Earnings per Common Share

6 Months Ended

Jun. 30, 2017

15. Earnings per Common Share

Calculation of Basic and Diluted Earnings per Common Share (“EPS”)

		Three Months Ended				Six Months Ended
		June 30,				June 30,
in millions, except for per share data		2017		2016		2017		2016
Basic EPS
Income from continuing operations	$	1,796	$	1,650	$	3,789	$	2,810
Income (loss) from discontinued
operations		(5)		(4)		(27)		(7)
Net income		1,791		1,646		3,762		2,803
Net income applicable to
noncontrolling interests		34		64		75		87
Net income applicable to Morgan
Stanley		1,757		1,582		3,687		2,716
Less: Preferred stock dividends and other		(170)		(157)		(260)		(235)
Earnings applicable to Morgan
Stanley common shareholders	$	1,587	$	1,425	$	3,427	$	2,481
Weighted average common
shares outstanding		1,791		1,866		1,796		1,875
Earnings per basic common share
Income from continuing operations	$	0.89	$	0.77	$	1.92	$	1.33
Income (loss) from discontinued
operations		—		(0.01)		(0.01)		(0.01)
Earnings per basic common share	$	0.89	$	0.76	$	1.91	$	1.32

Diluted EPS
Earnings applicable to Morgan
Stanley common shareholders	$	1,587	$	1,425	$	3,427	$	2,481
Weighted average common shares
outstanding		1,791		1,866		1,796		1,875
Effect of dilutive securities:
Stock options and RSUs¹		39		33		40		32
Weighted average common
shares outstanding and
common stock equivalents		1,830		1,899		1,836		1,907
Earnings per diluted common share
Income from continuing operations	$	0.87	$	0.75	$	1.88	$	1.30
Income (loss) from discontinued
operations		—		—		(0.01)		—
Earnings per diluted common share	$	0.87	$	0.75	$	1.87	$	1.30
Weighted average antidilutive
RSUs and stock options
(excluded from the
computation of diluted EPS)¹		—		14		—		15

1. Restricted stock units (“RSUs”) that are considered participating securities are treated as a separate class of securities in the computation of basic EPS, and, therefore, such RSUs are not included as incremental shares in the diluted EPS computations.