MORGAN STANLEY Q1 FY2025 earnings call

• Ted Pick highlighted the firm delivered a strong quarter with $7.7 billion in revenue, $2.60 in EPS, and a 23% return on tangible. Wealth added $94 billion of net new assets. Institutional securities had a record quarter with $9 billion in revenues. • Sharon Yeshaya noted the firm produced record revenues of $17.7 billion and EPS of $2.60. Institutional securities revenues $9 billion, up 28% y/y. Wealth had strong results with $7.3 billion in revenues, $94 billion in net new assets. Investment management reported revenues $1.6 billion, up 6%.

Institutional Securities: Delivered a record quarter with revenues of $9 billion, up 28% year over year. Wealth: Generated revenues of $7.3 billion, reported margin of 27%, $94 billion in net new assets, and $30 billion in fee-based flows. Investment Management: Reported revenues of $1.6 billion, increasing 6%, with total AUM ending at $1.6 trillion.

• Expect seasonal decline in sweeps related to tax payments to result in modest decline in NII in second quarter, but recent increase in sweep balances could offset. • Focus on prudent planning for longer-term horizon, continuing to raise, manage, and allocate capital for clients. • Confidence in durable results throughout various market environments.

• Market volatility due to rapidly changing policy outcomes. • Increased risk of recession. • Unclear forward path of prices and trade policy. • Unpredictability of economic and political alignment affecting client activity.

Q: Steven Chubak asked about equities trading outlook and NNA outlook.

A: Ted Pick spoke to equities trading durability and Sharon Yeshaya discussed NNA durability and lending/margin.

Q: Christian Bolu asked about Asia business and risk management.

A: Ted Pick was bullish on Asia business and discussed risk management in equities.

Q: Ebrahim Poonawala asked about market resilience and SLR ratio.

A: Ted Pick and Sharon Yeshaya discussed market resilience and SLR ratio impact.

Q: Dan Fannon asked about adviser business and alternatives.

A: Ted Pick and Sharon Yeshaya spoke to adviser recruitment and alternatives in wealth.

Q: Glenn Schorr asked about stress tests and provisions.

A: Sharon Yeshaya and Ted Pick discussed stress tests and provisions.

Q: Gerard Cassidy asked about fixed income stresses.

A: Ted Pick spoke to fixed income market functioning.

Q: Devin Ryan asked about expenses and investment banking.

A: Ted Pick and Devin Ryan discussed expenses and investment banking outlook.

Q: Mike Mayo asked about market uncertainty and investment banking.

A: Ted Pick discussed market uncertainty and investment banking pipeline