UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

Commission File Number 1-11758

(Exact name of Registrant as specified in its charter)

Delaware

1585 Broadway

36-3145972

(212)

761-4000

(State or other jurisdiction of incorporation or organization)

New York,

NY

10036

(I.R.S. Employer Identification No.)

(Registrant’s telephone number, including area code)

(Address of principal executive offices, including Zip Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class			Trading Symbol(s)			Name of exchange on which registered
Common Stock, $0.01 par value			MS			New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate			MS/PA			New York Stock Exchange
Non-Cumulative Preferred Stock, Series A, $0.01 par value
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate			MS/PE			New York Stock Exchange
Non-Cumulative Preferred Stock, Series E, $0.01 par value
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate			MS/PF			New York Stock Exchange
Non-Cumulative Preferred Stock, Series F, $0.01 par value
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate			MS/PI			New York Stock Exchange
Non-Cumulative Preferred Stock, Series I, $0.01 par value
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate			MS/PK			New York Stock Exchange
Non-Cumulative Preferred Stock, Series K, $0.01 par value
Depositary Shares, each representing 1/1,000th interest in a share of 4.875%			MS/PL			New York Stock Exchange
Non-Cumulative Preferred Stock, Series L, $0.01 par value
Depositary Shares, each representing 1/1,000th interest in a share of 4.250%			MS/PO			New York Stock Exchange
Non-Cumulative Preferred Stock, Series O, $0.01 par value
Depositary Shares, each representing 1/1,000th interest in a share of 6.500%			MS/PP			New York Stock Exchange
Non-Cumulative Preferred Stock, Series P, $0.01 par value
Depositary Shares, each representing 1/1,000th interest in a share of 6.625%			MS/PQ			New York Stock Exchange
Non-Cumulative Preferred Stock, Series Q, $0.01 par value
Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026			MS/26C			New York Stock Exchange
of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)
Global Medium-Term Notes, Series A, Floating Rate Notes Due 2029			MS/29			New York Stock Exchange
of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒     No  ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.         ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No ☒

As of October 31, 2025, there were 1,589,309,311 shares of the Registrant’s Common Stock, par value $0.01 per share, outstanding.

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Table of Contents

QUARTERLY REPORT ON FORM 10-Q

For the quarter ended September 30, 2025

Table of Contents						Part			Item			Page
Financial Information						I
Management’s Discussion and Analysis of Financial Condition and Results of Operations						I			2			4
Introduction												4
Executive Summary												5
Business Segments												9
Institutional Securities												10
Wealth Management												13
Investment Management												16
Supplemental Financial Information												18
Accounting Development Updates												18
Critical Accounting Estimates												18
Liquidity and Capital Resources												19
Balance Sheet												19
Regulatory Requirements												22
Quantitative and Qualitative Disclosures about Risk						I			3			28
Market Risk												28
Credit Risk												30
Country and Other Risks												36
Report of Independent Registered Public Accounting Firm												38
Consolidated Financial Statements and Notes						I			1			39
Consolidated Income Statement (Unaudited)												39
Consolidated Comprehensive Income Statement (Unaudited)												39
Consolidated Balance Sheet (Unaudited at September 30, 2025)												40
Consolidated Statement of Changes in Total Equity (Unaudited)												41
Consolidated Cash Flow Statement (Unaudited)												42
Notes to Consolidated Financial Statements (Unaudited)												43
1.			Introduction and Basis of Presentation									43
2.			Significant Accounting Policies									44
3.			Cash and Cash Equivalents									44
4.			Fair Values									44
5.			Fair Value Option									50
6.			Derivative Instruments and Hedging Activities									51
7.			Investment Securities									54
8.			Collateralized Transactions									56
9.			Loans, Lending Commitments and Related Allowance for Credit Losses									58
10.			Other Assets									62
11.			Deposits									62
12.			Borrowings and Other Secured Financings									63
13.			Commitments, Guarantees and Contingencies									63
14.			Variable Interest Entities and Securitization Activities									67
15.			Regulatory Requirements									69
16.			Total Equity									71
17.			Interest Income and Interest Expense									73
18.			Income Taxes									74
19.			Segment, Geographic and Revenue Information									74
Financial Data Supplement (Unaudited)												77
Glossary of Common Terms and Acronyms												78
Controls and Procedures						I			4			79
Other Information						II
Legal Proceedings						II			1			79
Risk Factors						II			1A			79
Unregistered Sales of Equity Securities and Use of Proceeds						II			2			79
Other Information						II			5			79
Exhibits						II			6			79
Signatures												79

			2

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Table of Contents

Available Information

We file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (“SEC”). The SEC maintains a website, www.sec.gov, that contains annual, quarterly and current reports, proxy and information statements, and other information that issuers file electronically with the SEC. Our electronic SEC filings are available to the public at the SEC’s website.

Our website is www.morganstanley.com. You can access our Investor Relations webpage at www.morganstanley.com/about-us-ir. We make available free of charge, on or through our Investor Relations webpage, our proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. We also make available, through our Investor Relations webpage, via a link to the SEC’s website, statements of beneficial ownership of our equity securities filed by our directors, officers, 10% or greater shareholders and others under Section 16 of the Exchange Act.

You can access information about our corporate governance at www.morganstanley.com/about-us-governance. Our webpages include:

 

•Amended and Restated Certificate of Incorporation;

•Amended and Restated Bylaws;

•Charters for our Audit Committee, Compensation, Management Development and Succession Committee, Governance and Sustainability Committee, Operations and Technology Committee, and Risk Committee;

•Corporate Governance Policies;

•Policy Regarding Corporate Political Activities;

•Policy Regarding Shareholder Rights Plan;

•Equity Ownership Commitment;

•Code of Ethics and Business Conduct;

•Code of Conduct; and

•Integrity Hotline Information.

Our Code of Ethics and Business Conduct applies to all directors, officers and employees, including our Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer and Controller. We will post any amendments to the Code of Ethics and Business Conduct and any waivers that are required to be disclosed by the rules of either the SEC or the New York Stock Exchange LLC on our website. You can request a copy of these documents, excluding exhibits, at no cost, by contacting Investor Relations, 1585 Broadway, New York, NY 10036 (212-761-4000). The information on our website is not incorporated by reference into this report.

			3

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Table of Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Introduction

Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley,” “Firm,” “us,” “we” or “our” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-Q.

A description of the clients and principal products and services of each of our business segments is as follows:

Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Markets business, which comprises Equity and Fixed Income, provides sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.

Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.

Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.

Management’s Discussion and Analysis includes certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results. Such metrics, when used, are defined and may be different from or inconsistent with metrics used by other companies.

The results of operations in the past have been, and in the future may continue to be, materially affected by: competition; legislative, legal and regulatory developments; and other risk factors. These factors also may have an adverse impact on our ability to achieve our strategic objectives. Additionally, the discussion of our results of operations herein may contain forward-looking statements. These statements, which reflect management’s beliefs and expectations, are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of the risks and uncertainties that may affect our future results, see “Forward-Looking Statements”, “Business—Competition”, “Business—Supervision and Regulation” and “Risk Factors” in the 2024 Form 10-K and “Liquidity and Capital Resources—Regulatory Requirements” herein.

			4			September 2025 Form 10-Q

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Table of Contents
Management’s Discussion and Analysis

Executive Summary

Overview of Financial Results

Consolidated Results—Three Months Ended September 30, 2025

•The Firm reported net revenues of $18.2 billion and net income applicable to Morgan Stanley of $4.6 billion reflecting strong results across business segments and regions.

•The Firm delivered ROE of 18.0% and ROTCE of 23.5% (see “Selected Non-GAAP Financial Information” herein).

•The Firm’s expense efficiency ratio was 67% for the third quarter and 69% for the year-to-date.

•At September 30, 2025, the Firm’s Standardized Common Equity Tier 1 capital ratio was 15.1%, and its Supplementary Leverage Ratio was 5.5%.

•Institutional Securities reported net revenues of $8.5 billion reflecting strong performance in Equity on higher client activity and a rebound in Investment Banking.

•Wealth Management delivered a pre-tax margin of 30.3%. Net revenues of $8.2 billion reflect higher Asset management and Transactional revenues and higher Net interest income. The business added net new assets of $81 billion and fee-based asset flows were $42 billion.

•Investment Management results reflect net revenues of $1.7 billion, primarily driven by asset management fees on higher average AUM.

Net Revenues

($ in millions)

Net Income Applicable to Morgan Stanley

($ in millions)

Earnings per Diluted Common Share

We reported net revenues of $18.2 billion in the quarter ended September 30, 2025 (“current quarter,” or “3Q 2025”), which increased by 18% compared with $15.4 billion in the quarter ended September 30, 2024 (“prior year quarter,” or “3Q 2024”). Net income applicable to Morgan Stanley was $4.6 billion in the current quarter, which increased by 45% compared with $3.2 billion in the prior year quarter. Diluted earnings per common share was $2.80 in the current quarter, which increased by 49% compared with $1.88 in the prior year quarter.

We reported net revenues of $52.8 billion in the nine months ended September 30, 2025 (“current year period,” or “YTD 2025”), which increased by 16% compared with $45.5 billion in the nine months ended September 30, 2024 (“prior year period,” or “YTD 2024”). Net income applicable to Morgan Stanley was $12.5 billion in the current year period, which increased by 29% compared with $9.7 billion in the prior year period. Diluted earnings per common share was $7.53 in the current year period, which increased by 31% compared with $5.73 in the prior year period.

September 2025 Form 10-Q			5

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Table of Contents
Management’s Discussion and Analysis

Non-Interest Expenses

($ in millions)

•Compensation and benefits expenses of $7,442 million in the current quarter increased 11% from the prior year quarter, primarily due to an increase in the formulaic payout to Wealth Management advisors on higher revenues, higher expenses related to outstanding deferred compensation and higher salary expenses.

•Compensation and benefits expenses of $22,153 million in the current year period increased 11% from the prior year period, primarily due to an increase in the formulaic payout to Wealth Management advisors and higher discretionary incentive compensation within Institutional Securities, both on higher revenues, and higher expenses related to outstanding deferred compensation.

During the current year period, as a result of a March employee action, we recognized severance costs associated with a reduction in force of $144 million, included in Compensation and Benefits expense. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary” in the Form 10-Q for the quarter ended March 31, 2025.

•Non-compensation expenses of $4,754 million in the current quarter and $14,077 million in the current year period increased 9% and 10%, respectively, compared with the prior year periods, primarily due to higher execution-related expenses and increased technology spend.

Provision for Credit Losses

The Provision for credit losses on loans and lending commitments was $0 million in the current quarter, reflecting portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans, offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments in the prior year quarter was $79 million, primarily related to provisions for certain specific commercial real estate and corporate loans and growth across loan

portfolios, partially offset by improvements in the macroeconomic outlook.

The Provision for credit losses on loans and lending commitments of $331 million in the current year period was primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans. The Provision for credit losses on loans and lending commitments in the prior year period was $149 million, primarily related to provisions for certain specific commercial real estate and corporate loans and growth across certain loan portfolios, partially offset by improvements in the macroeconomic outlook.

For further information on the Provision for credit losses, see “Credit Risk” herein.

Business Segment Results

Net Revenues by Segment1

($ in millions)

Net Income Applicable to Morgan Stanley by Segment1

($ in millions)

1.The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 19 to the financial statements for details of intersegment eliminations.

			6			September 2025 Form 10-Q

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Table of Contents
Management’s Discussion and Analysis

•Institutional Securities net revenues of $8,523 million in the current quarter and $25,149 million in the current year period increased 25% and 21%, respectively, compared with the prior year periods, primarily reflecting higher results in Equity driven by higher client activity and higher underwriting revenues within Investment Banking.

•Wealth Management net revenues of $8,234 million in the current quarter and $23,325 million in the current year period increased 13% and 11%, respectively, compared with the prior year periods, primarily reflecting higher Asset management revenues on higher market levels and the cumulative impact of positive fee-based flows, and higher Transactional revenues on higher client activity.

•Investment Management net revenues of $1,651 million in the current quarter and $4,805 million in the current year period increased 13% and 14%, respectively, compared with the prior year periods, primarily reflecting higher Asset management and related fees driven by higher AUM on higher market levels and higher Performance-based income and other revenues.

Net Revenues by Region1

($ in millions)

1.For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements in the 2024 Form 10-K.

•Americas net revenues increased 18% and 14% in the current quarter and in the current year period, respectively, compared with the prior year periods, driven by higher results across all business segments.

•EMEA net revenues increased 6% and 15% in the current quarter and in the current year period, respectively, compared with the prior year periods, primarily driven by higher results in Equity, partially offset by lower results in Investment Banking compared with strong results in the prior year periods, within the Institutional Securities business segment.

•Asia net revenues increased 31% and 29% in the current quarter and in the current year period, respectively,

compared with the prior year periods, primarily driven by higher results in Equity and Investment Banking within the Institutional Securities business segment.

Selected Financial Information and Other Statistical Data

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions, except per share data			2025			2024			2025			2024
Consolidated results
Net revenues			$	18,224		$	15,383		$	52,755		$	45,538
Earnings applicable to Morgan Stanley common shareholders			$	4,450		$	3,028		$	11,999		$	9,236
Earnings per diluted common share			$	2.80		$	1.88		$	7.53		$	5.73
Consolidated financial measures
Expense efficiency ratio1			67		%	72		%	69		%	72		%
ROE2			18.0		%	13.1		%	16.5		%	13.5		%
ROTCE2, 3			23.5		%	17.5		%	21.6		%	18.2		%
Pre-tax margin4			33		%	27		%	31		%	28		%
Effective tax rate			22.8		%	23.6		%	22.2		%	22.7		%
Pre-tax margin by segment4
Institutional Securities			37		%	28		%	34		%	30		%
Wealth Management			30		%	28		%	29		%	27		%
Investment Management			22		%	18		%	21		%	17		%

$ in millions, except per share data, worldwide employees and client assets			At September 30, 2025			At December 31, 2024
Average liquidity resources for three months ended5			$	368,090		$	345,440
Loans6			$	277,307		$	246,814
Total assets			$	1,364,806		$	1,215,071
Deposits			$	405,480		$	376,007
Borrowings			$	331,679		$	288,819
Common equity			$	100,212		$	94,761
Tangible common equity3			$	77,392		$	71,604
Common shares outstanding			1,591			1,607
Book value per common share7			$	62.98		$	58.98
Tangible book value per common share3, 7			$	48.64		$	44.57
Worldwide employees (in thousands)			82			80
Client assets8 (in billions)			$	8,861		$	7,860
Capital Ratios9
Common Equity Tier 1 capital—Standardized			15.1		%	15.9		%
Tier 1 capital—Standardized			16.9		%	18.0		%
Common Equity Tier 1 capital—Advanced			15.7		%	15.7		%
Tier 1 capital—Advanced			17.6		%	17.8		%
Tier 1 leverage			6.8		%	6.9		%
SLR			5.5		%	5.6		%

1.The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues.

2.ROE and ROTCE represent annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively.

3.Represents a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein.

4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.

5.For a discussion of Liquidity resources, see “Liquidity and Capital Resources—Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein.

6.Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet.

7.Book value per common share and tangible book value per common share equal common equity and tangible common equity, respectively, divided by common shares outstanding.

8.Client assets represents the sum of Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets are invested in Investment Management products and are therefore also included in Investment Management’s AUM.

September 2025 Form 10-Q			7

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Table of Contents
Management’s Discussion and Analysis

9.For a discussion of our capital ratios, see “Liquidity and Capital Resources—Regulatory Requirements” herein.

Economic and Market Conditions

Client and investor confidence and market sentiment have improved in the third quarter of 2025. The quarter was characterized by increased momentum in capital markets activity and lower interest rates. The rate of economic growth, ongoing geopolitical uncertainty, as well as the timing and pace of further central bank actions have impacted and could continue to impact capital markets and our businesses.

For more information on economic and market conditions, and the potential effects of geopolitical events and acts of war or aggression on our future results, refer to “Risk Factors” and “Forward-Looking Statements” in the 2024 Form 10-K.

Selected Non-GAAP Financial Information

We prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non-GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non-GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy.

These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will 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 U.S. GAAP financial measure and the non-GAAP financial measure.

We present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Other Matters” in the 2024 Form 10-K.

Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity. The calculation of tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity (“ROTCE”) and tangible book value per common share, also non-GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period-to-period, respectively. The calculation of ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity. The calculation of tangible book value per common share represents tangible common equity divided by common shares outstanding.

The principal non-GAAP financial measures presented in this document are set forth in the following tables.

Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Net revenues			$	18,224		$	15,383		$	52,755		$	45,538
Adjustment for mark-to-market losses (gains) on DCP1			(248)			(239)			(476)			(372)
Adjusted Net revenues—non-GAAP			$	17,976		$	15,144		$	52,279		$	45,166
Compensation expense			$	7,442		$	6,733		$	22,153		$	19,889
Adjustment for mark-to-market gains (losses) on DCP1			(300)			(276)			(669)			(580)
Adjusted Compensation expense—non-GAAP			$	7,142		$	6,457		$	21,484		$	19,309
Wealth Management Net revenues			$	8,234		$	7,270		$	23,325		$	20,942
Adjustment for mark-to-market losses (gains) on DCP1			(206)			(170)			(369)			(265)
Adjusted Wealth Management Net revenues—non-GAAP			$	8,028		$	7,100		$	22,956		$	20,677
Wealth Management Compensation expense			$	4,388		$	3,868		$	12,534		$	11,257
Adjustment for mark-to-market gains (losses) on DCP1			(222)			(184)			(469)			(373)
Adjusted Wealth Management Compensation expense—non-GAAP			$	4,166		$	3,684		$	12,065		$	10,884

1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment.

$ in millions			At September 30, 2025			At December 31, 2024
Tangible equity
Common equity			$	100,212		$	94,761
Less: Goodwill and net intangible assets			(22,820)			(23,157)
Tangible common equity—non-GAAP			$	77,392		$	71,604

			8			September 2025 Form 10-Q

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Table of Contents
Management’s Discussion and Analysis

			Average Monthly Balance
			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Tangible equity
Common equity			$	98,709		$	92,706		$	97,134		$	91,049
Less: Goodwill and net intangible assets			(22,865)			(23,416)			(22,971)			(23,559)
Tangible common equity—non-GAAP			$	75,844		$	69,290		$	74,163		$	67,490

Non-GAAP Financial Measures by Business Segment

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in billions			2025			2024			2025			2024
Average common equity1
Institutional Securities			$	48.4		$	45.0		$	48.4		$	45.0
Wealth Management			29.4			29.1			29.4			29.1
Investment Management			10.6			10.8			10.6			10.8
ROE2
Institutional Securities			19		%	12		%	17		%	13		%
Wealth Management			25		%	21		%	23		%	19		%
Investment Management			10		%	7		%	10		%	7		%
Average tangible common equity1
Institutional Securities			$	48.0		$	44.6		$	48.0		$	44.6
Wealth Management			16.3			15.5			16.3			15.5
Investment Management			1.0			1.1			1.0			1.1
ROTCE2
Institutional Securities			20		%	12		%	17		%	13		%
Wealth Management			45		%	39		%	41		%	37		%
Investment Management			105		%	68		%	102		%	65		%

1.Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein). The sums of the segments’ Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity.

2.The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment.

Return on Tangible Common Equity Goal

We have an ROTCE goal of 20%. Our ROTCE goal is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors.

See “Risk Factors” and “Forward-Looking Statements” in the 2024 Form 10-K for further information on market and economic conditions and their potential effects on our future operating results.

ROTCE represents a non-GAAP financial measure. For further information on non-GAAP measures, see “Selected Non-GAAP Financial Information” herein.

Business Segments

Substantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 19 to the financial statements for segment net

revenues by income statement line item and information on intersegment transactions.

For an overview of the components of our business segments, net revenues, provision for credit losses, compensation expense and income taxes, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Segments” in the 2024 Form 10-K.

September 2025 Form 10-Q			9

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Table of Contents
Management’s Discussion and Analysis

Institutional Securities

Income Statement Information

			Three Months Ended September 30,						% Change
$ in millions			2025			2024
Revenues
Advisory			$	684		$	546		25		%
Equity			652			362			80		%
Fixed Income			772			555			39		%
Total Underwriting			1,424			917			55		%
Total Investment Banking			2,108			1,463			44		%
Equity			4,116			3,045			35		%
Fixed Income			2,169			2,003			8		%
Other			130			304			(57)		%
Net revenues			$	8,523		$	6,815		25		%
Provision for credit losses			1			68			(99)		%
Compensation and benefits			2,422			2,271			7		%
Non-compensation expenses			2,918			2,565			14		%
Total non-interest expenses			5,340			4,836			10		%
Income before provision for income taxes			3,182			1,911			67		%
Provision for income taxes			672			438			53		%
Net income			2,510			1,473			70		%
Net income applicable to noncontrolling interests			42			37			14		%
Net income applicable to Morgan Stanley			$	2,468		$	1,436		72		%

			Nine Months Ended September 30,						% Change
$ in millions			2025			2024
Revenues
Advisory			$	1,755		$	1,599		10		%
Equity			1,471			1,144			29		%
Fixed Income			1,981			1,786			11		%
Total Underwriting			3,452			2,930			18		%
Total Investment Banking			5,207			4,529			15		%
Equity			11,965			8,905			34		%
Fixed Income			6,953			6,487			7		%
Other			1,024			892			15		%
Net revenues			$	25,149		$	20,813		21		%
Provision for credit losses			260			124			110		%
Compensation and benefits			7,706			6,905			12		%
Non-compensation expenses			8,609			7,476			15		%
Total non-interest expenses			16,315			14,381			13		%
Income before provision for income taxes			8,574			6,308			36		%
Provision for income taxes			1,840			1,406			31		%
Net income			6,734			4,902			37		%
Net income applicable to noncontrolling interests			133			127			5		%
Net income applicable to Morgan Stanley			$	6,601		$	4,775		38		%

Investment Banking

Investment Banking Volumes

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in billions			2025			2024			2025			2024
Completed mergers and acquisitions1			$	256		$	124		$	576		$	473
Equity and equity-related offerings2, 3			24			13			61			43
Fixed Income offerings2, 4			84			80			276			263

Source: LSEG Data & Risk Analytics (formerly known as Refinitiv) as of October 1, 2025. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions.

1.Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction.

2.Based on full credit for single book managers and equal credit for joint book managers.

3.Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings.

4.Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances.

Investment Banking Revenues

Net revenues of $2,108 million in the current quarter increased 44% from the prior year quarter, reflecting higher results across businesses, particularly in underwriting revenues.

•Advisory revenues increased primarily reflecting higher completed M&A transactions in the Americas in a constructive market environment.

•Equity underwriting revenues increased primarily reflecting higher initial public offerings and convertible issuances.

•Fixed Income underwriting revenues increased primarily reflecting higher non-investment grade and investment grade loan and bond issuances, which benefitted from higher event-related activity.

Net revenues of $5,207 million in the current year period increased 15% from the prior year period reflecting higher results across businesses, particularly in underwriting revenues.

•Advisory revenues increased primarily reflecting higher completed M&A transactions in the Americas in a constructive market environment.

•Equity underwriting revenues increased primarily reflecting higher convertible issuances, initial public offerings and follow-on offerings.

•Fixed Income underwriting revenues increased primarily reflecting higher non-investment grade loan issuances, which benefitted from higher event-related activity.

See “Investment Banking Volumes” herein.

			10			September 2025 Form 10-Q

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Management’s Discussion and Analysis

Equity, Fixed Income and Other Net Revenues

Equity and Fixed Income Net Revenues

			Three Months Ended September 30, 2025
									Net Interest2			All Other3
$ in millions			Trading			Fees1									Total
Financing			$	2,666		$	158		$	(717)		$	3		$	2,110
Execution services			1,245			722			(107)			146			2,006
Total Equity			$	3,911		$	880		$	(824)		$	149		$	4,116
Total Fixed Income			$	1,850		$	107		$	141		$	71		$	2,169

			Three Months Ended September 30, 2024
									Net Interest2			All Other3
$ in millions			Trading			Fees1									Total
Financing			$	1,913		$	144		$	(686)		$	—		$	1,371
Execution services			925			680			(98)			167			1,674
Total Equity			$	2,838		$	824		$	(784)		$	167		$	3,045
Total Fixed Income			$	2,008		$	103		$	(169)		$	61		$	2,003

			Nine Months Ended September 30, 2025
									Net Interest2			All Other3
$ in millions			Trading			Fees1									Total
Financing			$	7,372		$	470		$	(2,019)		$	3		$	5,826
Execution services			3,774			2,254			(311)			422			6,139
Total Equity			$	11,146		$	2,724		$	(2,330)		$	425		$	11,965
Total Fixed Income			$	6,150		$	322		$	273		$	208		$	6,953

			Nine Months Ended September 30, 2024
									Net Interest2			All Other3
$ in millions			Trading			Fees1									Total
Financing			$	6,036		$	414		$	(2,296)		$	2		$	4,156
Execution services			2,830			1,901			(221)			239			4,749
Total Equity			$	8,866		$	2,315		$	(2,517)		$	241		$	8,905
Total Fixed Income			$	6,705		$	303		$	(694)		$	173		$	6,487

1.Includes Commissions and fees and Asset management revenues.

2.Includes funding costs, which are allocated to the businesses based on funding usage.

3.Includes Investments and Other revenues.

Equity

Net revenues of $4,116 million in the current quarter and $11,965 million in the current year period increased 35% and 34%, respectively, compared with the prior year periods, reflecting an increase in Financing and Execution services.

•Financing revenues increased primarily due to increased client activity and higher average client balances, particularly in Asia.

•Execution services revenues increased primarily due to increased client activity and higher gains on inventory held to facilitate client activity in derivatives and cash equities.

Fixed Income

Net revenues of $2,169 million in the current quarter increased 8% from the prior year quarter, reflecting an increase in Credit products and Commodities, partially offset by a decrease in Global macro products.

•Global macro products revenues decreased primarily due to higher losses on inventory held to facilitate client activity

on lower volatility and decreased client activity in foreign exchange products.

•Credit products revenues increased primarily due to increased client activity across products, particularly in securitized products.

•Commodities products and other fixed income revenues increased primarily due to increased client activity in structured transactions and higher gains on inventory held to facilitate client activity.

Net revenues of $6,953 million in the current year period increased 7% from the prior year period, reflecting an increase in Global macro and Credit products, partially offset by a decrease in Commodities.

•Global macro products revenues increased primarily due to increased client activity and gains on inventory held to facilitate client activity in foreign exchange and rates products.

•Credit products revenues increased primarily due to increased client activity across products, particularly in securitized products, partially offset by lower results on inventory held to facilitate client activity.

•Commodities products and other fixed income revenues decreased primarily due to lower gains on inventory held to facilitate client activity, partially offset by increased client activity.

Other Net Revenues

Other net revenues were $130 million in the current quarter, compared with $304 million in the prior year quarter, primarily reflecting lower net interest income and fees, following the sale of corporate loans held-for-sale in the first quarter of 2025, and higher mark-to-market losses on corporate loans, inclusive of hedges.

Other net revenues were $1,024 million in the current year period, compared with $892 million in the prior year period, primarily reflecting gains on the sale of corporate loans held-for-sale compared with mark-to-market losses, inclusive of hedges, in the prior year period, partially offset by lower net interest income and fees on those loans.

Provision for Credit Losses

The Provision for credit losses on loans and lending commitments of $1 million in the current quarter was primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans, offset by improvements in the macroeconomic outlook. The Provision for credit losses on loans and lending commitments of $68 million in the prior year quarter was primarily related to growth across loan portfolios and provisions for certain specific commercial real estate and corporate loans, partially offset by improvements in the macroeconomic outlook.

September 2025 Form 10-Q			11

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Management’s Discussion and Analysis

The Provision for credit losses on loans and lending commitments of $260 million in the current year period was primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans. The Provision for credit losses on loans and lending commitments of $124 million in the prior year period was primarily related to growth across loan portfolios and provisions for certain specific commercial real estate loans, partially offset by improvements in the macroeconomic outlook.

For further information on the Provision for credit losses, see “Credit Risk” herein.

Non-Interest Expenses

Non-interest expenses of $5,340 million in the current quarter increased 10% compared with the prior year quarter, reflecting higher Non-compensation expenses and Compensation and benefits expenses.

•Compensation and benefits expenses increased primarily due to higher expenses related to outstanding deferred compensation and higher salary expenses.

•Non-compensation expenses increased primarily due to higher execution-related expenses on higher volumes.

Non-interest expenses of $16,315 million in the current year period increased 13%, compared with the prior year period, reflecting higher Non-compensation expenses and Compensation and benefits expenses.

•Compensation and benefits expenses increased primarily due to higher discretionary incentive compensation on higher revenues and higher expenses related to outstanding deferred compensation.

•Non-compensation expenses increased primarily due to higher execution-related expenses on higher volumes.

			12			September 2025 Form 10-Q

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Management’s Discussion and Analysis

Wealth Management

Income Statement Information

			Three Months Ended September 30,						% Change
$ in millions			2025			2024
Revenues
Asset management			$	4,789		$	4,266		12		%
Transactional1			1,308			1,076			22		%
Net interest			1,991			1,774			12		%
Other2			146			154			(5)		%
Net revenues			8,234			7,270			13		%
Provision for credit losses			(1)			11			N/M
Compensation and benefits			4,388			3,868			13		%
Non-compensation expenses			1,348			1,331			1		%
Total non-interest expenses			5,736			5,199			10		%
Income before provision for income taxes			2,499			2,060			21		%
Provision for income taxes			610			492			24		%
Net income applicable to Morgan Stanley			$	1,889		$	1,568		20		%

			Nine Months Ended September 30,						% Change
$ in millions			2025			2024
Revenues
Asset management			$	13,596		$	12,084		13		%
Transactional1			3,445			2,891			19		%
Net interest			5,803			5,428			7		%
Other2			481			539			(11)		%
Net revenues			23,325			20,942			11		%
Provision for credit losses			71			25			184		%
Compensation and benefits			12,534			11,257			11		%
Non-compensation expenses			4,070			3,973			2		%
Total non-interest expenses			16,604			15,230			9		%
Income before provision for income taxes			6,650			5,687			17		%
Provision for income taxes			1,529			1,313			16		%
Net income applicable to Morgan Stanley			$	5,121		$	4,374		17		%

1.Transactional includes Investment banking, Trading, and Commissions and fees revenues.

2.Other includes Investments and Other revenues.

Wealth Management Metrics

$ in billions			At September 30, 2025			At December 31, 2024
Total client assets1			$	7,054		$	6,194
U.S. Bank Subsidiary loans			$	174		$	160
Margin and other lending2			$	28		$	28
Deposits3			$	398		$	370
Annualized weighted average cost of deposits4
Period end			2.72%			2.73%
Period average for three months ended			2.88%			2.94%

			Three Months Ended September 30,						Nine Months Ended September 30,
			2025			2024			2025			2024
Net new assets			$	81.0		$	63.9		$	234.0		$	195.2

1.Client assets represent those for which Wealth Management is providing services including financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage and investment advisory services; financial and wealth planning services; workplace services, including stock plan administration, and retirement plan services. See “Advisor-Led Channel” and “Self-Directed Channel” herein for additional information.

2.Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non‐purpose securities-based lending on non‐bank entities.

3.Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other deposits, and time deposits.

4.Annualized weighted average represents the total annualized weighted average cost of the various deposit products. Amounts include the effect of related hedging derivatives. The period end cost of deposits is based upon balances and rates as of September 30, 2025 and December 31, 2024. The period average is based on daily balances and rates for the period.

Net New Assets

NNA represent client asset inflows, inclusive of interest, dividends and asset acquisitions, less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees and commissions. The level of NNA in a given period is influenced by a variety of factors, including macroeconomic factors that impact client investment and spending behaviors, seasonality, our ability to attract and retain financial advisors and clients, capital market and corporate activities which may impact the amount of assets in certain client channels, and large idiosyncratic inflows and outflows. These factors have had an impact on our NNA in recent periods. Should these factors continue, the growth rate of our NNA may be impacted.

Advisor-Led Channel

$ in billions			At September 30, 2025			At December 31, 2024
Advisor-led client assets1			$	5,414		$	4,758
Fee-based client assets2			$	2,653		$	2,347
Fee-based client assets as a percentage of advisor-led client assets			49%			49%

			Three Months Ended September 30,						Nine Months Ended September 30,
			2025			2024			2025			2024
Fee-based asset flows3			$	41.9		$	35.7		$	114.5		$	87.9

1.Advisor-led client assets represent client assets in accounts that have a Wealth Management representative assigned.

2.Fee‐based client assets represent the amount of client assets where the basis of payment for services is a fee calculated on those assets.

3.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. For a description of the Inflows and Outflows included in Fee-based asset flows, see "Fee-Based Client Assets Rollforwards" herein.

September 2025 Form 10-Q			13

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Management’s Discussion and Analysis

Self-Directed Channel

			At September 30, 2025			At December 31, 2024
Self-directed client assets1 (in billions)			$	1,639		$	1,437
Self-directed households2 (in millions)			8.4			8.3

			Three Months Ended September 30,						Nine Months Ended September 30,
			2025			2024			2025			2024
Daily average revenue trades (“DARTs”)3 (in thousands)			1,012			815			999			812

1.Self-directed client assets represent active accounts which are not advisor led. Active accounts are defined as having at least $25 in assets.

2.Self-directed households represent the total number of households that include at least one active account with self-directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.

3.DARTs represent the total self-directed trades in a period divided by the number of trading days during that period.

Workplace Channel1

			At September 30, 2025			At December 31, 2024
Stock plan unvested assets2 (in billions)			$	534		$	475
Stock plan participants3,4 (in millions)			6.6			6.6

1.The workplace channel includes equity compensation solutions for companies, their executives and employees.

2.Stock plan unvested assets represent the market value of public company securities at the end of the period.

3.Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.

4.The number of stock plan participants declined slightly in the third quarter of 2025, primarily as a result of the previously announced dispositions of the Firm’s EMEA stock plan business. The disposition is expected to complete in the fourth quarter of 2025.

Net Revenues

Asset Management

Asset management revenues of $4,789 million in the current quarter and $13,596 million in the current year period increased 12% and 13%, respectively, compared with the prior year periods, primarily reflecting higher fee-based assets due to higher market levels and the cumulative impact of positive fee-based flows.

See “Fee-Based Client Assets Rollforwards” herein.

Transactional Revenues

Transactional revenues of $1,308 million in the current quarter and $3,445 million in the current year period increased 22% and 19%, respectively, compared with the prior year periods, primarily driven by higher client activity across products and channels, and higher gains on DCP investments.

For further information on the impact of DCP, see “Selected Non-GAAP Financial Information” herein.

Net Interest

Net interest revenues of $1,991 million in the current quarter and $5,803 million in the current year period increased 12% and 7%, respectively, compared with the prior year periods, primarily due to changes in balance sheet mix and the cumulative impact of lending growth, partially offset by the net effect of lower interest rates.

The level and pace of interest rate changes and other macroeconomic factors have impacted client preferences, including cash allocation to higher-yielding products and client demand for loans. These factors, along with other developments, such as pricing changes to certain deposit types due to various competitive dynamics, have impacted our net interest income. To the extent they persist, or other factors arise, such as central bank actions, net interest income may be impacted in future periods.

Provision for Credit Losses

The Provision for credit losses on loans and lending commitments was a net release of $1 million in the current quarter, primarily related to improvements in the macroeconomic outlook, partially offset by portfolio growth in residential real estate loans. The Provision for credit losses on loans and lending commitments of $11 million in the prior year quarter was primarily related to certain specific commercial real estate loans, partially offset by improvements in the macroeconomic outlook.

The Provision for credit losses on loans and lending commitments of $71 million in the current year period was primarily related to certain specific loans in our tailored lending and residential real estate portfolios, as well as portfolio growth in residential real estate loans. In the prior year period, the Provision for credit losses on loans and lending commitments of $25 million was primarily related to certain specific commercial real estate and securities-based loans, and portfolio growth, partially offset by improvements in the macroeconomic outlook.

Non-Interest Expenses

Non-interest expenses of $5,736 million in the current quarter increased 10%, compared with the prior year quarter, primarily as a result of higher Compensation and benefits expenses.

•Compensation and benefits expenses increased, primarily as a result of an increase in the formulaic payout to Wealth Management advisors driven by higher compensable revenue and higher expenses related to DCP.

•Non-compensation expenses increased, primarily as a result of higher marketing and business development costs and increased technology spend, partially offset by lower amortization of intangible assets.

Non-interest expenses of $16,604 million in the current year period increased 9%, compared with the prior year period,

			14			September 2025 Form 10-Q

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Table of Contents
Management’s Discussion and Analysis

primarily as a result of higher Compensation and benefits expenses.

•Compensation and benefits expenses increased, primarily as a result of an increase in the formulaic payout to Wealth Management advisors driven by higher compensable revenue and higher expenses related to DCP.

•Non-compensation expenses increased, primarily as a result of higher marketing and business development costs and increased technology spend, partially offset by lower amortization of intangible assets.

For further information on the impact of DCP, see “Selected Non-GAAP Financial Information” herein.

Fee-Based Client Assets Rollforwards

$ in billions			At June 30, 2025			Inflows1			Outflows2			Market Impact3			At Sept 30, 2025
Separately managed4			$	728		$	25		$	(10)		$	45		$	788
Unified managed			680			39			(18)			31			732
Advisor			214			11			(12)			12			225
Portfolio manager			793			34			(27)			42			842
Subtotal			$	2,415		$	109		$	(67)		$	130		$	2,587
Cash management			63			14			(11)			—			66
Total			$	2,478		$	123		$	(78)		$	130		$	2,653

$ in billions			At June 30, 2024			Inflows1			Outflows2			Market Impact3			At Sept 30, 2024
Separately managed4			$	663		$	21		$	(8)		$	7		$	683
Unified managed			561			30			(16)			30			605
Advisor			199			10			(10)			10			209
Portfolio manager			704			33			(24)			32			745
Subtotal			$	2,127		$	94		$	(58)		$	79		$	2,242
Cash management			61			11			(12)			—			60
Total			$	2,188		$	105		$	(70)		$	79		$	2,302

$ in billions			At Dec 31, 2024			Inflows1			Outflows2			Market Impact3			At Sept 30, 2025
Separately managed4			$	719		$	72		$	(30)		$	27		$	788
Unified managed			613			104			(49)			64			732
Advisor			207			26			(29)			21			225
Portfolio manager			750			92			(72)			72			842
Subtotal			$	2,289		$	294		$	(180)		$	184		$	2,587
Cash management			58			40			(32)			—			66
Total			$	2,347		$	334		$	(212)		$	184		$	2,653

$ in billions			At Dec 31, 2023			Inflows1			Outflows2			Market Impact3			At Sept 30, 2024
Separately managed4			$	589		$	55		$	(32)		$	71		$	683
Unified managed			501			88			(41)			57			605
Advisor			188			23			(27)			25			209
Portfolio manager			645			88			(66)			78			745
Subtotal			$	1,923		$	254		$	(166)		$	231		$	2,242
Cash management			60			46			(46)			—			60
Total			$	1,983		$	300		$	(212)		$	231		$	2,302

1.Inflows include new accounts, account transfers, deposits, dividends and interest.

2.Outflows include closed or terminated accounts, account transfers, withdrawals and client fees.

3.Market impact includes realized and unrealized gains and losses on portfolio investments.

4.Includes non-custody account values based on asset values reported on a quarter lag by third-party custodians.

Average Fee Rates1

			Three Months Ended September 30,						Nine Months Ended September 30,
Fee rate in bps			2025			2024			2025			2024
Separately managed			12			12			12			12
Unified managed			90			91			90			91
Advisor			78			80			78			79
Portfolio manager			88			89			88			89
Subtotal			64			65			64			65
Cash management			6			7			6			6
Total			63			63			63			63

1.Based on Asset management revenues related to advisory services associated with fee-based assets.

For a description of fee-based client assets in the previous tables, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Segments—Wealth Management Fee-Based Client Assets” in the 2024 Form 10-K.

September 2025 Form 10-Q			15

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Table of Contents
Management’s Discussion and Analysis

Investment Management

Income Statement Information

			Three Months Ended September 30,						% Change
$ in millions			2025			2024
Revenues
Asset management and related fees			$	1,534		$	1,384		11		%
Performance-based income and other1			117			71			65		%
Net revenues			1,651			1,455			13		%
Compensation and benefits			632			594			6		%
Non-compensation expenses			655			601			9		%
Total non-interest expenses			1,287			1,195			8		%
Income before provision for income taxes			364			260			40		%
Provision for income taxes			95			67			42		%
Net income			269			193			39		%
Net income (loss) applicable to noncontrolling interests			3			1			N/M
Net income applicable to Morgan Stanley			$	266		$	192		39		%

			Nine Months Ended September 30,						% Change
$ in millions			2025			2024
Revenues
Asset management and related fees			$	4,419		$	4,072		9		%
Performance-based income and other1			386			146			164		%
Net revenues			4,805			4,218			14		%
Compensation and benefits			1,913			1,727			11		%
Non-compensation expenses			1,882			1,768			6		%
Total non-interest expenses			3,795			3,495			9		%
Income before provision for income taxes			1,010			723			40		%
Provision for income taxes			233			172			35		%
Net income			777			551			41		%
Net income (loss) applicable to noncontrolling interests			4			2			N/M
Net income applicable to Morgan Stanley			$	773		$	549		41		%

1.Includes Investments and Trading, Net interest, and Other revenues.

Net Revenues

Asset Management and Related Fees

Asset management and related fees of $1,534 million in the current quarter and $4,419 million in the current year period increased 11% and 9%, respectively, from the prior year periods, primarily driven by higher average AUM on higher market levels from the prior year periods.

Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. While higher market levels drove increases in average AUM in the current quarter, there were continued net outflows in the Equity asset class, which may be influenced by the structure and performance of our investment strategies and products

relative to their benchmarks, offset by higher net inflows in the Alternatives and Solutions and Fixed Income asset classes, reflecting client preferences. To the extent these conditions continue, we would expect our Asset management revenue to continue to be impacted.

See “Assets Under Management or Supervision” herein.

Performance-based Income and Other

Performance-based income and other revenues of $117 million in the current quarter increased from the prior year quarter, primarily due to higher accrued carried interest in certain private credit funds, partially offset by lower gains on DCP investments.

Performance-based income and other revenues of $386 million in the current year period increased from the prior year period, primarily due to higher accrued carried interest in infrastructure funds.

Non-Interest Expenses

Non-interest expenses of $1,287 million in the current quarter and $3,795 million in the current year period increased 8% and 9%, respectively, from the prior year periods, as a result of higher Compensation and benefits expenses and Non-compensation expenses.

•Compensation and benefits expenses increased in both the current quarter and current year period, primarily due to higher compensation associated with carried interest.

•Non-compensation expenses increased in the current quarter and current year period, primarily due to higher distribution expenses on higher AUM and increased technology and infrastructure spend.

			16			September 2025 Form 10-Q

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Management’s Discussion and Analysis

Assets Under Management or Supervision Rollforwards

$ in billions			At June 30, 2025			Inflows1			Outflows2			Market Impact3			Other4			At Sept 30, 2025
Equity			$	327		$	11		$	(16)		$	10		$	(3)		$	329
Fixed Income			212			21			(13)			3			1			224
Alternatives and Solutions			636			46			(29)			34			(4)			683
Long-Term AUM			$	1,175		$	78		$	(58)		$	47		$	(6)		$	1,236
Liquidity and Overlay Services			538			634			(606)			8			(3)			571
Total			$	1,713		$	712		$	(664)		$	55		$	(9)		$	1,807

$ in billions			At June 30, 2024			Inflows1			Outflows2			Market Impact3			Other4			At Sept 30, 2024
Equity			$	301		$	9		$	(14)		$	15		$	5		$	316
Fixed Income			176			17			(12)			6			1			188
Alternatives and Solutions			558			37			(28)			23			1			591
Long-Term AUM			$	1,035		$	63		$	(54)		44			7			1,095
Liquidity and Overlay Services			483			570			(556)			9			(3)			503
Total			$	1,518		$	633		$	(610)		$	53		$	4		$	1,598

$ in billions			At Dec 31, 2024			Inflows1			Outflows2			Market Impact3			Other4			At Sept 30, 2025
Equity			$	312		$	33		$	(45)		$	27		$	2		$	329
Fixed Income			192			64			(43)			10			1			224
Alternatives and Solutions			593			121			(90)			61			(2)			683
Long-Term AUM			$	1,097		$	218		$	(178)		$	98		$	1		$	1,236
Liquidity and Overlay Services			569			1,963			(1,974)			21			(8)			571
Total			$	1,666		$	2,181		$	(2,152)		$	119		$	(7)		$	1,807

$ in billions			At Dec 31, 2023			Inflows1			Outflows2			Market Impact3			Other4			At Sept 30, 2024
Equity			$	295		$	29		$	(48)		$	41		$	(1)		$	316
Fixed Income			171			48			(37)			8			(2)			188
Alternatives and Solutions			508			105			(78)			59			(3)			591
Long-Term AUM			$	974		$	182		$	(163)		$	108		$	(6)		$	1,095
Liquidity and Overlay Services			485			1,659			(1,648)			20			(13)			503
Total			$	1,459		$	1,841		$	(1,811)		$	128		$	(19)		$	1,598

1.Inflows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments of client dividends and increases in invested capital. Inflows exclude the impact of exchanges, whereby a client changes positions within the same asset class.

2.Outflows represent redemptions from clients’ funds, transition of funds from the committed capital period to the invested capital period and decreases in invested capital. Outflows exclude the impact of exchanges, whereby a client changes positions within the same asset class.

3.Market impact includes realized and unrealized gains and losses on portfolio investments. This excludes any funds where market impact does not impact management fees.

4.Other contains both distributions and foreign currency impact for all periods. Distributions represent decreases in invested capital due to returns of capital after the investment period of a fund. It also includes fund dividends that the client has not reinvested. Foreign currency impact reflects foreign currency changes for non-U.S. dollar denominated funds.

Average AUM

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in billions			2025			2024			2025			2024
Equity			$	327		$	307		$	318		$	302
Fixed income			217			182			206			176
Alternatives and Solutions			656			574			623			547
Long-term AUM subtotal			1,200			1,063			1,147			1,025
Liquidity and Overlay Services			558			492			557			485
Total			$	1,758		$	1,555		$	1,704		$	1,510

Average Fee Rates1

			Three Months Ended September 30,						Nine Months Ended September 30,
Fee rate in bps			2025			2024			2025			2024
Equity			70			70			70			70
Fixed income			36			37			36			36
Alternatives and Solutions			27			28			27			29
Long-term AUM			40			41			41			42
Liquidity and Overlay Services			12			12			13			12
Total			31			32			31			33

1.Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees. For certain non-U.S. funds, it includes the portion of advisory fees that the advisor collects on behalf of third-party distributors. The payment of those fees to the distributor is included in Non-compensation expenses in the income statement.

For a description of the asset classes in the previous tables, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Segments—Investment Management—Assets Under Management or Supervision Rollforwards” in the 2024 Form 10-K.

September 2025 Form 10-Q			17

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Table of Contents
Management’s Discussion and Analysis

Supplemental Financial Information

U.S. Bank Subsidiaries

Our U.S. Bank Subsidiaries, Morgan Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”) (together, “U.S. Bank Subsidiaries”), accept deposits, provide loans to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals, and invest in securities. Lending activity in our U.S. Bank Subsidiaries from the Institutional Securities business segment primarily includes Secured lending facilities, Commercial and Residential real estate and Corporate loans. Lending activity in our U.S. Bank Subsidiaries from the Wealth Management business segment primarily includes Securities-based lending, which allows clients to borrow money against the value of qualifying securities, other forms of secured loans, including tailored lending to ultra-high net worth clients, and Residential real estate loans.

For a further discussion of our credit risks, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. For a further discussion about loans and lending commitments, see Notes 9 and 13 to the financial statements.

U.S. Bank Subsidiaries’ Supplemental Financial Information1

$ in billions			At September 30, 2025			At December 31, 2024
Investment securities
Available-for-sale at fair value			$	87.4		$	76.5
Held-to-maturity			45.2			47.8
Total Investment securities			$	132.6		$	124.3
Wealth Management loans2
Residential real estate			$	70.8		$	66.6
Securities-based lending and Other3			103.1			92.9
Total Wealth Management loans			$	173.9		$	159.5
Institutional Securities loans2
Corporate			$	7.5		$	7.1
Secured lending facilities			65.2			50.2
Commercial and Residential real estate			11.4			10.5
Securities-based lending and Other			5.3			5.6
Total Institutional Securities loans			$	89.4		$	73.4
Total assets			$	471.7		$	434.8
Deposits4			$	397.9		$	369.7

1.Amounts exclude transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates.

2.Represents loans, net of ACL. For a further discussion of loans in the Wealth Management and Institutional Securities business segments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein.

3.Other loans primarily include tailored lending. For a further discussion of Other loans, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein.

4.For further information on deposits, see “Liquidity and Capital Resources—Funding Management—Balance Sheet—Unsecured Financing” herein.

Accounting Development Updates

The Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not referenced below were assessed and determined to be either not applicable or to not have a material impact on our financial condition or results of operations upon adoption.

We are currently evaluating the following accounting updates:

•Derivatives Scope Refinements and Share-Based Consideration from a Customer. This update introduces targeted refinements to the derivatives and revenue recognition accounting guidance. It expands an existing scope exception for derivative accounting to exclude certain non-exchange-traded contracts. The update also clarifies that share-based payments from a customer are treated as noncash consideration under the revenue recognition standard until the related performance obligations are fulfilled and the right to the consideration is unconditional. The update is effective beginning January 1, 2027, with early adoption permitted. Transition may be applied prospectively, or under a modified retrospective approach.

•Intangibles—Goodwill and Other—Internal - Use Software. This update introduces targeted improvements to the recognition and capitalization guidance for internal-use software costs. The update eliminates the prior “project stage” framework and instead requires capitalization of software development costs when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform its intended function. In assessing the probability threshold, entities are required to evaluate whether significant development uncertainty exists, including whether the software contains novel or unproven functionality or whether significant performance requirements have not been identified or continue to be substantially revised. The update is effective beginning January 1, 2028, with early adoption permitted. Transition may be applied prospectively, retrospectively, or under a modified approach.

We continue to evaluate accounting updates disclosed in the “Accounting Development Updates” section of the 2024 Form 10-K, including the implementation of the Income Tax Disclosures accounting update effective for the annual reporting period beginning January 1, 2025. We do not expect a material impact on our financial condition or results of operations upon adoption.

Critical Accounting Estimates

Our financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements in the 2024 Form 10-K and Note 2 to the financial statements), the fair value of financial instruments, goodwill and intangible assets, legal and regulatory contingencies (see Note 14 to the financial statements in the 2024 Form 10-K and Note 13 to the financial statements) and income taxes policies involve a higher degree of judgment and complexity. For a further discussion about our critical accounting policies, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in the 2024 Form 10-K.

			18			September 2025 Form 10-Q

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Management’s Discussion and Analysis

Liquidity and Capital Resources

Our liquidity and capital policies are established and maintained by senior management, with oversight by the Asset/Liability Management Committee and our Board of Directors (“Board”). Through various risk and control committees, senior management reviews business performance relative to these policies, monitors the availability of alternative sources of financing, and oversees the liquidity, interest rate and currency sensitivity of our asset and liability position. Our Corporate Treasury department (“Treasury”), Firm Risk Committee, Asset/Liability Management Committee, and other committees and control groups assist in evaluating, monitoring and managing the impact that our business activities have on our balance sheet, liquidity and capital structure. Liquidity and capital matters are reported regularly to the Board and the Risk Committee of the Board.

Balance Sheet

We monitor and evaluate the composition and size of our balance sheet on a regular basis. Our balance sheet management process includes quarterly planning, business-specific thresholds, monitoring of business-specific usage versus key performance metrics and new business impact assessments.

We establish balance sheet thresholds at the consolidated and business segment levels. We monitor balance sheet utilization and review variances resulting from business activity and market fluctuations. On a regular basis, we review current performance versus established thresholds and assess the need to re-allocate our balance sheet based on business segment needs. We also monitor key metrics, including asset and liability size and capital usage.

Total Assets by Business Segment

			At September 30, 2025
$ in millions			IS			WM			IM			Total
Assets
Cash and cash equivalents			$	79,961		$	23,735		$	38		$	103,734
Trading assets at fair value			406,007			12,575			5,241			423,823
Investment securities			34,252			129,280			—			163,532
Securities purchased under agreements to resell			94,155			17,579			—			111,734
Securities borrowed			128,275			838			—			129,113
Customer and other receivables			74,772			36,916			1,569			113,257
Loans1			93,394			173,902			4			267,300
Goodwill			437			10,199			6,089			16,725
Intangible assets			23			2,664			3,410			6,097
Other assets2			16,855			11,304			1,332			29,491
Total assets			$	928,131		$	418,992		$	17,683		$	1,364,806

			At December 31, 2024
$ in millions			IS			WM			IM			Total
Assets
Cash and cash equivalents			$	74,079		$	31,072		$	235		$	105,386
Trading assets at fair value			320,003			6,915			4,966			331,884
Investment securities			38,096			121,583			—			159,679
Securities purchased under agreements to resell			100,404			18,161			—			118,565
Securities borrowed			121,901			1,958			—			123,859
Customer and other receivables			47,321			37,196			1,641			86,158
Loans1			78,607			159,542			4			238,153
Goodwill			435			10,190			6,081			16,706
Intangible assets			27			2,939			3,487			6,453
Other assets2			15,735			11,292			1,201			28,228
Total assets			$	796,608		$	400,848		$	17,615		$	1,215,071

1.Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements).

2.Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments, and deferred tax assets.

A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities, including management of the investment portfolio.

Liquidity Risk Management Framework

The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile. For a further discussion about the Firm’s Required Liquidity Framework and Liquidity Stress Tests, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Liquidity Risk Management Framework” in the 2024 Form 10-K.

At September 30, 2025 and December 31, 2024, we maintained sufficient liquidity to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests.

Liquidity Resources

We maintain sufficient liquidity resources, which consist of HQLA and cash deposits with banks (“Liquidity Resources”), to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements.

The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and

September 2025 Form 10-Q			19

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Table of Contents
Management’s Discussion and Analysis

regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations.

Liquidity Resources by Type of Investment

			Average Daily Balance Three Months Ended
$ in millions			September 30, 2025			June 30, 2025
Cash deposits with central banks			$	56,629		$	56,914
Unencumbered HQLA Securities1:
U.S. government obligations			189,861			184,877
U.S. agency and agency mortgage-backed securities			82,958			85,482
Non-U.S. sovereign obligations2			30,629			28,291
Other investment grade securities			321			325
Total HQLA1			$	360,398		$	355,889
Cash deposits with banks (non-HQLA)			7,692			7,500
Total Liquidity Resources			$	368,090		$	363,389

1.HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries.

2.Primarily composed of unencumbered French, U.K., Japanese, Italian, German, and Spanish government obligations.

Liquidity Resources by Non-Bank and Bank Legal Entities

			Average Daily Balance Three Months Ended
$ in millions			September 30, 2025			June 30, 2025
Non-Bank legal entities
U.S.:
Parent Company			$	90,626		$	94,757
Non-Parent Company			55,786			55,332
Total U.S.			146,412			150,089
Non-U.S.			70,173			66,830
Total Non-Bank legal entities			216,585			216,919
Bank legal entities
U.S.			145,349			140,280
Non-U.S.			6,156			6,190
Total Bank legal entities			151,505			146,470
Total Liquidity Resources			$	368,090		$	363,389

Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and estimates of funding needs in a stressed environment, among other factors.

Regulatory Liquidity Framework

Liquidity Coverage Ratio and Net Stable Funding Ratio

We and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%.

The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of

banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded.

The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon.

As of September 30, 2025, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%.

Liquidity Coverage Ratio

			Average Daily Balance Three Months Ended
$ in millions			September 30, 2025			June 30, 2025
Eligible HQLA
Cash deposits with central banks			$	51,867		$	52,122
Securities1			234,905			241,114
Total Eligible HQLA			$	286,772		$	293,236
Net cash outflows			$	222,223		$	218,347
LCR			129		%	134		%

1.Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds.

Funding Management

We manage our funding in a manner that reduces the risk of disruption to our operations. We pursue a strategy of diversification of secured and unsecured funding sources (by product, investor and region) and attempt to ensure that the tenor of our liabilities equals or exceeds the expected holding period of the assets being financed. Our goal is to achieve an optimal mix of durable secured and unsecured financing.

We fund our balance sheet on a global basis through diverse sources. These sources include our equity capital, borrowings, bank notes, securities sold under agreements to repurchase, securities lending, deposits, letters of credit and lines of credit. We have active financing programs for both standard and structured products targeting global investors and currencies.

Treasury allocates interest expense to our businesses based on the tenor and interest rate profile of the assets being funded. Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities.

Secured Financing

For a discussion of our secured financing activities, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Funding Management—Secured Financing” in the 2024 Form 10-K.

			20			September 2025 Form 10-Q

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Management’s Discussion and Analysis

Collateralized Financing Transactions

$ in millions			At September 30, 2025			At December 31, 2024
Securities purchased under agreements to resell and Securities borrowed			$	240,847		$	242,424
Securities sold under agreements to repurchase and Securities loaned			$	77,448		$	65,293
Securities received as collateral1			$	2,612		$	9,625

1.Included within Trading assets in the balance sheet.

			Average Daily Balance Three Months Ended
$ in millions			September 30, 2025			December 31, 2024
Securities purchased under agreements to resell and Securities borrowed			$	252,101		$	250,354
Securities sold under agreements to repurchase and Securities loaned			$	86,354		$	74,949

See “Total Assets by Business Segment” herein for additional information on the assets shown in the previous table and Note 2 to the financial statements in the 2024 Form 10-K and Note 8 to the financial statements for additional information on collateralized financing transactions.

In addition to the collateralized financing transactions shown in the previous table, we engage in financing transactions collateralized by customer-owned securities, which are held in accordance with regulatory requirements. Receivables under these financing transactions, primarily margin loans, are included in Customer and other receivables in the balance sheet, and payables under these financing transactions, primarily to prime brokerage customers, are included in Customer and other payables in the balance sheet. Our risk exposure on these transactions is mitigated by collateral maintenance policies and the elements of our Liquidity Risk Management Framework.

Unsecured Financing

For a discussion of our unsecured financing activities, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Funding Management—Unsecured Financing” in the 2024 Form 10-K.

Deposits

$ in millions			At September 30, 2025			At December 31, 2024
Savings and demand deposits:
Brokerage sweep deposits1			$	139,122		$	142,550
Savings and other			167,986			157,348
Total Savings and demand deposits			307,108			299,898
Time deposits2			98,372			76,109
Total3			$	405,480		$	376,007

1.Amounts represent balances swept from client brokerage accounts.

2.Our Time deposits are predominantly brokered certificates of deposit.

3.Our deposits are primarily held in U.S. offices.

Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each

category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. Total deposits in the current year period increased primarily due to increases in Time and Savings deposits.

Borrowings by Maturity at September 30, 20251

$ in millions			Parent Company			Subsidiaries			Total
Original maturities of one year or less			$	—		$	7,551		$	7,551
Original maturities greater than one year
2025			$	2,412		$	3,448		$	5,860
2026			16,454			14,828			31,282
2027			21,977			16,000			37,977
2028			16,048			23,184			39,232
2029			19,636			13,420			33,056
Thereafter			118,511			58,210			176,721
Total greater than one year			$	195,038		$	129,090		$	324,128
Total			$	195,038		$	136,641		$	331,679
Maturities over next 12 months2									$	25,439

1.Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, maturity represents the earliest put date.

2.Includes only borrowings with original maturities greater than one year.

Borrowings of $332 billion as of September 30, 2025 increased compared with $289 billion at December 31, 2024, primarily due to non-bank issuances net of maturities and redemptions.

We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types.

The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities.

For further information on Borrowings, see Note 12 to the financial statements.

Credit Ratings

We rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors.

September 2025 Form 10-Q			21

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Management’s Discussion and Analysis

See also “Risk Factors—Liquidity Risk” in the 2024 Form 10-K.

Parent Company and U.S. Bank Subsidiaries Issuer Ratings at October 31, 2025

			Parent Company
			Short-Term Debt			Long-Term Debt			Rating Outlook
DBRS, Inc.			R-1 (middle)			AA (low)			Stable
Fitch Ratings, Inc.			F1			A+			Stable
Moody’s Investors Service, Inc.			P-1			A1			Stable
Rating and Investment Information, Inc.			a-1			A+			Stable
S&P Global Ratings			A-2			A-			Stable

			MSBNA
			Short-Term Debt			Long-Term Debt			Rating Outlook
Fitch Ratings, Inc.			F1+			AA-			Stable
Moody’s Investors Service, Inc.			P-1			Aa3			Stable
S&P Global Ratings			A-1			A+			Stable

			MSPBNA
			Short-Term Debt			Long-Term Debt			Rating Outlook
Fitch Ratings, Inc.			F1+			AA-			Stable
Moody’s Investors Service, Inc.			P-1			Aa3			Stable
S&P Global Ratings			A-1			A+			Stable

Incremental Collateral or Terminating Payments

In connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the financial statements for additional information on OTC derivatives that contain such contingent features.

While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests.

Capital Management

We view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements, such as the SCB, and rating agency guidelines. In the future, we may expand or

contract our capital base to address the changing needs of our businesses.

Common Stock Repurchases

			Three Months Ended September 30,						Nine Months Ended September 30,
in millions, except for per share data			2025			2024			2025			2024
Number of shares			7			8			23			27
Average price per share			$	145.77		$	99.94		$	131.26		$	93.14
Total			$	1,085		$	750		$	3,085		$	2,500

For additional information on our common stock repurchases, see Note 16 to the financial statements.

For a description of our capital plan, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.

Common Stock Dividend Announcement

Announcement date			October 15, 2025
Amount per share			$1.00
Date to be paid			November 14, 2025
Shareholders of record as of			October 31, 2025

For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein.

For additional information on our common stock and information on our preferred stock, see Note 16 to the financial statements.

Off-Balance Sheet Arrangements

We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments.

We utilize SPEs primarily in connection with securitization activities. For information on our securitization activities, see Note 15 to the financial statements in the 2024 Form 10-K.

For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 13 to the financial statements. For a further discussion of our lending commitments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Loans and Lending Commitments” herein.

Regulatory Requirements

Regulatory Capital Framework

We are a financial holding company (“FHC”) under the Bank Holding Company Act of 1956, as amended and are subject to the regulation and oversight of the Board of Governors of the Federal Reserve System (“Federal Reserve”). The Federal Reserve establishes capital requirements for us, including

			22			September 2025 Form 10-Q

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Management’s Discussion and Analysis

“well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and standards for our U.S. Bank Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and also implement certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 15 to the financial statements.

Regulatory Capital Requirements

We are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Capital Requirements” in the 2024 Form 10-K. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein.

Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios.

Risk-Based Regulatory Capital Ratio Requirements

			At September 30, 2025 and December 31, 2024
			Standardized			Advanced
Capital buffers
Capital conservation buffer			—%			2.5%
SCB1			6.0%			N/A
G-SIB capital surcharge2			3.0%			3.0%
CCyB3			—%			—%
Capital buffer requirement			9.0%			5.5%

1.For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein and in the 2024 Form 10-K.

2.For a further discussion of the G-SIB capital surcharge, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—G-SIB Capital Surcharge” in the 2024 Form 10-K.

3.The CCyB can be set up to 2.5%, but is currently set by the Federal Reserve at zero.

The capital buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our

ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to our 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB.

			Regulatory Minimum			At September 30, 2025 and December 31, 2024
						Standardized			Advanced
Required ratios1
CET1 capital ratio			4.5		%	13.5%			10.0%
Tier 1 capital ratio			6.0		%	15.0%			11.5%
Total capital ratio			8.0		%	17.0%			13.5%

1.Required ratios represent the regulatory minimum plus the capital buffer requirement.

Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At September 30, 2025 and December 31, 2024, the differences between the actual and required ratios were lower under the Standardized Approach.

Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced supplementary leverage ratio (“eSLR”) capital buffer of at least 2%.

CECL Deferral. Beginning on January 1, 2020, we elected to defer the effect of the adoption of CECL on our risk-based and leverage-based capital amounts and ratios, as well as our RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022, were phased-in at 75% from January 1, 2024 and were fully phased-in from January 1, 2025.

September 2025 Form 10-Q			23

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Management’s Discussion and Analysis

Regulatory Capital Ratios

Risk-based capital

			Standardized									Advanced
$ in millions			At Sept 30, 2025			At Dec 31, 2024						At Sept 30, 2025			At Dec 31, 2024
Risk-based capital
CET1 capital			$	81,303		$	75,095					$	81,303		$	75,095
Tier 1 capital			91,036			84,790						91,036			84,790
Total capital			101,733			95,567						100,929			94,846
Total RWA			539,296			471,834						518,012			477,331
Risk-based capital ratios
CET1 capital			15.1		%	15.9		%				15.7		%	15.7		%
Tier 1 capital			16.9		%	18.0		%				17.6		%	17.8		%
Total capital			18.9		%	20.3		%				19.5		%	19.9		%
Required ratios1
CET1 capital			13.5		%	13.5		%				10.0		%	10.0		%
Tier 1 capital			15.0		%	15.0		%				11.5		%	11.5		%
Total capital			17.0		%	17.0		%				13.5		%	13.5		%

1.Required ratios are inclusive of any buffers applicable as of the date presented.

Leveraged-based capital

$ in millions			At September 30, 2025			At December 31, 2024
Leveraged-based capital
Adjusted average assets1			$	1,340,745		$	1,223,779
Supplementary leverage exposure2			1,659,985			1,517,687
Leveraged-based capital ratios
Tier 1 leverage			6.8		%	6.9		%
SLR			5.5		%	5.6		%
Required ratios3
Tier 1 leverage			4.0		%	4.0		%
SLR			5.0		%	5.0		%

1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.

2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.

3.Required ratios are inclusive of any buffers applicable as of the date presented.

Regulatory Capital

$ in millions			At September 30, 2025			At December 31, 2024			Change
CET1 capital
Common shareholders' equity			$	100,212		$	94,761		$	5,451
Regulatory adjustments and deductions:
Net goodwill			(16,382)			(16,354)			(28)
Net intangible assets			(4,731)			(5,003)			272
Impact of CECL transition			—			62			(62)
Other adjustments and deductions1			2,204			1,629			575
Total CET1 capital			$	81,303		$	75,095		$	6,208
Additional Tier 1 capital
Preferred stock			$	9,750		$	9,750		$	—
Noncontrolling interests			925			807			118
Additional Tier 1 capital			$	10,675		$	10,557		$	118
Deduction for investments in covered funds			(942)			(862)			(80)
Total Tier 1 capital			$	91,036		$	84,790		$	6,246
Standardized Tier 2 capital
Subordinated debt			$	8,372		$	8,851		$	(479)
Eligible ACL			2,455			2,065			390
Other adjustments and deductions			(130)			(139)			9
Total Standardized Tier 2 capital			$	10,697		$	10,777		$	(80)
Total Standardized capital			$	101,733		$	95,567		$	6,166
Advanced Tier 2 capital
Subordinated debt			$	8,372		$	8,851		$	(479)
Eligible credit reserves			1,651			1,344			307
Other adjustments and deductions			(130)			(139)			9
Total Advanced Tier 2 capital			$	9,893		$	10,056		$	(163)
Total Advanced capital			$	100,929		$	94,846		$	6,083

1.Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets.

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Management’s Discussion and Analysis

RWA Rollforward

			Nine Months Ended September 30, 2025
$ in millions			Standardized			Advanced
Credit risk RWA
Balance at December 31, 2024			$	417,982		$	316,429
Change related to the following items:
Derivatives			23,847			12,678
Securities financing transactions			10,007			1,289
Investment securities			(597)			(19)
Commitments, guarantees and loans			15,676			9,861
Equity investments			4,073			4,576
Other credit risk			8,300			7,328
Total change in credit risk RWA			$	61,306		$	35,713
Balance at September 30, 2025			$	479,288		$	352,142
Market risk RWA
Balance at December 31, 2024			$	53,852		$	54,322
Change related to the following items:
Regulatory VaR			2,900			2,900
Regulatory stressed VaR			2,660			2,660
Incremental risk charge			(2,076)			(2,076)
Comprehensive risk measure			(644)			(954)
Specific risk			3,316			3,316
Total change in market risk RWA			$	6,156		$	5,846
Balance at September 30, 2025			$	60,008		$	60,168
Operational risk RWA
Balance at December 31, 2024			N/A			$	106,580
Change in operational risk RWA			N/A			(878)
Balance at September 30, 2025			N/A			$	105,702
Total RWA			$	539,296		$	518,012

Regulatory VaR—VaR for regulatory capital requirements

In the current year period, Credit risk RWA increased under both the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily due to higher Derivatives exposures, particularly in foreign exchange, growth in lending within the Institutional Securities business segment, Securities financing transactions, Other credit risk driven by higher warehouse loan securitizations, cash and deferred tax assets, and growth in Equity investments. Under the Advanced Approach, the increase was primarily due to higher Derivatives exposures, particularly in foreign exchange, growth in lending within the Institutional Securities business segment, Other credit risk driven by higher warehouse loan securitizations, cash and deferred tax assets, and growth in Equity investments.

Market risk RWA increased in the current year period under both the Standardized and Advanced Approaches, primarily driven by higher Specific Risk due to Non-Securitization standardized charges, Regulatory VaR and Regulatory Stressed VaR, partially offset by lower incremental risk charges driven by decreased exposures to non-investment grade issuances.

The decrease in Operational risk RWA in the current year period is primarily related to lower execution-related losses, partially offset by an increase in litigation-related incidents.

Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements

The Federal Reserve has established external TLAC, long-term debt (“LTD”) and clean holding company requirements for top-tier BHCs of U.S. G-SIBs (“covered BHCs”), including the Parent Company. These requirements are designed to ensure that covered BHCs will have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of eligible LTD to equity or otherwise by imposing losses on eligible LTD or other forms of TLAC where an SPOE resolution strategy is used.

Required and Actual TLAC and Eligible LTD Ratios

									Actual Amount/Ratio
$ in millions			Regulatory Minimum			Required Ratio1			At September 30, 2025			At December 31, 2024
External TLAC2									$	275,931		$	266,146
External TLAC as a % of RWA			18.0		%	21.5		%	51.2		%	55.8		%
External TLAC as a % of leverage exposure			7.5		%	9.5		%	16.6		%	17.5		%
Eligible LTD3									$	172,554		$	169,690
Eligible LTD as a % of RWA			9.0		%	9.0		%	32.0		%	35.5		%
Eligible LTD as a % of leverage exposure			4.5		%	4.5		%	10.4		%	11.2		%

1.Required ratios are inclusive of applicable buffers.

2.External TLAC consists of CET1 capital and Additional Tier 1 capital (each excluding any noncontrolling minority interests), as well as eligible LTD.

3.Consists of TLAC-eligible LTD reduced by 50% for amounts of unpaid principal due to be paid in more than one year but less than two years from each respective balance sheet date.

We are in compliance with all TLAC requirements as of September 30, 2025 and December 31, 2024.

For a further discussion of TLAC and related requirements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” in the 2024 Form 10-K.

Capital Plans, Stress Tests and the Stress Capital Buffer

The Federal Reserve has capital planning and stress test requirements for large BHCs, which form part of the Federal Reserve’s annual CCAR framework.

We must submit, on at least an annual basis, a capital plan to the Federal Reserve, taking into account the results of separate annual stress tests designed by us and the Federal Reserve, so that the Federal Reserve may assess our systems and processes that incorporate forward-looking projections of revenues and losses to monitor and maintain our internal capital adequacy. As insured depository institutions (“IDIs”) with less than $250 billion of average total assets over the four most recent consecutive quarters, our U.S. Bank Subsidiaries are not subject to company-run stress test regulatory requirements.

September 2025 Form 10-Q			25

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As part of its annual capital supervisory stress testing process, the Federal Reserve determines an SCB for each large BHC, including us.

Our SCB remained at 6.0% through September 30, 2025. Together with other features of the regulatory capital framework, this SCB resulted in an aggregate Standardized Approach CET1 required ratio of 13.5%.

For the 2025 capital planning and stress test cycle, we submitted our capital plan and company-run stress test results to the Federal Reserve on April 7, 2025. On September 30, 2025, the Federal Reserve announced that it had reduced Morgan Stanley’s SCB from 5.1% to 4.3%, effective on October 1, 2025 in response to the Firm seeking reconsideration of its preliminary SCB announced in June 2025. Together with other features of the regulatory capital framework, this SCB results in an aggregate Standardized Approach CET1 ratio of 11.8%. Generally, our SCB is determined annually based on the results of the supervisory stress test.

On April 17, 2025, the Federal Reserve proposed revisions to the SCB and CCAR frameworks. See “Regulatory Developments and Other Matters—Proposed Changes to Capital Requirements” herein. If relevant, the Firm will provide updated information on applicable regulatory capital standards in response to a final rulemaking, including any change in the Firm’s SCB.

We also disclosed a summary of the results of our company-run stress tests on our Investor Relations website and increased our quarterly common stock dividend to $1.00 per share from $0.925, beginning with the common stock dividend announced on July 16, 2025.

For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” in the 2024 Form 10-K.

Attribution of Average Common Equity According to the Required Capital Framework

Our required capital (“Required Capital”) estimation is based on the Required Capital framework, an internal capital adequacy measure. Common equity attribution to the business segments is based on capital usage calculated under the Required Capital framework, as well as each business segment’s relative contribution to our total Required Capital.

The Required Capital framework is a risk-based and leverage-based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change

occurs (e.g., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. We generally hold Parent Company common equity for prospective regulatory requirements, organic growth, potential future acquisitions and other capital needs.

Average Common Equity Attribution under the Required Capital Framework1

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in billions			2025			2024			2025			2024
Institutional Securities			$	48.4		$	45.0		$	48.4		$	45.0
Wealth Management			29.4			29.1			29.4			29.1
Investment Management			10.6			10.8			10.6			10.8
Parent Company			10.3			7.8			8.7			6.1
Total			$	98.7		$	92.7		$	97.1		$	91.0

1.The attribution of average common equity to the business segments is a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein.

We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate.

Resolution and Recovery Planning

We are required to submit once every two years to the Federal Reserve and the FDIC a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of our material financial distress or failure. We submitted our 2025 targeted resolution plan on June 30, 2025.

As described in our most recent resolution plan, our preferred resolution strategy is an SPOE strategy, which would impose losses on the holders of eligible LTD and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on creditors of our supported entities and without requiring taxpayer or government financial support.

For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning,” “Risk Factors—Legal, Regulatory and Compliance Risk” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Resolution and Recovery Planning” in the 2024 Form 10-K.

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Regulatory Developments and Other Matters

Proposed Changes to Capital Requirements

On April 17, 2025, the Federal Reserve proposed revisions to the SCB and CCAR frameworks applicable to us, aimed at reducing the volatility of the capital requirements stemming from the Federal Reserve’s annual stress test results. Under the proposal, our SCB would be based, in part, on the average of the post-stress capital decline embedded in the Federal Reserve’s stress test results over two consecutive years. Additionally, the proposal would shift the annual effective date of the revised SCB from October 1 to January 1 of the following year and modify certain elements of the Federal Reserve’s CCAR program.

Proposed Changes to the Enhanced Supplementary Leverage Ratio

On June 25, 2025, the U.S. banking agencies released a proposal to modify eSLR requirements applicable to U.S. G-SIBs and their U.S. IDI subsidiaries. If adopted, the proposal would modify the eSLR buffer applicable to U.S. G-SIBs to equal 50 percent of each BHC’s Method 1 G-SIB capital surcharge, applied above the 3.0% minimum SLR requirement, and would modify eSLR standards for U.S. G-SIBs’ IDI subsidiaries to have the same form and calibration as the BHC-level standard. As a result, under the proposal, the Firm and its U.S. Bank Subsidiaries would each have been subject to a 3.5% SLR requirement (inclusive of a 0.5% eSLR buffer) as of June 30, 2025, as compared with current standards, which impose a 5.0% SLR requirement on the Firm (inclusive of a 2.0% eSLR buffer) and require the U.S. Bank Subsidiaries to meet a 6.0% SLR requirement above the minimum 3.0% SLR requirement to be deemed “well capitalized.” The Federal Reserve has also proposed conforming modifications to the SLR component of TLAC and LTD requirements, which currently incorporate the U.S. G-SIB 2.0% eSLR buffer. For more information on the leverage-based regulatory capital standards, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements” in the 2024 Form 10-K.

Supervisory Stress Testing Proposals

On October 24, 2025, the Federal Reserve proposed revisions to its supervisory stress testing framework through two related proposals. The first proposal would modify the timeline and operation of the annual supervisory stress test, including through revisions to the Federal Reserve’s supervisory stress testing policy statements, and solicits comment on the Federal Reserve’s supervisory stress testing models. The second proposal solicits comment on the Federal Reserve’s proposed scenarios for the 2026 supervisory stress test. We continue to monitor developments related to these proposals.

September 2025 Form 10-Q			27

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Quantitative and Qualitative Disclosures about Risk

Management believes effective risk management is vital to the success of our business activities. For a discussion of our Enterprise Risk Management framework and risk management functions, see “Quantitative and Qualitative Disclosures about Risk—Risk Management” in the 2024 Form 10-K.

Market Risk

Market risk refers to the risk that a change in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity, will result in losses for a position or portfolio. Generally, we incur market risk as a result of trading, investing and client facilitation activities, principally within the Institutional Securities business segment where the substantial majority of our VaR for market risk exposures is generated. In addition, we incur non-trading market risk, principally within the Wealth Management and Investment Management business segments. The Wealth Management business segment primarily incurs non-trading market risk (including interest rate risk) from lending and deposit-taking activities. The Investment Management business segment primarily incurs non-trading market risk from capital investments in its funds. For a further discussion of market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” in the 2024 Form 10-K.

Trading Risks

We have exposures to a wide range of risks related to interest rates and credit spreads, equity prices, foreign exchange rates and commodity prices as well as the associated implied volatilities, correlations and spreads of the global markets in which we conduct our trading activities.

The statistical technique known as VaR is one of the tools we use to measure, monitor and review the market risk exposures of our trading portfolios.

For information regarding our primary risk exposures and market risk management, VaR methodology, assumptions and limitations, see “Quantitative and Qualitative Disclosures about Risk—Market Risk—Trading Risks” in the 2024 Form 10-K.

95%/One-Day Management VaR for the Trading Portfolio

			Three Months Ended
			September 30, 2025
$ in millions			Period End			Average			High1			Low1
Interest rate and credit spread			$	26		$	32		$	43		$	26
Equity price			39			38			44			33
Foreign exchange rate			15			12			17			9
Commodity price			14			17			21			11
Less: Diversification benefit2			(37)			(44)			N/A			N/A
Primary Risk Categories			$	57		$	55		$	61		$	49
Credit portfolio			18			19			21			18
Less: Diversification benefit2			(20)			(15)			N/A			N/A
Total Management VaR			$	55		$	59		$	64		$	53

			Three Months Ended
			June 30, 2025
$ in millions			Period End			Average			High1			Low1
Interest rate and credit spread			$	31		$	30		$	42		$	20
Equity price			33			27			43			17
Foreign exchange rate			11			14			22			8
Commodity price			16			16			26			12
Less: Diversification benefit2			(37)			(40)			N/A			N/A
Primary Risk Categories			$	54		$	47		$	63		$	34
Credit portfolio			19			18			19			17
Less: Diversification benefit2			(18)			(15)			N/A			N/A
Total Management VaR			$	55		$	50		$	63		$	38

1.The high and low VaR values for the Total Management VaR and each of the component VaRs might have occurred on different days during the quarter, and, therefore, the diversification benefit is not an applicable measure.

2.Diversification benefit equals the difference between the total VaR and the sum of the component VaRs. This benefit arises because the simulated one-day losses for each of the components occur on different days. Similar diversification benefits are also taken into account within each component.

Average Total Management VaR and average Management VaR for the Primary Risk Categories increased from the three months ended June 30, 2025 primarily driven by increased exposures in the equity price category.

Distribution of VaR Statistics and Net Revenues

We evaluate the reasonableness of our VaR model by comparing the potential declines in portfolio values generated by the model with corresponding actual trading results for the Firm, as well as individual business units. For days where losses exceed the VaR statistic, we examine the drivers of trading losses to evaluate the VaR model’s accuracy. There were no trading loss days in the current quarter.

			28			September 2025 Form 10-Q

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Daily 95%/One-Day Total Management VaR for the Current Quarter

($ in millions)

Daily Net Trading Revenues for the Current Quarter

($ in millions)

Daily net trading revenues include profits and losses from Interest rate and credit spread, Equity price, Foreign exchange rate, Commodity price, and Credit portfolio positions and intraday trading activities for our trading businesses. Certain items such as fees, commissions, net interest income and counterparty default risk are excluded from daily net trading revenues and the VaR model. Revenues required for Regulatory VaR backtesting further exclude intraday trading.

Non-Trading Risks

We believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following sensitivity analyses cover substantially all of the non-trading market risk in our portfolio.

Credit Spread Risk Sensitivity1

$ in millions			At September 30, 2025			At June 30, 2025
Derivatives			$	6		$	6
Borrowings carried at fair value			58			55

1.Amounts represent the potential gain for each 1 bps widening of our credit spread.

The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits.

Wealth Management Net Interest Income Sensitivity Analysis

$ in millions			At September 30, 2025			At June 30, 2025
Basis point change
+200			$	364		$	438
+100			188			222
-100			(228)			(251)
-200			(517)			(567)

The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted balance sheet and business activity. The forecast includes modeled prepayment behavior, reinvestment of net cash flows from maturing assets and liabilities, and deposit pricing sensitivity to interest rates. These key assumptions are updated periodically based on historical data and future expectations.

We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors.

Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities,

September 2025 Form 10-Q			29

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Risk Disclosures

resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits from other institutions and alternative cash-equivalent products available to depositors. Further, the level of interest rates could also impact client demand for loans.

Net interest income sensitivity to interest rates at September 30, 2025 decreased from June 30, 2025, primarily driven by the effects of changes in the balance sheet mix.

Investments Sensitivity, Including Related Carried Interest

			Loss from 10% Decline
$ in millions			At September 30, 2025			At June 30, 2025
Investments related to Investment Management activities			$	579		$	572
Other investments:
MUMSS			136			136
Other Firm investments			491			483

We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable. The measures reflected in the table above do not reflect the effect of any economic hedges or diversification that may reduce the risk of loss.

Asset Management Revenue Sensitivity

Certain asset management revenues in the Wealth Management and Investment Management business segments are derived from management fees, which are based on fee-based client assets in Wealth Management or AUM in Investment Management (together, “client holdings”). The assets underlying client holdings are primarily composed of equity, fixed income and alternative investments and are sensitive to changes in related markets. These revenues depend on multiple factors including, but not limited to, the level and duration of a market increase or decline, price volatility, the geographic and industry mix of client assets, and client behavior such as the rate and magnitude of client investments and redemptions. Therefore, overall revenues may not correlate completely with changes in the related markets.

Credit Risk

Credit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. We are primarily exposed to credit risk from institutions and individuals through our Institutional Securities and Wealth Management business segments. For a further discussion of our credit risks, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” in the 2024 Form 10-K.

Loans and Lending Commitments

			At September 30, 2025
$ in millions			HFI			HFS			FVO1			Total
Institutional Securities:
Corporate			$	7,839		$	8,270		$	—		$	16,109
Secured lending facilities			63,610			2,707			—			66,317
Commercial and Residential real estate			7,853			421			4,297			12,571
Securities-based lending and Other			3,486			30			5,665			9,181
Total Institutional Securities			82,788			11,428			9,962			104,178
Wealth Management:
Residential real estate			70,910			5			—			70,915
Securities-based lending and Other			103,378			—			—			103,378
Total Wealth Management			174,288			5			—			174,293
Total Investment Management2			4			—			45			49
Total loans			257,080			11,433			10,007			278,520
ACL			(1,213)									(1,213)
Total loans, net of ACL			$	255,867		$	11,433		$	10,007		$	277,307
Lending commitments3			$	159,769		$	40,831		$	1,541		$	202,141
Total exposure			$	415,636		$	52,264		$	11,548		$	479,448

			At December 31, 2024
$ in millions			HFI			HFS			FVO1			Total
Institutional Securities:
Corporate			$	6,889		$	9,183		$	—		$	16,072
Secured lending facilities			48,842			2,507			—			51,349
Commercial and Residential real estate			8,412			628			2,420			11,460
Securities-based lending and Other			2,876			—			6,041			8,917
Total Institutional Securities			67,019			12,318			8,461			87,798
Wealth Management:
Residential real estate			66,738			—			—			66,738
Securities-based lending and Other			93,139			1			—			93,140
Total Wealth Management			159,877			1			—			159,878
Total Investment Management2			4			—			200			204
Total loans			226,900			12,319			8,661			247,880
ACL			(1,066)									(1,066)
Total loans, net of ACL			$	225,834		$	12,319		$	8,661		$	246,814
Lending commitments3			$	148,818		$	26,955		$	758		$	176,531
Total exposure			$	374,652		$	39,274		$	9,419		$	423,345

Total exposure—consists of Total loans, net of ACL, and Lending commitments

1.FVO includes the fair value of certain unfunded lending commitments.

2.Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by Investment Management, composed primarily of senior secured loans to corporations.

3.Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for lending transactions. Since commitments associated with these business activities may expire unused or may not be utilized to full capacity, they do not necessarily reflect the actual future cash funding requirements.

			30			September 2025 Form 10-Q

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Risk Disclosures

We provide loans and lending commitments to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals. In addition, we purchase loans in the secondary market. Loans and lending commitments are either held for investment, held for sale or carried at fair value. For more information on these loan classifications, see Note 2 to the financial statements in the 2024 Form 10-K.

Total loans and lending commitments increased by approximately $56 billion since December 31, 2024, primarily due to an increase in secured lending facilities and event-driven corporate lending commitments within the Institutional Securities business segment and growth in securities-based loans within the Wealth Management business segment.

See Notes 4, 5, 9 and 13 to the financial statements for further information.

Allowance for Credit Losses—Loans and Lending Commitments

$ in millions			Three Months Ended September 30, 2025			Nine Months Ended September 30, 2025
ACL—Loans
Beginning balance			$	1,271		$	1,066
Gross charge-offs			(64)			(126)
Recoveries			1			21
Net (charge-offs)/recoveries			(63)			(105)
Provision for credit losses			6			225
Other			(1)			27
Ending balance			$	1,213		$	1,213
ACL—Lending commitments
Beginning balance			$	790		$	656
Provision for credit losses			(6)			106
Other			—			22
Ending balance			$	784		$	784
Total ending balance			$	1,997		$	1,997

Provision for Credit Losses by Business Segment

			Three Months Ended September 30, 2025									Nine Months Ended September 30, 2025
$ in millions			IS			WM			Total			IS			WM			Total
Loans			$	5		$	1		$	6		$	154		$	71		$	225
Lending commitments			(4)			(2)			(6)			106			—			106
Total			$	1		$	(1)		$	—		$	260		$	71		$	331

Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards. Risk factors considered in determining the allowance for credit losses for loans and lending commitments include the borrower’s financial condition, industry, facility structure, LTV ratio, debt service ratio, collateral and covenants. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending terms, and volume and severity of past due loans may also be considered.

The allowance for credit losses for loans and lending commitments increased since December 31, 2024, primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans. Charge-offs in the current year period were primarily related to commercial real estate lending.

The base scenario used in our ACL models as of September 30, 2025 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. This scenario assumes modest economic growth in 2025, followed by a gradual improvement in 2026, as well as lower interest rates relative to the prior quarter forecast. Our ACL models incorporate key macroeconomic variables, including U.S. real GDP growth rate. The significance of key macroeconomic variables on our ACL models varies depending on portfolio composition and economic conditions.

Forecasted U.S. Real GDP Growth Rates in Base Scenario

			4Q 2025			4Q 2026
Year-over-year growth rate			1.2		%	1.7		%

Other key macroeconomic variables used in our ACL models include corporate credit spreads, interest rates and commercial real estate indices. See Note 2 to the financial statements in the 2024 Form 10-K for a discussion of the Firm’s ACL methodology under CECL.

Status of Loans Held for Investment

			At September 30, 2025						At December 31, 2024
			IS			WM			IS			WM
Accrual			99.0		%	99.7		%	99.2		%	99.7		%
Nonaccrual1			1.0		%	0.3		%	0.8		%	0.3		%

1.Nonaccrual loans are loans where principal or interest is not expected when contractually due or are past due 90 days or more unless the obligation is well-secured and is in the process of collection.

September 2025 Form 10-Q			31

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Net Charge-off Ratios for Loans Held for Investment

			Three Months Ended September 30,
			2025									2024
$ in millions			Net Charge-off Ratio1			Average Loans						Net Charge-off Ratio1			Average Loans
Corporate			0.12		%	$	8,055					0.58		%	$	6,706
Secured Lending Facilities			—		%	60,956						—		%	45,136
Commercial Real Estate			0.45		%	8,023						0.71		%	8,749
Residential Real Estate			—		%	69,973						—		%	64,029
SBL and Other			0.02		%	105,214						—		%	91,366
Total			0.02		%	$	252,221					0.05		%	$	215,986

			Nine Months Ended September 30,
			2025									2024
$ in millions			Net Charge-off Ratio1			Average Loans						Net Charge-off Ratio1			Average Loans
Corporate			0.13		%	$	7,763					0.56		%	$	6,946
Secured Lending Facilities			—		%	55,365						0.03		%	42,003
Commercial Real Estate			0.93		%	8,368						1.14		%	8,682
Residential Real Estate			—		%	68,457						—		%	62,326
SBL and Other			0.02		%	101,422						—		%	90,106
Total			0.04		%	$	241,375					0.07		%	$	210,063

SBL—Securities-based lending

1.Net charge-off ratio represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL.

Institutional Securities Loans and Lending Commitments1

			At September 30, 2025
			Contractual Years to Maturity
$ in millions			<1			1-5			5-15			>15			Total
Loans
AA			$	—		$	67		$	18		$	—		$	85
A			1,106			1,106			167			—			2,379
BBB			3,858			16,539			782			182			21,361
BB			11,599			35,609			3,230			424			50,862
Other NIG			6,070			12,820			4,206			164			23,260
Unrated2			204			1,288			861			3,056			5,409
Total loans, net of ACL			22,837			67,429			9,264			3,826			103,356
Lending commitments
AAA			—			75			—			—			75
AA			2,428			4,122			275			—			6,825
A			4,979			28,890			578			—			34,447
BBB			11,498			62,107			1,392			133			75,130
BB			3,179			27,272			10,028			1,253			41,732
Other NIG			1,463			20,568			3,099			3			25,133
Unrated2			15			338			—			—			353
Total lending commitments			23,562			143,372			15,372			1,389			183,695
Total exposure			$	46,399		$	210,801		$	24,636		$	5,215		$	287,051

			At December 31, 2024
			Contractual Years to Maturity
$ in millions			<1			1-5			5-15			>15			Total
Loans
AA			$	3		$	575		$	187		$	—		$	765
A			894			588			164			—			1,646
BBB			5,165			13,185			91			124			18,565
BB			11,235			24,467			2,592			358			38,652
Other NIG			8,520			12,776			1,673			145			23,114
Unrated2			227			1,176			420			2,503			4,326
Total loans, net of ACL			26,044			52,767			5,127			3,130			87,068
Lending commitments
AAA			—			75			—			—			75
AA			2,560			4,285			88			—			6,933
A			8,226			21,372			1,091			—			30,689
BBB			10,135			54,752			1,507			146			66,540
BB			3,174			23,239			3,062			941			30,416
Other NIG			1,074			17,436			3,956			2			22,468
Unrated2			14			93			33			—			140
Total lending commitments			25,183			121,252			9,737			1,089			157,261
Total exposure			$	51,227		$	174,019		$	14,864		$	4,219		$	244,329

NIG–Non-investment grade

1.Counterparty credit ratings are internally determined by the CRM.

2.Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk. For a further discussion of our market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” herein.

Institutional Securities Loans and Lending Commitments by Industry

$ in millions			At September 30, 2025			At December 31, 2024
Industry
Financials			$	79,953		$	68,512
Real estate			48,871			40,041
Healthcare			20,964			15,455
Communications Services			19,947			20,425
Industrials			19,737			20,024
Information Technology			18,263			15,666
Consumer discretionary			15,804			14,699
Consumer staples			15,704			12,098
Utilities			13,177			11,755
Energy			12,554			9,036
Materials			8,057			7,378
Insurance			7,253			6,812
Other			6,767			2,428
Total exposure			$	287,051		$	244,329

Institutional Securities Lending Activities

The Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of September 30, 2025 and December 31, 2024, over 90% of our Institutional Securities total exposure, which consisted of loans and lending commitments, was investment grade and/or secured by collateral. For a description of Institutional Securities’ lending activities, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” in the 2024 Form 10-K.

			32			September 2025 Form 10-Q

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Institutional Securities Event-Driven Loans and Lending Commitments

			At September 30, 2025
			Contractual Years to Maturity
$ in millions			<1			1-5			5-15						Total
Loans, net of ACL			$	741		$	997		$	2,983					$	4,721
Lending commitments			3,660			11,430			8,103						23,193
Total exposure			$	4,401		$	12,427		$	11,086					$	27,914

			At December 31, 2024
			Contractual Years to Maturity
$ in millions			<1			1-5			5-15						Total
Loans, net of ACL			$	2,253		$	2,839		$	733					$	5,825
Lending commitments			5,153			2,152			2,918						10,223
Total exposure			$	7,406		$	4,991		$	3,651					$	16,048

Event-driven loans and lending commitments are associated with certain underwritings and/or syndications to finance a specific transaction, such as a merger, acquisition, recapitalization or project finance activity. Balances may fluctuate as such lending is related to transactions that vary in timing and size from period to period.

Institutional Securities Loans and Lending Commitments Held for Investment

			At September 30, 2025
$ in millions			Loans			Lending Commitments			Total
Corporate			$	7,839		$	113,792		$	121,631
Secured lending facilities			63,610			25,767			89,377
Commercial real estate			7,853			471			8,324
Securities-based lending and Other			3,486			1,293			4,779
Total, before ACL			$	82,788		$	141,323		$	224,111
ACL			$	(822)		$	(769)		$	(1,591)

						At December 31, 2024
$ in millions									Loans			Lending Commitments			Total
Corporate									$	6,889		$	105,824		$	112,713
Secured lending facilities									48,842			20,971			69,813
Commercial real estate									8,412			1,249			9,661
Securities-based lending and Other									2,876			1,504			4,380
Total, before ACL									$	67,019		$	129,548		$	196,567
ACL									$	(730)		$	(640)		$	(1,370)

Institutional Securities Commercial Real Estate Loans and Lending Commitments

By Region

			At September 30, 2025												At December 31, 2024
$ in millions			Loans1			LC1			Total Exposure						Loans1			LC1			Total Exposure
Americas			$	5,391		$	822		$	6,213					$	5,066		$	820		$	5,886
EMEA			3,697			221			3,918						3,806			522			4,328
Asia			550			83			633						467			13			480
Total			$	9,638		$	1,126		$	10,764					$	9,339		$	1,355		$	10,694

By Property Type

			At September 30, 2025												At December 31, 2024
$ in millions			Loans1			LC1			Total Exposure						Loans1			LC1			Total Exposure
Industrial			$	3,088		$	214		$	3,302					$	2,610		$	125		$	2,735
Office			2,624			169			2,793						2,846			109			2,955
Multifamily			1,927			660			2,587						2,042			80			2,122
Retail			1,035			6			1,041						1,105			971			2,076
Hotel			871			62			933						736			70			806
Other			93			15			108						—			—			—
Total			$	9,638		$	1,126		$	10,764					$	9,339		$	1,355		$	10,694

LC–Lending Commitments

1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL.

As of September 30, 2025 and December 31, 2024, our lending against commercial real estate (“CRE”) properties within the Institutional Securities business segment totaled $10.8 billion and $10.7 billion, respectively. This represents 3.7% and 4.4%, respectively, of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or securitized on a full or partial basis, reducing our ongoing exposure.

In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types.

While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given its sensitivity to economic and secular factors.

September 2025 Form 10-Q			33

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Institutional Securities Allowance for Credit Losses—Loans and Lending Commitments

			Nine Months Ended September 30, 2025
$ in millions			Corporate			Secured Lending Facilities			CRE			SBL and Other			Total
ACL—Loans
Beginning balance			$	200		$	140		$	373		$	17		$	730
Gross charge-offs			(10)			—			(99)			—			(109)
Recoveries			—			—			21			—			21
Net (charge-offs)/ recoveries			(10)			—			(78)			—			(88)
Provision (release)			41			55			55			3			154
Other			8			5			14			(1)			26
Ending balance			$	239		$	200		$	364		$	19		$	822
ACL—Lending commitments
Beginning balance			$	507		$	88		$	40		$	5		$	640
Provision (release)			93			39			(25)			(1)			106
Other			17			4			—			2			23
Ending balance			$	617		$	131		$	15		$	6		$	769
Total ending balance			$	856		$	331		$	379		$	25		$	1,591

Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance Before Allowance

			At September 30, 2025			At December 31, 2024
Corporate			3.0		%	2.9		%
Secured lending facilities			0.3		%	0.3		%
Commercial real estate			4.6		%	4.4		%
Securities-based lending and Other			0.5		%	0.6		%
Total Institutional Securities loans			1.0		%	1.1		%

Wealth Management Loans and Lending Commitments

			At September 30, 2025
			Contractual Years to Maturity
$ in millions			<1			1-5			5-15			>15			Total
Securities-based lending and Other			$	90,947		$	11,263		$	754		$	144		$	103,108
Residential real estate			1			115			1,014			69,664			70,794
Total loans, net of ACL			$	90,948		$	11,378		$	1,768		$	69,808		$	173,902
Lending commitments			14,865			3,099			53			429			18,446
Total exposure			$	105,813		$	14,477		$	1,821		$	70,237		$	192,348

			At December 31, 2024
			Contractual Years to Maturity
$ in millions			<1			1-5			5-15			>15			Total
Securities-based lending and Other			$	82,788		$	8,944		$	1,024		$	145		$	92,901
Residential real estate			1			111			1,106			65,423			66,641
Total loans, net of ACL			$	82,789		$	9,055		$	2,130		$	65,568		$	159,542
Lending commitments			16,318			2,523			43			386			19,270
Total exposure			$	99,107		$	11,578		$	2,173		$	65,954		$	178,812

The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans.

For more information about our Securities-based lending and Residential real estate loans, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” in the 2024 Form 10-K.

Wealth Management Commercial Real Estate Loans and Lending Commitments by Property Type

			At September 30, 2025												At December 31, 2024
$ in millions			Loans1			LC1			Total exposure						Loans1			LC1			Total exposure
Retail			$	2,362		$	—		$	2,362					$	2,293		$	—		$	2,293
Office			2,135			1			2,136						1,951			11			1,962
Multifamily			1,804			222			2,026						1,928			261			2,189
Industrial			441			—			441						456			—			456
Hotel			440			—			440						442			—			442
Other			384			—			384						309			—			309
Total			$	7,566		$	223		$	7,789					$	7,379		$	272		$	7,651

LC–Lending Commitments

1.Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL.

As of September 30, 2025 and December 31, 2024, our direct lending against CRE properties totaled $7.8 billion and $7.7 billion, respectively, within the Wealth Management business segment. This represents 4.0% and 4.3%, respectively, of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our private banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both September 30, 2025 and December 31, 2024, greater than 95% of the CRE loans balance in the Wealth Management business segment received guarantees. All of our lending against CRE properties within Wealth Management are in the Americas region.

Wealth Management Allowance for Credit Losses—Loans and Lending Commitments

			Nine Months Ended September 30, 2025
$ in millions			Residential Real Estate			SBL and Other			Total
ACL—Loans
Beginning balance			$	97		$	239		$	336
Gross charge-offs			—			(17)			(17)
Provision (release)			26			45			71
Other			(1)			2			1
Ending balance			$	122		$	269		$	391
ACL—Lending commitments
Beginning balance			$	4		$	12		$	16
Other			1			(2)			(1)
Ending balance			$	5		$	10		$	15
Total ending balance			$	127		$	279		$	406

As of September 30, 2025 and December 31, 2024, more than 75% of Wealth Management residential real estate loans were to borrowers with “Exceptional” or “Very Good” FICO scores (i.e., exceeding 740). Additionally, Wealth Management’s securities-based lending portfolio remains well-collateralized and subject to daily client margining, which includes requiring customers to deposit additional collateral or reduce debt positions, when necessary.

			34			September 2025 Form 10-Q

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Risk Disclosures

Customer and Other Receivables

Margin Loans and Other Lending

$ in millions			At September 30, 2025			At December 31, 2024
Institutional Securities			$	41,717		$	27,612
Wealth Management			27,853			28,270
Total			$	69,570		$	55,882

The Institutional Securities and Wealth Management business segments provide margin lending arrangements that allow customers to borrow against the value of qualifying securities, primarily for the purpose of purchasing additional securities, as well as to collateralize short positions. Institutional Securities primarily includes margin loans in the Equity Financing business. Wealth Management includes margin loans as well as non-purpose securities-based lending on non-bank entities. Amounts may fluctuate from period to period as overall client balances change as a result of market levels, client positioning and leverage.

Credit exposures arising from margin lending activities are generally mitigated by their short-term nature, the value of collateral held and our right to call for additional margin when collateral values decline. However, we could incur losses in the event that the customer fails to meet margin calls and collateral values decline below the loan amount. This risk is elevated in loans backed by collateral pools with significant concentrations in individual issuers or securities with similar risk characteristics. For a further discussion, see “Risk Factors—Credit Risk” in the 2024 Form 10-K.

Employee Loans

For information on employee loans and related ACL, see Note 9 to the financial statements.

Derivatives

Fair Value of OTC Derivative Assets

			At September 30, 2025
			Counterparty Credit Rating1
$ in millions			AAA			AA			A			BBB			NIG			Total
Less than 1 year			$	1,507		$	14,033		$	34,920		$	18,993		$	11,551		$	81,004
1-3 years			498			5,625			16,165			10,165			8,013			40,466
3-5 years			743			7,342			9,901			7,326			3,466			28,778
Over 5 years			3,172			25,564			50,768			28,550			7,316			115,370
Total, gross			$	5,920		$	52,564		$	111,754		$	65,034		$	30,346		$	265,618
Counterparty netting			(3,340)			(43,216)			(83,367)			(46,006)			(16,967)			(192,896)
Cash and securities collateral			(2,347)			(8,426)			(24,101)			(12,925)			(5,874)			(53,673)
Total, net			$	233		$	922		$	4,286		$	6,103		$	7,505		$	19,049

			At December 31, 2024
			Counterparty Credit Rating1
$ in millions			AAA			AA			A			BBB			NIG			Total
Less than 1 year			$	1,711		$	17,625		$	50,643		$	22,643		$	9,793		$	102,415
1-3 years			541			6,249			19,068			10,248			6,095			42,201
3-5 years			973			7,308			9,821			5,631			3,750			27,483
Over 5 years			3,330			25,406			49,469			28,206			6,398			112,809
Total, gross			$	6,555		$	56,588		$	129,001		$	66,728		$	26,036		$	284,908
Counterparty netting			(3,320)			(44,604)			(98,598)			(47,132)			(14,691)			(208,345)
Cash and securities collateral			(2,559)			(10,632)			(25,568)			(13,729)			(5,558)			(58,046)
Total, net			$	676		$	1,352		$	4,835		$	5,867		$	5,787		$	18,517

$ in millions			At September 30, 2025			At December 31, 2024
Industry
Financials			$	6,777		$	5,678
Utilities			3,346			3,733
Industrials			1,381			1,315
Consumer discretionary			1,080			1,046
Healthcare			786			353
Energy			761			987
Regional governments			712			799
Communications Services			708			914
Consumer staples			639			734
Information technology			632			634
Materials			532			409
Real estate			323			91
Sovereign governments			296			683
Not-for-profit organizations			110			94
Insurance			95			207
Other			871			840
Total			$	19,049		$	18,517

1.Counterparty credit ratings are determined internally by the CRM.

We are exposed to credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the possibility that a counterparty may fail to perform according to the terms of the contract. For more information on derivatives, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives” in the 2024 Form 10-K and Note 6 to the financial statements.

September 2025 Form 10-Q			35

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Risk Disclosures

Country Risk

Country risk exposure is the risk that events in, or that affect, a foreign country (any country other than the U.S.) might adversely affect us. We actively manage country risk exposure through a comprehensive risk management framework that combines credit and other market fundamentals and allows us to effectively identify, monitor and limit country risk. For a further discussion of our country risk exposure see “Quantitative and Qualitative Disclosures about Risk—Country and Other Risks” in the 2024 Form 10-K.

Top 10 Non-U.S. Country Exposures

			At September 30, 2025
$ in millions			United Kingdom			France			Japan			Germany			Brazil
Sovereign
Net inventory1			$	148		$	6,206		$	3,634		$	(1,341)		$	5,358
Net counterparty exposure2			12			—			4			77			2
Exposure before hedges			160			6,206			3,638			(1,264)			5,360
Hedges3			(55)			(21)			(169)			(148)			(129)
Net exposure			$	105		$	6,185		$	3,469		$	(1,412)		$	5,231
Non-sovereign
Net inventory1			$	1,049		$	422		$	659		$	234		$	129
Net counterparty exposure2			8,168			3,468			3,692			3,130			480
Loans			10,976			720			1,111			1,734			238
Lending commitments			10,099			3,281			(60)			6,659			375
Exposure before hedges			30,292			7,891			5,402			11,757			1,222
Hedges3			(2,041)			(1,543)			(264)			(1,782)			(92)
Net exposure			$	28,251		$	6,348		$	5,138		$	9,975		$	1,130
Total net exposure			$	28,356		$	12,533		$	8,607		$	8,563		$	6,361

$ in millions			Spain			Australia			Korea			India			Netherlands
Sovereign
Net inventory1			$	1,491		$	(122)		$	2,587		$	974		$	(102)
Net counterparty exposure2			—			7			293			8			—
Exposure before hedges			1,491			(115)			2,880			982			(102)
Hedges3			(8)			—			(35)			—			(12)
Net exposure			$	1,483		$	(115)		$	2,845		$	982		$	(114)
Non-sovereign
Net inventory1			$	361		$	477		$	246		$	1,257		$	874
Net counterparty exposure2			444			872			838			1,146			823
Loans			1,618			1,502			42			176			1,250
Lending commitments			956			1,744			107			449			1,056
Exposure before hedges			3,379			4,595			1,233			3,028			4,003
Hedges3			(268)			(416)			(30)			(10)			(142)
Net exposure			$	3,111		$	4,179		$	1,203		$	3,018		$	3,861
Total net exposure			$	4,594		$	4,064		$	4,048		$	4,000		$	3,747

1.Net inventory represents exposure to both long and short single-name and index positions (i.e., bonds and equities at fair value and CDS based on a notional amount assuming zero recovery adjusted for the fair value of any receivable or payable).

2.Net counterparty exposure (e.g., repurchase transactions, securities lending and OTC derivatives) is net of the benefit of collateral received and also is net by counterparty when legally enforceable master netting agreements are in place.

3.Amounts represent net CDS hedges (purchased and sold) on net counterparty exposure and lending executed by trading desks responsible for hedging counterparty and lending credit risk exposures. Amounts are based on the CDS

notional amount assuming zero recovery adjusted for the fair value of any receivable or payable. For further description of the contractual terms for purchased credit protection and whether they may limit the effectiveness of our hedges, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives” in the 2024 Form 10-K.

Operational Risk

Operational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors (e.g., inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal and compliance risks, or damage to physical assets. We may incur operational risk across the full scope of our business activities, including revenue-generating activities and support and control groups (e.g., IT and trade processing). For a further discussion about our operational risk, see “Quantitative and Qualitative Disclosures about Risk—Operational Risk” in the 2024 Form 10-K.

Model Risk

Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs. Model risk can lead to financial loss, poor business and strategic decision-making, noncompliance with applicable laws and/or regulations or damage to the Firm's reputation. The risk inherent in a model is a function of the materiality, complexity and uncertainty around inputs and assumptions. Model risk is generated from the use of models impacting financial statements, regulatory filings, capital adequacy assessments and the formulation of strategy. For a further discussion about our model risk, see “Quantitative and Qualitative Disclosures about Risk—Model Risk” in the 2024 Form 10-K.

Liquidity Risk

Liquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern. For a further discussion about our liquidity risk, see “Quantitative and Qualitative Disclosures about Risk—Liquidity Risk” in the 2024 Form 10-K and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” herein.

Legal, Regulatory and Compliance Risk

Legal, regulatory and compliance risk includes the risk of legal or regulatory sanctions, material financial loss, including fines, penalties, judgments, damages and/or settlements, limitations on our business, or loss to reputation that we may suffer as a result of failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes

			36			September 2025 Form 10-Q

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Risk Disclosures

of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing, and anti-corruption rules and regulations. For a further discussion about our legal and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk” in the 2024 Form 10-K.

Climate Risk

Climate risk consists of physical and transition risks. Physical risks include harm to people and property arising from acute climate-related events, such as floods, hurricanes, heatwaves, droughts and wildfires, and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Transition risks include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure or regulation of carbon emissions. Climate risk, which is not expected to have a significant effect on our consolidated results of operations or financial condition in the near term, is an overarching risk that can impact other categories of risk. For a further discussion about our climate risk, see “Quantitative and Qualitative Disclosures about Risk—Climate Risk” in the 2024 Form 10-K.

September 2025 Form 10-Q			37

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Morgan Stanley:

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of Morgan Stanley and subsidiaries (the “Firm”) as of September 30, 2025, and the related condensed consolidated income statements, comprehensive income statements and statements of changes in total equity for the three-month and nine-month periods ended September 30, 2025 and 2024, and the cash flow statements for the nine-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the “interim financial information”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Firm as of December 31, 2024, and the related consolidated income statement, comprehensive income statement, cash flow statement and statement of changes in total equity for the year then ended (not presented herein) included in the Firm’s Annual Report on Form 10-K; and in our report dated February 21, 2025, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Firm’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP
New York, New York
November 3, 2025

			38			September 2025 Form 10-Q

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Consolidated Income Statement (Unaudited)

			Three Months Ended September 30,						Nine Months Ended September 30,
in millions, except per share data			2025			2024			2025			2024
Revenues
Investment banking			$	2,266		$	1,590		$	5,621		$	4,914
Trading			5,020			4,002			14,876			12,985
Investments			374			315			1,131			609
Commissions and fees			1,473			1,294			4,379			3,704
Asset management			6,441			5,747			18,357			16,440
Other			159			239			1,200			827
Total non-interest revenues			15,733			13,187			45,564			39,479
Interest income			15,456			14,185			44,109			40,644
Interest expense			12,965			11,989			36,918			34,585
Net interest			2,491			2,196			7,191			6,059
Net revenues			18,224			15,383			52,755			45,538
Provision for credit losses			—			79			331			149
Non-interest expenses
Compensation and benefits			7,442			6,733			22,153			19,889
Brokerage, clearing and exchange fees			1,141			1,044			3,551			2,960
Information processing and communications			1,119			1,042			3,258			3,029
Professional services			685			711			2,070			2,103
Occupancy and equipment			473			473			1,381			1,378
Marketing and business development			280			224			815			686
Other			1,056			856			3,002			2,654
Total non-interest expenses			12,196			11,083			36,230			32,699
Income before provision for income taxes			6,028			4,221			16,194			12,690
Provision for income taxes			1,373			995			3,593			2,885
Net income			$	4,655		$	3,226		$	12,601		$	9,805
Net income applicable to noncontrolling interests			45			38			137			129
Net income applicable to Morgan Stanley			$	4,610		$	3,188		$	12,464		$	9,676
Preferred stock dividends			160			160			465			440
Earnings applicable to Morgan Stanley common shareholders			$	4,450		$	3,028		$	11,999		$	9,236
Earnings per common share
Basic			$	2.83		$	1.91		$	7.61		$	5.79
Diluted			$	2.80		$	1.88		$	7.53		$	5.73
Average common shares outstanding
Basic			1,571			1,588			1,577			1,594
Diluted			1,590			1,609			1,594			1,612

Consolidated Comprehensive Income Statement

(Unaudited)

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Net income			$	4,655		$	3,226		$	12,601		$	9,805
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments			(21)			284			371			(31)
Change in net unrealized gains (losses) on available-for-sale securities			349			723			749			900
Pension and other			4			3			8			16
Change in net debt valuation adjustment			(848)			(175)			(684)			(463)
Net change in cash flow hedges			42			34			75			6
Total other comprehensive income (loss)			$	(474)		$	869		$	519		$	428
Comprehensive income			$	4,181		$	4,095		$	13,120		$	10,233
Net income applicable to noncontrolling interests			45			38			137			129
Other comprehensive income (loss) applicable to noncontrolling interests			(41)			95			51			(7)
Comprehensive income applicable to Morgan Stanley			$	4,177		$	3,962		$	12,932		$	10,111

See Notes to Consolidated Financial Statements			39			September 2025 Form 10-Q

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Consolidated Balance Sheet

$ in millions, except share data			(Unaudited) At September 30, 2025			At December 31, 2024
Assets
Cash and cash equivalents			$	103,734		$	105,386
Trading assets at fair value ($199,429 and $148,945 pledged as collateral)			423,823			331,884
Investment securities:
Available-for-sale at fair value (amortized cost of $110,695 and $101,960)			108,327			98,608
Held-to-maturity (fair value of $47,369 and $51,203)			55,205			61,071
Securities purchased under agreements to resell (includes $— and $— at fair value)			111,734			118,565
Securities borrowed			129,113			123,859
Customer and other receivables			113,257			86,158
Loans:
Held for investment (net of allowance for credit losses of $1,213 and $1,066)			255,867			225,834
Held for sale			11,433			12,319
Goodwill			16,725			16,706
Intangible assets (net of accumulated amortization of $1,798 and $5,445)			6,097			6,453
Other assets			29,491			28,228
Total assets			$	1,364,806		$	1,215,071
Liabilities
Deposits (includes $8,477 and $6,499 at fair value)			$	405,480		$	376,007
Trading liabilities at fair value			162,408			153,764
Securities sold under agreements to repurchase (includes $703 and $956 at fair value)			61,504			50,067
Securities loaned			15,944			15,226
Other secured financings (includes $16,687 and $14,088 at fair value)			21,441			21,602
Customer and other payables			226,445			175,938
Other liabilities and accrued expenses			28,854			28,220
Borrowings (includes $127,285 and $103,332 at fair value)			331,679			288,819
Total liabilities			1,253,755			1,109,643
Commitments and contingent liabilities (see Note 13)
Equity
Morgan Stanley shareholders’ equity:
Preferred stock			9,750			9,750
Common stock, $0.01 par value:
Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,591,091,689 and 1,606,653,706			20			20
Additional paid-in capital			30,730			30,179
Retained earnings			112,426			104,989
Employee stock trusts			5,058			5,103
Accumulated other comprehensive income (loss)			(6,346)			(6,814)
Common stock held in treasury at cost, $0.01 par value (447,802,290 and 432,240,273 shares)			(36,618)			(33,613)
Common stock issued to employee stock trusts			(5,058)			(5,103)
Total Morgan Stanley shareholders’ equity			109,962			104,511
Noncontrolling interests			1,089			917
Total equity			111,051			105,428
Total liabilities and equity			$	1,364,806		$	1,215,071

September 2025 Form 10-Q			40			See Notes to Consolidated Financial Statements

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Consolidated Statement of Changes in Total Equity (Unaudited)

                                                                                                                                                                                                                                                                

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Preferred stock
Beginning balance			$	9,750		$	8,750		$	9,750		$	8,750
Issuance of preferred stock			—			1,000			—			1,000
Ending balance			9,750			9,750			9,750			9,750
Common stock
Beginning and ending balance			20			20			20			20
Additional paid-in capital
Beginning balance			30,263			29,459			30,179			29,832
Share-based award activity			467			366			551			(7)
Issuance of preferred stock			—			(5)			—			(5)
Ending balance			30,730			29,820			30,730			29,820
Retained earnings
Beginning balance			109,567			101,374			104,989			97,996
Cumulative adjustment related to the adoption of an accounting standard update1			—			—			—			(60)
Net income applicable to Morgan Stanley			4,610			3,188			12,464			9,676
Preferred stock dividends2			(160)			(160)			(465)			(440)
Common stock dividends2			(1,592)			(1,492)			(4,562)			(4,259)
Other net increases (decreases)			1			1			—			(2)
Ending balance			112,426			102,911			112,426			102,911
Employee stock trusts
Beginning balance			5,085			5,110			5,103			5,314
Share-based award activity			(27)			(15)			(45)			(219)
Ending balance			5,058			5,095			5,058			5,095
Accumulated other comprehensive income (loss)
Beginning balance			(5,913)			(6,760)			(6,814)			(6,421)
Net change in Accumulated other comprehensive income (loss)			(433)			774			468			435
Ending balance			(6,346)			(5,986)			(6,346)			(5,986)
Common stock held in treasury at cost
Beginning balance			(35,503)			(32,129)			(33,613)			(31,139)
Share-based award activity			41			74			1,294			1,629
Repurchases of common stock and employee tax withholdings			(1,156)			(813)			(4,299)			(3,358)
Ending balance			(36,618)			(32,868)			(36,618)			(32,868)
Common stock issued to employee stock trusts
Beginning balance			(5,085)			(5,110)			(5,103)			(5,314)
Share-based award activity			27			15			45			219
Ending balance			(5,058)			(5,095)			(5,058)			(5,095)
Noncontrolling interests
Beginning balance			1,086			892			917			944
Net income applicable to noncontrolling interests			45			38			137			129
Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests			(41)			95			51			(7)
Other net increases (decreases)			(1)			(1)			(16)			(42)
Ending balance			1,089			1,024			1,089			1,024
Total equity			$	111,051		$	104,671		$	111,051		$	104,671

1.The Firm adopted the Investments - Tax Credit Structures accounting standard update on January 1, 2024. Refer to Note 2 to the financial statements in the 2024 Form 10-K for further information.

2. See Note 16 for information regarding dividends per share for each class of stock.

See Notes to Consolidated Financial Statements			41			September 2025 Form 10-Q

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Table of Contents
Consolidated Cash Flow Statement (Unaudited)

			Nine Months Ended September 30,
$ in millions			2025			2024
Cash flows from operating activities
Net income			$	12,601		$	9,805
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Stock-based compensation expense			1,457			1,231
Depreciation and amortization			3,520			3,516
Provision for credit losses			331			149
Other operating adjustments			268			121
Changes in assets and liabilities:
Trading assets, net of Trading liabilities			(69,812)			12,358
Securities borrowed			(5,254)			(11,321)
Securities loaned			718			2,398
Customer and other receivables and other assets			(27,142)			(10,317)
Customer and other payables and other liabilities			49,566			12,556
Securities purchased under agreements to resell			6,831			(26,612)
Securities sold under agreements to repurchase			11,437			(4,322)
Net cash provided by (used for) operating activities			(15,479)			(10,438)
Cash flows from investing activities
Proceeds from (payments for):
Other assets—Premises, equipment and software			(2,189)			(2,583)
Changes in loans, net			(28,560)			(13,934)
AFS securities:
Purchases			(28,767)			(27,717)
Proceeds from sales			4,650			5,540
Proceeds from paydowns and maturities			16,123			15,616
HTM securities:
Purchases			—			(3,523)
Proceeds from paydowns and maturities			6,107			8,279
Other investing activities			(746)			(988)
Net cash provided by (used for) investing activities			(33,382)			(19,310)
Cash flows from financing activities
Net proceeds from (payments for):
Other secured financings			849			1,384
Deposits			29,111			11,519
Issuance of preferred stock, net of issuance costs			—			995
Proceeds from issuance of Borrowings			94,184			80,369
Payments for:
Borrowings			(71,194)			(54,596)
Repurchases of common stock and employee tax withholdings			(4,305)			(3,347)
Cash dividends			(4,905)			(4,553)
Other financing activities			48			(270)
Net cash provided by (used for) financing activities			43,788			31,501
Effect of exchange rate changes on cash and cash equivalents			3,421			99
Net increase (decrease) in cash and cash equivalents			(1,652)			1,852
Cash and cash equivalents, at beginning of period			105,386			89,232
Cash and cash equivalents, at end of period			$	103,734		$	91,084
Supplemental Disclosure of Cash Flow Information
Cash payments for:
Interest			$	34,682		$	34,498
Income taxes, net of refunds			2,684			1,449

September 2025 Form 10-Q			42			See Notes to Consolidated Financial Statements

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

1. Introduction and Basis of Presentation

The Firm

Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” mean Morgan Stanley (the “Parent Company”) together with its consolidated subsidiaries. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-Q.

A description of the clients and principal products and services of each of the Firm’s business segments is as follows:

Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Markets business, which comprises Equity and Fixed Income, provides sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.

Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.

Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations,

endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.

Basis of Financial Information

The financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates.

The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto.

The accompanying financial statements should be read in conjunction with the Firm’s financial statements and notes thereto included in the 2024 Form 10-K. Certain footnote disclosures included in the 2024 Form 10-K have been condensed or omitted from these financial statements as they are not required for interim reporting under U.S. GAAP. The financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire year.

Consolidation

The financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 14). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet.

For a discussion of the Firm’s significant regulated U.S. and international subsidiaries and its involvement with VIEs, see Note 1 to the financial statements in the 2024 Form 10-K.

			43			September 2025 Form 10-Q

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

2. Significant Accounting Policies

For a detailed discussion about the Firm’s significant accounting policies and for further information on accounting updates adopted in the prior year, see Note 2 to the financial statements in the 2024 Form 10-K.

During the nine months ended September 30, 2025 there were no significant updates to the Firm’s significant accounting policies.

3. Cash and Cash Equivalents

$ in millions			At September 30, 2025			At December 31, 2024
Cash and due from banks			$	5,516		$	4,436
Interest bearing deposits with banks			98,218			100,950
Total Cash and cash equivalents			$	103,734		$	105,386
Restricted cash			$	30,261		$	29,643

For additional information on cash and cash equivalents, including restricted cash, see Note 2 to the financial statements in the 2024 Form 10-K.

4. Fair Values

Recurring Fair Value Measurements    

Assets and Liabilities Measured at Fair Value on a Recurring Basis

			At September 30, 2025
$ in millions			Level 1			Level 2			Level 3			Netting1			Total
Assets at fair value
Trading assets:
U.S. Treasury and agency securities			$	59,141		$	42,287		$	—		$	—		$	101,428
Other sovereign government obligations			54,861			417			64			—			55,342
State and municipal securities			—			3,932			—			—			3,932
MABS			—			2,176			506			—			2,682
Loans and lending commitments2			—			8,741			1,266			—			10,007
Corporate and other debt6			3,797			35,436			1,499			—			40,732
Corporate equities3,5			159,387			1,934			267			—			161,588
Derivative and other contracts:
Interest rate			3,494			125,160			340			—			128,994
Credit			—			12,671			287			—			12,958
Foreign exchange			584			73,915			141			—			74,640
Equity			8,488			108,419			707			—			117,614
Commodity and other			615			12,335			2,844			—			15,794
Netting1			(10,634)			(259,969)			(884)			(41,072)			(312,559)
Total derivative and other contracts			2,547			72,531			3,435			(41,072)			37,441
Investments4,5			822			498			1,461			—			2,781
Physical commodities			—			1,184			—			—			1,184
Total trading assets4			280,555			169,136			8,498			(41,072)			417,117
Investment securities—AFS			78,245			30,082			—			—			108,327
Total assets at fair value			$	358,800		$	199,218		$	8,498		$	(41,072)		$	525,444

			At September 30, 2025
$ in millions			Level 1			Level 2			Level 3			Netting1			Total
Liabilities at fair value
Deposits			$	—		$	8,476		$	1		$	—		$	8,477
Trading liabilities:
U.S. Treasury and agency securities			18,093			598			—			—			18,691
Other sovereign government obligations			26,456			77			2			—			26,535
Corporate and other debt6			1,518			16,121			68			—			17,707
Corporate equities3			62,663			287			65			—			63,015
Derivative and other contracts:
Interest rate			3,408			112,188			713			—			116,309
Credit			—			13,608			194			—			13,802
Foreign exchange			676			68,567			396			—			69,639
Equity			10,951			129,151			1,728			—			141,830
Commodity and other			623			11,830			1,819			—			14,272
Netting1			(10,634)			(259,969)			(884)			(47,905)			(319,392)
Total derivative and other contracts			5,024			75,375			3,966			(47,905)			36,460
Total trading liabilities			113,754			92,458			4,101			(47,905)			162,408
Securities sold under agreements to repurchase			—			251			452			—			703
Other secured financings			—			16,569			118			—			16,687
Borrowings			—			125,934			1,351			—			127,285
Total liabilities at fair value			$	113,754		$	243,688		$	6,023		$	(47,905)		$	315,560

			At December 31, 2024
$ in millions			Level 1			Level 2			Level 3			Netting1			Total
Assets at fair value
Trading assets:
U.S. Treasury and agency securities			$	54,436		$	44,332		$	—		$	—		$	98,768
Other sovereign government obligations			25,179			9,969			17			—			35,165
State and municipal securities			—			2,993			—			—			2,993
MABS			—			2,231			281			—			2,512
Loans and lending commitments2			—			7,602			1,059			—			8,661
Corporate and other debt			—			30,394			1,258			—			31,652
Corporate equities3,5			102,874			606			154			—			103,634
Derivative and other contracts:
Interest rate			4,154			124,309			343			—			128,806
Credit			—			8,783			367			—			9,150
Foreign exchange			65			108,037			620			—			108,722
Equity			2,704			72,532			446			—			75,682
Commodity and other			1,366			12,370			2,195			—			15,931
Netting1			(6,471)			(251,771)			(645)			(40,835)			(299,722)
Total derivative and other contracts			1,818			74,260			3,326			(40,835)			38,569
Investments4,5			808			933			754			—			2,495
Physical commodities			—			1,229			—			—			1,229
Total trading assets4			185,115			174,549			6,849			(40,835)			325,678
Investment securities—AFS			69,834			28,774			—			—			98,608
Total assets at fair value			$	254,949		$	203,323		$	6,849		$	(40,835)		$	424,286

September 2025 Form 10-Q			44

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			At December 31, 2024
$ in millions			Level 1			Level 2			Level 3			Netting1			Total
Liabilities at fair value
Deposits			$	—		$	6,498		$	1		$	—		$	6,499
Trading liabilities:
U.S. Treasury and agency securities			21,505			3			—			—			21,508
Other sovereign government obligations			20,724			3,712			84			—			24,520
Corporate and other debt			—			9,032			11			—			9,043
Corporate equities3			60,653			95			15			—			60,763
Derivative and other contracts:
Interest rate			3,615			114,179			396			—			118,190
Credit			—			9,302			270			—			9,572
Foreign exchange			147			104,793			31			—			104,971
Equity			3,241			90,639			1,594			—			95,474
Commodity and other			1,461			11,215			887			—			13,563
Netting1			(6,471)			(251,771)			(645)			(44,953)			(303,840)
Total derivative and other contracts			1,993			78,357			2,533			(44,953)			37,930
Total trading liabilities			104,875			91,199			2,643			(44,953)			153,764
Securities sold under agreements to repurchase			—			512			444			—			956
Other secured financings			—			14,012			76			—			14,088
Borrowings			—			102,385			947			—			103,332
Total liabilities at fair value			$	104,875		$	214,606		$	4,111		$	(44,953)		$	278,639

MABS—Mortgage- and asset-backed securities

1.For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Netting.” Positions classified within the same level that are with the same counterparty are netted within that level. For further information on derivative instruments and hedging activities, see Note 6.

2.For a further breakdown by type, see the following Detail of Loans and Lending Commitments at Fair Value table.

3.For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes.

4.Amounts exclude certain investments that are measured based on NAV per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Net Asset Value Measurements” herein.

5.At September 30, 2025 and December 31, 2024, the Firm’s Trading assets included an insignificant amount of equity securities subject to contractual sale restrictions that generally prohibit the Firm from selling the security for a period of time as of the measurement date.

6.Within Corporate and other debt the Firm holds supranational and regional governmental bonds. The Firm’s valuation techniques and valuation hierarchy classification policies for such instruments is consistent with that of the Firm’s holdings in Other sovereign government obligations, which are further described in Note 4 to the financial statements in the 2024 Form 10-K.

Detail of Loans and Lending Commitments at Fair Value

$ in millions			At September 30, 2025			At December 31, 2024
Commercial real estate			$	1,582		$	498
Residential real estate			2,715			1,922
Securities-based lending and Other loans			5,710			6,241
Total			$	10,007		$	8,661

Unsettled Fair Value of Futures Contracts1

$ in millions			At September 30, 2025			At December 31, 2024
Customer and other receivables (payables), net			$	1,802		$	1,914

1.These contracts are primarily Level 1, actively traded, valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables.

For a description of the valuation techniques applied to the Firm’s major categories of assets and liabilities measured at fair value on a recurring basis, see Note 4 to the financial statements in the 2024 Form 10-K. During the current quarter, there were no significant revisions made to the Firm’s valuation techniques.

Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Other sovereign government obligations
Beginning balance			$	26		$	74		$	17		$	94
Realized and unrealized gains (losses)			—			3			—			1
Purchases			5			14			5			48
Sales			(18)			(27)			(5)			(74)
Net transfers			51			45			47			40
Ending balance			$	64		$	109		$	64		$	109
Unrealized gains (losses)			$	—		$	(2)		$	—		$	(2)
State and municipal securities
Beginning balance			$	10		$	—		$	—		$	34
Sales			—			—			—			(29)
Net transfers			(10)			13			—			8
Ending balance			$	—		$	13		$	—		$	13
Unrealized gains (losses)			$	—		$	—		$	—		$	—
MABS
Beginning balance			$	515		$	423		$	281		$	489
Realized and unrealized gains (losses)			12			10			11			27
Purchases			26			43			101			140
Sales			(46)			(58)			(68)			(243)
Net transfers			(1)			23			181			28
Ending balance			$	506		$	441		$	506		$	441
Unrealized gains (losses)			$	11		$	15		$	(2)		$	9
Loans and lending commitments
Beginning balance			$	1,283		$	2,176		$	1,059		$	2,066
Realized and unrealized gains (losses)			20			29			20			19
Purchases and originations			273			130			557			681
Sales			(277)			(648)			(484)			(917)
Settlements			—			(4)			(2)			(174)
Net transfers			(33)			(99)			116			(91)
Ending balance			$	1,266		$	1,584		$	1,266		$	1,584
Unrealized gains (losses)			$	13		$	(1)		$	18		$	(2)
Corporate and other debt
Beginning balance			$	1,759		$	1,925		$	1,258		$	1,983
Realized and unrealized gains (losses)			73			9			(84)			44
Purchases and originations			225			423			643			834
Sales			(285)			(496)			(308)			(980)
Settlements			—			(73)			—			(85)
Net transfers			(273)			(62)			(10)			(70)
Ending balance			$	1,499		$	1,726		$	1,499		$	1,726
Unrealized gains (losses)			$	84		$	6		$	129		$	101

			45			September 2025 Form 10-Q

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Corporate equities
Beginning balance			$	205		$	217		$	154		$	199
Realized and unrealized gains (losses)			17			(24)			(16)			(93)
Purchases			63			26			153			65
Sales			(62)			(29)			(111)			(58)
Net transfers			44			4			87			81
Ending balance			$	267		$	194		$	267		$	194
Unrealized gains (losses)			$	39		$	(11)		$	—		$	(17)
Investments
Beginning balance			$	780		$	843		$	754		$	949
Realized and unrealized gains (losses)			69			53			345			63
Purchases			56			18			76			42
Sales			(44)			(101)			(235)			(241)
Net transfers			600			(3)			521			(3)
Ending balance			$	1,461		$	810		$	1,461		$	810
Unrealized gains (losses)			$	94		$	24		$	342		$	6
Investment securities—AFS
Beginning balance			$	11		$	—		$	—		$	—
Net transfers			(11)			—			—			—
Ending balance			$	—		$	—		$	—		$	—
Unrealized gains (losses)			$	—		$	—		$	—		$	—
Net derivatives: Interest rate
Beginning balance			$	(457)		$	262		$	(53)		$	(73)
Realized and unrealized gains (losses)			35			(120)			(370)			(103)
Purchases			64			20			85			27
Issuances			(29)			(6)			(121)			(14)
Settlements			(21)			(77)			44			(18)
Net transfers			35			(79)			42			181
Ending balance			$	(373)		$	—		$	(373)		$	—
Unrealized gains (losses)			$	50		$	(114)		$	(326)		$	(65)
Net derivatives: Credit
Beginning balance			$	97		$	124		$	97		$	96
Realized and unrealized gains (losses)			(31)			108			(115)			(42)
Settlements			8			(116)			117			39
Net transfers			19			(2)			(6)			21
Ending balance			$	93		$	114		$	93		$	114
Unrealized gains (losses)			$	(42)		$	108		$	(104)		$	(21)
Net derivatives: Foreign exchange
Beginning balance			$	(433)		$	(118)		$	589		$	(365)
Realized and unrealized gains (losses)			66			51			68			57
Purchases			2			—			13			—
Issuances			—			—			(24)			—
Settlements			133			117			(870)			264
Net transfers			(23)			45			(31)			139
Ending balance			$	(255)		$	95		$	(255)		$	95
Unrealized gains (losses)			$	60		$	51		$	68		$	61

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Net derivatives: Equity
Beginning balance			$	(1,077)		$	(1,055)		$	(1,148)		$	(1,102)
Realized and unrealized gains (losses)			(148)			(123)			110			125
Purchases			53			54			206			186
Issuances			(197)			(161)			(753)			(473)
Settlements			(131)			265			154			337
Net transfers			479			252			410			159
Ending balance			$	(1,021)		$	(768)		$	(1,021)		$	(768)
Unrealized gains (losses)			$	(104)		$	(155)		$	(24)		$	11
Net derivatives: Commodity and other
Beginning balance			$	887		$	1,203		$	1,308		$	1,290
Realized and unrealized gains (losses)			208			223			370			789
Purchases			81			70			206			126
Issuances			(176)			(23)			(315)			(37)
Settlements			(119)			(398)			(296)			(909)
Net transfers			144			(51)			(248)			(235)
Ending balance			$	1,025		$	1,024		$	1,025		$	1,024
Unrealized gains (losses)			$	332		$	(58)		$	457		$	(48)
Deposits
Beginning balance			$	30		$	34		$	1		$	33
Settlements			—			—			(1)			—
Net transfers			(29)			(33)			1			(32)
Ending balance			$	1		$	1		$	1		$	1
Unrealized losses (gains)			$	—		$	—		$	—		$	—
Nonderivative trading liabilities
Beginning balance			$	114		$	42		$	110		$	60
Realized and unrealized losses (gains)			16			6			(5)			(17)
Purchases			(104)			(44)			8			(50)
Sales			118			25			77			78
Settlements			—			—			—			(1)
Net transfers			(9)			43			(55)			2
Ending balance			$	135		$	72		$	135		$	72
Unrealized losses (gains)			$	46		$	9		$	(4)		$	(6)
Securities sold under agreements to repurchase
Beginning balance			$	446		$	449		$	444		$	449
Realized and unrealized losses (gains)			6			4			8			4
Ending balance			$	452		$	453		$	452		$	453
Unrealized losses (gains)			$	5		$	3		$	7		$	4
Other secured financings
Beginning balance			$	144		$	91		$	76		$	92
Realized and unrealized losses (gains)			(11)			1			(1)			(4)
Sales			—			—			(231)			—
Issuances			4			57			257			94
Settlements			—			(16)			(152)			(58)
Net transfers			(19)			14			169			23
Ending balance			$	118		$	147		$	118		$	147
Unrealized losses (gains)			$	(11)		$	1		$	(1)		$	(4)

September 2025 Form 10-Q			46

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Borrowings
Beginning balance			$	2,678		$	1,976		$	947		$	1,878
Realized and unrealized losses (gains)			115			86			214			90
Issuances			155			95			576			412
Settlements			(178)			(105)			(181)			(212)
Net transfers1			(1,419)			(581)			(205)			(697)
Ending balance			$	1,351		$	1,471		$	1,351		$	1,471
Unrealized losses (gains)			$	124		$	109		$	210		$	115
Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA			—			(1)			—			—

1.Net transfers include the transfer of Borrowings from Level 3 to Level 2 of $1.4 billion and $0.2 billion for the three and nine months ended September 30, 2025, respectively, primarily due to the decrease in the significance of unobservable inputs related to equity structured notes.

Level 3 instruments may be hedged with instruments classified in Level 1 and Level 2. The realized and unrealized gains or losses for assets and liabilities within the Level 3 category presented in the previous tables do not reflect the related realized and unrealized gains or losses on hedging instruments that have been classified by the Firm within the Level 1 and/or Level 2 categories.

The unrealized gains (losses) during the period for assets and liabilities within the Level 3 category may include changes in fair value during the period that were attributable to both observable and unobservable inputs. Total realized and unrealized gains (losses) are primarily included in Trading revenues in the income statement.

Additionally, in the previous tables, consolidations of VIEs are included in Purchases, and deconsolidations of VIEs are included in Settlements.

Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

Valuation Techniques and Unobservable Inputs

			Balance / Range (Average1)
$ in millions, except inputs			At September 30, 2025			At December 31, 2024
Other sovereign government obligations			$	64		$	17
Comparable pricing:
Bond price			60 to 110 points (99 points)			45 to 104 points (75 points)
MABS			$	506		$	281
Comparable pricing:
Bond price			40 to 106 points (80 points)			27 to 98 points (67 points)
Loans and lending commitments			$	1,266		$	1,059
Margin loan model:
Margin loan rate			N/M			1% to 4% (3%)
Comparable pricing:
Loan price			50 to 106 points (89 points)			49 to 102 points (90 points)

			Balance / Range (Average1)
$ in millions, except inputs			At September 30, 2025			At December 31, 2024
Corporate and other debt			$	1,499		$	1,258
Comparable pricing:
Bond price			29 to 130 points (88 points)			28 to 130 points (83 points)
Discounted cash flow:
Loss given default			54% to 85% (68% / 54%)			54% to 84% (62% / 54%)
Corporate equities			$	267		$	154
Comparable pricing:
Equity price			100%			100%
Investments			$	1,461		$	754
Discounted cash flow:
WACC			11% to 21% (17%)			12% to 21% (16%)
Exit multiple			9 to 9 times (9 times)			9 to 10 times (10 times)
Market approach:
EBITDA multiple			18 times			20 times
Comparable pricing:
Equity price			24% to 100% (95%)			24% to 100% (84%)
Net derivative and other contracts:
Interest rate			$	(373)		$	(53)
Option model:
IR volatility skew			47% to 96% (75% / 76%)			72% to 97% (81% / 79%)
IR curve correlation			56% to 99% (85% / 87%)			28% to 99% (83% / 86%)
Bond volatility			75% to 149% (87% / 90%)			78% to 148% (92% / 92%)
Inflation volatility			32% to 67% (44% / 40%)			30% to 68% (44% / 38%)
Credit			$	93		$	97
Credit default swap model:
Cash-synthetic    basis			7 points			7 points
Bond price			0 to 93 points (51 points)			0 to 90 points (48 points)
Credit spread			22 to 675 bps (105 bps)			10 to 360 bps (90 bps)
Funding spread			6 to 590 bps (73 bps)			10 to 590 bps (76 bps)
Foreign exchange2			$	(255)		$	589
Option model:
IR curve			-1% to 10% (2% / 0%)			5% to 10% (8% / 8%)
Contingency probability			80% to 95% (85% / 95%)			90% to 95% (91% / 95%)
Equity2			$	(1,021)		$	(1,148)
Option model:
Equity volatility			3% to 126% (26%)			7% to 98% (20%)
Equity volatility skew			-11% to 7% (-1%)			-2% to 0% (-1%)
Equity correlation			0% to 100% (66%)			20% to 94% (58%)
FX correlation			-87% to 90% (-23%)			-68% to 60% (-36%)
IR correlation			0% to 15% (6%)			N/M
Commodity and other			$	1,025		$	1,308
Option model:
Forward power price			$8 to $144 ($64) per MWh			$0 to $185 ($48) per MWh
Commodity volatility			17% to 97% (30%)			0% to 165% (37%)
Cross-commodity correlation			69% to 99% (98%)			54% to 100% (94%)
Liabilities Measured at Fair Value on a Recurring Basis
Corporate and other debt			$	68		$	11
Comparable pricing:
Bond price			2 to 101 points (32 points)			N/M

			47			September 2025 Form 10-Q

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			Balance / Range (Average1)
$ in millions, except inputs			At September 30, 2025			At December 31, 2024
Securities sold under agreements to repurchase			$	452		$	444
Discounted cash flow:
Funding spread			21 to 139 bps (70 / 69 bps)			11 to 102 bps (36 / 26 bps)
Other secured financings			$	118		$	76
Comparable pricing:
Loan price			0 to 95 points (70 points)			0 to 100 points (33 points)
Borrowings			$	1,351		$	947
Option model:
Equity volatility			9% to 95% (24%)			7% to 71% (21%)
Equity volatility skew			-5% to 1% (-1%)			-2% to 0% (0%)
Equity correlation			20% to 100% (89%)			53% to 64% (58%)
Equity - FX correlation			-65% to 29% (-18%)			-52% to 24% (-12%)
Credit default swap model:
Credit spread			188 to 472 bps (330 bps)			247 to 433 bps (340 bps)
Discounted cash flow:
Loss given default			54% to 85% (68% / 54%)			54% to 84% (62% / 54%)
Nonrecurring Fair Value Measurement
Loans			$	2,714		$	4,518
Corporate loan model:
Credit spread			116 to 932 bps (276 bps)			109 to 1,469 bps (1,007 bps)
Comparable pricing:
Loan price			50 to 101 points (86 points)			25 to 100 points (71 points)
Warehouse model:
Credit spread			69 to 182 bps (99 bps)			207 to 280 bps (254 bps)

Points—Percentage of par

IR—Interest rate

FX—Foreign exchange

1.A single amount is disclosed for range and average when there is no significant difference between the minimum, maximum and average. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant.

2.Includes derivative contracts with multiple risks (i.e., hybrid products).

The previous table provides information on the valuation techniques, significant unobservable inputs, and the ranges and averages for each major category of assets and liabilities measured at fair value on a recurring and nonrecurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory of financial instruments. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm’s inventory. Generally, there are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation technique.

For a description of the Firm’s significant unobservable inputs and qualitative information about the effect of hypothetical changes in the values of those inputs, see Note 4 to the financial statements in the 2024 Form 10-K. During the three months ended September 30, 2025, there were no

significant revisions made to the descriptions of the Firm’s significant unobservable inputs.

Net Asset Value Measurements

Fund Interests

			At September 30, 2025						At December 31, 2024
$ in millions			Carrying Value			Commitment			Carrying Value			Commitment
Private equity and other			$	3,096		$	655		$	2,653		$	644
Real estate			3,537			216			3,461			214
Hedge			73			2			92			2
Total			$	6,706		$	873		$	6,206		$	860

Amounts in the previous table represent the Firm’s carrying value of general and limited partnership interests in fund investments, as well as any related performance-based income in the form of carried interest. The carrying amounts are measured based on the NAV of the fund taking into account the distribution terms applicable to the interest held. This same measurement applies whether the fund investments are accounted for under the equity method or fair value.

For a description of the Firm’s investments in private equity and other funds, real estate funds and hedge funds, which are measured based on NAV, see Note 4 to the financial statements in the 2024 Form 10-K.

See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. See Note 19 for information regarding unrealized carried interest at risk of reversal.

Nonredeemable Funds by Contractual Maturity

			Carrying Value at September 30, 2025
$ in millions			Private Equity and Other			Real Estate
Less than 5 years			$	1,092		$	2,006
5-10 years			1,698			1,353
Over 10 years			306			178
Total			$	3,096		$	3,537

Nonrecurring Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

			At September 30, 2025
			Fair Value
$ in millions			Level 2			Level 31			Total
Assets
Loans			$	1,383		$	2,714		$	4,097
Other assets—Other investments			—			60			60
Other assets—ROU assets			19			—			19
Total			$	1,402		$	2,774		$	4,176
Liabilities
Other liabilities and accrued expenses—Lending commitments			$	58		$	25		$	83
Total			$	58		$	25		$	83

September 2025 Form 10-Q			48

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			At December 31, 2024
			Fair Value
$ in millions			Level 2			Level 31			Total
Assets
Loans			$	1,607		$	4,518		$	6,125
Other assets—Other investments			—			58			58
Other assets—ROU assets			23			—			23
Total			$	1,630		$	4,576		$	6,206
Liabilities
Other liabilities and accrued expenses—Lending commitments			$	48		$	33		$	81
Total			$	48		$	33		$	81

1.For significant Level 3 balances, refer to “Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements” section herein for details of the significant unobservable inputs used for nonrecurring fair value measurement.

Gains (Losses) from Nonrecurring Fair Value Remeasurements1

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Assets
Loans2			$	(148)		$	(136)		$	(319)		$	(190)
Other assets—Other investments3			—			—			(6)			(7)
Other assets—Premises, equipment and software4			(7)			(10)			(52)			(12)
Other assets—ROU assets5			(1)			—			(1)			—
Total			$	(156)		$	(146)		$	(378)		$	(209)
Liabilities
Other liabilities and accrued expenses—Lending commitments2			$	(5)		$	(2)		$	(1)		$	8
Total			$	(5)		$	(2)		$	(1)		$	8

1.Gains and losses for Loans and Other assets—Other investments are classified in Other revenues. For other items, gains and losses are recorded in Other revenues if the item is held for sale; otherwise, they are recorded in Other expenses.

2.Nonrecurring changes in the fair value of loans and lending commitments, which exclude the impact of related economic hedges, are calculated as follows: for the held-for-investment category, based on the value of the underlying collateral; and for the held-for-sale category, based on recently executed transactions, market price quotations, valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and CDS spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such transactions and quotations are unobservable.

3.Losses related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and recently executed transactions.

4.Losses related to Other assets—Premises, equipment and software generally include impairments as well as write-offs related to the disposal of certain assets.

5.Losses related to Other Assets—ROU assets include impairments related to the discontinued leased properties.

Financial Instruments Not Measured at Fair Value

			At September 30, 2025
			Carrying Value			Fair Value
$ in millions						Level 1			Level 2			Level 3			Total
Financial assets
Cash and cash equivalents			$	103,734		$	103,734		$	—		$	—		$	103,734
Investment securities—HTM			55,205			12,919			33,098			1,352			47,369
Securities purchased under agreements to resell			111,734			—			110,611			1,154			111,765
Securities borrowed			129,113			—			129,113			—			129,113
Customer and other receivables			106,879			—			102,293			4,527			106,820
Loans1
Held for investment			255,867			—			10,700			241,877			252,577
Held for sale			11,433			—			6,208			5,280			11,488
Other assets			704			—			704			—			704
Financial liabilities
Deposits			$	397,003		$	—		$	397,686		$	—		$	397,686
Securities sold under agreements to repurchase			60,801			—			60,786			—			60,786
Securities loaned			15,944			—			15,949			—			15,949
Other secured financings			4,754			—			4,751			—			4,751
Customer and other payables			226,430			—			226,430			—			226,430
Borrowings			204,394			—			208,157			199			208,356
			Commitment Amount
Lending commitments2			$	200,600		$	—		$	1,085		$	1,129		$	2,214

			49			September 2025 Form 10-Q

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			At December 31, 2024
			Carrying Value			Fair Value
$ in millions						Level 1			Level 2			Level 3			Total
Financial assets
Cash and cash equivalents			$	105,386		$	105,386		$	—		$	—		$	105,386
Investment securities—HTM			61,071			15,803			34,180			1,220			51,203
Securities purchased under agreements to resell			118,565			—			117,151			1,450			118,601
Securities borrowed			123,859			—			123,859			—			123,859
Customer and other receivables			79,586			—			75,361			4,056			79,417
Loans1
Held for investment			225,834			—			17,859			202,297			220,156
Held for sale			12,319			—			6,324			6,115			12,439
Other assets			839			—			839			—			839
Financial liabilities
Deposits			$	369,508		$	—		$	370,039		$	—		$	370,039
Securities sold under agreements to repurchase			49,111			—			49,103			—			49,103
Securities loaned			15,226			—			15,228			—			15,228
Other secured financings			7,514			—			7,511			—			7,511
Customer and other payables			175,890			—			175,890			—			175,890
Borrowings			185,487			—			188,269			93			188,362
			Commitment Amount
Lending commitments2			$	175,774		$	—		$	1,094		$	839		$	1,933

1.Amounts include loans measured at fair value on a nonrecurring basis.

2.Represents Lending commitments accounted for as Held for Investment and Held for Sale. For a further discussion on lending commitments, see Note 13.

The previous tables exclude all non-financial assets and liabilities, such as Goodwill and Intangible assets, and certain financial instruments, such as equity method investments and certain receivables.

5. Fair Value Option

The Firm has elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate complexities of applying certain accounting models.

Borrowings Measured at Fair Value on a Recurring Basis

$ in millions			At September 30, 2025			At December 31, 2024
Business Unit Responsible for Risk Management
Equity			$	61,119		$	49,144
Interest rates			45,095			34,451
Commodities			13,873			14,829
Credit			5,341			3,306
Foreign exchange			1,857			1,602
Total			$	127,285		$	103,332

Net Revenues from Liabilities under the Fair Value Option

$ in millions			Trading Revenues			Interest Expense			Net Revenues1
Three Months Ended September 30, 2025
Borrowings			$	(3,101)		$	267		$	(3,368)
Deposits			(91)			63			(154)
Three Months Ended September 30, 2024
Borrowings			$	(6,993)		$	175		$	(7,168)

$ in millions			Trading Revenues			Interest Expense			Net Revenues1
Nine Months Ended September 30, 2025
Borrowings			$	(10,866)		$	708		$	(11,574)
Deposits			(216)			170			(386)
Nine Months Ended September 30, 2024
Borrowings			$	(6,158)		$	474		$	(6,632)

1.Amounts do not reflect any gains or losses from related economic hedges.

Gains (losses) from changes in fair value are recorded in Trading revenues and are mainly attributable to movements in the reference price or index, interest rates or foreign exchange rates.

Gains (Losses) Due to Changes in Instrument-Specific Credit Risk

			Three Months Ended September 30,
			2025						2024
$ in millions			Trading Revenues			OCI			Trading Revenues			OCI
Loans and other receivables1			$	46		$	—		$	(15)		$	—
Lending commitments			(1)			—			(3)			—
Deposits			—			(27)			—			(3)
Borrowings			(5)			(1,093)			(4)			(227)

			Nine Months Ended September 30,
			2025						2024
$ in millions			Trading Revenues			OCI			Trading Revenues			OCI
Loans and other receivables1			$	(5)		$	—		$	(13)		$	—
Lending commitments			(3)			—			(4)			—
Deposits			—			38			—			8
Borrowings			(17)			(943)			(21)			(617)

$ in millions			At September 30, 2025			At December 31, 2024
Cumulative pre-tax DVA gain (loss) recognized in AOCI			$	(3,773)		$	(2,868)

1.Loans and other receivables-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses.

September 2025 Form 10-Q			50

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

Difference Between Contractual Principal and Fair Value1

$ in millions			At September 30, 2025			At December 31, 2024
Loans and other receivables2			$	11,021		$	10,207
Nonaccrual loans2			8,401			7,719
Borrowings3			3,235			3,249

1.Amounts indicate contractual principal greater than or (less than) fair value.

2.The majority of the difference between principal and fair value amounts for loans and other receivables relates to distressed debt positions purchased at amounts well below par.

3.Excludes borrowings where the repayment of the initial principal amount fluctuates based on changes in a reference price or index.

The previous tables exclude non-recourse debt from consolidated VIEs, liabilities related to transfers of financial assets treated as collateralized financings, pledged commodities and other liabilities that have specified assets attributable to them.

Fair Value Loans on Nonaccrual Status

$ in millions			At September 30, 2025			At December 31, 2024
Nonaccrual loans			$	1,159		$	647
Nonaccrual loans 90 or more days past due			157			155

6. Derivative Instruments and Hedging Activities

Fair Values of Derivative Contracts

			Assets at September 30, 2025
$ in millions			Bilateral OTC			Cleared OTC			Exchange-Traded			Total
Designated as accounting hedges
Interest rate			$	3		$	5		$	—		$	8
Foreign exchange			49			60			—			109
Total			52			65			—			117
Not designated as accounting hedges
Economic hedges of loans
Credit			—			19			—			19
Other derivatives
Interest rate			114,429			14,447			110			128,986
Credit			4,731			8,208			—			12,939
Foreign exchange			68,766			5,141			624			74,531
Equity			36,890			—			80,724			117,614
Commodity and other			12,870			—			2,924			15,794
Total			237,686			27,815			84,382			349,883
Total gross derivatives			$	237,738		$	27,880		$	84,382		$	350,000
Amounts offset
Counterparty netting			(166,835)			(26,061)			(81,034)			(273,930)
Cash collateral netting			(37,029)			(1,600)			—			(38,629)
Total in Trading assets			$	33,874		$	219		$	3,348		$	37,441
Amounts not offset1
Financial instruments collateral			(15,044)			—			—			(15,044)
Net amounts			$	18,830		$	219		$	3,348		$	22,397
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable												$	5,075

			Liabilities at September 30, 2025
$ in millions			Bilateral OTC			Cleared OTC			Exchange-Traded			Total
Designated as accounting hedges
Interest rate			$	510		$	—		$	—		$	510
Foreign exchange			143			39			—			182
Total			653			39			—			692
Not designated as accounting hedges
Economic hedges of loans
Credit			47			638			—			685
Other derivatives
Interest rate			102,606			13,080			113			115,799
Credit			5,297			7,820			—			13,117
Foreign exchange			63,266			5,495			696			69,457
Equity			60,952			—			80,878			141,830
Commodity and other			11,453			—			2,819			14,272
Total			243,621			27,033			84,506			355,160
Total gross derivatives			$	244,274		$	27,072		$	84,506		$	355,852
Amounts offset
Counterparty netting			(166,835)			(26,061)			(81,034)			(273,930)
Cash collateral netting			(44,457)			(1,005)			—			(45,462)
Total in Trading liabilities			$	32,982		$	6		$	3,472		$	36,460
Amounts not offset1
Financial instruments collateral			(4,012)			—			(1,051)			(5,063)
Net amounts			$	28,970		$	6		$	2,421		$	31,397
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable												7,296

			Assets at December 31, 2024
$ in millions			Bilateral OTC			Cleared OTC			Exchange-Traded			Total
Designated as accounting hedges
Interest rate			$	4		$	—		$	—		$	4
Foreign exchange			185			122			—			307
Total			189			122			—			311
Not designated as accounting hedges
Economic hedges of loans
Credit			—			28			—			28
Other derivatives
Interest rate			115,520			13,163			119			128,802
Credit			4,711			4,411			—			9,122
Foreign exchange			104,024			4,301			90			108,415
Equity			24,368			—			51,314			75,682
Commodity and other			14,071			—			1,860			15,931
Total			262,694			21,903			53,383			337,980
Total gross derivatives			$	262,883		$	22,025		$	53,383		$	338,291
Amounts offset
Counterparty netting			(188,069)			(20,276)			(51,168)			(259,513)
Cash collateral netting			(38,511)			(1,698)			—			(40,209)
Total in Trading assets			$	36,303		$	51		$	2,215		$	38,569
Amounts not offset1
Financial instruments collateral			(17,837)			—			—			(17,837)
Net amounts			$	18,466		$	51		$	2,215		$	20,732
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable												$	3,354

			51			September 2025 Form 10-Q

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Notes to Consolidated Financial Statements (Unaudited)

			Liabilities at December 31, 2024
$ in millions			Bilateral OTC			Cleared OTC			Exchange-Traded			Total
Designated as accounting hedges
Interest rate			$	533		$	—		$	—		$	533
Foreign exchange			3			—			—			3
Total			536			—			—			536
Not designated as accounting hedges
Economic hedges of loans
Credit			53			718			—			771
Other derivatives
Interest rate			104,495			13,038			124			117,657
Credit			4,941			3,860			—			8,801
Foreign exchange			100,730			4,085			153			104,968
Equity			42,332			—			53,142			95,474
Commodity and other			11,584			—			1,979			13,563
Total			264,135			21,701			55,398			341,234
Total gross derivatives			$	264,671		$	21,701		$	55,398		$	341,770
Amounts offset
Counterparty netting			(188,070)			(20,276)			(51,168)			(259,514)
Cash collateral netting			(43,126)			(1,200)			—			(44,326)
Total in Trading liabilities			$	33,475		$	225		$	4,230		$	37,930
Amounts not offset1
Financial instruments collateral			(6,338)			—			(2,658)			(8,996)
Net amounts			$	27,137		$	225		$	1,572		$	28,934
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable												$	4,321

1.Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other netting criteria are not met in accordance with applicable offsetting accounting guidance.

See Note 4 for information related to the unsettled fair value of futures contracts not designated as accounting hedges, which are excluded from the previous tables.

Notionals of Derivative Contracts

			Assets at September 30, 2025
$ in billions			Bilateral OTC			Cleared OTC			Exchange- Traded			Total
Designated as accounting hedges
Interest rate			$	—		$	188		$	—		$	188
Foreign exchange			5			4			—			9
Total			5			192			—			197
Not designated as accounting hedges
Economic hedges of loans
Credit			—			—			—			—
Other derivatives
Interest rate			4,116			7,568			528			12,212
Credit			269			259			—			528
Foreign exchange			4,256			299			18			4,573
Equity			904			—			848			1,752
Commodity and other			151			—			77			228
Total			9,696			8,126			1,471			19,293
Total gross derivatives			$	9,701		$	8,318		$	1,471		$	19,490

			Liabilities at September 30, 2025
$ in billions			Bilateral OTC			Cleared OTC			Exchange- Traded			Total
Designated as accounting hedges
Interest rate			$	3		$	215		$	—		$	218
Foreign exchange			16			2			—			18
Total			19			217			—			236
Not designated as accounting hedges
Economic hedges of loans
Credit			2			17			—			19
Other derivatives
Interest rate			4,095			7,579			529			12,203
Credit			291			249			—			540
Foreign exchange			4,279			286			22			4,587
Equity			995			—			1,333			2,328
Commodity and other			130			—			85			215
Total			9,792			8,131			1,969			19,892
Total gross derivatives			$	9,811		$	8,348		$	1,969		$	20,128

			Assets at December 31, 2024
$ in billions			Bilateral OTC			Cleared OTC			Exchange-Traded			Total
Designated as accounting hedges
Interest rate			$	—		$	108		$	—		$	108
Foreign exchange			14			4			—			18
Total			14			112			—			126
Not designated as accounting hedges
Economic hedges of loans
Credit			—			—			—			—
Other derivatives
Interest rate			3,713			4,367			442			8,522
Credit			208			149			—			357
Foreign exchange			2,717			171			9			2,897
Equity			591			—			609			1,200
Commodity and other			137			—			77			214
Total			7,366			4,687			1,137			13,190
Total gross derivatives			$	7,380		$	4,799		$	1,137		$	13,316

			Liabilities at December 31, 2024
$ in billions			Bilateral OTC			Cleared OTC			Exchange-Traded			Total
Designated as accounting hedges
Interest rate			$	2		$	193		$	—		$	195
Foreign exchange			1			—			—			1
Total			3			193			—			196
Not designated as accounting hedges
Economic hedges of loans
Credit			2			20			—			22
Other derivatives
Interest rate			3,626			4,468			417			8,511
Credit			230			133			—			363
Foreign exchange			2,763			178			18			2,959
Equity			754			—			826			1,580
Commodity and other			100			—			89			189
Total			7,475			4,799			1,350			13,624
Total gross derivatives			$	7,478		$	4,992		$	1,350		$	13,820

The notional amounts of derivative contracts generally overstate the Firm’s exposure. In most circumstances, notional amounts are used only as a reference point from which to calculate amounts owed between the parties to the contract. Furthermore, notional amounts do not reflect the

September 2025 Form 10-Q			52

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

benefit of legally enforceable netting arrangements or risk mitigating transactions.

For a discussion of the Firm’s derivative instruments and hedging activities, see Note 6 to the financial statements in the 2024 Form 10-K.

Gains (Losses) on Accounting Hedges

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
$ in millions			2025			2024			2025			2024
Fair value hedges—Recognized in Interest income
Interest rate contracts			$	(100)		$	(1,277)		$	(903)		$	(686)
Investment Securities—AFS			115			1,302			938			755
Fair value hedges—Recognized in Interest expense
Interest rate contracts			$	609		$	5,777		$	4,471		$	3,627
Deposits			(34)			(227)			(112)			(235)
Borrowings			(574)			(5,561)			(4,364)			(3,403)
Net investment hedges—Foreign exchange contracts
Recognized in OCI			$	175		$	(533)		$	(1,229)		$	122
Forward points excluded from hedge effectiveness testing—Recognized in Interest income			96			50			143			140
Cash flow hedges—Interest rate contracts1
Recognized in OCI			$	15		$	34		$	28		$	(26)
Less: Realized gains (losses) (pre-tax) reclassified from AOCI to interest income			(40)			(11)			(70)			(34)
Net change in cash flow hedges included within AOCI			55			45			98			8

1.During the nine months ended September 30, 2025, there were no forecasted transactions that failed to occur. The net gains (losses) associated with cash flow hedges expected to be reclassified from AOCI within 12 months as of September 30, 2025, is approximately $(60) million. The maximum length of time over which forecasted cash flows are hedged is 40 months.

Fair Value Hedges—Hedged Items 

$ in millions			At September 30, 2025			At December 31, 2024
Investment Securities—AFS
Amortized cost basis currently or previously hedged1			$	57,275		$	54,809
Basis adjustments included in amortized cost2			$	218		$	(741)
Deposits
Carrying amount currently or previously hedged			$	48,904		$	21,524
Basis adjustments included in carrying amount2			$	156		$	44
Borrowings
Carrying amount currently or previously hedged			$	189,937		$	171,834
Basis adjustments included in carrying amount—Outstanding hedges			$	(5,769)		$	(10,072)
Basis adjustments included in carrying amount—Terminated hedges			$	(631)		$	(648)

1.Carrying amount represents the amortized cost. As of September 30, 2025, and December 31, 2024, the amortized cost of the portfolio layer method closed portfolios was $600 million and $325 million, respectively. The Firm designated $703 million and $178 million as hedged amounts as of September 30, 2025, and December 31, 2024, respectively, representing the total notional value of all outstanding layers in each portfolio, including both spot-starting and forward-starting layers. The cumulative amount of basis adjustments was $2.2 million as of September 30, 2025 and $(2) million as of December 31, 2024. Refer to Note 2 to the financial statements in the 2024 Form 10-K and Note 7 herein for additional information.

2.Hedge accounting basis adjustments are primarily related to outstanding hedges.

Gains (Losses) on Economic Hedges of Loans

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
$ in millions			2025			2024			2025			2024
Recognized in Other revenues
Credit contracts1			$	(82)		$	(101)		$	(172)		$	(248)

1.Amounts related to hedges of certain held-for-investment and held-for-sale loans.

Net Derivative Liabilities and Collateral Posted

$ in millions			At September 30, 2025			At December 31, 2024
Net derivative liabilities with credit risk-related contingent features			$	23,734		$	22,414
Collateral posted			18,038			16,252

The previous table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Firm has posted collateral in the normal course of business.

Incremental Collateral and Termination Payments upon Potential Future Ratings Downgrade

$ in millions			At September 30, 2025
One-notch downgrade			$	267
Two-notch downgrade			513
Bilateral downgrade agreements included in the amounts above1			$	643

1.Amount represents arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are used by the Firm to manage the risk of counterparty downgrades.

The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. The previous table shows the future potential collateral amounts and termination payments that could be called or required by counterparties or exchange and clearing organizations in the event of one-notch or two-notch downgrade scenarios based on the relevant contractual downgrade triggers.

Maximum Potential Payout/Notional of Credit Protection Sold1

			Years to Maturity at September 30, 2025
$ in billions			< 1			1-3			3-5			Over 5			Total
Single-name CDS
Investment grade			$	15		$	34		$	38		$	16		$	103
Non-investment grade			7			18			16			4			45
Total			$	22		$	52		$	54		$	20		$	148
Index and basket CDS
Investment grade			$	4		$	12		$	8		$	2		$	26
Non-investment grade			9			26			231			94			360
Total			$	13		$	38		$	239		$	96		$	386
Total CDS sold			$	35		$	90		$	293		$	116		$	534
Other credit contracts			—			—			—			3			3
Total credit protection sold			$	35		$	90		$	293		$	119		$	537
CDS protection sold with identical protection purchased															$	474

			53			September 2025 Form 10-Q

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Notes to Consolidated Financial Statements (Unaudited)

			Years to Maturity at December 31, 2024
$ in billions			< 1			1-3			3-5			Over 5			Total
Single-name CDS
Investment grade			$	15		$	31		$	37		$	10		$	93
Non-investment grade			7			16			16			1			40
Total			$	22		$	47		$	53		$	11		$	133
Index and basket CDS
Investment grade			$	3		$	12		$	10		$	—		$	25
Non-investment grade			11			22			158			16			207
Total			$	14		$	34		$	168		$	16		$	232
Total CDS sold			$	36		$	81		$	221		$	27		$	365
Other credit contracts			—			—			—			3			3
Total credit protection sold			$	36		$	81		$	221		$	30		$	368
CDS protection sold with identical protection purchased															$	303

Fair Value Asset (Liability) of Credit Protection Sold1

$ in millions			At September 30, 2025			At December 31, 2024
Single-name CDS
Investment grade			$	2,370		$	1,890
Non-investment grade			767			585
Total			$	3,137		$	2,475
Index and basket CDS
Investment grade			$	883		$	799
Non-investment grade			3,837			489
Total			$	4,720		$	1,288
Total CDS sold			$	7,857		$	3,763
Other credit contracts			145			133
Total credit protection sold			$	8,002		$	3,896

1.Investment grade/non-investment grade determination is based on the internal credit rating of the reference obligation. Internal credit ratings serve as the CRM’s assessment of credit risk and the basis for a comprehensive credit limits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor.

Protection Purchased with CDS

			Notional
$ in billions			At September 30, 2025			At December 31, 2024
Single name			$	170		$	156
Index and basket			351			193
Tranched index and basket			31			28
Total			$	552		$	377

			Fair Value Asset (Liability)
$ in millions			At September 30, 2025			At December 31, 2024
Single name			$	(3,499)		$	(2,693)
Index and basket			(4,294)			(654)
Tranched index and basket			(1,033)			(962)
Total			$	(8,826)		$	(4,309)

The Firm enters into credit derivatives, principally CDS, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm’s counterparties for these derivatives are banks, broker-dealers, and insurance and other financial institutions.

The fair value amounts as shown in the previous tables are prior to cash collateral or counterparty netting. For further

information on credit derivatives and other credit contracts, see Note 6 to the financial statements in the 2024 Form 10-K.

7. Investment Securities

AFS and HTM Securities

			At September 30, 2025
$ in millions			Amortized Cost1			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
AFS securities
U.S. Treasury securities			$	78,227		$	103		$	85		$	78,245
U.S. agency securities2			24,369			17			2,075			22,311
Agency CMBS			5,604			—			309			5,295
State and municipal securities			1,993			10			21			1,982
FFELP student loan ABS3			500			1			7			494
Unallocated basis adjustment4			2			—			2			—
Total AFS securities			110,695			131			2,499			108,327
HTM securities
U.S. Treasury securities			13,634			—			715			12,919
U.S. agency securities2			39,124			59			7,072			32,111
Agency CMBS			808			—			49			759
Non-agency CMBS			1,639			11			70			1,580
Total HTM securities			55,205			70			7,906			47,369
Total investment securities			$	165,900		$	201		$	10,405		$	155,696

			At December 31, 2024
$ in millions			Amortized Cost1			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
AFS securities
U.S. Treasury securities			$	70,160		$	62		$	388		$	69,834
U.S. agency securities2			24,113			6			2,652			21,467
Agency CMBS			5,704			—			388			5,316
State and municipal securities			1,373			18			4			1,387
FFELP student loan ABS3			612			1			9			604
Unallocated basis adjustment4			(2)			2			—			—
Total AFS securities			101,960			89			3,441			98,608
HTM securities
U.S. Treasury securities			16,885			—			1,082			15,803
U.S. agency securities2			41,582			4			8,592			32,994
Agency CMBS			1,154			—			88			1,066
Non-agency CMBS			1,450			3			113			1,340
Total HTM securities			61,071			7			9,875			51,203
Total investment securities			$	163,031		$	96		$	13,316		$	149,811

1.Amounts are net of any ACL.

2.U.S. agency securities consist mainly of agency mortgage pass-through pool securities, CMOs and agency-issued debt.

3.Underlying loans are backed by a guarantee, ultimately from the U.S. Department of Education, of at least 95% of the principal balance and interest outstanding.

4.Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 to the financial statements in the 2024 Form 10-K and Note 6 herein for additional information.

September 2025 Form 10-Q			54

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Notes to Consolidated Financial Statements (Unaudited)

AFS Securities in an Unrealized Loss Position

			At September 30, 2025						At December 31, 2024
$ in millions			Fair Value			Gross Unrealized Losses			Fair Value			Gross Unrealized Losses
U.S. Treasury securities
Less than 12 months			$	12,762		$	9		$	18,338		$	65
12 months or longer			17,063			76			19,629			323
Total			29,825			85			37,967			388
U.S. agency securities
Less than 12 months			426			—			765			11
12 months or longer			18,072			2,075			18,996			2,641
Total			18,498			2,075			19,761			2,652
Agency CMBS
Less than 12 months			214			—			—			—
12 months or longer			4,948			309			5,018			388
Total			5,162			309			5,018			388
State and municipal securities
Less than 12 months			555			10			242			2
12 months or longer			252			11			62			2
Total			807			21			304			4
FFELP student loan ABS
Less than 12 months			—			—			—			—
12 months or longer			398			7			442			9
Total			398			7			442			9
Unallocated basis adjustment			—			2			—			—
Total AFS securities in an unrealized loss position
Less than 12 months			13,957			19			19,345			78
12 months or longer			40,733			2,478			44,147			3,363
Unallocated basis adjustment			—			2			—			—
Total			$	54,690		$	2,499		$	63,492		$	3,441

For AFS securities, the Firm believes there are no securities in an unrealized loss position that have credit losses after performing the analysis described in Note 2 in the 2024 Form 10-K and the Firm expects to recover the amortized cost basis of these securities. Additionally, the Firm does not intend to sell these securities and is not likely to be required to sell these securities prior to recovery of the amortized cost basis. As of September 30, 2025 and December 31, 2024, the securities in an unrealized loss position are predominantly investment grade.

The HTM securities net carrying amounts at September 30, 2025 and December 31, 2024 reflect an ACL of $62 million and $52 million, respectively, predominantly related to Non-agency CMBS. See Note 2 in the 2024 Form 10-K for a description of the ACL methodology used for HTM Securities.

As of September 30, 2025 and December 31, 2024, 97% of the Firm’s portfolio of HTM securities were investment grade U.S. agency securities, U.S. Treasury securities and Agency CMBS, which were on accrual status and for which there is an underlying assumption of zero credit losses. Non-investment grade HTM securities primarily consisted of certain Non-agency CMBS securities, for which the expected credit losses were insignificant and were predominantly on accrual status at September 30, 2025 and December 31, 2024.

See Note 14 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency CMBS, and FFELP student loan ABS.

Investment Securities by Contractual Maturity

			At September 30, 2025
$ in millions			Amortized Cost1			Fair Value			Annualized Average Yield2,3
AFS securities
U.S. Treasury securities:
Due within 1 year			$	21,899		$	21,888		3.2		%
After 1 year through 5 years			54,024			54,056			3.9		%
After 5 years through 10 years			2,304			2,301			4.1		%
After 10 years			—			—			—		%
Total			78,227			78,245
U.S. agency securities:
Due within 1 year			18			17			0.2		%
After 1 year through 5 years			203			194			1.8		%
After 5 years through 10 years			434			402			1.6		%
After 10 years			23,714			21,698			3.6		%
Total			24,369			22,311
Agency CMBS:
Due within 1 year			567			561			2.0		%
After 1 year through 5 years			3,747			3,642			1.9		%
After 5 years through 10 years			290			284			1.6		%
After 10 years			1,000			808			1.5		%
Total			5,604			5,295
State and municipal securities:
Due within 1 year			77			77			4.8		%
After 1 year through 5 years			152			151			4.5		%
After 5 years through 10 years			113			108			4.3		%
After 10 Years			1,651			1,646			4.5		%
Total			1,993			1,982
FFELP student loan ABS:
Due within 1 year			61			59			5.5		%
After 1 year through 5 years			48			47			5.4		%
After 5 years through 10 years			22			22			5.3		%
After 10 years			369			366			5.4		%
Total			500			494
Unallocated basis adjustment4			2			—			—
Total AFS securities			$	110,695		$	108,327		3.6		%

			55			September 2025 Form 10-Q

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Notes to Consolidated Financial Statements (Unaudited)

			At September 30, 2025
$ in millions			Amortized Cost1			Fair Value			Annualized Average Yield2
HTM securities
U.S. Treasury securities:
Due within 1 year			$	6,669		$	6,620		2.0		%
After 1 year through 5 years			4,909			4,773			2.5		%
After 5 years through 10 years			502			438			1.1		%
After 10 years			1,554			1,088			2.3		%
Total			13,634			12,919
U.S. agency securities:
Due within 1 year			—			—			—		%
After 1 year through 5 years			61			59			2.0		%
After 5 years through 10 years			121			116			2.1		%
After 10 years			38,942			31,936			2.1		%
Total			39,124			32,111
Agency CMBS:
Due within 1 year			178			175			0.9		%
After 1 year through 5 years			464			443			1.3		%
After 5 years through 10 years			143			121			1.6		%
After 10 years			23			20			1.3		%
Total			808			759
Non-agency CMBS:
Due within 1 year			127			121			5.0		%
After 1 year through 5 years			757			735			4.6		%
After 5 years through 10 years			373			344			4.3		%
After 10 years			382			380			7.3		%
Total			1,639			1,580
Total HTM securities			$	55,205		$	47,369		2.2		%
Total investment securities			$	165,900		$	155,696		3.1		%

1.Amounts are net of any ACL.

2.Annualized average yield is computed using the effective yield, weighted based on the amortized cost of each security. The effective yield is shown pre-tax and excludes the effect of related hedging derivatives.

3.At September 30, 2025, the annualized average yield, including the interest rate swap accrual of related hedges, was 3.5% for AFS securities contractually maturing within 1 year and 3.8% for all AFS securities.

4.Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 to the financial statements in the 2024 Form 10-K and Note 6 herein for additional information.

Gross Realized Gains (Losses) on Sales of AFS Securities

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Gross realized gains			$	3		$	—		$	25		$	50
Gross realized (losses)			—			—			(1)			—
Total1			$	3		$	—		$	24		$	50

1.Realized gains and losses are recognized in Other revenues in the income statement.

8. Collateralized Transactions

Offsetting of Certain Collateralized Transactions

			At September 30, 2025
$ in millions			Gross Amounts			Amounts Offset			Balance Sheet Net Amounts			Amounts Not Offset1			Net Amounts
Assets
Securities purchased under agreements to resell			$	480,516		$	(368,782)		$	111,734		$	(109,259)		$	2,475
Securities borrowed			200,015			(70,902)			129,113			(125,492)			3,621
Liabilities
Securities sold under agreements to repurchase			$	430,286		$	(368,782)		$	61,504		$	(56,918)		$	4,586
Securities loaned			86,846			(70,902)			15,944			(15,839)			105
Net amounts for which master netting agreements are not in place or may not be legally enforceable
Securities purchased under agreements to resell															$	886
Securities borrowed															80
Securities sold under agreements to repurchase															3,285

			At December 31, 2024
$ in millions			Gross Amounts			Amounts Offset			Balance Sheet Net Amounts			Amounts Not Offset1			Net Amounts
Assets
Securities purchased under agreements to resell			$	409,635		$	(291,070)		$	118,565		$	(116,157)		$	2,408
Securities borrowed			165,642			(41,783)			123,859			(117,573)			6,286
Liabilities
Securities sold under agreements to repurchase			$	341,137		$	(291,070)		$	50,067		$	(45,520)		$	4,547
Securities loaned			57,009			(41,783)			15,226			(15,211)			15
Net amounts for which master netting agreements are not in place or may not be legally enforceable
Securities purchased under agreements to resell															$	2,054
Securities borrowed															2,079
Securities sold under agreements to repurchase															3,448

1.Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance.

For further discussion of the Firm’s collateralized transactions, see Notes 2 and 8 to the financial statements in the 2024 Form 10-K. For information related to offsetting of derivatives, see Note 6.

Gross Secured Financing Balances by Remaining Contractual Maturity

			At September 30, 2025
$ in millions			Overnight and Open			Less than 30 Days			30-90 Days			Over 90 Days			Total
Securities sold under agreements to repurchase			$	263,607		$	95,211		$	32,238		$	39,230		$	430,286
Securities loaned			76,948			1			338			9,559			86,846
Total included in the offsetting disclosure			$	340,555		$	95,212		$	32,576		$	48,789		$	517,132
Trading liabilities— Obligation to return securities received as collateral			6,093			—			—			—			6,093
Total			$	346,648		$	95,212		$	32,576		$	48,789		$	523,225

September 2025 Form 10-Q			56

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			At December 31, 2024
$ in millions			Overnight and Open			Less than 30 Days			30-90 Days			Over 90 Days			Total
Securities sold under agreements to repurchase			$	180,793		$	104,551		$	25,071		$	30,722		$	341,137
Securities loaned			42,473			—			317			14,219			57,009
Total included in the offsetting disclosure			$	223,266		$	104,551		$	25,388		$	44,941		$	398,146
Trading liabilities— Obligation to return securities received as collateral			18,067			—			—			—			18,067
Total			$	241,333		$	104,551		$	25,388		$	44,941		$	416,213

Gross Secured Financing Balances by Class of Collateral Pledged

$ in millions			At September 30, 2025			At December 31, 2024
Securities sold under agreements to repurchase
U.S. Treasury and agency securities			$	228,058		$	177,464
Other sovereign government obligations			154,104			135,806
Corporate equities			26,552			14,993
Other			21,572			12,874
Total			$	430,286		$	341,137
Securities loaned
Other sovereign government obligations			$	1,605		$	1,805
Corporate equities			83,220			54,144
Other			2,021			1,060
Total			$	86,846		$	57,009
Total included in the offsetting disclosure			$	517,132		$	398,146
Trading liabilities—Obligation to return securities received as collateral
Corporate equities			$	5,852		$	18,059
Other			241			8
Total			$	6,093		$	18,067
Total			$	523,225		$	416,213

Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge

$ in millions			At September 30, 2025			At December 31, 2024
Trading assets			$	40,097		$	30,867

The Firm pledges certain of its trading assets to collateralize securities sold under agreements to repurchase, securities loaned, other secured financings and derivatives and to cover customer short sales.

Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged as collateral) in the balance sheet. Pledged financial instruments that cannot be sold or repledged by the secured party are included within Trading Assets, but not identified as pledged assets parenthetically in the balance sheet.

Fair Value of Collateral Received with Right to Sell or Repledge

$ in millions			At September 30, 2025			At December 31, 2024
Collateral received with right to sell or repledge			$	1,151,503		$	932,626
Collateral that was sold or repledged1			889,923			724,177

1.Does not include securities used to meet federal regulations for the Firm’s U.S. broker-dealers.

The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed, securities-for-securities transactions, derivative transactions, customer margin loans and securities-based lending. In many cases, the Firm is permitted to sell or repledge this collateral to secure securities sold under agreements to repurchase, to enter into securities lending and derivative transactions or to deliver to counterparties to cover short positions.

Securities Segregated for Regulatory Purposes

$ in millions			At September 30, 2025			At December 31, 2024
Segregated securities1			$	22,293		$	26,329

1.Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheet.

Customer Margin and Other Lending

$ in millions			At September 30, 2025			At December 31, 2024
Margin and other lending			$	69,570		$	55,882

The Firm provides margin lending arrangements that allow customers to borrow against the value of qualifying securities. Receivables from these arrangements are included within Customer and other receivables in the balance sheet. Under these arrangements, the Firm receives collateral, which includes U.S. government and agency securities, other sovereign government obligations, corporate and other debt, and corporate equities. Margin loans are collateralized by customer-owned securities held by the Firm. The Firm monitors required margin levels and established credit terms daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary.

For a further discussion of the Firm’s margin lending activities, see Note 8 to the financial statements in the 2024 Form 10-K.

Also included in the amounts in the previous table is non-purpose securities-based lending on entities in the Wealth Management business segment.

Other Secured Financings

The Firm has additional secured liabilities. For a further discussion of other secured financings, see Note 12.

			57			September 2025 Form 10-Q

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

Additionally, for certain secured financing transactions that meet applicable netting criteria, the Firm offset Other secured financing liabilities against financing receivables recorded within Trading assets in the amount of $2,629 million and $437 million as of September 30, 2025 and December 31, 2024, respectively.

9. Loans, Lending Commitments and Related Allowance for Credit Losses

Loans by Type

			At September 30, 2025
$ in millions			HFI Loans			HFS Loans			Total Loans
Corporate			$	7,839		$	8,270		$	16,109
Secured lending facilities			63,610			2,707			66,317
Commercial real estate			7,853			421			8,274
Residential real estate			70,910			5			70,915
Securities-based lending and Other			106,868			30			106,898
Total loans			257,080			11,433			268,513
ACL			(1,213)						(1,213)
Total loans, net			$	255,867		$	11,433		$	267,300
Loans to non-U.S. borrowers, net			$	30,364		$	3,742		$	34,106

			At December 31, 2024
$ in millions			HFI Loans			HFS Loans			Total Loans
Corporate			$	6,889		$	9,183		$	16,072
Secured lending facilities			48,842			2,507			51,349
Commercial real estate			8,412			628			9,040
Residential real estate			66,738			—			66,738
Securities-based lending and Other			96,019			1			96,020
Total loans			226,900			12,319			239,219
ACL			(1,066)						(1,066)
Total loans, net			$	225,834		$	12,319		$	238,153
Loans to non-U.S. borrowers, net			$	23,335		$	4,763		$	28,098

For additional information on the Firm’s held-for-investment and held-for-sale loan portfolios, see Note 9 to the financial statements in the 2024 Form 10-K.

Loans by Interest Rate Type

			At September 30, 2025						At December 31, 2024
$ in millions			Fixed Rate			Floating or Adjustable Rate			Fixed Rate			Floating or Adjustable Rate
Corporate			$	1		$	16,108		$	—		$	16,071
Secured lending facilities			525			65,792			—			51,349
Commercial real estate			328			7,946			—			9,041
Residential real estate			32,051			38,864			31,014			35,724
Securities-based lending and Other			26,178			80,720			25,478			70,542
Total loans, before ACL			$	59,083		$	209,430		$	56,492		$	182,727

See Note 4 for further information regarding Loans and lending commitments held at fair value. See Note 13 for details of current commitments to lend in the future.

Loans Held for Investment before Allowance by Credit Quality and Origination Year

			At September 30, 2025									At December 31, 2024
			Corporate
$ in millions			IG			NIG			Total			IG			NIG			Total
Revolving			$	2,606		$	4,876		$	7,482		$	2,668		$	3,963		$	6,631
2025			125			38			163
2024			79			50			129			76			58			134
2023			—			49			49			—			50			50
2022			—			—			—			—			25			25
2021			15			—			15			15			—			15
Prior			—			1			1			31			3			34
Total			$	2,825		$	5,014		$	7,839		$	2,790		$	4,099		$	6,889

			At September 30, 2025									At December 31, 2024
			Secured Lending Facilities
$ in millions			IG			NIG			Total			IG			NIG			Total
Revolving			$	14,662		$	34,796		$	49,458		$	11,405		$	27,753		$	39,158
2025			988			6,410			7,398
2024			268			2,978			3,246			818			2,863			3,681
2023			555			1,047			1,602			1,371			1,359			2,730
2022			115			991			1,106			279			1,909			2,188
2021			—			12			12			—			198			198
Prior			—			788			788			100			787			887
Total			$	16,588		$	47,022		$	63,610		$	13,973		$	34,869		$	48,842

			At September 30, 2025									At December 31, 2024
			Commercial Real Estate
$ in millions			IG			NIG			Total			IG			NIG			Total
Revolving			$	11		$	8		$	19		$	—		$	161		$	161
2025			330			1,278			1,608
2024			582			1,440			2,022			147			2,202			2,349
2023			265			418			683			351			772			1,123
2022			263			1,236			1,499			305			1,488			1,793
2021			251			1,068			1,319			166			1,603			1,769
Prior			37			666			703			—			1,217			1,217
Total			$	1,739		$	6,114		$	7,853		$	969		$	7,443		$	8,412

			At September 30, 2025
			Residential Real Estate
			by FICO Scores												by LTV Ratio									Total
$ in millions			≥ 740			680-739			≤ 679						≤ 80%			> 80%
Revolving			$	159		$	38		$	6					$	203		$	—					$	203
2025			6,748			1,210			151						7,318			791						8,109
2024			8,057			1,530			186						8,838			935						9,773
2023			6,270			1,344			194						6,973			835						7,808
2022			9,804			2,176			359						11,378			961						12,339
2021			10,053			2,143			214						11,558			852						12,410
Prior			15,975			3,835			458						18,974			1,294						20,268
Total			$	57,066		$	12,276		$	1,568					$	65,242		$	5,668					$	70,910

September 2025 Form 10-Q			58

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			At December 31, 2024
			Residential Real Estate
			by FICO Scores												by LTV Ratio									Total
$ in millions			≥ 740			680-739			≤ 679						≤ 80%			> 80%
Revolving			$	136		$	39		$	5					$	180		$	—					$	180
2024			8,653			1,607			191						9,458			993						10,451
2023			6,778			1,431			201						7,529			881						8,410
2022			10,294			2,298			370						11,941			1,021						12,962
2021			10,510			2,247			228						12,094			891						12,985
Prior			17,088			4,171			491						20,355			1,395						21,750
Total			$	53,459		$	11,793		$	1,486					$	61,557		$	5,181					$	66,738

			At September 30, 2025
			Securities-based lending1			Other2
$ in millions						IG			NIG			Total
Revolving			$	86,581		$	5,995		$	1,556		$	94,132
2025			1,017			286			800			2,103
2024			1,358			780			176			2,314
2023			812			305			900			2,017
2022			238			183			1,265			1,686
2021			100			18			412			530
Prior			238			1,100			2,748			4,086
Total			$	90,344		$	8,667		$	7,857		$	106,868

			At December 31, 2024
			Securities-based lending1			Other2
$ in millions						IG			NIG			Total
Revolving			$	76,432		$	6,342		$	1,551		$	84,325
2024			1,291			719			453			2,463
2023			949			424			685			2,058
2022			449			472			1,053			1,974
2021			100			14			538			652
Prior			270			1,430			2,847			4,547
Total			$	79,491		$	9,401		$	7,127		$	96,019

IG—Investment Grade

NIG—Non-investment Grade

1. Securities-based loans are subject to collateral maintenance provisions, and at September 30, 2025 and December 31, 2024, these loans are predominantly over-collateralized. For more information on the ACL methodology related to securities-based loans, see Note 2 to the financial statements in the 2024 Form 10-K.

2. Other loans primarily include certain loans originated in the tailored lending business within the Wealth Management business segment, which typically consist of bespoke lending arrangements provided to ultra-high worth net clients. These facilities are generally secured by eligible collateral.

Past Due Loans Held for Investment before Allowance1

$ in millions			At September 30, 2025			At December 31, 2024
Commercial real estate			$	199		$	272
Residential real estate			283			186
Securities-based lending and Other			145			86
Total			$	627		$	544

1.As of September 30, 2025 and December 31, 2024, the majority of the amounts are 90 days or more past due.

Nonaccrual Loans Held for Investment before Allowance1

$ in millions			At September 30, 2025			At December 31, 2024
Corporate			$	249		$	108
Secured lending facilities			5			6
Commercial real estate			561			447
Residential real estate			173			160
Securities-based lending and Other			293			298
Total			$	1,281		$	1,019
Nonaccrual loans without an ACL			$	147		$	162

1.There were no loans held for investment that were 90 days or more past due and still accruing as of September 30, 2025 and December 31, 2024. For further information on the Firm’s nonaccrual policy, see Note 2 to the financial statements in the 2024 Form 10-K.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Firm may modify the terms of certain loans for economic or legal reasons related to a borrower’s financial difficulties, and these modifications include interest rate reductions, principal forgiveness, term extensions and other-than-insignificant payment delays or a combination of these aforementioned modifications. Modified loans are typically evaluated individually for allowance for credit losses.

Modified Loans Held for Investment

Period-end loans held for investment modified during the following periods1

			Three Months Ended September 30,
			2025									2024
$ in millions			Amortized Cost			% of Total Loans2						Amortized Cost			% of Total Loans2
Term Extension
Corporate			$	42		0.5		%				$	30		0.5		%
Commercial real estate			146			1.9		%				56			0.6		%
Securities-based lending and Other			397			0.4		%				21			—		%
Total			$	585		0.5		%				$	107		—		%
Other-than-insignificant Payment Delay
Residential real estate			$	1		—		%				$	—		—		%
Total			$	1		—		%				$	—		—		%
Multiple Modifications - Term Extension and Interest Rate Reduction
Residential real estate			$	5		—		%				$	—		—		%
Total			$	5		—		%				$	—		—		%
Total Modifications			$	591		0.3		%				$	107		—		%

			59			September 2025 Form 10-Q

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

			Nine Months Ended September 30,
			2025									2024
$ in millions			Amortized Cost			% of Total Loans2						Amortized Cost			% of Total Loans2
Term Extension
Corporate			$	172		2.2		%				$	136		2.2		%
Commercial real estate			471			6.0		%				136			1.6		%
Residential real estate			1			—		%				—			—		%
Securities-based lending and Other			429			0.4		%				149			0.2		%
Total			$	1,073		0.6		%				$	421		0.2		%
Other-than-insignificant Payment Delay
Residential real estate			$	1		—		%				$	—		—		%
Securities-based lending and Other			23			—		%				—			—		%
Total			$	24		—		%				$	—		—		%
Interest Rate Reduction
Residential real estate			$	1		—		%				$	—		—		%
Total			$	1		—		%				$	—		—		%
Multiple Modifications - Term Extension and Interest Rate Reduction
Commercial real estate			$	75		1.0		%				$	—		—		%
Residential real estate			7			—		%				1			—		%
Total			$	82		0.1		%				$	1		—		%
Total Modifications			$	1,180		0.6		%				$	422		0.2		%

1.Lending commitments to borrowers for which the Firm has modified terms of the receivable during the three months ended September 30, 2025 and 2024, were $174 million and $212 million, as of September 30, 2025 and 2024, respectively. Lending commitments to borrowers for which the Firm has modified terms of the receivable during the nine months ended September 30, 2025 and 2024 were $532 million and $676 million as of September 30, 2025 and 2024, respectively.

2.Percentage of total loans represents the percentage of modified loans to total loans held for investment by loan type.

Financial Effect of Modifications on Loans Held for Investment

			Three Months Ended September 30, 20251
			Term Extension (Months)			Other-than-insignificant Payment Delay (Months)			Principal Forgiveness ($ millions)			Interest Rate Reduction (%)
Single Modifications
Corporate			47			0			$	—		—		%
Commercial real estate			24			0			—			—		%
Residential real estate			0			19			—			—		%
Securities-based lending and Other			24			0			—			—		%
Multiple Modifications - Term Extension and Interest Rate Reduction
Residential real estate			120			0			$	—		1		%

			Three Months Ended September 30, 20241
			Term Extension (Months)			Other-than-insignificant Payment Delay (Months)			Principal Forgiveness ($ millions)			Interest Rate Reduction (%)
Single Modifications
Corporate			11			0			$	—		—		%
Commercial real estate			27			0			—			—		%
Securities-based lending and Other			12			0			—			—		%

			Nine Months Ended September 30, 20251
			Term Extension (Months)			Other-than-insignificant Payment Delay (Months)			Principal Forgiveness ($ millions)			Interest Rate Reduction (%)
Single Modifications
Corporate			39			0			$	—		—		%
Commercial real estate			31			0			—			—		%
Residential real estate			29			19			—			—		%
Securities-based lending and Other			23			12			—			—		%
Multiple Modifications - Term Extension and Interest Rate Reduction
Commercial real estate			65			0			$	—		1		%
Residential real estate			120			0			—			1		%

			Nine Months Ended September 30, 20241
			Term Extension (Months)			Other-than-insignificant Payment Delay (Months)			Principal Forgiveness ($ millions)			Interest Rate Reduction (%)
Single Modifications
Corporate			23			0			$	—		—		%
Commercial real estate			14			0			—			—		%
Securities-based lending and Other			21			0			—			—		%
Multiple Modifications - Term Extension and Interest Rate Reduction
Residential real estate			120			0			$	—		1		%

1.In instances where more than one loan was modified, modification impact is presented on a weighted-average basis.

Past Due Loans Held for Investment Modified in the Last 12 Months

As of September 30, 2025, there were no past due loans held for investment modified in the 12 month period prior.

						At September 30, 2024
$ in millions						30-89 Days Past Due			90+ days Past Due			Total
Commercial real estate						$	—		$	67		$	67
Securities-based lending and Other						42			—			42
Total						$	42		$	67		$	109

As of September 30, 2025, there were no loans held for investment that defaulted during the nine months ended September 30, 2025 that had been modified in the 12 month period prior. As of September 30, 2024 there was one commercial real estate loan held for investment with an amortized cost of $67 million that defaulted during the nine months ended September 30, 2024 that had been modified in the 12 month period prior to default.

Provision for Credit Losses

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Loans			$	6		$	18		$	225		$	81
Lending commitments			(6)			61			106			68

September 2025 Form 10-Q			60

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

Allowance for Credit Losses Rollforward and Allocation—Loans and Lending Commitments

			Nine Months Ended September 30, 2025
$ in millions			Corporate			Secured Lending Facilities			CRE			Residential Real Estate			SBL and Other			Total
ACL—Loans
Beginning balance			$	200		$	140		$	373		$	97		$	256		$	1,066
Gross charge-offs			(10)			—			(99)			—			(17)			(126)
Recoveries			—			—			21			—			—			21
Net (charge-offs)/ recoveries			(10)			—			(78)			—			(17)			(105)
Provision (release)			41			55			55			26			48			225
Other			8			5			14			(1)			1			27
Ending balance			$	239		$	200		$	364		$	122		$	288		$	1,213
Percent of loans to total loans1			3		%	25		%	3		%	28		%	41		%	100		%
ACL—Lending commitments
Beginning balance			$	507		$	88		$	40		$	4		$	17		$	656
Provision (release)			93			39			(25)			—			(1)			106
Other			17			4			—			1			—			22
Ending balance			$	617		$	131		$	15		$	5		$	16		$	784
Total ending balance			$	856		$	331		$	379		$	127		$	304		$	1,997

			Nine Months Ended September 30, 2024
$ in millions			Corporate			Secured Lending Facilities			CRE			Residential Real Estate			SBL and Other			Total
ACL—Loans
Beginning balance			$	241		$	153		$	463		$	100		$	212		$	1,169
Gross charge-offs			(39)			(11)			(103)			—			(2)			(155)
Recoveries			—			—			4			—			3			7
Net (charge-offs)/ recoveries			(39)			(11)			(99)			—			1			(148)
Provision (release)			24			(12)			44			(10)			35			81
Other			1			—			3			—			(2)			2
Ending balance			$	227		$	130		$	411		$	90		$	246		$	1,104
Percent of loans to total loans1			3		%	21		%	4		%	30		%	42		%	100		%
ACL—Lending commitments
Beginning balance			$	431		$	70		$	26		$	4		$	20		$	551
Provision (release)			41			19			9			—			(1)			68
Other			(1)			1			—			—			—			—
Ending balance			$	471		$	90		$	35		$	4		$	19		$	619
Total ending balance			$	698		$	220		$	446		$	94		$	265		$	1,723

CRE—Commercial real estate

SBL—Securities-based lending

1.Percent of loans to total loans represents loans held for investment by loan type to total loans held for investment.

The allowance for credit losses for loans and lending commitments increased during the nine months ended September 30, 2025, primarily related to portfolio growth in corporate loans and secured lending facilities and provisions for certain specific commercial real estate loans. Charge-offs in the current year period were primarily related to commercial real estate lending.

The base scenario used in the Firm’s ACL models as of September 30, 2025 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. This scenario assumes modest economic growth in 2025, followed by a gradual

improvement in 2026, as well as lower interest rates relative to the prior quarter forecast. The ACL models incorporate key macroeconomic variables, including U.S. real GDP growth rate. The significance of key macroeconomic variables on the ACL models varies depending on portfolio composition and economic conditions. Other key macroeconomic variables used in the ACL models include corporate credit spreads, interest rates and commercial real estate indices.

For a further discussion of the Firm’s loans as well as the Firm’s allowance methodology, refer to Notes 2 and 9 to the financial statements in the 2024 Form 10-K.

Gross Charge-offs by Origination Year

			Three Months Ended September 30, 2025
$ in millions			Corporate			Secured Lending Facilities			CRE			Residential Real Estate			SBL and Other			Total
Revolving			$	—		$	—		$	—		$	—		$	(8)		$	(8)
2025			(10)			—			—			—			—			(10)
2022			—			—			(2)			—			—			(2)
2021			—			—			(34)			—			(4)			(38)
Prior			—			—			(1)			—			(5)			(6)
Total			$	(10)		$	—		$	(37)		$	—		$	(17)		$	(64)

			Three Months Ended September 30, 2024
$ in millions			Corporate			Secured Lending Facilities			CRE			Residential Real Estate			SBL and Other			Total
Revolving			$	(39)		$	—		$	—		$	—		$	—		$	(39)
2022			—			—			(18)			—			—			(18)
Prior			—			—			(44)			—			—			(44)
Total			$	(39)		$	—		$	(62)		$	—		$	—		$	(101)

			Nine Months Ended September 30, 2025
$ in millions			Corporate			Secured Lending Facilities			CRE			Residential Real Estate			SBL and Other			Total
Revolving			$	—		$	—		$	—		$	—		$	(8)		$	(8)
2025			(10)			—			—			—			—			(10)
2022			—			—			(13)			—			—			(13)
2021			—			—			(45)			—			(4)			(49)
Prior			—			—			(41)			—			(5)			(46)
Total			$	(10)		$	—		$	(99)		$	—		$	(17)		$	(126)

			Nine Months Ended September 30, 2024
$ in millions			Corporate			Secured Lending Facilities			CRE			Residential Real Estate			SBL and Other			Total
Revolving			$	(39)		$	—		$	—		$	—		$	—		$	(39)
2022			—			—			(18)			—			—			(18)
2021			—			—			—			—			(2)			(2)
Prior			—			(11)			(85)			—			—			(96)
Total			$	(39)		$	(11)		$	(103)		$	—		$	(2)		$	(155)

CRE—Commercial real estate

SBL—Securities-based lending

Selected Credit Ratios

			At September 30, 2025			At December 31, 2024
ACL for loans to total HFI loans			0.5		%	0.5		%
Nonaccrual HFI loans to total HFI loans			0.5		%	0.4		%
ACL for loans to nonaccrual HFI loans			94.7		%	104.6		%

			61			September 2025 Form 10-Q

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Notes to Consolidated Financial Statements (Unaudited)

Employee Loans

$ in millions			At September 30, 2025			At December 31, 2024
Currently employed by the Firm1			$	4,621		$	4,255
No longer employed by the Firm2			81			83
Employee loans			$	4,702		$	4,338
ACL			(116)			(112)
Employee loans, net of ACL			$	4,586		$	4,226
Remaining repayment term, weighted average in years			5.8			5.6

1.These loans are predominantly current.

2.These loans are predominantly past due for a period of 90 days or more.

Employee loans are granted in conjunction with a program established primarily to recruit certain Wealth Management financial advisors, are full recourse and generally require periodic repayments, and are due in full upon termination of employment with the Firm. These loans are recorded in Customer and other receivables in the balance sheet. See Note 2 to the financial statements in the 2024 Form 10-K for a description of the CECL allowance methodology, including credit quality indicators, for employee loans.

10. Other Assets

Equity Method Investments

$ in millions			At September 30, 2025			At December 31, 2024
Investments			$	2,042		$	1,869

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Income (loss)			$	68		$	75		$	189		$	185

Equity method investments, other than investments in certain fund interests, are summarized above and are included in Other assets in the balance sheet with related income or loss included in Other revenues in the income statement. See “Net Asset Value Measurements—Fund Interests” in Note 4 for the carrying value of certain of the Firm’s fund interests, which are composed of general and limited partnership interests, as well as any related carried interest.

Japanese Securities Joint Venture

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Income (loss) from investment in MUMSS			$	34		$	52		$	100		$	128

For more information on MUMSS and other relationships with MUFG, see Note 11 to the financial statements in the 2024 Form 10-K.

Tax Equity Investments

The Firm invests in tax equity investment interests which entitle the Firm to a share of tax credits and other income tax benefits generated by the projects underlying the investments.

The Firm accounts for certain renewable energy and other tax equity investments programs using the proportional amortization method.

Tax Equity Investments under the Proportional Amortization Method

$ in millions			At September 30, 2025			At December 31, 2024
Low-income housing			$	1,816		$	1,787
Renewable energy and other			15			67
Total1,2			$	1,831		$	1,854

1.Amounts include unfunded equity contributions of $639 million and $613 million as of September 30, 2025 and December 31, 2024, respectively. The corresponding liabilities for the commitments to fund these equity contributions are recorded in Other liabilities and accrued expenses. The majority of these commitments are expected to be funded within 5 years.

2.Amounts exclude $48 million and $48 million as of September 30, 2025 and December 31, 2024, respectively, of tax equity investments within programs for which the Firm elected the proportional amortization method that do not meet the conditions to apply the proportional amortization method, which are accounted for as equity method investments.

Income tax credits and other income tax benefits recognized as well as proportional amortization are included in the Provision for income taxes line in the consolidated income statement and in the Depreciation and amortization line in the consolidated cash flow statement.

Net Benefits Attributable to Tax Equity Investments under the Proportional Amortization Method

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Income tax credits and other income tax benefits			$	75		$	74		$	227		$	227
Proportional amortization			(60)			(59)			(184)			(177)
Net benefits			$	15		$	15		$	43		$	50

11. Deposits

Deposits

$ in millions			At September 30, 2025			At December 31, 2024
Savings and demand deposits			$	307,108		$	299,898
Time deposits			98,372			76,109
Total			$	405,480		$	376,007
Deposits subject to FDIC insurance			$	323,552		$	298,351
Deposits not subject to FDIC insurance			$	81,928		$	77,656

Time Deposit Maturities

$ in millions			At September 30, 2025
2025			$	14,034
2026			37,267
2027			20,025
2028			12,202
2029			8,135
Thereafter			6,709
Total			$	98,372

September 2025 Form 10-Q			62

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12. Borrowings and Other Secured Financings

Borrowings

$ in millions			At September 30, 2025			At December 31, 2024
Original maturities of one year or less			$	7,551		$	4,512
Original maturities greater than one year
Senior			$	309,979		$	270,594
Subordinated			14,149			13,713
Total greater than one year			$	324,128		$	284,307
Total			$	331,679		$	288,819
Weighted average stated maturity, in years1			6.4			6.6

1.Only includes borrowings with original maturities greater than one year.

Other Secured Financings

$ in millions			At September 30, 2025			At December 31, 2024
Original maturities:
One year or less			$	13,373		$	17,133
Greater than one year			8,068			4,469
Total			$	21,441		$	21,602
Transfers of assets accounted for as secured financings			$	9,479		$	10,275

Other secured financings include the liabilities related to collateralized notes, transfers of financial assets that are accounted for as financings rather than sales and consolidated VIEs where the Firm is deemed to be the primary beneficiary. These liabilities are generally payable from the cash flows of the related assets accounted for as Trading assets. See Note 14 for further information on other secured financings related to VIEs and securitization activities.

For transfers of assets that fail to meet accounting criteria for a sale, the Firm continues to record the assets and recognizes the associated liabilities in the balance sheet.

13. Commitments, Guarantees and Contingencies

Commitments

			Years to Maturity at September 30, 2025
$ in millions			Less than 1			1-3			3-5			Over 5			Total
Lending:
Corporate			$	15,253		$	47,884		$	77,007		$	10,225		$	150,369
Secured lending facilities			7,152			6,604			10,133			6,086			29,975
Commercial and Residential real estate			673			181			215			465			1,534
Securities-based lending and Other			15,349			3,929			526			459			20,263
Forward-starting secured financing receivables1			141,793			3,554			—			—			145,347
Central counterparty			14,298			—			—			—			14,298
Underwriting			1,422			—			—			—			1,422
Investment activities			2,533			313			76			471			3,393
Letters of credit and other financial guarantees			26			—			—			5			31
Total			$	198,499		$	62,465		$	87,957		$	17,711		$	366,632
Lending commitments participated to third parties															$	12,877

1.These amounts primarily include secured financing receivables yet to settle as of September 30, 2025, with settlement generally occurring within three business days. These amounts also include commitments to enter into certain collateralized financing transactions.

Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements.

For a further description of these commitments, refer to Note 14 to the financial statements in the 2024 Form 10-K.

Guarantees

			At September 30, 2025
			Maximum Potential Payout/Notional of Obligations by Years to Maturity															Carrying Amount Asset (Liability)
$ in millions			Less than 1			1-3			3-5			Over 5
Non-credit derivatives1			$	1,449,384		$	714,985		$	211,871		$	560,807					$	(33,866)
Standby letters of credit and other financial guarantees issued2,3			1,558			734			1,547			2,543						14
Liquidity facilities			2,834			—			—			—						2
Whole loan sales guarantees			61			17			—			23,077						—
Securitization representations and warranties4			—			—			—			94,468						—
General partner guarantees			208			109			72			20						(102)
Client clearing guarantees			2,126			—			—			—						—

1.The carrying amounts of derivative contracts that meet the accounting definition of a guarantee are shown on a gross basis. For further information on derivatives contracts, see Note 6.

2.These amounts include certain issued standby letters of credit participated to third parties, totaling $0.7 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements.

3.As of September 30, 2025, the carrying amount of standby letters of credit and other financial guarantees issued includes an allowance for credit losses of $59 million.

4.Related to commercial, residential mortgage and asset backed securitizations.

The Firm has obligations under certain guarantee arrangements, including contracts and indemnification agreements, that contingently require the Firm to make

			63			September 2025 Form 10-Q

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payments to the guaranteed party based on changes in an underlying measure (such as an interest or foreign exchange rate, security or commodity price, an index, or the occurrence or non-occurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Also included as guarantees are contracts that contingently require the Firm to make payments to the guaranteed party based on another entity’s failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others.

For more information on the nature of the obligations and related business activities for our guarantees, see Note 14 to the financial statements in the 2024 Form 10-K.

Other Guarantees and Indemnities

In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. These provisions generally are standard contractual terms. Certain of these guarantees and indemnifications related to indemnities, market value guarantees, exchange and clearinghouse member guarantees, futures and over-the-counter derivatives clearing guarantees and merger and acquisition guarantees are described in Note 14 to the financial statements in the 2024 Form 10-K.

In addition, in the ordinary course of business, the Firm guarantees the debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the Firm’s subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the financial statements.

Finance Subsidiary

The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a wholly owned finance subsidiary. No other subsidiary of the Parent Company guarantees these securities.

Contingencies

Legal

In addition to the matters described below, in the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable

indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our wealth management businesses, sales and trading businesses, and our activities in the capital markets.

The Firm is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental or other regulatory agencies regarding the Firm’s business, and involving, among other matters, sales, trading, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by the Firm, wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief.

The Firm contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and the Firm can reasonably estimate the amount of that loss or the range of loss, the Firm accrues an estimated loss by a charge to income, including with respect to certain of the individual proceedings or investigations described below.

The Firm’s legal expenses can, and may in the future, fluctuate from period to period, given the current environment regarding government or regulatory agency investigations and private litigation affecting global financial services firms, including the Firm.

In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where the Firm has determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, the Firm may be unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal

September 2025 Form 10-Q			64

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questions relevant to the proceedings or investigations in question.

The Firm has identified below any individual proceedings or investigations where the Firm believes a material loss to be reasonably possible. In certain legal proceedings in which the Firm has determined that a material loss is reasonably possible, the Firm is unable to reasonably estimate the loss or range of loss. There are other matters in which the Firm has determined a loss or range of loss to be reasonably possible, but the Firm does not believe, based on current knowledge and after consultation with counsel, that such losses could have a material adverse effect on the Firm’s financial statements as a whole, although the outcome of such proceedings or investigations may significantly impact the Firm’s business or results of operations for any particular reporting period, or cause significant reputational harm.

While the Firm has identified below certain proceedings or investigations that the Firm believes to be material, individually or collectively, there can be no assurance that material losses will not be incurred from claims that have not yet been asserted or those where potential losses have not yet been determined to be probable or reasonably possible.

Antitrust Related Matters

The Firm and other financial institutions are responding to a number of governmental investigations and civil litigation matters related to allegations of anticompetitive conduct in various aspects of the financial services industry, including the matters described below.

Beginning in February of 2016, the Firm was named as a defendant in multiple purported antitrust class actions now consolidated into a single proceeding in the United States District Court for the Southern District of New York (“SDNY”) styled In Re: Interest Rate Swaps Antitrust Litigation. Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. and New York state antitrust laws from 2008 through December of 2016 in connection with alleged efforts to prevent the development of electronic exchange-based platforms for interest rate swaps trading. Complaints were filed both on behalf of a purported class of investors who purchased interest rate swaps from defendants, as well as on behalf of three operators of swap execution facilities that allegedly were thwarted by the defendants in their efforts to develop such platforms. The consolidated complaints seek, inter alia, certification of the investor class of plaintiffs and treble damages. On July 28, 2017, the court granted in part and denied in part the defendants’ motion to dismiss the complaints. On December 15, 2023, the court denied the class plaintiffs’ motion for class certification. On December 29, 2023, the class plaintiffs petitioned the United States Court of Appeals for the Second Circuit for leave to appeal that decision. On February 28, 2024, the parties reached an

agreement in principle to settle the class claims. On July 17, 2025, the court granted final approval of the settlement.

The Firm is a defendant in three antitrust class action complaints which have been consolidated into one proceeding in the United States District Court for the SDNY under the caption City of Philadelphia, et al. v. Bank of America Corporation, et al. Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws and relevant state laws in connection with alleged efforts to artificially inflate interest rates for Variable Rate Demand Obligations (“VRDO”). The consolidated complaint seeks, inter alia, certification of the class of plaintiffs and treble damages. The complaint was filed on behalf of a class of municipal issuers of VRDO for which defendants served as remarketing agent. On November 2, 2020, the court granted in part and denied in part the defendants’ motion to dismiss the consolidated complaint, dismissing state law claims, but denying dismissal of the U.S. antitrust claims. On September 21, 2023, the court granted plaintiffs’ motion for class certification. On February 5, 2024, the United States Court of Appeals for the Second Circuit granted leave to appeal that decision and, on August 1, 2025, affirmed the court’s decision.

European Matters

Tax

In matters styled Case number 15/3637 and Case number 15/4353, the Dutch Tax Authority (“Dutch Authority”) challenged in the Dutch courts the prior set-off by the Firm of approximately €124 million (approximately $146 million) plus accrued interest of withholding tax credits against the Firm’s corporation tax liabilities for the tax years 2007 to 2012. The Dutch Authority alleged that the Firm was not entitled to receive the withholding tax credits on the basis, inter alia, that a Firm subsidiary did not hold legal title to certain securities subject to withholding tax on the relevant dates. On April 26, 2018, the District Court in Amsterdam issued a decision dismissing the Dutch Authority’s claims with respect to certain of the tax years in dispute. On May 12, 2020, the Court of Appeal in Amsterdam granted the Dutch Authority’s appeal in matters re-styled Case number 18/00318 and Case number 18/00319. On January 19, 2024, the Dutch High Court granted the Firm’s appeal in matters re-styled Case number 20/01884 and referred the case to the Court of Appeal in The Hague. On November 11, 2024, the Firm reached an agreement to settle the Dutch Authority’s challenges for the tax years 2007 to 2012 and made payment of the prior set-off amounts and interest indicated above. The case has been withdrawn.

On June 22, 2021, Dutch criminal authorities sought various documents in connection with an investigation of the Firm related to the civil claims asserted by the Dutch Authority concerning the accuracy of the Firm subsidiary’s tax returns for 2007 to 2012. The Dutch criminal authorities have

			65			September 2025 Form 10-Q

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requested additional information, and the Firm is continuing to respond to them in connection with their ongoing investigation. On September 30, 2025, the Dutch Public Prosecutor served the Firm subsidiaries (Morgan Stanley Derivatives Products (Netherlands) B.V. and Morgan Stanley & Co. International plc) with indictments, bringing charges of filing false tax returns for 2007 to 2012. The Firm disputes these charges and will continue to engage with the Prosecutor as the criminal process progresses.

U.K. Government Bond Matter

On February 21, 2025, the U.K. Competition and Markets Authority announced a settlement with the Firm, as well as other financial institutions, in connection with its investigation of suspected anti-competitive arrangements in the financial services sector, specifically regarding the Firm’s activities concerning certain liquid fixed income products between 2009 and 2012. Separately, on June 16, 2023, the Firm was named as a defendant in a purported antitrust class action in the United States District Court for the SDNY styled Oklahoma Firefighters Pension and Retirement System v. Deutsche Bank Aktiengesellschaft, et al., alleging, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws in connection with their alleged effort to fix prices of gilts traded in the United States between 2009 and 2013. The complaint seeks, inter alia, certification of the class of plaintiffs and treble damages. On September 16, 2024, the court granted defendants’ joint motion to dismiss, and the complaint was dismissed without prejudice. In October of 2024, the Firm and certain other defendants reached an agreement in principle to settle the U.S. litigation. On March 17, 2025, the court granted preliminary approval of the settlement.

Other

On August 13, 2021, the plaintiff in Camelot Event Driven Fund, a Series of Frank Funds Trust v. Morgan Stanley & Co. LLC, et al. filed in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”) a purported class action complaint alleging violations of federal securities laws against ViacomCBS (“Viacom”), certain of its officers and directors, and the underwriters, including the Firm, of two March 2021 Viacom offerings: a $1.7 billion Viacom Class B Common Stock offering and a $1 billion offering of 5.75% Series A Mandatory Convertible Preferred Stock (collectively, the “Offerings”). The complaint seeks certification of the class of plaintiffs and unspecified compensatory damages and alleges, inter alia, that the Viacom offering documents for both issuances contained material misrepresentations and omissions because they did not disclose that certain of the underwriters, including the Firm, had prime brokerage relationships and/or served as counterparties to certain derivative transactions with Archegos Capital Management LP (“Archegos”), a fund with significant exposure to Viacom securities across multiple prime brokers. The complaint also alleges that the offering documents did not adequately disclose the risks associated with Archegos’s concentrated Viacom positions at the various prime brokers, including that the unwind of those positions could have a deleterious impact on the stock price of Viacom. On November 5, 2021, the complaint was amended to add allegations that defendants failed to disclose that certain underwriters, including the Firm, had intended to unwind Archegos’s Viacom positions while simultaneously distributing the Offerings. On February 6, 2023, the court issued a decision denying motions to dismiss as to the Firm and the other underwriters, but granting the motion to dismiss as to Viacom and the Viacom individual defendants. On February 15, 2023, the underwriters, including the Firm, filed their notices of appeal of the denial of their motions to dismiss. On March 10, 2023, the plaintiff appealed the dismissal of Viacom and the individual Viacom defendants. On April 4, 2024, the Appellate Division upheld the lower court’s decision as to the Firm and other underwriter defendants that had prime brokerage relationships and/or served as counterparties to certain derivative transactions with Archegos, dismissed the remaining underwriters, and upheld the dismissal of Viacom and its officers and directors. On July 25, 2024, the Appellate Division denied the plaintiff’s and the Firm’s respective motions for leave to reargue or appeal the April 4, 2024 decision. On January 4, 2024, the court granted the plaintiff’s motion for class certification, which the defendants appealed. In February of 2025, the parties reached an agreement in principle to settle the litigation. On April 3, 2025, the court granted preliminary approval of the settlement and, on August 5, 2025, granted final approval.

On May 17, 2013, the plaintiff in IKB International S.A. in Liquidation, et al. v. Morgan Stanley, et al. filed a complaint against the Firm and certain affiliates in the Supreme Court of NY. The complaint alleges that defendants made material

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misrepresentations and omissions in the sale to the plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Firm to the plaintiff was approximately $133 million. The complaint alleges causes of action against the Firm for common law fraud, fraudulent concealment, aiding and abetting fraud, and negligent misrepresentation, and seeks, inter alia, compensatory and punitive damages. On October 29, 2014, the court granted in part and denied in part the Firm’s motion to dismiss. All claims regarding four certificates were dismissed. After these dismissals, the remaining amount of certificates allegedly issued by the Firm or sold to the plaintiff by the Firm was approximately $116 million. On August 11, 2016, the Appellate Division affirmed the trial court’s order denying in part the Firm’s motion to dismiss the complaint. On July 15, 2022, the Firm filed a motion for summary judgment on all remaining claims. On March 1, 2023, the court granted in part and denied in part the Firm’s motion for summary judgment, narrowing the alleged misrepresentations at issue in the case. On March 26, 2024, the Appellate Division affirmed the trial court’s summary judgment order. On August 27, 2024, the plaintiff notified the court that in light of the court’s rulings to exclude certain evidence at trial, the plaintiff could not prove its claims at trial, and requested that the court dismiss the case, subject to its right to appeal the evidentiary rulings. On August 28, 2024, the court dismissed the case, and judgment was entered in the Firm’s favor. The plaintiff has appealed.

Beginning in February of 2024, Morgan Stanley Smith Barney LLC (“MSSB”) and E*TRADE Securities LLC (“E*TRADE Securities”), among others, have been named as defendants in multiple putative class actions pending in the federal district courts for the District of New Jersey and SDNY. The class action claims have been brought on behalf of brokerage, advisory and retirement account holders, alleging various contractual, fiduciary, and statutory claims (including under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §1962(c)-(d)) that MSSB and/or E*TRADE Securities failed to pay a reasonable rate of interest on its cash sweep products. All matters pending in the SDNY (which focus solely on MSSB’s cash sweep program) were consolidated into one action styled Estate of Sherlip, et al. v. Morgan Stanley, et al. An amended class action complaint was filed on August 15, 2025. On September 12, 2025, MSSB moved to dismiss the complaint. The matters pending in the District of New Jersey (which includes claims against both MSSB and E*TRADE Securities) remain subject to requests to consolidate and appoint lead counsel. Together, the complaints seek, inter alia, certification of classes of plaintiffs, unspecified compensatory damages, equitable and injunctive relief, and treble damages. The Firm is also responding to requests from state securities regulators regarding brokerage account cash balances swept to the affiliate bank deposit program.

14. Variable Interest Entities and Securitization Activities

Consolidated VIE Assets and Liabilities by Type of Activity

			At September 30, 2025						At December 31, 2024
$ in millions			VIE Assets			VIE Liabilities			VIE Assets			VIE Liabilities
MABS1			$	237		$	7		$	575		$	236
Investment vehicles2			224			35			378			189
MTOB			1,827			1,696			619			578
Other			87			3			156			4
Total			$	2,375		$	1,741		$	1,728		$	1,007

MTOB—Municipal tender option bonds

1.Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets and may be in loan or security form. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable.

2.Amounts include investment funds and CLOs.

Consolidated VIE Assets and Liabilities by Balance Sheet Caption

$ in millions			At September 30, 2025			At December 31, 2024
Assets
Cash and cash equivalents			$	20		$	37
Trading assets at fair value			936			1,395
Investment securities			1,402			278
Customer and other receivables			16			16
Other assets			1			2
Total			$	2,375		$	1,728
Liabilities
Other secured financings			$	1,703		$	921
Other liabilities and accrued expenses			35			82
Borrowings			3			4
Total			$	1,741		$	1,007
Noncontrolling interests			$	64		$	42

Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. Generally, most assets owned by consolidated VIEs cannot be removed unilaterally by the Firm and are not available to the Firm while the related liabilities issued by consolidated VIEs are non-recourse to the Firm. However, in certain consolidated VIEs, the Firm either has the unilateral right to remove assets or provides additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement.

In general, the Firm’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE net assets recognized in its financial statements, net of amounts absorbed by third-party variable interest holders.

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Non-consolidated VIEs

			At September 30, 2025
$ in millions			MABS1			CDO			MTOB			OSF			Other2
VIE assets (UPB)			$	176,657		$	3,295		$	4,092		$	4,129		$	86,701
Maximum exposure to loss3
Debt and equity interests			$	29,770		$	161		$	—		$	2,455		$	12,101
Derivative and other contracts			—			—			2,834			—			4,731
Commitments, guarantees and other			8,614			—			—			—			231
Total			$	38,384		$	161		$	2,834		$	2,455		$	17,063
Carrying value of variable interests—Assets
Debt and equity interests			$	29,770		$	161		$	—		$	1,810		$	12,101
Derivative and other contracts			—			—			6			—			1,814
Total			$	29,770		$	161		$	6		$	1,810		$	13,915
Additional VIE assets owned4															$	16,697
Carrying value of variable interests—Liabilities
Derivative and other contracts			$	—		$	—		$	3		$	—		$	633
Total			$	—		$	—		$	3		$	—		$	633

			At December 31, 2024
$ in millions			MABS1			CDO			MTOB			OSF			Other2
VIE assets (UPB)			$	179,686		$	1,621		$	3,654		$	3,603		$	74,665
Maximum exposure to loss3
Debt and equity interests			$	26,974		$	62		$	—		$	2,267		$	12,097
Derivative and other contracts			—			—			2,454			—			3,936
Commitments, guarantees and other			8,554			—			—			—			535
Total			$	35,528		$	62		$	2,454		$	2,267		$	16,568
Carrying value of variable interests–Assets
Debt and equity interests			$	26,974		$	62		$	—		$	1,821		$	12,067
Derivative and other contracts			—			—			6			—			1,772
Total			$	26,974		$	62		$	6		$	1,821		$	13,839
Additional VIE assets owned4															$	15,777
Carrying value of variable interests—Liabilities
Derivative and other contracts			$	—		$	—		$	4		$	—		$	448

OSF–Other structured financings

1.Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets, and may be in loan or security form.

2.Other primarily includes exposures to commercial real estate property and investment funds.

3.Where notional amounts are utilized in quantifying the maximum exposure related to derivatives, such amounts do not reflect changes in fair value recorded by the Firm.

4.Additional VIE assets owned represents the carrying value of total exposure to non-consolidated VIEs for which the maximum exposure to loss is less than specific thresholds, primarily interests issued by securitization SPEs. The Firm’s maximum exposure to loss generally equals the fair value of the assets owned. These assets are primarily included in Trading assets and Investment securities and are measured at fair value (see Note 4). The Firm does not provide additional support in these transactions through contractual facilities, guarantees or similar derivatives.

The previous tables include VIEs sponsored by unrelated parties, as well as VIEs sponsored by the Firm; examples of the Firm’s involvement with these VIEs include its secondary market-making activities and the securities held in its Investment securities portfolio (see Note 7).

The Firm’s maximum exposure to loss is dependent on the nature of the Firm’s variable interest in the VIE and is limited to the notional amounts of certain liquidity facilities and other credit support, total return swaps and written put options, as well as the fair value of certain other derivatives and investments the Firm has made in the VIE.

The Firm’s maximum exposure to loss in the previous tables does not include the offsetting benefit of hedges or any reductions associated with the amount of collateral held as part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss.

Liabilities issued by VIEs generally are non-recourse to the Firm.

Detail of Mortgage- and Asset-Backed Securitization Assets

			At September 30, 2025						At December 31, 2024
$ in millions			UPB			Debt and Equity Interests			UPB			Debt and Equity Interests
Residential mortgages			$	14,893		$	2,878		$	17,316		$	2,497
Commercial mortgages			42,986			9,592			82,730			8,445
U.S. agency collateralized mortgage obligations			87,668			7,719			39,317			6,260
Other consumer or commercial loans			31,110			9,581			40,323			9,772
Total			$	176,657		$	29,770		$	179,686		$	26,974

Transferred Assets with Continuing Involvement

			At September 30, 2025
$ in millions			RML			CML			U.S. Agency CMO			CLN and Other1
SPE assets (UPB)2,3			$	13,509		$	80,099		$	14,595		$	13,080
Retained interests
Investment grade			$	268		$	457		$	530		$	—
Non-investment grade			368			1,058			—			119
Total			$	636		$	1,515		$	530		$	119
Interests purchased in the secondary market3
Investment grade			$	115		$	102		$	154		$	—
Non-investment grade			15			21			—			—
Total			$	130		$	123		$	154		$	—
Derivative assets			$	—		$	—		$	—		$	1,409
Derivative liabilities			—			—			—			582

			At December 31, 2024
$ in millions			RML			CML			U.S. Agency CMO			CLN and Other1
SPE assets (UPB)2,3			$	6,989		$	78,232		$	18,174		$	12,725
Retained interests
Investment grade			$	198		$	543		$	967		$	—
Non-investment grade			175			923			—			71
Total			$	373		$	1,466		$	967		$	71
Interests purchased in the secondary market3
Investment grade			$	45		$	34		$	79		$	—
Non-investment grade			5			24			—			—
Total			$	50		$	58		$	79		$	—
Derivative assets			$	—		$	—		$	—		$	1,408
Derivative liabilities			—			—			—			400

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			Fair Value At September 30, 2025
$ in millions			Level 2			Level 3			Total
Retained interests
Investment grade			$	724		$	—		$	724
Non-investment grade			117			56			173
Total			$	841		$	56		$	897
Interests purchased in the secondary market3
Investment grade			$	371		$	—		$	371
Non-investment grade			15			21			36
Total			$	386		$	21		$	407
Derivative assets			$	1,409		$	—		$	1,409
Derivative liabilities			582			—			582

			Fair Value At December 31, 2024
$ in millions			Level 2			Level 3			Total
Retained interests
Investment grade			$	1,080		$	—		$	1,080
Non-investment grade			71			50			121
Total			$	1,151		$	50		$	1,201
Interests purchased in the secondary market3
Investment grade			$	158		$	—		$	158
Non-investment grade			18			11			29
Total			$	176		$	11		$	187
Derivative assets			$	1,408		$	—		$	1,408
Derivative liabilities			400			—			400

RML—Residential mortgage loans

CML—Commercial mortgage loans

1.Amounts include CLO transactions managed by unrelated third parties.

2.Amounts include assets transferred by unrelated transferors.

3.Amounts include transactions where the Firm also holds retained interests as part of the transfer.

The previous tables include transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment. The transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the income statement. The Firm may act as underwriter of the beneficial interests issued by these securitization vehicles, for which Investment banking revenues are recognized. The Firm may retain interests in the securitized financial assets as one or more tranches of the securitization. Certain retained interests are carried at fair value in the balance sheet with changes in fair value recognized in the income statement. Fair value for these interests is measured using techniques that are consistent with the valuation techniques applied to the Firm’s major categories of assets and liabilities as described in Note 2 in the 2024 Form 10-K and Note 4 herein. Further, as permitted by applicable guidance, certain transfers of assets where the Firm’s only continuing involvement is a derivative are only reported in the following Assets Sold with Retained Exposure table.

Proceeds from New Securitization Transactions and Sales of Loans

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
New transactions1			$	11,538		$	7,562		$	37,984		$	24,160
Retained interests			5,092			850			10,332			5,041

1.Net gains on new transactions and sales of corporate loans to CLO entities at the time of the sale were not material for all periods presented.

The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 13).

Assets Sold with Retained Exposure

$ in millions			At September 30, 2025			At December 31, 2024
Gross cash proceeds from sale of assets1			$	98,694		$	92,229
Fair value
Assets sold			$	100,308		$	92,580
Derivative assets recognized in the balance sheet			1,915			998
Derivative liabilities recognized in the balance sheet			303			648

1.The carrying value of assets derecognized at the time of sale approximates gross cash proceeds.

The Firm enters into transactions in which it sells securities, primarily equities, and contemporaneously enters into bilateral OTC derivatives with the purchasers of the securities, through which it retains exposure to the sold securities.

For a discussion of the Firm’s VIEs, the determination and structure of VIEs and securitization activities, see Note 15 to the financial statements in the 2024 Form 10-K.

15. Regulatory Requirements

Regulatory Capital Framework and Requirements

For a discussion of the Firm’s regulatory capital framework, see Note 16 to the financial statements in the 2024 Form 10-K.

The Firm is required to maintain minimum risk-based and leverage-based capital ratios under regulatory capital requirements. A summary of the calculations of regulatory capital and RWA follows.

Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus the Firm’s capital buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. At September 30, 2025 and December 31, 2024, the differences between the actual and required ratios were lower under the Standardized Approach.

CECL Deferral. Beginning on January 1, 2020, the Firm elected to defer the effect of the adoption of CECL on its risk-based and leverage-based capital amounts and ratios, as well as RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022, were phased-in at 75% from January 1, 2024 and were fully phased-in from January 1, 2025.

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Capital Buffer Requirements

			At September 30, 2025 and December 31, 2024
			Standardized			Advanced
Capital buffers
Capital conservation buffer			—%			2.5%
SCB			6.0%			N/A
G-SIB capital surcharge			3.0%			3.0%
CCyB1			—%			—%
Capital buffer requirement			9.0%			5.5%

1.The CCyB can be set up to 2.5%, but is currently set by the Federal Reserve at zero.

The capital buffer requirement represents the amount of CET1 capital the Firm must maintain above the minimum risk-based capital requirements in order to avoid restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. The Firm’s capital buffer requirement computed under the standardized approaches for calculating credit risk and market risk RWA (“Standardized Approach”) is equal to the sum of the SCB, G-SIB capital surcharge and CCyB, and the capital buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWA (“Advanced Approach”) is equal to the sum of the 2.5% capital conservation buffer, G-SIB capital surcharge and CCyB.

Risk-Based Regulatory Capital Ratio Requirements

			Regulatory Minimum			At September 30, 2025 and December 31, 2024
						Standardized			Advanced
Required ratios1
CET1 capital ratio			4.5		%	13.5%			10.0%
Tier 1 capital ratio			6.0		%	15.0%			11.5%
Total capital ratio			8.0		%	17.0%			13.5%

1.Required ratios represent the regulatory minimum plus the capital buffer requirement.

The Firm’s Regulatory Capital and Capital Ratios

Risk-based capital

			Standardized
$ in millions			At September 30, 2025			At December 31, 2024
Risk-based capital
CET1 capital			$	81,303		$	75,095
Tier 1 capital			91,036			84,790
Total capital			101,733			95,567
Total RWA			539,296			471,834
Risk-based capital ratio
CET1 capital			15.1		%	15.9		%
Tier 1 capital			16.9		%	18.0		%
Total capital			18.9		%	20.3		%
Required ratio1
CET1 capital			13.5		%	13.5		%
Tier 1 capital			15.0		%	15.0		%
Total capital			17.0		%	17.0		%

1.Required ratios are inclusive of any buffers applicable as of the date presented.

Leveraged-based capital

$ in millions			At September 30, 2025			At December 31, 2024
Leveraged-based capital
Adjusted average assets1			$	1,340,745		$	1,223,779
Supplementary leverage exposure2			1,659,985			1,517,687
Leveraged-based capital ratio
Tier 1 leverage			6.8		%	6.9		%
SLR			5.5		%	5.6		%
Required ratio3
Tier 1 leverage			4.0		%	4.0		%
SLR			5.0		%	5.0		%

1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions.

2.Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.

3.Required ratios are inclusive of any buffers applicable as of the date presented.

U.S. Bank Subsidiaries’ Regulatory Capital and Capital Ratios

The OCC establishes capital requirements for the U.S. Bank Subsidiaries, and evaluates their compliance with such capital requirements. Regulatory capital requirements for the U.S. Bank Subsidiaries are calculated in a similar manner to the Firm’s regulatory capital requirements, although G-SIB capital surcharge and SCB requirements do not apply to the U.S. Bank Subsidiaries.

The OCC’s regulatory capital framework includes Prompt Corrective Action (“PCA”) standards, including “well-capitalized” PCA standards that are based on specified regulatory capital ratio minimums. For the Firm to remain an FHC, its U.S. Bank Subsidiaries must remain well-capitalized in accordance with the OCC’s PCA standards. In addition,

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failure by the U.S. Bank Subsidiaries to meet minimum capital requirements may result in certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the U.S. Bank Subsidiaries’ and the Firm’s financial statements.

At September 30, 2025 and December 31, 2024, MSBNA and MSPBNA risk-based capital ratios are based on the Standardized Approach rules. Beginning on January 1, 2020, MSBNA and MSPBNA elected to defer the effect of the adoption of CECL on risk-based capital amounts and ratios, as well as RWA, adjusted average assets and supplementary leverage exposure calculations, over a five-year transition period. The deferral impacts began to phase in at 25% per year from January 1, 2022, were phased-in at 75% from January 1, 2024 and were fully phased-in from January 1, 2025.

MSBNA’s Regulatory Capital

			Well-Capitalized Requirement			Required Ratio1			At September 30, 2025						At December 31, 2024
$ in millions									Amount			Ratio			Amount			Ratio
Risk-based capital
CET1 capital			6.5		%	7.0		%	$	25,948		19.8		%	$	22,165		20.1		%
Tier 1 capital			8.0		%	8.5		%	25,948			19.8		%	22,165			20.1		%
Total capital			10.0		%	10.5		%	26,890			20.5		%	22,993			20.9		%
Leverage-based capital
Tier 1 leverage			5.0		%	4.0		%	$	25,948		10.5		%	$	22,165		9.7		%
SLR			6.0		%	3.0		%	25,948			7.8		%	22,165			7.4		%

MSPBNA’s Regulatory Capital

			Well-Capitalized Requirement			Required Ratio1			At September 30, 2025						At December 31, 2024
$ in millions									Amount			Ratio			Amount			Ratio
Risk-based capital
CET1 capital			6.5		%	7.0		%	$	17,613		26.8		%	$	16,672		26.1		%
Tier 1 capital			8.0		%	8.5		%	17,613			26.8		%	16,672			26.1		%
Total capital			10.0		%	10.5		%	18,007			27.4		%	17,004			26.6		%
Leverage-based capital
Tier 1 leverage			5.0		%	4.0		%	$	17,613		7.6		%	$	16,672		7.7		%
SLR			6.0		%	3.0		%	17,613			7.4		%	16,672			7.5		%

1.Required ratios are inclusive of any buffers applicable as of the date presented. Failure to maintain the buffers would result in restrictions on the ability to make capital distributions, including the payment of dividends.

Additionally, MSBNA is conditionally registered with the SEC as a security-based swap dealer and is registered with the CFTC as a swap dealer. However, as MSBNA is prudentially regulated as a bank, its capital requirements continue to be determined by the OCC.

Other Regulatory Capital Requirements

MS&Co. Regulatory Capital

$ in millions			At September 30, 2025			At December 31, 2024
Net capital			$	18,526		$	18,483
Excess net capital			13,135			13,883

MS&Co. is registered as a broker-dealer and a futures commission merchant with the SEC and the CFTC,

respectively, and is registered as a swap dealer with the CFTC.

As an Alternative Net Capital broker-dealer, and in accordance with Securities Exchange Act of 1934 (“Exchange Act”) Rule 15c3-1, Appendix E, MS&Co. is subject to minimum net capital and tentative net capital requirements and operates with capital in excess of its regulatory capital requirements. As a futures commission merchant and registered swap dealer, MS&Co. is subject to CFTC capital requirements. In addition, MS&Co. must notify the SEC if its tentative net capital falls below certain levels. At September 30, 2025 and December 31, 2024, MS&Co. exceeded its net capital requirement and had tentative net capital in excess of the minimum and notification requirements.

Other Regulated Subsidiaries

Certain other subsidiaries are also subject to various regulatory capital requirements. Such subsidiaries include the following, each of which operated with capital in excess of their respective regulatory capital requirements as of September 30, 2025 and December 31, 2024, as applicable:

•MSSB,

•MSIP,

•MSESE,

•MSMS,

•MSCS, and

•MSCG.

See Note 16 to the financial statements in the 2024 Form 10-K for further information.

16. Total Equity

Preferred Stock

			Shares Outstanding						Carrying Value
$ in millions, except per share data			At September 30, 2025			Liquidation Preference per Share			At September 30, 2025			At December 31, 2024
Series
A			44,000			$	25,000		$	1,100		$	1,100
C1			519,882			1,000			408			408
E			34,500			25,000			862			862
F			34,000			25,000			850			850
I			40,000			25,000			1,000			1,000
K			40,000			25,000			1,000			1,000
L			20,000			25,000			500			500
M			400,000			1,000			430			430
N			3,000			100,000			300			300
O			52,000			25,000			1,300			1,300
P			40,000			25,000			1,000			1,000
Q			40,000			25,000			1,000			1,000
Total									$	9,750		$	9,750
Shares authorized												30,000,000

1.Series C preferred stock is held by MUFG.

For a description of Series A through Series Q preferred stock, see Note 17 to the financial statements in the 2024

			71			September 2025 Form 10-Q

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

Form 10-K. The Firm’s preferred stock has a preference over its common stock upon liquidation. The Firm’s preferred stock qualifies as and is included in Tier 1 capital in accordance with regulatory capital requirements (see Note 15).

Share Repurchases

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Repurchases of common stock under the Firm’s Share Repurchase Authorization			$	1,085		$	750		$	3,085		$	2,500

On July 1, 2025, the Firm announced that its Board of Directors reauthorized a multi-year repurchase program of up to $20 billion of outstanding common stock (the “Share Repurchase Authorization”), without a set expiration date, beginning in the third quarter of 2025, which will be exercised from time to time as conditions warrant and is subject to limitations on distributions from the Federal Reserve. For more information on share repurchases, see Note 17 to the financial statements in the 2024 Form 10-K.

Common Shares Outstanding for Basic and Diluted EPS

			Three Months Ended September 30,						Nine Months Ended September 30,
in millions			2025			2024			2025			2024
Weighted average common shares outstanding, basic			1,571			1,588			1,577			1,594
Effect of dilutive RSUs and PSUs			19			21			17			18
Weighted average common shares outstanding and common stock equivalents, diluted			1,590			1,609			1,594			1,612
Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS)			—			—			2			—

Dividends

$ in millions, except per share data			Three Months Ended September 30,
			2025						2024
			Per Share1			Total			Per Share1			Total
Preferred stock series
A			$	337		$	15		$	400		$	17
C			25			13			25			13
E			455			16			455			16
F			439			15			439			15
I			407			16			398			16
K			366			14			366			15
L			305			6			305			6
M2			29			12			30			12
N			1,957			6			2,215			6
O			266			14			266			13
P			406			16			406			17
Q			414			17			345			14
Total Preferred stock						$	160					$	160
Common stock			$	1.00		$	1,592		$	0.925		$	1,492

$ in millions, except per share data			Nine Months Ended September 30,
			2025						2024
			Per Share1			Total			Per Share1			Total
Preferred stock series
A			$	996		$	44		$	1,190		$	52
C			75			39			75			39
E			1,351			47			1,351			47
F			1,303			44			1,308			44
I			1,209			48			1,195			48
K			1,097			44			1,097			44
L			914			18			914			18
M2			59			24			59			24
N			5,875			18			6,726			20
O			797			41			797			41
P			1,219			48			1,219			49
Q			1,242			50			345			14
Total Preferred stock						$	465					$	440
Common stock			$	2.85		$	4,562		$	2.625		$	4,259

1.Common and Preferred Stock dividends are payable quarterly unless otherwise noted.

2.Series M is payable semiannually until September 15, 2026 and thereafter will be payable quarterly.

September 2025 Form 10-Q			72

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Notes to Consolidated Financial Statements (Unaudited)

Accumulated Other Comprehensive Income (Loss) Rollforward

			Three Months Ended September 30, 2025
$ in millions			CTA			AFS Securities			Pension and Other			DVA			Cash Flow Hedges			Total
Beginning Balance			$	(1,164)		$	(2,173)		$	(579)		$	(1,995)		$	(2)		$	(5,913)
OCI activity:
Pre-Tax Gain (Loss)			29			462			(1)			(1,125)			15			(620)
Tax effect			(50)			(111)			—			273			(3)			109
After-tax Gain (Loss)			(21)			351			(1)			(852)			12			(511)
Non-Controlling Interests			(22)			—			—			(19)			—			(41)
OCI Activity			1			351			(1)			(833)			12			(470)
Reclassified to Earnings:
Pre-tax Reclass.			—			(3)			6			5			40			48
Tax effect			—			1			(1)			(1)			(10)			(11)
Reclass. After-tax			—			(2)			5			4			30			37
Net OCI Activity			1			349			4			(829)			42			(433)
Ending Balance			$	(1,163)		$	(1,824)		$	(575)		$	(2,824)		$	40		$	(6,346)

			Three Months Ended September 30, 2024
$ in millions			CTA			AFS Securities			Pension and Other			DVA			Cash Flow Hedges			Total
Beginning Balance			$	(1,355)		$	(2,917)		$	(582)		$	(1,894)		$	(12)		$	(6,760)
OCI activity:
Pre-Tax Gain (Loss)			124			947			1			(234)			33			871
Tax effect			160			(224)			—			57			(8)			(15)
After-tax Gain (Loss)			284			723			1			(177)			25			856
Non-Controlling Interests			100			—			—			(5)			—			95
OCI Activity			184			723			1			(172)			25			761
Reclassified to Earnings:
Pre-tax Reclass.			—			—			5			4			11			20
Tax effect			—			—			(3)			(2)			(2)			(7)
Reclass. After-tax			—			—			2			2			9			13
Net OCI Activity			184			723			3			(170)			34			774
Ending Balance			$	(1,171)		$	(2,194)		$	(579)		$	(2,064)		$	22		$	(5,986)

			Nine Months Ended September 30, 2025
$ in millions			CTA			AFS Securities			Pension and Other			DVA			Cash Flow Hedges			Total
Beginning Balance			$	(1,477)		$	(2,573)		$	(583)		$	(2,146)		$	(35)		$	(6,814)
OCI activity:
Pre-Tax Gain (Loss)			4			1,008			(2)			(922)			28			116
Tax effect			367			(241)			—			225			(6)			345
After-tax Gain (Loss)			371			767			(2)			(697)			22			461
Non-Controlling Interests			57			—			—			(6)			—			51
OCI Activity			314			767			(2)			(691)			22			410
Reclassified to Earnings:
Pre-tax Reclass.			—			(24)			16			17			70			79
Tax effect			—			6			(6)			(4)			(17)			(21)
Reclass. After-tax			—			(18)			10			13			53			58
Net OCI Activity			314			749			8			(678)			75			468
Ending Balance			$	(1,163)		$	(1,824)		$	(575)		$	(2,824)		$	40		$	(6,346)

			Nine Months Ended September 30, 2024
$ in millions			CTA			AFS Securities			Pension and Other			DVA			Cash Flow Hedges			Total
Beginning Balance			$	(1,153)		$	(3,094)		$	(595)		$	(1,595)		$	16		$	(6,421)
OCI activity:
Pre-Tax Gain (Loss)			(5)			1,229			6			(630)			(26)			574
Tax effect			(26)			(291)			—			151			6			(160)
After-tax Gain (Loss)			(31)			938			6			(479)			(20)			414
Non-Controlling Interests			(13)			—			—			6			—			(7)
OCI Activity			(18)			938			6			(485)			(20)			421
Reclassified to Earnings:
Pre-tax Reclass.			—			(50)			15			21			34			20
Tax effect			—			12			(5)			(5)			(8)			(6)
Reclass. After-tax			—			(38)			10			16			26			14
Net OCI Activity			(18)			900			16			(469)			6			435
Ending Balance			$	(1,171)		$	(2,194)		$	(579)		$	(2,064)		$	22		$	(5,986)

17. Interest Income and Interest Expense

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Interest income
Cash and cash equivalents			$	608		$	680		$	1,894		$	2,316
Investment securities			1,379			1,335			3,983			3,809
Loans			3,620			3,557			10,406			10,345
Securities purchased under agreements to resell1			3,837			3,580			11,033			9,121
Securities borrowed2			1,701			1,384			4,990			4,118
Trading assets, net of Trading liabilities			1,593			1,577			4,605			4,490
Customer receivables and Other			2,718			2,072			7,198			6,445
Total interest income			$	15,456		$	14,185		$	44,109		$	40,644
Interest expense
Deposits			$	2,823		$	2,751		$	7,948		$	7,777
Borrowings			3,181			3,434			9,398			9,985
Securities sold under agreements to repurchase3			3,394			2,994			9,824			8,120
Securities loaned4			864			274			2,318			767
Customer payables and Other			2,703			2,536			7,430			7,936
Total interest expense			$	12,965		$	11,989		$	36,918		$	34,585
Net interest			$	2,491		$	2,196		$	7,191		$	6,059

1.Includes interest paid on Securities purchased under agreements to resell.

2.Includes fees paid on Securities borrowed.

3.Includes interest received on Securities sold under agreements to repurchase.

4.Includes fees received on Securities loaned.

Interest income and Interest expense are classified in the income statement based on the nature of the instrument and related market conventions. When included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense.

Accrued Interest

$ in millions			At September 30, 2025			At December 31, 2024
Customer and other receivables			$	4,126		$	3,322
Customer and other payables			4,395			3,938

			73			September 2025 Form 10-Q

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Notes to Consolidated Financial Statements (Unaudited)

18. Income Taxes

The Firm is routinely under examination by the IRS and other tax authorities in certain countries, such as the U.K., and in states and localities in which it has significant business operations, such as New York.

The Firm believes that the resolution of these tax examinations will not have a material effect on the annual financial statements, although a resolution could have a material impact in the income statement and on the effective tax rate for any period in which such resolutions occur.

19. Segment, Geographic and Revenue Information

Selected Financial Information by Business Segment

			Three Months Ended September 30, 2025
$ in millions			IS			WM			IM			I/E			Total
Investment banking			$	2,108		$	204		$	—		$	(46)		$	2,266
Trading			4,681			338			(15)			16			5,020
Investments			176			41			157			—			374
Commissions and fees1			796			766			—			(89)			1,473
Asset management1,2			192			4,789			1,534			(74)			6,441
Other			53			105			3			(2)			159
Total non-interest revenues			8,006			6,243			1,679			(195)			15,733
Interest income			11,506			4,151			12			(213)			15,456
Interest expense			10,989			2,160			40			(224)			12,965
Net interest			517			1,991			(28)			11			2,491
Net revenues			$	8,523		$	8,234		$	1,651		$	(184)		$	18,224
Provision for credit losses			$	1		$	(1)		$	—		$	—		$	—
Compensation and benefits			2,422			4,388			632			—			7,442
Non-compensation expenses3			2,918			1,348			655			(167)			4,754
Total non-interest expenses			$	5,340		$	5,736		$	1,287		$	(167)		$	12,196
Income before provision for income taxes			3,182			2,499			364			(17)			6,028
Provision for income taxes			672			610			95			(4)			1,373
Net income			2,510			1,889			269			(13)			4,655
Net income applicable to noncontrolling interests			42			—			3			—			45
Net income applicable to Morgan Stanley			$	2,468		$	1,889		$	266		$	(13)		$	4,610
Pre-tax margin4			37		%	30		%	22		%	N/M			33		%

			Three Months Ended September 30, 2024
$ in millions			IS			WM			IM			I/E			Total
Investment banking			$	1,463		$	167		$	—		$	(40)		$	1,590
Trading			3,708			300			(24)			18			4,002
Investments			179			13			123			—			315
Commissions and fees1			760			609			—			(75)			1,294
Asset management1,2			167			4,266			1,384			(70)			5,747
Other			99			141			3			(4)			239
Total non-interest revenues			6,376			5,496			1,486			(171)			13,187
Interest income			10,423			4,148			33			(419)			14,185
Interest expense			9,984			2,374			64			(433)			11,989
Net interest			439			1,774			(31)			14			2,196
Net revenues			$	6,815		$	7,270		$	1,455		$	(157)		$	15,383
Provision for credit losses			$	68		$	11		$	—		$	—		$	79
Compensation and benefits			2,271			3,868			594			—			6,733
Non-compensation expenses3			2,565			1,331			601			(147)			4,350
Total non-interest expenses			$	4,836		$	5,199		$	1,195		$	(147)		$	11,083
Income before provision for income taxes			1,911			2,060			260			(10)			4,221
Provision for income taxes			438			492			67			(2)			995
Net income			1,473			1,568			193			(8)			3,226
Net income applicable to noncontrolling interests			37			—			1			—			38
Net income applicable to Morgan Stanley			$	1,436		$	1,568		$	192		$	(8)		$	3,188
Pre-tax margin4			28		%	28		%	18		%	N/M			27		%

			Nine Months Ended September 30, 2025
$ in millions			IS			WM			IM			I/E			Total
Investment banking			$	5,207		$	537		$	—		$	(123)		$	5,621
Trading			14,144			759			(78)			51			14,876
Investments			481			99			551			—			1,131
Commissions and fees1			2,479			2,149			—			(249)			4,379
Asset management1,2			566			13,596			4,419			(224)			18,357
Other			821			382			8			(11)			1,200
Total non-interest revenues			23,698			17,522			4,900			(556)			45,564
Interest income			32,719			12,110			45			(765)			44,109
Interest expense			31,268			6,307			140			(797)			36,918
Net interest			1,451			5,803			(95)			32			7,191
Net revenues			$	25,149		$	23,325		$	4,805		$	(524)		$	52,755
Provision for credit losses			$	260		$	71		$	—		$	—		$	331
Compensation and benefits3			7,706			12,534			1,913			—			22,153
Non-compensation expenses3			8,609			4,070			1,882			(484)			14,077
Total non-interest expenses			$	16,315		$	16,604		$	3,795		$	(484)		$	36,230
Income before provision for income taxes			8,574			6,650			1,010			(40)			16,194
Provision for income taxes			1,840			1,529			233			(9)			3,593
Net income			6,734			5,121			777			(31)			12,601
Net income applicable to noncontrolling interests			133			—			4			—			137
Net income applicable to Morgan Stanley			$	6,601		$	5,121		$	773		$	(31)		$	12,464
Pre-tax margin4			34		%	29		%	21		%	N/M			31		%

September 2025 Form 10-Q			74

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Notes to Consolidated Financial Statements (Unaudited)

			Nine Months Ended September 30, 2024
$ in millions			IS			WM			IM			I/E			Total
Investment banking			$	4,529		$	483		$	—		$	(98)		$	4,914
Trading			12,338			638			(34)			43			12,985
Investments			282			56			271			—			609
Commissions and fees1			2,135			1,770			—			(201)			3,704
Asset management1,2			484			12,084			4,072			(200)			16,440
Other			343			483			10			(9)			827
Total non-interest revenues			20,111			15,514			4,319			(465)			39,479
Interest income			29,642			12,147			86			(1,231)			40,644
Interest expense			28,940			6,719			187			(1,261)			34,585
Net interest			702			5,428			(101)			30			6,059
Net revenues			$	20,813		$	20,942		$	4,218		$	(435)		$	45,538
Provision for credit losses			$	124		$	25		$	—		$	—		$	149
Compensation and benefits3			6,905			11,257			1,727			—			19,889
Non-compensation expenses3			7,476			3,973			1,768			(407)			12,810
Total non-interest expenses			$	14,381		$	15,230		$	3,495		$	(407)		$	32,699
Income before provision for income taxes			6,308			5,687			723			(28)			12,690
Provision for income taxes			1,406			1,313			172			(6)			2,885
Net income			4,902			4,374			551			(22)			9,805
Net income applicable to noncontrolling interests			127			—			2			—			129
Net income applicable to Morgan Stanley			$	4,775		$	4,374		$	549		$	(22)		$	9,676
Pre-tax margin4			30		%	27		%	17		%	N/M			28		%

1.Substantially all revenues are from contracts with customers.

2.Includes certain fees that may relate to services performed in prior periods.

3.The significant expense categories and amounts align with the segment-level information that is regularly provided to the Firm’s chief operating decision maker (“CODM”).

4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.

For a discussion about the Firm’s business segments, see Note 22 to the financial statements in the 2024 Form 10-K.

Detail of Investment Banking Revenues

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Institutional Securities Advisory			$	684		$	546		$	1,755		$	1,599
Institutional Securities Underwriting			1,424			917			3,452			2,930
Firm Investment banking revenues from contracts with customers			83		%	91		%	84		%	90		%

Trading Revenues by Product Type

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Interest rate			$	1,039		$	1,450		$	3,448		$	4,771
Foreign exchange			303			352			1,487			893
Equity1			3,225			2,100			9,239			6,726
Commodity and other			803			451			1,673			1,528
Credit			(350)			(351)			(971)			(933)
Total			$	5,020		$	4,002		$	14,876		$	12,985

1.Dividend income is included within equity contracts.

The previous table summarizes realized and unrealized gains and losses primarily related to the Firm’s Trading assets and

liabilities, from derivative and non-derivative financial instruments, included in Trading revenues in the income statement. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes.

Investment Management Investments Revenues—Net Cumulative Unrealized Carried Interest

$ in millions			At September 30, 2025			At December 31, 2024
Net cumulative unrealized performance-based fees at risk of reversing			$	924		$	796

The Firm’s portion of net cumulative performance-based fees in the form of unrealized carried interest, for which the Firm is not obligated to pay compensation, is at risk of reversing when the returns in certain funds fall below specified performance targets. See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received.

Investment Management Asset Management Revenues—Reduction of Fees Due to Fee Waivers

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Fee waivers			$	29		$	25		$	85		$	70

The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940.

Certain Other Fee Waivers

Separately, the Firm’s employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees.

Other Expenses—Transaction Taxes

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Transaction taxes			$	376		$	217		$	945		$	658

Transaction taxes are composed of securities transaction taxes and stamp duties, which are levied on the sale or purchase of securities listed on recognized stock exchanges in certain markets. These taxes are imposed mainly on trades of equity securities in Asia and EMEA. Similar transaction taxes are

			75			September 2025 Form 10-Q

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Table of Contents
Notes to Consolidated Financial Statements (Unaudited)

levied on trades of listed derivative instruments in certain countries.

Net Revenues by Region

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Americas			$	13,663		$	11,557		$	39,113		$	34,392
EMEA			1,939			1,828			6,372			5,525
Asia			2,622			1,998			7,270			5,621
Total			$	18,224		$	15,383		$	52,755		$	45,538

For a discussion about the Firm’s geographic net revenues, see Note 22 to the financial statements in the 2024 Form 10-K.

Revenues Recognized from Prior Services

			Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions			2025			2024			2025			2024
Non-interest revenues			$	697		$	566		$	1,614		$	1,416

The previous table includes revenues from contracts with customers recognized where some or all services were performed in prior periods. These revenues primarily include investment banking advisory fees.

Receivables from Contracts with Customers

$ in millions			At September 30, 2025			At December 31, 2024
Customer and other receivables			$	2,776		$	2,628

Receivables from contracts with customers, which are included within Customer and other receivables in the balance sheet, arise when the Firm has both recorded revenues and the right per the contract to bill the customer.

Assets by Business Segment

$ in millions			At September 30, 2025			At December 31, 2024
Institutional Securities			$	928,131		$	796,608
Wealth Management			418,992			400,848
Investment Management			17,683			17,615
Total1			$	1,364,806		$	1,215,071

1. Parent assets have been fully allocated to the business segments.

September 2025 Form 10-Q			76

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Financial Data Supplement (Unaudited)

Average Balances and Interest Rates and Net Interest Income

			Three Months Ended September 30,
			2025									2024
$ in millions			Average Daily Balance			Interest			Annualized Average Rate			Average Daily Balance			Interest			Annualized Average Rate
Interest earning assets
Cash and cash equivalents:
U.S.			$	49,585		$	407		3.3		%	$	39,915		$	405		4.0		%
Non-U.S.			46,120			201			1.7		%	43,911			275			2.5		%
Investment securities1			166,501			1,379			3.3		%	158,115			1,335			3.4		%
Loans1			263,730			3,620			5.4		%	229,399			3,557			6.2		%
Securities purchased under agreements to resell2:
U.S.			69,372			2,727			15.6		%	76,150			2,069			10.8		%
Non-U.S.			41,496			1,110			10.6		%	47,101			1,511			12.8		%
Securities borrowed3:
U.S.			120,238			1,649			5.4		%	109,809			1,289			4.7		%
Non-U.S.			20,995			52			1.0		%	18,388			95			2.1		%
Trading assets, net of Trading liabilities:
U.S.			111,643			1,330			4.7		%	111,904			1,317			4.7		%
Non-U.S.			24,810			263			4.2		%	19,250			260			5.4		%
Customer receivables and Other:
U.S.			70,117			2,158			12.2		%	55,738			1,506			10.7		%
Non-U.S.			20,060			560			11.1		%	15,710			566			14.3		%
Total			$	1,004,667		$	15,456		6.1		%	$	925,390		$	14,185		6.1		%
Interest bearing liabilities
Deposits1			$	391,352		$	2,823		2.9		%	$	350,784		$	2,751		3.1		%
Borrowings1,4			312,311			3,181			4.0		%	274,562			3,434			5.0		%
Securities sold under agreements to repurchase5,7:
U.S.			15,240			2,144			55.8		%	14,484			1,413			38.8		%
Non-U.S.			53,878			1,250			9.2		%	52,804			1,581			11.9		%
Securities loaned6,7:
U.S.			9,466			628			26.3		%	11,507			34			1.2		%
Non-U.S.			7,770			236			12.1		%	5,837			240			16.4		%
Customer payables and Other:
U.S.			137,417			1,900			5.5		%	140,966			1,622			4.6		%
Non-U.S.			66,891			803			4.8		%	60,460			914			6.0		%
Total			$	994,325		$	12,965		5.2		%	$	911,404		$	11,989		5.2		%
Net interest income and net interest rate spread						$	2,491		0.9		%				$	2,196		0.9		%

			Nine Months Ended September 30,
			2025									2024
$ in millions			Average Daily Balance			Interest			Annualized Average Rate			Average Daily Balance			Interest			Annualized Average Rate
Interest earning assets
Cash and cash equivalents:
U.S.			$	51,847		$	1,268		3.3		%	$	45,116		$	1,486		4.4		%
Non-U.S.			44,047			626			1.9		%	43,953			830			2.5		%
Investment securities1			162,383			3,983			3.3		%	155,737			3,809			3.3		%
Loans1			252,810			10,406			5.5		%	224,134			10,345			6.2		%
Securities purchased under agreements to resell2:
U.S.			70,131			7,488			14.3		%	62,127			5,259			11.3		%
Non-U.S.			43,331			3,545			10.9		%	48,678			3,862			10.6		%
Securities borrowed3:
U.S.			119,056			4,799			5.4		%	108,510			3,798			4.7		%
Non-U.S.			19,321			191			1.3		%	18,817			320			2.3		%
Trading assets, net of Trading liabilities:
U.S.			111,744			3,905			4.7		%	106,242			3,783			4.8		%
Non-U.S.			23,039			700			4.1		%	14,628			707			6.5		%
Customer receivables and Other:
U.S.			62,936			5,614			11.9		%	52,726			4,759			12.1		%
Non-U.S.			17,899			1,584			11.8		%	15,791			1,686			14.3		%
Total			$	978,544		$	44,109		6.0		%	$	896,459		$	40,644		6.1		%
Interest bearing liabilities
Deposits1			$	379,031		$	7,948		2.8		%	$	347,548		$	7,777		3.0		%
Borrowings1,4			299,973			9,398			4.2		%	261,239			9,985			5.1		%
Securities sold under agreements to repurchase5,7:
U.S.			17,504			5,929			45.3		%	19,104			3,928			27.6		%
Non-U.S.			52,571			3,895			9.9		%	55,603			4,192			10.1		%
Securities loaned6,7:
U.S.			9,967			1,621			21.7		%	9,355			75			1.1		%
Non-U.S.			7,103			697			13.1		%	6,889			692			13.5		%
Customer payables and Other:
U.S.			130,464			5,117			5.2		%	133,046			5,148			5.2		%
Non-U.S.			62,652			2,313			4.9		%	61,571			2,788			6.1		%
Total			$	959,265		$	36,918		5.1		%	$	894,355		$	34,585		5.2		%
Net interest income and net interest rate spread						$	7,191		0.9		%				$	6,059		0.9		%

1.Amounts include primarily U.S. balances.

2.Includes interest paid on Securities purchased under agreements to resell.

3.Includes fees paid on Securities borrowed.

4.Average daily balance includes borrowings carried at fair value but, for certain borrowings, interest expense is considered part of fair value and is recorded in Trading revenues.

5.Includes interest received on Securities sold under agreements to repurchase.

6.Includes fees received on Securities loaned.

7.The annualized average rate was calculated using (a) interest expense incurred on all securities sold under agreements to repurchase and securities-loaned transactions, whether or not such transactions were reported in the balance sheet and (b) net average on-balance sheet balances, which exclude certain securities-for-securities transactions.

			77			September 2025 Form 10-Q

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Glossary of Common Terms and Acronyms

2024 Form  10-K			Annual report on Form 10-K for year ended December 31, 2024 filed with the SEC
ABS			Asset-backed securities
ACL			Allowance for credit losses
AFS			Available-for-sale
AML			Anti-money laundering
AOCI			Accumulated other comprehensive income (loss)
AUM			Assets under management or supervision
Balance sheet			Consolidated balance sheet
BHC			Bank holding company
bps			Basis points; one basis point equals 1/100th of 1%
Cash flow statement			Consolidated cash flow statement
CCAR			Comprehensive Capital Analysis and Review
CCyB			Countercyclical capital buffer
CDO			Collateralized debt obligation(s), including Collateralized loan obligation(s)
CDS			Credit default swaps
CECL			Current Expected Credit Losses, as calculated under the Financial Instruments—Credit Losses accounting update
CET1			Common Equity Tier 1
CFTC			U.S. Commodity Futures Trading Commission
CLN			Credit-linked note(s)
CLO			Collateralized loan obligation(s)
CMBS			Commercial mortgage-backed securities
CMO			Collateralized mortgage obligation(s)
CRE			Commercial real estate
CRM			Credit Risk Management Department
CTA			Cumulative foreign currency translation adjustments
DCP			Employee deferred cash-based compensation plans linked to investment performance
DCP investments			Investments associated with certain DCP
DVA			Debt valuation adjustment
EBITDA			Earnings before interest, taxes, depreciation and amortization
EMEA			Europe, Middle East and Africa
EPS			Earnings per common share
FDIC			Federal Deposit Insurance Corporation
FFELP			Federal Family Education Loan Program
FHC			Financial holding company
FICO			Fair Isaac Corporation
Financial statements			Consolidated financial statements
FVO			Fair value option
G-SIB			Global systemically important bank
HFI			Held-for-investment
HFS			Held-for-sale
HQLA			High-quality liquid assets
HTM			Held-to-maturity
I/E			Intersegment eliminations
IM			Investment Management
Income statement			Consolidated income statement

IRS			Internal Revenue Service
IS			Institutional Securities
LCR			Liquidity coverage ratio, as adopted by the U.S. banking agencies
LTV			Loan-to-value
M&A			Merger, acquisition and restructuring transaction
MSBNA			Morgan Stanley Bank, N.A.
MS&Co.			Morgan Stanley & Co. LLC
MSCG			Morgan Stanley Capital Group Inc.
MSCS			Morgan Stanley Capital Services LLC
MSESE			Morgan Stanley Europe SE
MSIP			Morgan Stanley & Co. International plc
MSMS			Morgan Stanley MUFG Securities Co., Ltd.
MSPBNA			Morgan Stanley Private Bank, National Association
MSSB			Morgan Stanley Smith Barney LLC
MUFG			Mitsubishi UFJ Financial Group, Inc.
MUMSS			Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
MWh			Megawatt hour
N/A			Not Applicable
N/M			Not Meaningful
NAV			Net asset value
Non-GAAP			Non-generally accepted accounting principles in the U.S.
NSFR			Net stable funding ratio, as adopted by the U.S. banking agencies
OCC			Office of the Comptroller of the Currency
OCI			Other comprehensive income (loss)
OTC			Over-the-counter
PSU			Performance-based stock unit
ROE			Return on average common equity
ROTCE			Return on average tangible common equity
ROU			Right-of-use
RSU			Restricted stock unit
RWA			Risk-weighted assets
SCB			Stress capital buffer
SEC			U.S. Securities and Exchange Commission
SLR			Supplementary leverage ratio
S&P			Standard & Poor’s
SPE			Special purpose entity
SPOE			Single point of entry
TLAC			Total loss-absorbing capacity
U.K.			United Kingdom
UPB			Unpaid principal balance
U.S.			United States of America
U.S. Bank Subsidiaries			MSBNA and MSPBNA
U.S. GAAP			Accounting principles generally accepted in the U.S.
VaR			Value-at-Risk
VIE			Variable interest entity
WACC			Implied weighted average cost of capital
WM			Wealth Management

September 2025 Form 10-Q			78

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Controls and Procedures

Under the supervision and with the participation of the Firm’s management, including the Chief Executive Officer and Chief Financial Officer, the Firm conducted an evaluation of the effectiveness of the Firm’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Firm’s disclosure controls and procedures were effective as of the end of the period covered by this report.

No change in the Firm’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) occurred during the period covered by this report that materially affected, or is reasonably likely to materially affect, the Firm’s internal control over financial reporting.

Legal Proceedings

See “Contingencies—Legal” in Note 13 to the Financial Statements for information about our material legal proceedings.

Risk Factors

For a discussion of the risk factors affecting the Firm, see “Risk Factors” in Part I, Item 1A of the 2024 Form 10-K.

Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

$ in millions, except per share data			Total Number of Shares Purchased1			Average Price Paid per Share2			Total Shares Purchased as Part of Share Repurchase Authorization3,4			Dollar Value of Remaining Authorized Repurchase
July			2,335,883			$	141.74		2,267,500			$	19,679
August			2,917,652			$	143.53		2,572,433			$	19,309
September			2,622,552			$	151.35		2,600,099			$	18,915
Three Months Ended September 30, 2025			7,876,087			$	145.60		7,440,032

1.Includes 436,055 shares acquired by the Firm in satisfaction of the tax withholding obligations on stock-based awards granted under the Firm’s stock-based compensation plans during the three months ended September 30, 2025.

2.Excludes excise tax of $10 million levied on share repurchases, net of issuances, payable in April 2026.

3.Share purchases under publicly announced authorizations are made pursuant to open-market purchases, Rule 10b5-1 plans or privately negotiated transactions (including with employee benefit plans) as market conditions warrant and at prices the Firm deems appropriate and may be suspended at any time.

4.On July 1, 2025, the Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock (the “Share Repurchase Authorization”), without a set expiration date, beginning in the third quarter of 2025, which will be exercised from time to time as conditions warrant and is subject to limitations on distributions from the Federal Reserve. The Share Repurchase Authorization is for capital management purposes and considers, among other things, business segment capital needs, as well as equity-based compensation and benefit plan requirements. For further information, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer.”

Other Information

None.

Exhibits

Exhibit No.			Description
4.1			Form of Master Note for Morgan Stanley Global Medium-Term Notes, Series I (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated September 23, 2025).
4.2			Form of Master Note for Morgan Stanley Finance LLC Global Medium-Term Notes, Series A (Fully and Unconditionally Guaranteed by Morgan Stanley) (Exhibit 4.2 to Morgan Stanley’s current report on Form 8-K dated September 23, 2025).
15			Letter of awareness from Deloitte & Touche LLP, dated November 3, 2025, concerning unaudited interim financial information.
31.1			Rule 13a-14(a) Certification of Chief Executive Officer.
31.2			Rule 13a-14(a) Certification of Chief Financial Officer.
32.1			Section 1350 Certification of Chief Executive Officer.
32.2			Section 1350 Certification of Chief Financial Officer.
101			Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”).
104			Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

MORGAN STANLEY (Registrant)
By:			/s/ SHARON YESHAYA
			Sharon Yeshaya Executive Vice President and Chief Financial Officer
By:			/s/ VICTORIA WORSTER
			Victoria Worster Chief Accounting Officer and Controller

Date: November 3, 2025

			79			September 2025 Form 10-Q

September 2025 Form 10-Q