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Wealth ManagementWealth Management reported net revenues of 24.2 billion compared with 19.1 billion a year ago. Pre-tax income of 6.2 billion9 in the current year resulted in a reported pre-tax margin of 25.5% or 26.9% excluding the impact ofintegration-related expenses.6,8 The comparisons of current year results to prior periods were impacted by theacquisition of E*TRADE in the fourth quarter of 2020.Net revenues up 27% from a year ago: Asset management revenues increased from a year ago onhigher asset levels driven by market appreciation and recordfee-based flows. Transactional revenues15 increased 29% excluding theimpact of mark-to-market gains on investments associatedwith certain employee deferred compensations plans.Results reflect incremental revenues due to the E*TRADEacquisition and strong client activity. Net interest income increased from a year ago primarilydriven by the E*TRADE acquisition, strong growth in banklending, improved mortgage securities prepayment impact,and higher brokerage sweep deposits, partially offset by theimpact of lower average rates.( millions)FY 2021FY 2020Net Revenues 24,243 19,086Asset management 13,966 10,955Transactional15 4,259 3,694Net interest 5,393 4,022 625 415 11 30Total Expenses 18,051 14,669Compensation 13,090 10,970 4,961 3,699OtherProvision for credit lossesNon-compensationTotal Expenses: Compensation expense increased from a year ago primarily driven by higher compensable revenues and highercompensation driven by the E*TRADE acquisition.6 Non-compensation expenses increased from a year ago primarily driven by the E*TRADE acquisition.6Investment ManagementInvestment Management reported net revenues of 6.2 billion compared with 3.7 billion a year ago. Pre-tax incomewas 1.7 billion compared with 870 million in the prior year.9 The comparisons of current year results to prior periodswere impacted by the acquisition of Eaton Vance completed on March 1, 2021.Net revenues up 67% from a year ago: Asset management and related fees increased due tothe Eaton Vance acquisition, record AUM on strongperformance and positive flows across all assetclasses. Performance-based income and other revenuesdecreased from a year ago reflecting lower results inour Asia private equity business, primarily driven by anunderlying public investment and lower gains oninvestments associated with certain employee deferredcompensation plans. The decrease was partially offsetby higher accrued carried interest across our privatefunds.FY 2021FY 2020Net Revenues 6,220 3,734Asset management and related fees 5,576 3,013 644 721Total Expenses 4,542 2,864Compensation 2,373 1,542Non-compensation 2,169 1,322( millions)Performance-based income and otherTotal Expenses: Compensation expense increased from a year ago driven by the Eaton Vance acquisition6 and higher compensationassociated with carried interest, partially offset by lower expenses related to certain deferred compensation planslinked to investment performance. Non-compensation expenses increased from a year ago primarily driven by the Eaton Vance acquisition.65

Other Matters The Firm repurchased 2.8 billion of itsoutstanding common stock during the quarter aspart of its Share Repurchase Program.4Q 2021 4Q 2020 FY 2021 FY 2020Common Stock Repurchases The Board of Directors declared a 0.70 quarterlydividend per share, payable on February 15, 2022to common shareholders of record on January 31,2022.Repurchases ( MM) The Firm early adopted the StandardizedApproach for Counterparty Credit Risk (SA-CCR)under Basel III on December 1, 2021. As a resultof the adoption, as of December 31, 2021 our riskweighted assets under the StandardizedApproach increased by 23 billion and ourStandardized CET1 capital ratio decreased by 82basis points.20Period End Shares (MM)Number of Shares (MM) 2,833NA 11,464 1,34728NA12629 99.80NA 91.13 46.011,7721,8101,7721,81023.9%23.0%23.1%22.5%CET1 capital17,2016.0%17.4%Tier 1 capital1717.6%19.4%CET1 capital1717.5%17.7%capital1719.3%19.8%Tier 1 leverage187.1%8.4%SLR195.6%7.4%Average PriceTax RateCapital16Standardized ApproachAdvanced ApproachTier 1Leveraged-based capital6

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities,wealth management and investment management services. With offices in more than 41 countries, the Firm’semployees serve clients worldwide including corporations, governments, institutions and individuals. For furtherinformation about Morgan Stanley, please visit www.morganstanley.com.A financial summary follows. Financial, statistical and business-related information, as well as information regardingbusiness and segment trends, is included in the financial supplement. Both the earnings release and the financialsupplement are available online in the Investor Relations section at www.morganstanley.com.NOTICE:The information provided herein and in the financial supplement, including information provided on the Firm’s earningsconference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliationof such measures to the comparable U.S. GAAP figures are included in this earnings release and the financialsupplement, both of which are available on www.morganstanley.com.This earnings release may contain forward-looking statements, including the attainment of certain financial and othertargets, objectives and goals. Readers are cautioned not to place undue reliance on forward-looking statements, whichspeak only as of the date on which they are made, which reflect management’s current estimates, projections,expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may causeactual results to differ materially. For a discussion of risks and uncertainties that may affect the future results of theFirm, please see “Forward-Looking Statements” preceding Part I, Item 1, “Competition” and “Supervision andRegulation” in Part I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’sDiscussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative andQualitative Disclosures about Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year endedDecember 31, 2020 and other items throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and theFirm’s Current Reports on Form 8-K, including any amendments thereto.7

Includes preferred dividends related to the calculation of earnings per share for the fourth quarter of 2021 and 2020 of approximately 104million and 119 million, respectively. Includes preferred dividends related to the calculation of earnings per share for the years ended 2021and 2020 of approximately 468 million and 496 million, respectively.1The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S.GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases,earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financialmeasure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustmentsthat effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with U.S.GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and otherstakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition,operating results, or capital adequacy. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be differentfrom or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, wewill also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S.GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S.GAAP financial measure.2Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metricswhich we believe to be useful to us, analysts, investors, and other stakeholders by providing further transparency about, or an additionalmeans of assessing, our financial condition and operating results.3The provision for credit losses for loans and lending commitments is now presented as a separate line in the consolidated incomestatements.4Return on average tangible common equity is a non-GAAP financial measures that the Firm considers useful for analysts, investors andother stakeholders to allow comparability of period-to-period operating performance and capital adequacy. The calculation of return onaverage tangible common equity represents full year or annualized net income applicable to Morgan Stanley less preferred dividends as apercentage of average tangible common equity. Tangible common equity, also a non-GAAP financial measure, represents common equityless goodwill and intangible assets net of allowable mortgage servicing rights deduction.5The Firm’s and business segment’s fourth quarter and full year results for 2021 and 2020 include integration-related expenses as a resultof the E*TRADE and Eaton Vance acquisitions reported in the Wealth Management segment and Investment Management segment,respectively. The amounts are presented as follows (in millions):64Q 20214Q 2020FY 2021FY 2020 25121 146 114 15180 231 189 102354 456 352 15180 231 189Wealth ManagementCompensationNon-compensationTotal non-interest expensesTotal non-interest expenses (after-tax) 1099 109 85 15180 231 189 58288 346 267 15180 231 189Investment ManagementCompensationNon-compensationTotal non-interest expensesTotal non-interest expenses (after-tax) 1522 37 29- 4466 110 85-FirmCompensationNon-compensationTotal non-interest expensesTotal non-interest expenses (after-tax)The Firm expense efficiency ratio of 67.1% represents total non-interest expenses as a percentage of net revenues. The Firm expenseefficiency ratio excluding integration-related expenses of 66.3% represents total non-interest expenses adjusted for integration-relatedexpenses as a percentage of net revenues. The Firm expense efficiency ratio excluding integration-related expenses is a non-GAAPfinancial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-periodoperating performance.7Pre-tax margin represents income before taxes divided by net revenues. Wealth Management pre-tax margin excluding the integrationrelated expenses represents income before taxes less those expenses divided by net revenues. Wealth Management pre-tax marginexcluding integration-related expenses is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other88

stakeholders to allow comparability of period-to-period operating performance.9Pre-tax income represents income before taxes.Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment for services isa fee calculated on those assets.10Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers,dividends, interest, and client fees, and exclude institutional cash management related activity.11Wealth Management net new assets represent client inflows, including dividends and interest, and asset acquisitions, less client outflows,and exclude activity from business combinations/divestitures and the impact of fees and commissions.1213AUM is defined as assets under management or supervision.Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes the Liquidity and OverlayServices asset class.14Transactional revenues include investment banking, trading, and commissions and fee revenues. Transactional revenues excluding theimpact of mark-to-market gains on investments associated with employee deferred cash-based compensation plans is a non-GAAPfinancial measure that the Firm considers useful for analysts, investors and other stakeholders to allow better comparability of period-toperiod operating performance and capital adequacy.1516Capital ratios are estimates as of the press release date, January 19, 2022.CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each of the (i)standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (the “Standardized Approach”) and (ii)applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). Forinformation on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’sDiscussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" inthe Firm’s Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Form 10-K).17The Tier 1 leverage ratio is a leverage-based capital requirement that measures the Firm’s leverage. Tier 1 leverage ratio utilizes Tier 1capital as the numerator and average adjusted assets as the denominator.18The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately 83.4 billion and 88.1 billion, andsupplementary leverage exposure denominator of approximately 1.48 trillion and 1.19 trillion, for the fourth quarter of 2021 and 2020,respectively. Based on a Federal Reserve interim final rule that was in effect until March 31, 2021, our SLR and supplementary leverageexposure as of December 31, 2020 reflect the exclusion of U.S. Treasury securities and deposits at Federal Reserve Banks. The exclusionof these assets had the effect of increasing our SLR by 0.8% as of December 31, 2020.19The Firm early adopted the standardized approach for counterparty credit risk (SA-CCR) under Basel III on December 1, 2021. SA-CCRreplaced the current exposure method used to measure derivatives counterparty exposure within the Standardized Approach risk-weightedassets (RWAs) and Supplementary Leverage Ratio exposure calculations in the regulatory capital framework. As a result of the adoption,as of December 31, 2021 our risk-weighted assets under the Standardized Approach increased by 23 billion and our Standardized CET1capital ratio decreased by 82 basis points.209

Consolidated Income Statement Information(unaudited, dollars in millions)Dec 31, 2021Revenues:Investment bankingTradingInvestmentsCommissions and feesAsset managementOtherTotal non-interest revenues Interest incomeInterest expenseNet interestNet revenuesProvision for credit lossesNon-interest expenses:Compensation and benefitsNon-compensation expenses:Brokerage, clearing and exchange feesInformation processing and communicationsProfessional servicesOccupancy and equipmentMarketing and business developmentOtherTotal non-compensation expensesTotal non-interest expensesIncome before provision for income taxesProvision for income taxesNet incomeNet income applicable to nonredeemable noncontrolling interestsNet income applicable to Morgan StanleyPreferred stock dividendEarnings applicable to Morgan Stanley common shareholders 2,5812,3946321,3075,39512612,435Quarter EndedSep 30, 2021 Dec 31, 2020 3,0132,861451,2805,20129012,690 Percentage Change From:Sep 30, 2021 Dec 31, %(57%)(2%)6%(26%)93%(3%)37%(72%)6%Twelve Months EndedDec 31, 2021 Dec 31, 2020 10,99412,8101,3765,52119,9671,04251,710 6%40%35%(53%)37%(6%)39% The End Notes are an integral part of this presentation. Refer to the Financial Supplement on pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of PerformanceMetrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice for additional information.10

Consolidated Financial Metrics, Ratios and Statistical Data(unaudited)Dec 31, 2021Quarter EndedSep 30, 2021Dec 31, 2020Percentage Change From:Sep 30, 2021Dec 31, 2020Twelve Months EndedDec 31, 2021 Dec 31, 2020PercentageChangeFinancial Metrics:Earnings per basic shareEarnings per diluted share Return on average common equityReturn on average tangible common equityBook value per common shareTangible book value per common shareExcluding integration-related expensesAdjusted earnings per diluted shareAdjusted return on average common equityAdjusted return on average tangible common equity2.052.01 2.011.9814.7%19.8% 14.5%19.6%1.841.812%2%11%11% 14.7%17.7% 55.1240.91 54.5640.47 51.1341.95 2.0815.2%20.4% 2.0415.0%20.2% 1.9215.6%18.7%8.168.03 15.0%19.8%2%8%6.556.4625%24%13.1%15.2% 55.1240.91 51.1341.95 8.2215.3%20.2% 6.5813.3%15.4%25%Financial Ratios:Pre-tax profit marginCompensation and benefits as a % of net revenuesNon-compensation expenses as a % of net revenuesFirm expense efficiency ratioFirm expense efficiency ratio excluding integration-related expensesEffective tax 51,8141,6031,624Statistical Data:Period end common shares outstanding (millions)Average common shares outstanding (millions)BasicDilutedWorldwide employees11%12%Notes:- For the quarters ended December 31, 2021 and September 30, 2021 and the full year ended December 31, 2021, Firm results include pre-tax integration-related expenses of 146 million, 145 million and 456 million ( 114 million, 111 million and 352 million after-tax) respectively, reported in the Wealth Management and Investment Management business segments. For the quarter and full year ended December 31, 2020, Firm results include pre-taxintegration-related expenses of 231 million ( 189 million after-tax) reported in the Wealth Management segment.- The End Notes are an integral part of this presentation. Refer to the Financial Supplement on pages 12 - 17 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, SupplementalQuantitative Details and Calculations, and Legal Notice for additional information.11

Net income applicable to Morgan Stanley was 3.7 billion, or 2.01 per diluted share,1 compared with 3.4 billion, or 1.81 per diluted share,1 for the same period a year ago. Full year net revenues were 59.8 billion compared with 48.8 billion a year ago. Net income applicable to Morgan Stanley for