Morgan Stanley · NYSE:MS
Morgan Stanley — Q2 2009 Earnings Presentation
11 slides from Morgan Stanley's earnings presentation, Aug 18, 2009
Slide 1: Morgan Stanley Second Quarter 2009 Overview
Free Writing Prospectus Dated August 18, 2009 Registration Statement No. 333-156423 Filed Pursuant to Rule 433 Morgan Stanley Second Quarter 2009 Overview August 2009
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 fiscal year ended November 30, 2008, 2009 Quarterly Reports on Form 10-Q and 200
Slide 3: Index
Index • Consolidated Financial Highlights − Institutional Securities − Asset Management − Global Wealth Management • Reduction in Risk Positions • Firmwide Real Estate Investments • Strong Capital Position • Funding Diversification 3 This slide is part of a presentation by Morgan Stanley and is inte
Slide 4: Consolidated Financial Highlights
Consolidated Financial Highlights 2Q09 Highlights 2Q09 Net Revenues of $5.4 Bn Net Revenues ($Bn) 5.4 Business Mix 2Q09 PBT ($Bn) (0.6) Asset Management Equity Net Income ($Bn) 0.15 11% 12% Diluted EPS from Continuing Operations ($) (1.37) Fixed Global 19% Income (2) Adjustment from Debt-Related Cre
Slide 5: Institutional Securities
Institutional Securities Net Revenue 2Q 2009 Highlights ($MM) • Investment Banking delivered strong results 11,082 − Ranked # 1 in announced global M&A 268 − $1.1 billion in revenues up 38% vs. 1Q09 3,485 • Delivered strong results in Investment Grade and Distressed Debt Trading • Expanded strategic
Slide 6: Asset Management
Asset Management Net Revenue 2Q 2009 Highlights ($MM) • Core business – net revenues of $638 million, up from $610 million in 2Q08 1,246 422 Notable Revenue Items • Principal Trading – ($96 million) − Mark-to-Market losses in Real Estate lending facility – ( $131million) 2,822 − Gains related to dis
Slide 7: Global Wealth Management
Global Wealth Management Net Revenue 2Q 2009 Highlights ($MM) 6,887 • Closed the Joint Venture with Smith Barney 911 ahead of schedule on May 31st 559 • Solid Performance with 9% PBT margin (ex- 1,387 joint venture integration costs) • $106 billion - JV Bank Deposit program 1,379 − $50 billion is he
Slide 8: Reduction in Risk Positions
Reduction in Risk Positions Net Exposure (1) ($Bn) 19.6 17.5 10.9 7.3 4.0 4.2 3.3 0.6 ABS CDO / Other CMBS Leveraged Acquisition (3) Subprime Mortgage-Related Finance Pipeline 4Q 2007 (2) 2Q 2009 Source: Morgan Stanley Earnings Conference Call, SEC Filings (1) Net Exposure is defined as potential lo
Slide 9: Firmwide Real Estate Investments
Firmwide Real Estate Investments (2) Total Real Estate Investments $4.6bn Infrastructure Fund • Crescent and Other Consolidated Interests gross investment assets of consolidated Real Estate Funds $0.2 subsidiaries, certain of which are subject to non-recourse debt of $2.5 billion provided by $0.7 th
Slide 10: Strong Capital Position
Strong Capital Position Total Assets 2Q 2009 Key Capital Ratios (Basel I) ($Bn) 1,098 943 Tier 1 Capital Ratio 15.8% 677 677 626 (1) Tier 1 Leverage Ratio 6.5% (2) (3) TCE to RWA 10.6% 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 Source: SEC Filings and estimates from Morgan Stanley Earnings Conference C
Slide 11: Funding Diversification
Funding Diversification Composition of Funding Liabilities and Equity Shareholders’ Equity CP and Other Short-Term CP and Other Short-Term Shareholders’ Borrowings Borrowings Deposits Equity 5% 1% 7% 11% 7% Deposits 15% Long-Term Long-Term 44% Debt 40% Debt 41% 29% Secured Secured Funding Funding 2Q