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 October 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 $2,159 million in the current quarter increased 2% from the prior year quarter, reflecting higher Advisory revenues, partially offset by lower underwriting revenues.

•Advisory revenues increased on higher completed M&A activity, particularly in the Americas.

•Equity underwriting revenues decreased primarily reflecting lower initial public offerings and secondary block share trades, partially offset by higher follow-on offerings.

•Fixed Income underwriting revenues were modestly lower, reflecting continued strength in investment grade and non-investment grade issuances.

Net revenues of $6,712 million in the current year period increased 29% from the prior year period, reflecting increases across businesses, particularly in Advisory revenues.

•Advisory revenues increased on higher completed M&A activity, particularly in the Americas.

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

•Fixed Income underwriting revenues increased primarily reflecting higher investment grade issuances and non-investment grade bond issuances.

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 $5,799 million in the current quarter and $17,247 million in the current year period increased 41% and 44%, respectively, compared with the prior year periods, reflecting an increase in Financing and Execution services, particularly in Asia.

•Financing revenues increased primarily due to higher client activity and higher average client balances in prime brokerage.

•Execution services revenues increased primarily due to higher client activity in derivatives and cash equities.

Fixed Income

Net revenues of $2,011 million in the current quarter decreased 7% compared with the prior year quarter, reflecting a decrease in Commodities and Credit products, partially offset by an increase in Global macro products.

•Global macro products revenues increased primarily due to improved results in foreign exchange products, partially

offset by losses on inventory held to facilitate client activity in rates products.

•Credit products revenues decreased primarily due to lower results in securitized products.

•Commodities products and other fixed income revenues decreased primarily due to lower client activity in Americas power and gas compared with the prior year quarter, which benefited from higher structured activity.

Net revenues of $7,824 million in the current year period increased 13% compared with the prior year period, primarily reflecting an increase in Commodities and Credit products.

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

•Credit products revenues increased primarily due to improved results in corporate credit products and the cumulative impact of lending growth in the securitized products business.

•Commodities products and other fixed income revenues increased primarily due to higher results in oil and products.

Other Net Revenues

Other net revenues were $60 million in the current quarter, compared with $130 million in the prior year quarter, primarily reflecting higher funding costs, partially offset by lower mark-to-market losses on corporate loans, inclusive of hedges.

Other net revenues were $7 million in the current year period, compared with $1,024 million in the prior year period, primarily reflecting mark-to-market losses on corporate loans, inclusive of hedges, and higher funding costs in the current year period, compared with realized gains on the sale of corporate loans held-for-sale in the prior year period.

The Provision for credit losses on loans and lending commitments of $141 million in the current quarter was primarily related to growth in corporate loans and secured lending portfolios. The Provision for credit losses on loans and lending commitments of $1 million in 3Q 2025 was primarily related to growth in corporate loans and secured lending portfolios 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 $304 million in the current year period was primarily related to growth in corporate loans and secured lending portfolios and provisions for certain specific commercial real estate and corporate loans. The Provision for credit losses on loans and lending commitments in YTD 2025 was $260 million, primarily related to growth in corporate

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Management’s Discussion and Analysis

loans and secured lending portfolios and provisions for certain specific commercial real estate loans.

Non-interest expenses of $6,416 million in the current quarter and $19,591 million in the current year period increased 20% compared with the prior year periods, 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.

•Non-compensation expenses increased primarily due to higher execution-related expenses on higher client activity and increased technology spend.