Morgan Stanley · NYSE:MS
Morgan Stanley — Q4 2010 Earnings Presentation
10 slides from Morgan Stanley's earnings presentation, February 2011
Slide 1: Morgan Stanley Fourth Quarter 2010 Overview
Morgan Stanley Fourth Quarter 2010 Overview February 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, 2009, 2010 Quarterly Reports on Form 10-Q and Current Re
Slide 3: Index
Index • Consolidated Financial Highlights • Financial Results − Institutional Securities − Global Wealth Management Group − Asset Management • Balance Sheet De-Risked • More Stable and Diverse Funding − Secured Funding
Slide 4: Consolidated Financial Highlights
Consolidated Financial Highlights (1) 2010 Net Revenues of $31.6 Bn 2010 Highlights - Business Mix 2010 • Full year revenues were $31.6 billion Asset − Includes negative impact of $873 million from Management tightening of debt-related credit spreads(3) Equities • Strong Investment Banking results 9
Slide 5: Institutional Securities
Institutional Securities Net Revenue ($mm) 5,338 315 4Q 2010 Highlights - 4,515 887 885 • Net Revenues of $3.6 billion 3,618 − Includes negative impact of approximately $945 1,419 2,895 (2) 1,415 1,051 million from tightening of debt-related credit spreads 115 1,008 • Investment Banking revenues wer
Slide 6: Global Wealth Management Group
Global Wealth Management Group Net Revenue (1) ($mm) 4Q 2010 Highlights - 3,353 3,105 3,104 3,074 341 • Revenues increased 8% to $3.4 billion 191 288 302 348 337 256 249 273 391 317 • $390 million PBT and 12% PBT margin 318 682 692 564 738 − Quarterly integration costs of approximately $63 million 1
Slide 7: Asset Management
Asset Management Net Revenue ($mm) 858 4Q 2010 Highlights - 802 653 448 • Revenues increased 7% to $858 million 239 422 410 • $356 million PBT and 41% PBT margin 110 • Total assets under management of $279 414 380 410 300 billion at December 31, 2010 − $600 million in negative asset flows 3Q 2010 pr
Slide 8: Balance Sheet De-Risked
Balance Sheet De-Risked 3Q 2007 (1) 4Q 2010 Strategic Repositioning Tier 1 Capital Ratio Strong 11.2% (2) 16.0% (3) + Tier 1 Common Ratio Strong (5) 7.7% (4) 10.5% (3) Disciplined Execution Leverage Reduction 32.3x 14.7x Balance Sheet Reduction $1.2Tn $808Bn + Liquidity as a % of Balance Sheet Incre
Slide 9: More Stable and Diverse Funding
More Stable and Diverse Funding Composition of Funding Liabilities and Equity 4Q 2007 (1) 4Q 2010 (2) CP and Other CP and Other Short-Term Deposits Short-Term Borrowings Borrowings (1%) Deposits Shareholders‘ 5% 6% 13% Equity 5% Shareholders‘ Equity 11% 37% Secured Funding Long-Term Debt 32% 52% Sec
Slide 10: Secured Funding Term Consistent with Asset Fundability
2/4/2011 Secured Funding Term Consistent with Asset Fundability Focus on Liquidity Characteristics of Assets Illiquid Less Liquid • Assets Tiered by Fundability: − Highly Liquid – Governments, Agencies, Open Market Operations and Central Clearing Counterparty eligible collateral − Liquid - AAA or AA