Morgan Stanley

Strong Q3 results + momentum - Morgan Stanley reported Q3 2026 revenues of $20.3B and EPS of $3.03 with ROTCE 22.6%. - Client assets (Wealth + Investment Mgmt) rose by $400B to a record $10.5T. - Efficiency ratio 66% YTD, driven by strong revenues (offset by higher execution-related costs vs. last year).

Wealth Management: record flow engine (good + surprising durability) - Net new assets (NNA): $232B (record), fee-based flows: $80B (record). - YTD (first 9 months): ~$0.5T NNA and ~$175B fee-based flows—suggesting a strong runway from the firm’s distribution “funnel.” - Management emphasized that IPO-related flows aren’t only one-quarter; Q3 included tail effects from IPOs previously launched (built into adviser-led relationships over time). - Good economics/retention expectation: management believes they can retain and “turn” incremental flows into annuitized fee-based relationships, citing steady retention and adviser retention above 99%.

Investment Banking / Markets: healthy advisory + moderate underwriting softness - Institutional Securities revenue: $10B (+18% YoY), with Equities leading at $5.8B (+41% YoY). - Investment Banking revenue: $2.2B (+2% YoY) with advisory $887M up (broader completed activity), but equity underwriting $525M down (relative weakness vs a strong prior year; some large deals driving results). - Fixed income underwriting $747M remained strong (supported by active new issuance). - Pipelines described as robust/diversified, and boardroom dialogue remains active—investors should view IB outlook as constructive but sensitive to market volatility.