Morgan Stanley · NYSE:MS
Morgan Stanley — Q1 2011 Earnings Presentation
10 slides from Morgan Stanley's earnings presentation, May 12, 2011
Slide 1: Morgan Stanley First Quarter 2011 Overview
Free Writing Prospectus Dated May 12, 2011 Registration Statement No. 333-156423 Filed Pursuant to Rule 433 Morgan Stanley First Quarter 2011 Overview May 2011
Slide 2: Notice
Notice The information provided herein may include certain non-GAAP financial measures. The reconciliation of such measures to the comparable GAAP figures are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, 2011 Quarterly Reports on Form 10-Q and Current Re
Slide 3: Index
Index Consolidated Financial Highlights Firmwide Revenues Institutional Securities Global Wealth Management Group Asset Management Disciplined Execution; Strong Capital & Liquidity More Stable and Diverse Funding Secured Funding
Slide 4: Consolidated Financial Highlights
Consolidated Financial Highlights 1Q 2011 Revenue Drivers 1Q 2011 Highlights Strong Performance in Equity Sales and Trading Net Revenues ($Bn) 7.6 Solid Results in Fixed Income Robust M&A Activity PBT ($Bn) 0.9 Positive Net Flows in Global Wealth Management and Asset Management Net Income ($
Slide 5: Institutional Securities
Institutional Securities Net Revenue ($mm) 5,338 1Q 2011 Highlights - 315 3,618 3,592 887 Net Revenues of $3.6 billion includes negative impact 1,008 of : 1,419 1,051 $655 million from Japan JV loss 1,702 1,515 $189 million from tightening of debt-related credit (2) 2,717 spreads 1,770 1,081
Slide 6: Global Wealth Management Group
Global Wealth Management Group Net Revenue ($mm) 1Q 2011 Highlights - 3,353 3,437 3,105 341 342 Revenues of $3.4 billion reflecting higher 191 338 348 337 commissions and asset management revenues 317 295 256 (2) 779 $348 million PBT and 10% PBT margin 682 738 Quarterly integration costs of ap
Slide 7: Asset Management
Asset Management Net Revenue ($mm) 858 1Q 2011 Highlights - 653 246 626 Reorganization of segment into 3 businesses 166 (3) 183 $127 million PBT and 20% PBT margin 265 201 118 Total assets under management of $284 billion 347 325 at March 31, 2011 286 8% increase from 1Q10 reflects market ap
Slide 8: Disciplined Execution; Strong Capital and Liquidity
Disciplined Execution; Strong Capital and Liquidity 3Q 2007 (1) 1Q 2011 Strategic Repositioning Tier 1 Capital Ratio 11.2% (2) 16.5% (3) + Tier 1 Common Ratio (5) 7.7% (4) 11.7% (3) Disciplined Execution Leverage Reduction 32.3x 14.9x Balance Sheet Reduction $1.2Tn $836Bn + Liquidity as a % of Balan
Slide 9: More Stable and Diverse Funding
More Stable and Diverse Funding Composition of Funding Liabilities and Equity 4Q 2007 (1) 1Q 2011 (2) CP and Other CP and Other Short-Term Deposits Short-Term Borrowings Deposits Borrowings (1%) Shareholders‘ 5% 6% Equity 5% 12% Shareholders‘ Equity 11% 39Secured Funding 39% Long-Term Debt 32% 52% S
Slide 10: Secured Funding Term Consistent with Asset Fundability
Secured Funding Term Consistent with Asset Fundability Focus on Liquidity Characteristics of Assets Assets Tiered by Fundability: Illiquid Highly Liquid – Governments, Agencies, Open Market Less Liquid Operations and Central Clearing Counterparty eligible collateral Liquid - AAA or AA bonds, S