MORGAN STANLEY

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Management’s Discussion and Analysis

Institutional Securities

Investment Banking

Investment Banking Volumes

Source: LSEG Data & Risk Analytics as of April 1, 2026. 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 $2,116 million in the current quarter increased 36% from the prior year quarter, reflecting increases across businesses, particularly in Advisory revenues.

•Advisory revenues increased primarily reflecting higher completed M&A transactions, particularly in the Americas.

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

•Fixed Income underwriting revenues increased primarily reflecting higher investment grade issuances, which benefited from higher event-related activity, and higher securitized products revenues, partially offset by lower non‑investment grade issuances.

See “Investment Banking Volumes” herein.

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 $5,148 million in the current quarter increased 25% from the prior year quarter, 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, partially offset by lower gains on inventory held to facilitate client activity, both in derivatives and cash equities.

Fixed Income

Net revenues of $3,358 million in the current quarter increased 29% from the prior year quarter, reflecting an increase in Commodities and Credit products, partially offset by a decrease in Global macro products.

•Global macro products revenues decreased primarily due to losses compared with gains in the prior year quarter on inventory held to facilitate client activity, partially offset by increased client activity, both in rates and foreign exchange products.

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Management’s Discussion and Analysis

•Credit products revenues increased primarily due to higher results in inventory held to facilitate client activity and increased client activity across products, particularly on higher lending revenues in securitized products.

•Commodities products and other fixed income revenues increased primarily due to higher gains on inventory held to facilitate client activity and increased client activity in oil, power and gas products amid volatility in energy markets.

Other Net Revenues

Other net revenues were $99 million in the current quarter, compared with $692 million in the prior year quarter, primarily driven by the absence of realized gains on the sale of corporate loans held-for-sale in the prior year quarter.

The Provision for credit losses on loans and lending commitments of $92 million in the current quarter was primarily related to certain commercial real estate loans and increased macroeconomic uncertainty. The Provision for credit losses on loans and lending commitments of $91 million in the prior year quarter was primarily related to portfolio growth in secured lending facilities and corporate loans and deterioration in the macroeconomic outlook.

Non-interest expenses of $6,468 million in the current quarter increased 15% from the prior year quarter, 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 stock-based compensation expense related to awards granted in prior periods.

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