Morgan Stanley · NYSE:MS
Morgan Stanley — Barclays Global Financial Services Conference 2019
21 slides from Morgan Stanley's conference presentation, Sep 11, 2019
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference Jonathan Pruzan, Chief Financial Officer & Executive Vice President September 11, 2019
Slide 2: Notice
Notice The information provided herein includes certain non-GAAP financial measures. The definition of such measures and/or the reconciliation of such measures to the comparable U.S. GAAP figures are included in this presentation, or in the Company’s Annual Report on Form 10-K, Definitive Proxy Stat
Slide 3: Executing Growth Initiatives and Enhancing Stability Across the Firm
Executing Growth Initiatives and Enhancing Stability Across the Firm 1 • Consolidate Assets Across Core High Net Worth Channel • Develop a New Client Channel Through the Workplace WM and Service Across Spectrum of Wealth 2 • Increase Banking Product Penetration with Existing Wealth Clients U.S. Bank
Slide 4: Delivering One Firm to Clients through Cross Divisional Collaboration
Delivering One Firm to Clients through Cross Divisional Collaboration ~$11Bn Incremental WM Client Assets from ISG Referrals per Year (1)(2) Wealth Management >$75Bn (WM) ~3.2MM AUM Managed for WM WM Client Relationships clients and ~$7Bn Flows Provide Additional and Commitments into Distribution Ch
Slide 5: Wealth Management: Sizing the Opportunity
1 Wealth Management: Sizing the Opportunity Existing Client Footprint(1) $2.6Tn $17Bn+ Revenues 3.2MM Current Current Client Assets Client $74Bn Loans 45% Relationships Fee-based (2) ~$130Bn Deposits Deepen Existing WM Client Relationships ~$2.6Tn Just Scratching the Surface with Assets Held Away (3
Slide 6: Focusing on Existing Client Footprint
1 Focusing on Existing Client Footprint Modern Wealth ~$2.6Tn Management Asset Consolidation Opportunity(1) Visible external client assets Asset Aggregation >$60Bn since aggregation tool launch(2) Increase in clients with Goals Based Planning >125% financial plan (3) NBAs Sent by Advisors since Next
Slide 7: Workplace Opportunity is Off to a Strong Start
1 Workplace Opportunity is Off to a Strong Start – Winning and Servicing New Corporate Clients New Clients Added Since >200 Acquisition Differentiated Workplace Offering – Increase in New U.S. Public Leading Technology and ~20% Stock Plan Wins (1) Wealth Management of Legacy MS Plans Migrated 25% to
Slide 8: Working to Convert Corporate Participants to Advice and Digital Clients
1 Working to Convert Corporate Participants to Advice and Digital Clients Addressing Participant Converting to Engaging Participants Needs Advice and Digital Clients ~2.7MM ~75% ~$1.5Tn Stock Plan Of Employees Estimated Total Participants Desire Financial Wealth Held Away (2) across ~3,400 Wellness
Slide 9: Each Incremental Dollar of Revenue Comes in at a Higher Margin
1 Each Incremental Dollar of Revenue Comes in at a Higher Margin Wealth Management Pre-Tax Margin(1) (%) +8% CAGR 8.8 17.2 2-Year Target 4Q 2017 2-Year Target 2-Year Target 28% 4Q 2013 4Q 2015 26% 26% 2-Year Target 26-28% 2Q 2013 22% 22% 23-25% 1-Year Target 20% 22-25% 2Q 2012 18% 20-22% 14% Mid-tee
Slide 10: U.S. Banks: Continued Lending Growth with Diversified, Secured High Quality Loans
2 U.S. Banks: Continued Lending Growth with Diversified, Secured High Quality Loans Deepening Lending Penetration with Target Wealth Clients High Quality U.S. Bank Portfolio (2) WM Bank Lending WM Household Loan Penetration ($Bn) (%) Longer Established 18 – 20% Secured Loan ~95% Players(1) Portfolio
Slide 11: Investment Management: Global Capabilities, Scaled Alternatives and Differentiated Solutions
3 Investment Management: Global Capabilities, Scaled Alternatives and Differentiated Solutions Driving Growth Exceptional Performance Diverse Alternatives Client Differentiated Multi-Asset And Strong Organic Growth Franchise Solutions ~$40Bn #1 Active Equities Net Flows % ~$100Bn AUM in Solutions-Ba
Slide 12: Growth in Attractive Strategies
3 Growth in Attractive Strategies AUM ($Bn) 2015 6/30/2019 Growth Liquidity (1) 122 159 31% Private Real Assets (2) 26 39 51% Solutions Based Investing (3) 26 41 55% Active Fundamental Equity (4) 83 128 54% The End Notes are an integral part of this Presentation. See slides 17-20 at the back of this
Slide 13: Institutional Securities: Leadership in Core Businesses
4 Institutional Securities: Leadership in Core Businesses (1)(2)(3) Investment Banking Fixed Income Sales & Trading(4) Equity Sales & Trading(5) Wallet Share (%) Wallet Share, ex DVA (%) Wallet Share, ex DVA (%) 21% 21% 20% 14% 13% 9% 18% 12% 8% 12% 12% 17% 8% 16% 11% 7% 6% 6% 2013 2014 2015 2016 20
Slide 14: Deepen Presence in Asia Region Across the Firm
Deepen Presence in Asia Region Across the Firm Growing Client Assets in PWM Asia(1) Onshore China Presence – Joint Ventures Client Assets ($Bn) Securities Joint Venture Fund Management Joint Venture 125(2) 49% Current Ownership, 78 Increasing to 51%, Subject Single Largest Shareholder to Regulatory
Slide 15: 2019 1st Half Highlights
2019 1st Half Highlights 1 Increased our Quarterly Dividend for 6th Consecutive Year 2 Increased Share Repurchase Plan to $6Bn, Representing ~100% Total Payout Ratio 3 Delivered Wealth Management Pre-Tax Margin (1) at the Top Half of Target 4 Completed Solium Acquisition and Executing Integration Pl
Slide 16: Strategic Objectives
Strategic Objectives(1) 2018 – 2019 Strategic Objectives Opportunities Deliver Wealth Mgmt. Pre-Tax Margin(2) of 1 1 26-28% Leverage Capital Base to Support Organic Business Initiatives 2 Expand ISG Penetration and Leadership 2 3 Position Investment Management for Growth “Fill-In” Acquisitions for W
Slide 17: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on Slide 3 1. U.S. Bank represents the Firm’s U.S. Bank operating subsidiaries, Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association. We provide loans to a variety of clients and customers p
Slide 18: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on Slide 10 1. Longer established players represent Bank of America Wealth & Investment Management, UBS Wealth Management and Wells Fargo Advisors 2. Credit metrics as of 6/30/2019 3. Represents secured loans / total
Slide 19: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on Slide 13 1. Wallet represents the aggregated reported net revenues of Morgan Stanley and the following peers: Goldman Sachs, JP Morgan, Bank of America, Citigroup, UBS, Deutsche Bank, Credit Suisse, and Barclays. M
Slide 20: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on Slide 16 1. The attainment of these objectives may be impacted by external factors that cannot be predicted at this time, including macroeconomic and market conditions and future regulations; See also Notice on Sli
Slide 21: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference Jonathan Pruzan, Chief Financial Officer & Executive Vice President September 11, 2019
Morgan Stanley — Barclays Global Financial Services Conference 2019 on 6ix