Morgan Stanley

Strong Q3 results + momentum across the integrated franchise - Firmwide revenues $20.3B and EPS $3.03, ROTCE 22.6% (over 20% for the 5th straight quarter). - Client assets (Wealth + Investment Management) rose $400B to a record $10.5T. - Efficiency ratio YTD: 66%; strong revenue drove operating leverage, though execution-related costs were higher vs. prior year. - Wealth: revenues >$9B with milestone net new assets (NNA) $232B and fee-based flows $80B (records).

Wealth performance: IPO + “funnel” tail supports flows; retention remains key - Wealth NNA $232B; management emphasized a durable multi-quarter tail from IPO activity (not just a one-quarter spike), with flows migrating into advice-based relationships as employee and investor lockups transition. - Investment management inflows: $15.8B (Parametric + fixed income), though revenues were impacted by carry reversal related to private fund investments. - Surprising/positive: large NNA driven not only by IPOs but also by the self-directed → Workplace → adviser-led ecosystem (E*TRADE funnel effect after the acquisition is highlighted as an ongoing scale engine). - Opportunity/expectation: company expects continued ability to retain assets and convert into fee-based/advice-based relationships; retention rates described as steady, implying higher retained dollars as flows increase.

Institutional Securities: advisory resilience, equities strength, underwriting mixed - Institutional Securities revenues $10B, up 18% YoY. - Equities: $5.8B, another very strong quarter (led the upside). - Investment banking: revenues $2.2B, up 2% YoY; strength noted in the Americas and Asia with sequential broadening. - Advisory: $887M (up YoY) with increased completed activity. - Equity underwriting was down ($525M) with a few large deals doing the work; fixed income underwriting strong at $747M (new issue market active). - ISG lending/provisions: provisions $141M (primarily portfolio growth); net charge-offs $105M linked to certain corporate/CRE loans largely provisioned earlier.