 594     $ (94 )     66 %     *  
                                         
Pre-tax profit margin (4)
    20 %     12 %     3 %                
Compensation and benefits as a % of net revenues
    52 %     52 %     64 %                
Non-compensation expenses as a % of net revenues
    29 %     36 %     33 %                
Effective tax rate from continuing operations
    21.2 %     0.9 %     26.7 %                
 

Notes:
-
Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure to assess operating performance.
  -
For the quarter ended March 31, 2013, the income tax provision from continuing operations included a net tax benefit of approximately $142 million consisting of a discrete net tax benefit from the remeasurement of reserves and related interest and a benefit resulting from a retroactive change in U.S. tax law (reported in the Institutional Securities business segment).
  -
For the quarter ended December 31, 2012, the income tax provision from continuing operations included a net tax benefit of approximately $224 million consisting of a discrete benefit from remeasurement of reserves and an out of period tax provision to adjust previously recorded deferred tax assets.
  -
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 Citigroup Inc. (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.
  -
Preferred stock dividend / other includes allocation of earnings to Participating Restricted Stock Units (RSUs).
  -
Refer to End Notes on pages 15-17 and Legal Notice on page 18.
 
 
 
 
2

 
 
GRAPHIC
MORGAN STANLEY
 
Quarterly Earnings Per Share
 
(unaudited, dollars in millions, except for per share data)
 
                               
                               
    Quarter Ended  
Percentage Change From:
   
Mar 31, 2013
 
Dec 31, 2012
 
Mar 31, 2012
  Dec 31, 2012  
Mar 31, 2012
                               
                               
Income (loss) from continuing operations
  $ 1,272     $ 851     $ 148       49 %     *  
                                         
     Net income applicable to redeemable noncontrolling interests
    122       116       0       5 %     *  
     Net income applicable to nonredeemable noncontrolling interests
    147       75       227       96 %     (35 %)
Net income (loss) from continuing operations applicable to noncontrolling interests
    269       191       227       41 %     19 %
Income (loss) from continuing operations applicable to Morgan Stanley
    1,003       660       (79 )     52 %     *  
Less: Preferred Dividends
    24       24       24       --       --  
Income from continuing operations applicable to Morgan Stanley, prior to allocation of income to Participating Restricted Stock Units
    979       636       (103 )     54 %     *  
                                         
Basic EPS Adjustments:
                                       
Less: Allocation of earnings to Participating Restricted Stock Units
    2       2       1       --       100 %
Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders
  $ 977     $ 634     $ (104 )     54 %     *  
                                         
Gain (loss) from discontinued operations after tax
    (19 )     (63 )     (14 )     70 %     (36 %)
Less: Gain (loss) from discontinued operations after tax applicable to noncontrolling interests
    0       3       1       *       *  
Gain (loss) from discontinued operations after tax applicable to Morgan Stanley
    (19 )     (66 )     (15 )     71 %     (27 %)
Less: Allocation of earnings to Participating Restricted Stock Units
    0       0       0       --       --  
Earnings (loss) from discontinued operations applicable to Morgan Stanley common shareholders
    (19 )     (66 )     (15 )     71 %     (27 %)
                                         
Earnings (loss) applicable to Morgan Stanley common shareholders
  $ 958     $ 568     $ (119 )     69 %     *  
                                         
Average basic common shares outstanding (millions)
    1,901       1,892       1,877       1 %     1 %
                                         
Earnings per basic share:
                                       
          Income from continuing operations
  $ 0.51     $ 0.33     $ (0.05 )     55 %     *  
          Discontinued operations
  $ (0.01 )   $ (0.03 )   $ (0.01 )     67 %     --  
Earnings per basic share
  $ 0.50     $ 0.30     $ (0.06 )     67 %     *  
                                         
Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders
  $ 977     $ 634     $ (104 )     54 %     *  
                                         
Diluted EPS Adjustments:
    --        --        --        --        --  
                                         
Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders
  $ 977     $ 634     $ (104 )     54 %     *  
                                         
Earnings (loss) from discontinued operations applicable to Morgan Stanley common shareholders
    (19 )     (66 )     (15 )     71 %     (27 %)
                                         
Earnings (loss) applicable to Morgan Stanley common shareholders
  $ 958     $ 568     $ (119 )     69 %     *  
                                         
Average diluted common shares outstanding and common stock equivalents (millions)
    1,940       1,937       1,877       --       3 %
                                         
Earnings per diluted share:
                                       
         Income from continuing operations
  $ 0.50     $ 0.33     $ (0.05 )     52 %     *  
         Discontinued operations
  $ (0.01 )   $ (0.04 )   $ (0.01 )     75 %     --  
Earnings per diluted share
  $ 0.49     $ 0.29     $ (0.06 )     69 %     *  
 

 
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 2 to the consolidated financial statements in the Firm's Annual Report on Form 10-K for the year ended December 31, 2012.
 
- Refer to Legal Notice on page 18.
 
 
 
 
3

 
 
GRAPHIC
MORGAN STANLEY
 
Quarterly Consolidated Financial Information and Statistical Data
 
(unaudited)
 
                               
                               
   
Quarter Ended
 
Percentage Change From:
   
Mar 31, 2013
 
Dec 31, 2012
 
Mar 31, 2012
 
Dec 31, 2012
 
Mar 31, 2012
                               
                               
Regional revenues (1)
                             
     Americas
  $ 5,956     $ 5,568     $ 4,784       7 %     24 %
     EMEA (Europe, Middle East, Africa)
    1,066       656       1,149       63 %     (7 %)
     Asia
    1,136       742       991       53 %     15 %
          Consolidated net revenues
  $ 8,158     $ 6,966     $ 6,924       17 %     18 %
                                         
Worldwide employees
    55,289       57,061       59,200       (3 %)     (7 %)
Global Representatives
    16,703       16,780       17,193       --       (3 %)
                                         
Firmwide deposits
  $ 80,623     $ 83,266     $ 66,441       (3 %)     21 %
Total assets
  $ 801,376     $ 780,960     $ 781,030       3 %     3 %
Risk-weighted assets (2)
  $ 403,378     $ 306,746     $ 317,528       32 %     27 %
Global Liquidity Reserve (Billions) (3)
  $ 186     $ 182     $ 179       2 %     4 %
Long-Term Debt Outstanding
  $ 165,142     $ 169,571     $ 176,723       (3 %)     (7 %)
Maturities of Long-Term Debt Outstanding (next 12 months)
  $ 22,138     $ 25,303     $ 29,458       (13 %)     (25 %)
                                         
Common equity
    61,218       60,601       60,816       1 %     1 %
Preferred equity
    1,508       1,508       1,508       --       --  
Morgan Stanley shareholders' equity
    62,726       62,109       62,324       1 %     1 %
Junior subordinated debt issued to capital trusts
    4,828       4,827       4,838       --       --  
Less: Goodwill and intangible assets (4)
    (7,509 )     (7,587 )     (6,660 )     1 %     (13 %)
Tangible Morgan Stanley shareholders' equity
  $ 60,045     $ 59,349     $ 60,502       1 %     (1 %)
Tangible common equity (5)
  $ 53,709     $ 53,014     $ 54,156       1 %     (1 %)
                                         
Leverage ratio (6)
    13.3 x     13.2 x     12.9 x                
                                         
Tier 1 common capital (2)
  $ 46,491     $ 44,794     $ 42,151       4 %     10 %
Tier 1 capital (2)
  $ 56,108     $ 54,360     $ 53,527       3 %     5 %
                                         
Tier 1 common capital ratio
    11.5 %     14.6 %     13.3 %                
Tier 1 capital ratio
    13.9 %     17.7 %     16.9 %                
Tier 1 leverage ratio (7)
    7.0 %     7.1 %     7.0 %                
                                         
Period end common shares outstanding (000's)
    1,960,583       1,974,042       1,978,338       (1 %)     (1 %)
                                         
Book value per common share
  $ 31.22     $ 30.70     $ 30.74                  
Tangible book value per common share
  $ 27.39     $ 26.86     $ 27.37                  
 

 
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”.
 
All data presented in millions except number of employees, liquidity, ratios and book values.
  -
The number of worldwide employees for all periods has been restated to exclude employees of Quilter.
  -
For the quarter ended March 31, 2013, global representatives included approximately 419 representatives associated with the International Wealth Management business reported in the Institutional Securities business segment.
  -
Tangible common equity and tangible book value per common share are non-GAAP financial measures that the Firm considers to be useful measures of  capital adequacy.
  -
Refer to End Notes on pages 15-17 and Legal Notice on page 18.
 
 
 
 
4

 
 
GRAPHIC
MORGAN STANLEY
Quarterly Consolidated Financial Information and Statistical Data
(unaudited, dollars in billions)
                               
                               
                               
   
Quarter Ended
 
Percentage Change From:
   
Mar 31, 2013
 
Dec 31, 2012
 
Mar 31, 2012
 
Dec 31, 2012
 
Mar 31, 2012
Average Tier 1 Common Capital (1)
                             
Institutional Securities
  $ 34.2     $ 22.4     $ 22.1       53 %     55 %
Global Wealth Management Group
    4.1       3.8       3.6       8 %     14 %
Asset Management
    1.6       1.3       1.3       23 %     23 %
Parent capital
    5.8       16.9       13.9       (66 %)     (58 %)
Total - continuing operations
    45.7       44.4       40.9       3 %     12 %
Discontinued operations
    0.0       0.0       0.0       --       --  
Firm
  $ 45.7     $ 44.4     $ 40.9       3 %     12 %
                                         
Average Common Equity (1)
                                       
Institutional Securities
  $ 39.9     $ 28.5     $ 29.5       40 %     35 %
Global Wealth Management Group
    13.4       13.2       13.3       2 %     1 %
Asset Management
    2.8       2.4       2.5       17 %     12 %
Parent capital
    4.8       16.3       15.2       (71 %)     (68 %)
Total - continuing operations
    60.9       60.4       60.5       1 %     1 %
Discontinued operations
    0.0       0.0       0.0       --       --  
Firm
  $ 60.9     $ 60.4     $ 60.5       1 %     1 %
                                         
Return on average Tier 1 common capital
                                 
Institutional Securities
    8 %     7 %     *                  
Global Wealth Management Group
    25 %     28 %     22 %                
Asset Management
    20 %     *       7 %                
Total - continuing operations
    9 %     6 %     *                  
Firm
    8 %     5 %     *                  
                                         
Return on average common equity
                                       
Institutional Securities
    6 %     5 %     *                  
Global Wealth Management Group
    8 %     8 %     6 %                
Asset Management
    12 %     *       4 %                
Total - continuing operations
    6 %     4 %     *                  
Firm
    6 %     4 %     *                  
 

 
Notes:
-
Effective January 2013, the Firm updated its Required Capital Framework methodology to coincide with the regulatory changes becoming effective during 2013.  As a result of this update to the methodology, the majority of which was driven by the implementation of the Basel Committee’s market risk capital framework (commonly referred to as “Basel 2.5”), parent capital decreased by approximately $11 billion with a corresponding increase allocated to the business segments at March 31, 2013.
  -
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.
  -
Refer to End Notes on pages 15-17 and Legal Notice on page 18.
 
 
 
 
5

 
 
GRAPHIC
MORGAN STANLEY
Quarterly Institutional Securities Income Statement Information
(unaudited, dollars in millions)
                               
                               
   
Quarter Ended
 
Percentage Change From:
   
Mar 31, 2013
 
Dec 31, 2012
 
Mar 31, 2012
 
Dec 31, 2012
 
Mar 31, 2012
Revenues:
                             
      Investment banking
  $ 945     $ 1,226     $ 851       (23 %)     11 %
      Trading
    2,414       1,289       2,075       87 %     16 %
      Investments
    142       148       (49 )     (4 %)     *  
      Commissions and fees
    609       520       606       17 %     --  
      Asset management, distribution and admin. fees
    66       67       52       (1 %)     27 %
      Other
    137       46       51       198 %     169 %
           Total non-interest revenues
    4,313       3,296       3,586       31 %     20 %
                                         
      Interest income
    1,024       1,099       1,177       (7 %)     (13 %)
      Interest expense
    1,248       1,308       1,628       (5 %)     (23 %)
           Net interest
    (224 )     (209 )     (451 )     (7 %)     50 %
                 Net revenues
    4,089       3,087       3,135       32 %     30 %
                                         
      Compensation and benefits 
    1,892       1,559       2,203       21 %     (14 %)
      Non-compensation expenses
    1,367       1,452       1,261       (6 %)     8 %
           Total non-interest expenses
    3,259       3,011       3,464       8 %     (6 %)
                                         
                                         
Income (loss) from continuing operations before taxes
    830       76       (329 )     *       *  
      Income tax provision / (benefit) from continuing operations
    70       (364 )     (106 )     *       *  
Income (loss) from continuing operations
    760       440       (223 )     73 %     *  
Gain (loss) from discontinued operations after tax (1)
    (19 )     (60 )     (16 )     68 %     (19 %)
Net income (loss)
    741       380       (239 )     95 %     *  
      Net income applicable to redeemable noncontrolling interests
    1       4       -       (75 %)     *  
      Net income applicable to nonredeemable noncontrolling interests
    96       38       79       153 %     22 %
Net income (loss) applicable to Morgan Stanley
  $ 644     $ 338     $ (318 )     91 %     *  
                                         
Amounts applicable to Morgan Stanley:
                                       
Income (loss) from continuing operations
    663       401       (302 )     65 %     *  
Gain (loss) from discontinued operations after tax
    (19 )     (63 )     (16 )     70 %     (19 %)
Net income (loss) applicable to Morgan Stanley
  $ 644     $ 338     $ (318 )     91 %     *  
                                         
Return on average common equity
                                       
      from continuing operations
    6 %     5 %     *                  
Pre-tax profit margin (2)
    20 %     3 %     *                  
Compensation and benefits as a % of net revenues
    46 %     51 %     70 %                
 

 
Notes:
-
Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure to assess operating performance.
  -
Results for all periods have been recast to reflect the International Wealth Management business previously reported in the Global Wealth Management Group business segment.
  -
For the quarter ended March 31, 2013, the income tax provision from continuing operations included a net tax benefit of approximately $142 million consisting of a discrete net tax benefit from the remeasurement of reserves and related interest and a benefit resulting from a retroactive change in U.S. tax law.
  -
The quarter ended December 31, 2012 included a net tax benefit of approximately $331 million, consisting of a discrete tax benefit of approximately $299 million related to the remeasurement of reserves, as well as an out of period net tax benefit of approximately $32 million to adjust previously recorded deferred tax assets. 
  -
Refer to End Notes on pages 15-17 and Legal Notice on page 18.
 
 
 
 
6

 
 
GRAPHIC
MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Institutional Securities
(unaudited, dollars in millions)
                               
                               
                               
   
Quarter Ended
 
Percentage Change From:
   
Mar 31, 2013
 
Dec 31, 2012
 
Mar 31, 2012
 
Dec 31, 2012
  Mar 31, 2012
                               
Investment Banking
                             
Advisory revenues
  $ 251     $ 454     $ 313       (45 %)     (20 %)
Underwriting revenues
                                       
   Equity
    283       238       172       19 %     65 %
   Fixed income
    411       534       366       (23 %)     12 %
Total underwriting revenues
    694       772       538       (10 %)     29 %
                                         
Total investment banking revenues
  $ 945     $ 1,226     $ 851       (23 %)     11 %
                                         
Sales & Trading
                                       
   Equity
  $ 1,515     $ 1,220     $ 1,575       24 %     (4 %)
   Fixed Income & Commodities
    1,277       481       993       165 %     29 %
   Other
    73       (34 )     (286 )     *       *  
Total sales & trading net revenues
  $ 2,865     $ 1,667     $ 2,282       72 %     26 %
                                         
Investments & Other
                                       
   Investments
  $ 142     $ 148     $ (49 )     (4 %)     *  
   Other
    137       46       51       198 %     169 %
Total investments & other revenues
  $ 279     $ 194     $ 2       44 %     *  
                                         
Total Institutional Securities net revenues
  $ 4,089     $ 3,087     $ 3,135       32 %     30 %
                                         
                                         
Average Daily 95% / One-Day Value-at-Risk ("VaR") (1)
                         
Primary Market Risk Category ($ millions, pre-tax)
                                 
   Interest rate and credit spread
  $ 61     $ 60     $ 46                  
   Equity price
  $ 18     $ 21     $ 30                  
   Foreign exchange rate
  $ 11     $ 11     $ 15                  
   Commodity price
  $ 20     $ 22     $ 27                  
                                         
Aggregation of Primary Risk Categories
  $ 66     $ 69     $ 62                  
                                         
Credit Portfolio VaR
  $ 16     $ 20     $ 36                  
                                         
Trading VaR
  $ 72     $ 78     $ 73                  
 
 
Notes:
-
For the periods noted below, sales and trading net revenues included positive (negative) revenue related to DVA as follows:
   
        March 31, 2013: Total: $(317) million; Fixed Income & Commodities: $(238) million; Equity: $(79) million
   
        December 31, 2012: Total: $(511) million; Fixed Income & Commodities: $(330) million; Equity: $(181) million
   
        March 31, 2012: Total: $(1,978) million; Fixed Income & Commodities: $(1,597) million; Equity: $(381) million
  -
Refer to End Notes on pages 15-17 and Legal Notice on page 18.
 
 
 
 
 
7

 
 
GRAPHIC
MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Institutional Securities - Corporate Loans and Commitments
(unaudited, dollars in billions)
                               
                               
   
Quarter Ended
 
Percentage Change From:
   
Mar 31, 2013
 
Dec 31, 2012
 
Mar 31, 2012
 
Dec 31, 2012
  Mar 31, 2012
                               
Loans and commitments at fair value