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Segment, Geographic and Revenue Information
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment, Geographic and Revenue Information Segment, Geographic and Revenue Information
Selected Financial Information by Business Segment
 
Three Months Ended September 30, 2019
$ in millions
IS
WM
IM
I/E
Total
Investment banking1
$
1,535

$
118

$
—

$
(18
)
$
1,635

Trading
2,533

61

2

12

2,608

Investments
(18
)
—

105

—

87

Commissions and fees1
643

416

1

(70
)
990

Asset management1
100

2,639

664

(40
)
3,363

Other
51

81

—

(1
)
131

Total non-interest revenues
4,844

3,315

772

(117
)
8,814

Interest income
3,112

1,378

4

(144
)
4,350

Interest expense
2,933

335

12

(148
)
3,132

Net interest
179

1,043

(8
)
4

1,218

Net revenues
$
5,023

$
4,358

$
764

$
(113
)
$
10,032

Income from continuing operations before income taxes
$
1,307

$
1,238

$
165

$
—

$
2,710

Provision for income taxes
189

276

27

—

492

Income from continuing operations
1,118

962

138

—

2,218

Net income
1,118

962

138

—

2,218

Net income applicable to noncontrolling interests
45

—

—

—

45

Net income applicable to Morgan Stanley
$
1,073

$
962

$
138

$
—

$
2,173































 
 
Three Months Ended September 30, 2018
$ in millions
IS
WM
IM
I/E
Total
Investment banking1
$
1,459

$
129

$
—

$
(21
)
$
1,567

Trading
2,573

160

2

17

2,752

Investments
96

—

40

—

136

Commissions and fees1
589

409

—

(66
)
932

Asset management1
112

2,573

604

(38
)
3,251

Other
244

58

(3
)
(1
)
298

Total non-interest revenues
5,073

3,329

643

(109
)
8,936

Interest income
2,425

1,412

19

(229
)
3,627

Interest expense
2,569

342

9

(229
)
2,691

Net interest
(144
)
1,070

10

—

936

Net revenues
$
4,929

$
4,399

$
653

$
(109
)
$
9,872

Income from continuing operations before income taxes
$
1,556

$
1,194

$
102

$
(1
)
$
2,851

Provision for income taxes
397

281

18

—

696

Income from continuing operations
1,159

913

84

(1
)
2,155

Income (loss) from discontinued operations, net of income taxes
(3
)
—

2

—

(1
)
Net income
1,156

913

86

(1
)
2,154

Net income applicable to noncontrolling interests
36

—

6

—

42

Net income applicable to Morgan Stanley
$
1,120

$
913

$
80

$
(1
)
$
2,112




 
Nine Months Ended September 30, 2019
$ in millions
IS
WM
IM
I/E
Total
Investment banking1
$
4,158

$
365

$
(1
)
$
(55
)
$
4,467

Trading
8,221

525

(2
)
37

8,781

Investments
257

1

543

—

801

Commissions and fees1
1,889

1,250

1

(205
)
2,935

Asset management1
310

7,544

1,893

(115
)
9,632

Other
416

281

(6
)
(6
)
685

Total non-interest revenues
15,251

9,966

2,428

(344
)
27,301

Interest income
9,457

4,139

14

(464
)
13,146

Interest expense
9,376

950

35

(476
)
9,885

Net interest
81

3,189

(21
)
12

3,261

Net revenues
$
15,332

$
13,155

$
2,407

$
(332
)
$
30,562

Income from continuing operations before income taxes
$
4,365

$
3,669

$
538

$
(4
)
$
8,568

Provision for income taxes
703

830

104

(1
)
1,636

Income from continuing operations
3,662

2,839

434

(3
)
6,932

Net income
3,662

2,839

434

(3
)
6,932

Net income applicable to noncontrolling interests
97

—

32

—

129

Net income applicable to Morgan Stanley
$
3,565

$
2,839

$
402

$
(3
)
$
6,803


 
Nine Months Ended September 30, 2018
$ in millions
IS
WM
IM
I/E
Total
Investment banking1
$
4,671

$
383

$
—

$
(60
)
$
4,994

Trading
9,344

404

23

44

9,815

Investments
234

3

172

—

409

Commissions and fees1
2,007

1,349

—

(212
)
3,144

Asset management1
324

7,582

1,840

(114
)
9,632

Other
548

195

10

(5
)
748

Total non-interest revenues
17,128

9,916

2,045

(347
)
28,742

Interest income
6,424

4,012

37

(692
)
9,781

Interest expense
6,809

830

20

(695
)
6,964

Net interest
(385
)
3,182

17

3

2,817

Net revenues
$
16,743

$
13,098

$
2,062

$
(344
)
$
31,559

Income from continuing operations before income taxes
$
5,480

$
3,511

$
390

$
(1
)
$
9,380

Provision for income taxes
1,169

808

73

—

2,050

Income from continuing operations
4,311

2,703

317

(1
)
7,330

Income (loss) from discontinued operations, net of income taxes
(7
)
—

2

—

(5
)
Net income
4,304

2,703

319

(1
)
7,325

Net income applicable to noncontrolling interests
100

—

8

—

108

Net income applicable to Morgan Stanley
$
4,204

$
2,703

$
311

$
(1
)
$
7,217


I/E–Intersegment Eliminations
1.
Approximately 85% of Investment Banking revenues in the current quarter, 90% in the current year period and approximately 85% of Investment banking revenues in the prior year periods were accounted for as Revenues from Contracts with Customers. In all periods presented, substantially all of Commissions and fees and Asset management revenues were accounted for under this guidance.
For a discussion about the Firm’s business segments, see Note 21 to the financial statements in the 2018 Form 10-K.
Institutional Securities—Investment Banking Revenues
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
$ in millions
2019
2018
2019
2018
Advisory
$
550

$
510

$
1,462

$
1,702

Underwriting
985

949

2,696

2,969


Trading Revenues by Product Type
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
$ in millions
2019
2018
2019
2018
Interest rate
$
894

$
744

$
2,283

$
2,396

Foreign exchange
69

223

383

622

Equity security and index1
1,076

1,432

4,005

5,094

Commodity and other
300

254

986

1,047

Credit
269

99

1,124

656

Total
$
2,608

$
2,752

$
8,781

$
9,815

 
1.
Dividend income is included within equity security and index contracts.
The previous table summarizes gains and losses included in Trading revenues in the income statements. These activities include revenues related to derivative and non-derivative financial instruments. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes.
Investment Management Investments Revenues—Net Unrealized Carried Interest
$ in millions
At
September 30,
2019
At
December 31,
2018
Net cumulative unrealized carried interest at risk of reversing
$
553

$
434


The Firm’s portion of net cumulative unrealized carried interest (for which the Firm is not obligated to pay compensation) are at risk of reversing if the fund performance falls below the stated investment management agreement benchmarks. See Note 11 for information regarding general partner guarantees, which include potential obligations to return performance-based fees in the form of carried interest previously received.
Investment Management Asset Management Revenues—Reduction of Fees due to Fee Waivers
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
$ in millions
2019
2018
2019
2018
Fee waivers
$
11

$
11

$
32

$
45


The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940.
Separately, the Firm’s employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees.
Net Revenues by Region
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
$ in millions
2019
2018
2019
2018
Americas
$
7,489

$
7,357

$
22,336

$
22,989

EMEA
1,409

1,355

4,687

4,892

Asia
1,134

1,160

3,539

3,678

Total
$
10,032

$
9,872

$
30,562

$
31,559



For a discussion about the Firm’s geographic net revenues, see Note 21 to the financial statements in the 2018 Form 10-K.
Revenue Recognized From Prior Services
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
$ in millions
2019
2018
2019
2018
Non-interest revenues
$
841

$
804

$
1,995

$
2,192

The previous table includes revenue from contracts with customers recognized where some or all services were performed in prior periods and is primarily composed of investment banking advisory fees and distribution fees.
Certain Future Expected Revenues
 
At September 30, 2019
$ in millions
2019
2020
2021 - 2025
thereafter
Non-interest revenues
$
57

$
132

$ 63 - $ 89
$
239


The previous table reflects contracts with customers that are longer than one year in duration and the amounts invoiced do not necessarily correspond directly to the value transferred to the customer. These contracts are primarily for the future sale and transport of commodity related products.

Receivables related to Revenues from Contracts with Customers
$ in millions
At
September 30,
2019
At
December 31,
2018
Customer and other receivables
$
2,114

$
2,308


Receivables from contracts with customers, which are included within Customer and other receivables in the balance sheets, arise when the Firm has both recorded revenues and has the right per the contract to bill the customer.

Assets by Business Segment
$ in millions
At
September 30,
2019
At
December 31,
2018
Institutional Securities
$
703,868

$
646,427

Wealth Management1
193,213

202,392

Investment Management
5,523

4,712

Total2
$
902,604

$
853,531

 
1.
The Firm acquired Solium Capital Inc. in the second quarter of 2019 and as a result recorded Goodwill of approximately $469 million and Intangible assets of approximately $268 million.
2.
Parent assets have been fully allocated to the business segments.