The End Notes are an integral part of this presentation. See pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definition of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.

Consolidated Financial Information
(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Nine Months Ended				Percentage
	Sep 30, 2019			Jun 30, 2019			Sep 30, 2018			Jun 30, 2019			Sep 30, 2018			Sep 30, 2019		Sep 30, 2018		Change

Regional revenues
Americas	$	7,489		$	7,526		$	7,357			--			2	%	$	22,336	$	22,989		(3	%)
EMEA (Europe, Middle East, Africa)		1,409			1,576			1,355			(11	%)		4	%		4,687		4,892		(4	%)
Asia		1,134			1,142			1,160			(1	%)		(2	%)		3,539		3,678		(4	%)
Consolidated net revenues	$	10,032		$	10,244		$	9,872			(2	%)		2	%	$	30,562	$	31,559		(3	%)



Balance sheet

Deposits	$	180,738		$	176,593		$	175,185			2	%		3	%
Total assets	$	902,604		$	891,959		$	865,517			1	%		4	%
Global liquidity reserve	$	226,923		$	221,792		$	214,848			2	%		6	%
Long-term debt outstanding	$	192,362		$	196,072		$	189,949			(2	%)		1	%
Maturities of long-term debt outstanding (next 12 months)	$	23,498		$	26,621		$	24,122			(12	%)		(3	%)

Common equity	$	73,862		$	73,204		$	70,183			1	%		5	%
Less: Goodwill and intangible assets		(9,350	)		(9,433	)		(8,918	)		(1	%)		5	%
Tangible common equity	$	64,512		$	63,771		$	61,265			1	%		5	%

Preferred equity	$	8,520		$	8,520		$	8,520			--			--

Consolidated Average Common Equity and Regulatory Capital Information
(unaudited, dollars in billions)

	Quarter Ended									Percentage Change From:						Nine Months Ended				Percentage
	Sep 30, 2019			Jun 30, 2019			Sep 30, 2018			Jun 30, 2019			Sep 30, 2018			Sep 30, 2019		Sep 30, 2018		Change

Average Common Equity
Institutional Securities	$	40.4		$	40.4		$	40.8			--			(1	%)	$	40.4	$	40.8		(1	%)
Wealth Management		18.2			18.2			16.8			--			8	%		18.2		16.8		8	%
Investment Management		2.5			2.5			2.6			--			(4	%)		2.5		2.6		(4	%)
Parent		12.3			11.5			10.0			7	%		23	%		11.4		9.4		21	%
Firm	$	73.4		$	72.6		$	70.2			1	%		5	%	$	72.5	$	69.6		4	%



Regulatory Capital

Common Equity Tier 1 capital	$	64.4		$	64.0		$	61.8			1	%		4	%
Tier 1 capital	$	73.1		$	72.7		$	70.3			1	%		4	%

Standardized Approach
Risk-weighted assets	$	398.3		$	391.5		$	370.7			2	%		7	%
Common Equity Tier 1 capital ratio		16.2	%		16.3	%		16.7	%
Tier 1 capital ratio		18.4	%		18.6	%		19.0	%

Advanced Approach
Risk-weighted assets	$	389.3		$	384.0		$	357.1			1	%		9	%
Common Equity Tier 1 capital ratio		16.5	%		16.7	%		17.3	%
Tier 1 capital ratio		18.8	%		18.9	%		19.7	%

Leverage-based capital
Tier 1 leverage ratio		8.2	%		8.4	%		8.2	%
Supplementary Leverage Ratio		6.3	%		6.5	%		6.4	%

Institutional Securities
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sep 30, 2019			Jun 30, 2019			Sep 30, 2018			Jun 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018			Change
Revenues:

Advisory	$	550		$	506		$	510			9	%		8	%	$	1,462		$	1,702			(14	%)
Equity		401			546			441			(27	%)		(9	%)		1,286			1,403			(8	%)
Fixed income		584			420			508			39	%		15	%		1,410			1,566			(10	%)
Underwriting		985			966			949			2	%		4	%		2,696			2,969			(9	%)
Investment Banking		1,535			1,472			1,459			4	%		5	%		4,158			4,671			(11	%)

Equity		1,991			2,130			2,019			(7	%)		(1	%)		6,136			7,047			(13	%)
Fixed Income		1,430			1,133			1,179			26	%		21	%		4,273			4,441			(4	%)
Other		34			41			(68	)		(17	%)		*			92			(198	)		*
Sales & Trading		3,455			3,304			3,130			5	%		10	%		10,501			11,290			(7	%)

Investments		(18	)		194			96			*			*			257			234			10	%
Other		51			143			244			(64	%)		(79	%)		416			548			(24	%)

Net revenues		5,023			5,113			4,929			(2	%)		2	%		15,332			16,743			(8	%)

Compensation and benefits		1,768			1,789			1,626			(1	%)		9	%		5,376			5,779			(7	%)
Non-compensation expenses		1,948			1,861			1,747			5	%		12	%		5,591			5,484			2	%
Total non-interest expenses		3,716			3,650			3,373			2	%		10	%		10,967			11,263			(3	%)


Income (loss) before taxes		1,307			1,463			1,556			(11	%)		(16	%)		4,365			5,480			(20	%)
Net income (loss) applicable to Morgan Stanley^⁽¹⁾	$	1,073		$	1,121		$	1,120			(4	%)		(4	%)	$	3,565		$	4,204			(15	%)


Pre-tax profit margin		26	%		29	%		32	%								28	%		33	%
Compensation and benefits as a % of net revenues		35	%		35	%		33	%								35	%		35	%
Non-compensation expenses as a % of net revenues		39	%		36	%		35	%								36	%		33	%

Return on Average Common Equity		10	%		10	%		10	%								11	%		13	%
Return on Average Tangible Common Equity ⁽²⁾		10	%		10	%		10	%								11	%		13	%

Trading VaR (Average Daily 95% / One-Day VaR) ⁽³⁾	$	42		$	46		$	42

Wealth Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sep 30, 2019			Jun 30, 2019			Sep 30, 2018			Jun 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30,2018			Change
Revenues:
Asset management		2,639			2,544			2,573			4	%		3	%		7,544			7,582			(1	%)
Transactional		595			728			698			(18	%)		(15	%)		2,140			2,136			--
Net interest income		1,043			1,016			1,070			3	%		(3	%)		3,189			3,182			--
Other		81			120			58			(33	%)		40	%		282			198			42	%
Net revenues		4,358			4,408			4,399			(1	%)		(1	%)		13,155			13,098			--

Compensation and benefits		2,340			2,382			2,415			(2	%)		(3	%)		7,184			7,221			(1	%)
Non-compensation expenses		780			783			790			--			(1	%)		2,302			2,366			(3	%)
Total non-interest expenses		3,120			3,165			3,205			(1	%)		(3	%)		9,486			9,587			(1	%)

Income (loss) before taxes		1,238			1,243			1,194			--			4	%		3,669			3,511			5	%
Net income (loss) applicable to Morgan Stanley ⁽¹⁾	$	962		$	953		$	913			1	%		5	%	$	2,839		$	2,703			5	%

Pre-tax profit margin		28	%		28	%		27	%								28	%		27	%
Compensation and benefits as a % of net revenues		54	%		54	%		55	%								55	%		55	%
Non-compensation expenses as a % of net revenues		18	%		18	%		18	%								17	%		18	%

Return on Average Common Equity		21	%		20	%		21	%								20	%		21	%
Return on Average Tangible Common Equity ⁽²⁾		37	%		36	%		39	%								36	%		38	%

Wealth Management
Financial Information and Statistical Data
(unaudited)


	Quarter Ended									Percentage Change From:
	Sep 30, 2019			Jun 30, 2019			Sep 30, 2018			Jun 30, 2019			Sep 30, 2018


Wealth Management Metrics

Wealth Management representatives		15,553			15,633			15,655			(1	%)		(1	%)

Annualized revenue per representative (000's)	$	1,118		$	1,125		$	1,125			(1	%)		(1	%)

Client assets (billions)	$	2,565		$	2,570		$	2,496			--			3	%
Client assets per representative (millions)	$	165		$	164		$	159			1	%		4	%
Client liabilities (billions)	$	86		$	84		$	83			2	%		4	%

Fee-based client assets (billions)	$	1,186		$	1,159		$	1,120			2	%		6	%
Fee-based asset flows (billions)	$	15.5		$	9.8		$	16.2			58	%		(4	%)
Fee-based assets as a % of client assets		46	%		45	%		45	%

Retail locations		590			589			595			--			(1	%)

Investment Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)


	Quarter Ended									Percentage Change From:						Nine Months Ended						Percentage
	Sep 30, 2019			Jun 30, 2019			Sep 30, 2018			Jun 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018			Change
Revenues:
Asset management	$	664		$	612		$	604			8	%		10	%	$	1,893		$	1,840			3	%
Investments ⁽¹⁾		105			247			40			(57	%)		163	%		543			172			*
Other		(5	)		(20	)		9			75	%		*			(29	)		50			*
Net revenues		764			839			653			(9	%)		17	%		2,407			2,062			17	%

Compensation and benefits		319			360			269			(11	%)		19	%		1,049			845			24	%
Non-compensation expenses		280			280			282			--			(1	%)		820			827			(1	%)
Total non-interest expenses		599			640			551			(6	%)		9	%		1,869			1,672			12	%

Income (loss) before taxes		165			199			102			(17	%)		62	%		538			390			38	%
Net income (loss) applicable to Morgan Stanley ⁽²⁾	$	138		$	128		$	80			8	%		73	%	$	402		$	311			29	%

Pre-tax profit margin		22	%		24	%		16	%								22	%		19	%
Compensation and benefits as a % of net revenues		42	%		43	%		41	%								44	%		41	%
Non-compensation expenses as a % of net revenues		37	%		33	%		43	%								34	%		40	%

Return on Average Common Equity		22	%		20	%		12	%								22	%		16	%
Return on Average Tangible Common Equity ⁽³⁾		36	%		33	%		19	%								35	%		25	%

Investment Management
Financial Information and Statistical Data
(unaudited, dollars in billions)


	Quarter Ended								Percentage Change From:						Nine Months Ended					Percentage
	Sep 30, 2019			Jun 30, 2019		Sep 30, 2018			Jun 30, 2019			Sep 30, 2018			Sep 30, 2019		Sep 30, 2018			Change

Assets under management or supervision (AUM)

Net flows by asset class ⁽¹⁾
Equity	$	2.1		$	1.4	$	1.6			50	%		31	%	$	4.9	$	6.9			(29	%)
Fixed Income		2.3			1.3		1.6			77	%		44	%		2.4		0.1			*
Alternative / Other		(0.2	)		2.2		(0.2	)		*			--			1.4		1.0			40	%
Long-Term Net Flows		4.2			4.9		3.0			(14	%)		40	%		8.7		8.0			9	%

Liquidity		9.1			3.0		(9.8	)		*			*			6.3		(27.7	)		*

Total net flows	$	13.3		$	7.9	$	(6.8	)		68	%		*		$	15.0	$	(19.7	)		*


Assets under management or supervision by asset class ⁽²⁾
Equity	$	126		$	128	$	117			(2	%)		8	%
Fixed Income		74			71		71			4	%		4	%
Alternative / Other		135			135		133			--			2	%
Long‐Term Assets Under Management or Supervision		335			334		321			--			4	%

Liquidity		172			163		150			6	%		15	%

Total Assets Under Management or Supervision	$	507		$	497	$	471			2	%		8	%

Share of minority stake assets	$	6		$	6	$	7			--			(14	%)

Consolidated Loans and Lending Commitments
(unaudited, dollars in billions)


	Quarter Ended						Percentage Change From:
	Sep 30, 2019		Jun 30, 2019		Sep 30, 2018		Jun 30, 2019			Sep 30, 2018

Institutional Securities

Loans:
Corporate ⁽¹⁾	$	13.3	$	13.3	$	12.0		--			11	%
Secured lending facilities		27.7		24.9		18.8		11	%		47	%
Commercial & residential real estate		10.5		11.7		11.8		(10	%)		(11	%)
Securities-based lending and other		7.4		8.0		7.9		(8	%)		(6	%)

Total Loans		58.9		57.9		50.5		2	%		17	%

Lending Commitments		108.6		114.0		97.9		(5	%)		11	%

Institutional Securities Loans and Lending Commitments ⁽²⁾	$	167.5	$	171.9	$	148.4		(3	%)		13	%


Wealth Management

Loans:
Securities-based lending and other	$	47.4	$	45.5	$	44.4		4	%		7	%
Residential real estate		29.2		28.6		26.7		2	%		9	%

Total Loans		76.6		74.1		71.1		3	%		8	%

Lending Commitments		11.7		12.3		10.7		(5	%)		9	%

Wealth Management Loans and Lending Commitments ⁽³⁾	$	88.3	$	86.4	$	81.8		2	%		8	%

Consolidated Loans and Lending Commitments ⁽⁴⁾	$	255.8	$	258.3	$	230.2		(1	%)		11	%

U.S. Bank Supplemental Financial Information
(unaudited, dollars in billions)



	Quarter Ended						Percentage Change From:
	Sep 30, 2019		Jun 30, 2019		Sep 30, 2018		Jun 30, 2019			Sep 30, 2018


U.S. Bank assets	$	211.0	$	205.9	$	203.2		2	%		4	%

Institutional Securities U.S. Bank loans
Corporate ⁽¹⁾	$	6.9	$	6.6	$	7.0		5	%		(1	%)
Secured lending facilities		25.0		22.2		17.7		13	%		41	%
Commercial & residential real estate		9.8		10.7		10.9		(8	%)		(10	%)
Securities-based lending and other		5.7		6.2		5.3		(8	%)		8	%
Total loans	$	47.4	$	45.7	$	40.9		4	%		16	%

Wealth Management U.S. Bank loans
Securities-based lending and other	$	47.4	$	45.5	$	44.4		4	%		7	%
Residential real estate		29.2		28.6		26.7		2	%		9	%
Total loans	$	76.6	$	74.1	$	71.1		3	%		8	%

U.S. Bank loans	$	124.0	$	119.8	$	112.0		4	%		11	%

U.S. Bank investment securities portfolio ⁽²⁾	$	70.7	$	70.7	$	60.5		--			17	%

U.S. Bank deposits	$	179.6	$	175.8	$	174.4		2	%		3	%

Definition of U.S. GAAP to Non-GAAP Measures

(a)

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). 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. The Securities and Exchange Commission 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 U.S. GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition, operating results, or prospective regulatory capital requirements. These measures are not in accordance with, or a substitute for U.S. 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 define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S. GAAP financial measure. In addition to the following notes, please also refer to the Firm's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.

(b)

The following are considered non-GAAP financial measures that the Firm considers useful for analysts, investors and other stakeholders to allow better comparability of operating performance and capital adequacy. These measures are calculated as follows:

Earnings per diluted share, excluding intermittent net discrete tax provision / benefit represents net income (loss) applicable to Morgan Stanley, adjusted for the impact of the intermittent net discrete tax provision / benefit, less preferred dividends divided by the average number of diluted shares outstanding.

The return on average common equity and return on average tangible common equity represents full year net income or annualized net income for the quarter applicable to Morgan Stanley less preferred dividends as a percentage of average common equity and average tangible common equity, respectively.

The return on average common equity and the return on average tangible common equity excluding intermittent net discrete tax provision / benefit are adjusted in both the numerator and the denominator to exclude the intermittent net discrete tax provision / benefit.

Segment return on average common equity and return on average tangible common equity represents full year net income or annualized net income for the quarter applicable to Morgan Stanley for each segment, less preferred dividend segment allocation, divided by average common equity and average tangible common equity for each respective segment. The segment adjustments to common equity to derive segment average tangible common equity are generally set at the beginning of the year, and will remain fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition).

Tangible common equity represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction.

Tangible book value per common share represents tangible common equity divided by period end common shares outstanding.

Pre-tax profit margin percentages represent income before income taxes as percentages of net revenues.

Definition of Performance Metrics and Terms

Page 1:
(a)	Net income (loss) applicable to Morgan Stanley represents net income, less net income applicable to nonredeemable noncontrolling interests.
(b)	Earnings (loss) applicable to Morgan Stanley common shareholders represents net income (loss) applicable to Morgan Stanley, less preferred dividends.

Page 2:
(a)	Book value per common share represents common equity divided by period end common shares outstanding.
(b)	The Firm expense efficiency ratio represents total non‐interest expenses as a percentage of net revenues.

Page 3:
(a)	Firmwide regional revenues reflect the Firm's consolidated net revenues on a managed basis. Further discussion regarding the geographic methodology for net revenues is disclosed in Note 21 to the consolidated financial statements included in the Firm's Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Form 10-K).
(b)	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, non-U.S. government securities and other highly liquid investment grade securities.
(c)	The Firm's goodwill and intangible balances utilized in the calculation of tangible common equity are net of allowable mortgage servicing rights deduction.

Page 4:
(a)	The Firm's attribution of average common equity to the business segments is based on the Required Capital framework, an internal capital adequacy measure. This framework is a risk-based and leverage use-of-capital measure, which is compared with the Firm's regulatory capital to ensure that the Firm maintains an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The Required Capital framework is based on the Firm's regulatory capital requirements. The Firm defines the difference between its total average common equity and the sum of the average common equity amounts allocated to its business segments as Parent common equity. The amount of capital allocated to the business segments is generally set at the beginning of the year, and will remain fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). The Required Capital framework is expected to evolve over time in response to changes in the business and regulatory environment, for example, to incorporate changes in stress testing or enhancements to modeling techniques. For further discussion of the framework, refer to Part II, Item 7 "Liquidity and Capital Resources—Regulatory Requirements" in the Firm's Annual Report on Form 10-K for the year ended December 31, 2018 and Part I, Item 2 "Liquidity and Capital Resources—Regulatory Requirements" in the Firm's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.
(b)	The Firm's risk-based capital ratios for purposes of determining regulatory compliance are the lower of the capital ratios computed under the (i) standardized approaches for calculating credit risk and market risk risk-weighted assets (RWAs) (the “Standardized Approach”); and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). At September 30, 2019, the Firm's ratios are based on the Standardized Approach. For information on the calculation of regulatory capital and ratios for prior periods, please refer to Part II, Item 7 "Liquidity and Capital Resources—Regulatory Requirements" in the Firm's 2018 Form 10-K and Part I, Item 2 "Liquidity and Capital Resources—Regulatory Requirements" in the Firm's 10-Q for the quarter ended June 30, 2019.
(c)	Supplementary leverage ratio represents Tier 1 capital divided by the total supplementary leverage exposure.

Page 5:
(a)	Institutional Securities Sales & Trading net revenues includes trading, net interest income (interest income less interest expense), asset management, commissions and fees revenues.
(b)	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. Effective for the quarter ended September 30, 2019, the Firm changed its VaR model primarily in preparation for updates to regulatory rules and we believe the resulting VaR continues to accurately measure our market risk. The previous model used four years of historical data with a volatility adjustment to reflect current market conditions, the new model uses one year of unadjusted historical data. Prior periods VaR amounts have not been recast to reflect the new model. The difference in Trading VaR for 3Q19 between the new model ($42 million) and old model ($43 million) was not significant. 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 Risk" included in the Firm's 2018 Form 10-K.

Definition of Performance Metrics and Terms

Page 6:
(a)	Transactional revenues for the Wealth Management segment includes investment banking, trading, and commissions and fee revenues.
(b)	Net interest income represents interest income less interest expense.
(c)	Other revenues for the Wealth Management segment includes investments and other revenues.

Page 7:
(a)	The average annualized revenue per representative metric represents annualized net revenues divided by average representative headcount.
(b)	Client assets per representative represents total client assets divided by period end representative headcount.
(c)	Client liabilities reflect U.S. Bank lending and broker dealer margin activity.
(d)	Fee-based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
(e)	Fee-based asset flows include net new fee-based assets, net account transfers, dividends, interest, and client fees and exclude institutional cash management related activity.

Page 8:
(a)	Other revenues for the Investment Management segment includes investment banking, trading, net interest and other revenues.

Page 9:
(a)	Investment Management Alternative/Other asset class includes products in Fund of Funds, Real Estate, Private Equity and Credit strategies, as well as Multi-Asset portfolios.
(b)	Investment Management net flows include new commitments, investments or reinvestments, net of client redemptions, returns of capital post-fund investment period and dividends not reinvested and excludes the impact of the transition of funds from their commitment period to the invested capital period.
(c)	The share of minority stake assets represents Investment Management's proportional share of assets managed by entities in which it owns a minority stake.

Page 10:
(a)	Corporate loans include relationship and event-driven loans and typically consist of revolving lines of credit, term loans and bridge loans.
(b)	Secured lending facilities include loans provided to clients to warehouse loans secured by underlying real estate or other assets.
(c)	The Institutional Securities business segment engages in securities-based and other lending activity, which includes corporate loans purchased in the secondary market, financing extended to commodities customers, and loans to municipalities.
(d)	Institutional Securities Lending Commitments principally include Corporate lending activity.

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(a)	U.S. Bank refers to the Firm's U.S. Bank operating subsidiaries Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association and excludes balances between Bank subsidiaries, as well as deposits from the Parent and affiliates.

Supplemental Quantitative Details and Calculations

Page 1:
(1)	The Firm non-interest expenses by category are as follows:

		3Q19		2Q19		3Q18	3Q19 YTD		3Q18 YTD
Compensation and benefits	$	4,427	$	4,531	$	4,310	$	13,609	$	13,845

Non-compensation expenses:
Occupancy and equipment		353		353		351		1,053		1,033
Brokerage, clearing and exchange fees		637		630		559		1,860		1,795
Information processing and communications		557		538		513		1,627		1,487
Marketing and business development		157		162		152		460		471
Professional services		531		537		570		1,582		1,660
Other		660		590		566		1,803		1,888
Total non-compensation expenses		2,895		2,810		2,711		8,385		8,334

Total non-interest expenses	$	7,322	$	7,341	$	7,021	$	21,994	$	22,179

Page 2:
(1)	The quarter ended September 30, 2019 included intermittent net discrete tax benefits of $89 million primarily associated with the filing of the 2018 federal tax return and the remeasurement of reserves and related interest due to new information with regard to multi-jurisdiction tax examinations. The nine months ended September 30, 2019 and September 30, 2018 included intermittent net discrete tax benefits of $190 million and $92 million, respectively, primarily associated with the remeasurement of reserves and related interest due to new information with regard to multi-jurisdiction tax examinations and other matters.
	The following sets forth the impact of the intermittent net discrete tax items to earnings per diluted share, return on average common equity and return on average tangible common equity (which are excluded):

		3Q19		3Q19 YTD			3Q18 YTD
Earnings per diluted share impact	$	0.06		$	0.12		$	0.05
Return on average common equity impact		0.5	%		0.3	%		0.1	%
Return on average tangible common equity impact		0.6	%		0.4	%		0.2	%

The quarter ended September 30, 2018 and the quarter ended June 30, 2019 did not have any material intermittent discrete tax items.

(2)

The income tax consequences related to employee share-based payments, which are recurring-type tax items, are recognized in Provision for income taxes in the consolidated income statement, and may be either a benefit or a provision. Conversion of employee share-based awards to Firm shares will primarily occur in the first quarter of each year. The impacts of recognizing excess tax benefits upon conversion of awards, in the applicable quarter and year-to-date amounts, are as follows: 2Q19: $20 million, 3Q19 YTD: $127 million and 3Q18 YTD: $164 million. The impact of intermittent net discrete tax provisions and benefits reflected above do not include the recurring-type discrete tax benefits related to employee share‐based payments as we anticipate conversion activity each year.

Page 5:
(1)	For the quarter ended September 30, 2019, the Institutional Securities segment net income applicable to Morgan Stanley included intermittent net discrete tax benefits of $67 million primarily associated with the filing of the 2018 federal tax return and the remeasurement of reserves and related interest due to new information with regard to multi‐jurisdiction tax examinations. The nine months ended September 30, 2019 and September 30, 2018 included intermittent net discrete tax benefits of $168 million and $88 million, respectively, primarily associated with the remeasurement of reserves and related interest due to new information with regard to multi‐jurisdiction tax examinations and other matters.
(2)	Institutional Securities average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 3Q19: $536mm; 2Q19: $536mm; 3Q19 YTD: $536mm; 3Q18: $641mm; 3Q18 YTD: $641mm
(3)	Effective for the quarter ended September 30, 2019, the Firm changed its VaR model primarily in preparation for updates to regulatory rules and we believe the resulting VaR continues to accurately measure our market risk. The previous model used four years of historical data with a volatility adjustment to reflect current market conditions, the new model uses one year of unadjusted historical data. Prior periods VaR amounts have not been recast to reflect the new model. The difference in Trading VaR for 3Q19 between the new model ($42 million) and old model ($43 million) was not significant.

Supplemental Quantitative Details and Calculations

Page 6:
(1)	For the quarter and nine months ended September 30, 2019, the Wealth Management segment net income applicable to Morgan Stanley included intermittent net discrete tax benefits of $13 million primarily associated with the filing of the 2018 federal tax return.
(2)	Wealth Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 3Q19: $8,088mm; 2Q19: $8,088mm; 3Q19 YTD: $8,088mm; 3Q18: $7,604mm; 3Q18 YTD: $7,604mm

Page 8:

(1)

Includes investment gains or losses for certain funds included in the Firm's consolidated financial statements for which the limited partnership interests in these gains or losses were reported in net income (loss) applicable to nonredeemable noncontrolling interests.

(2)

For the quarter and nine months ended September 30, 2019, the Investment Management segment net income applicable to Morgan Stanley included intermittent net discrete tax benefits of $9 million primarily associated with the filing of the 2018 federal tax return.

(3)

Investment Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 3Q19: $940mm; 2Q19: $940mm; 3Q19 YTD: $940mm; 3Q18: $950mm; 3Q18 YTD: $950mm

Page 9:

(1)

Net Flows by region for the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018 were:

North America: $6.4 billion, $4.3 billion and $(10.2) billion

International: $6.9 billion, $3.6 billion and $3.4 billion

(2)

Assets under management or supervision by region for the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018 were:

North America: $282 billion, $277 billion and $265 billion

International: $225 billion, $220 billion and $206 billion

Page 10:
(1)	Corporate loans in the Institutional Securities segment represents relationship and event lending.
(2)	For the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018, Institutional Securities recorded a provision (release) for credit losses of $31 million, $4 million and $(2) million, respectively, related to loans, and a provision for credit losses of $18 million, $10 million and $1 million, respectively, related to lending commitments.
(3)	For the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018, Wealth Management recorded a provision for credit losses of $3 million, $3 million and $3 million, respectively, related to loans. For the quarters ended September 30, 2019 and June 30, 2019, Wealth Management recorded a provision (release) for credit losses of $(1) million and $1 million, respectively, related to lending commitments. For the quarter ended September 30, 2018, there was no material provision recorded by Wealth Management related to lending commitments.
(4)	For the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018, Investment Management reflected loan balances of $42 million, $27 million and $1.2 billion, respectively, and lending commitments of $164 million in the quarter ended September 30, 2018, which are not included in the Consolidated Loans and Lending Commitments balance.

Page 11:
(1)	Corporate loans in the Institutional Securities segment represents relationship and event lending.
(2)	For the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018, the U.S. Bank investment securities portfolio included held to maturity investment securities of $26.7 billion, $27.2 billion and $19.0 billion, respectively.

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 17, 2019.

Third Quarter 2019 Earnings Results


Quarterly Financial Supplement	Page

Consolidated Financial Summary	1
Consolidated Financial Metrics, Ratios and Statistical Data	2
Consolidated Financial Information	3
Consolidated Average Common Equity and Regulatory Capital Information	4
Institutional Securities Income Statement Information, Financial Metrics and Ratios	5
Wealth Management Income Statement Information, Financial Metrics and Ratios	6
Wealth Management Financial Information and Statistical Data	7
Investment Management Income Statement Information, Financial Metrics and Ratios	8
Investment Management Financial Information and Statistical Data	9
Consolidated Loans and Lending Commitments	10
U.S. Bank Supplemental Financial Information	11
Definition of U.S. GAAP to Non-GAAP Measures	12
Definition of Performance Metrics and Terms	13 - 14
Supplemental Quantitative Details and Calculations	15 - 16
Legal Notice	17