MORGAN STANLEY

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Management’s Discussion and Analysis

Institutional Securities

Investment Banking

Investment Banking Volumes

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.

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Management’s Discussion and Analysis

Equity, Fixed Income and Other Net Revenues

Equity and Fixed Income Net Revenues

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.

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.

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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 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.