The Wealth Management business added $36 billion in net new assets during the quarter and $131 billion in the first half of the year, driven by cumulative fee-based asset flows and positive market environment.

Institutional Securities reported strong performance across the franchise, with notable strength in Equity, driven by higher client activity, and in Investment Banking, on robust debt underwriting results.

Investment Management results reflect net revenues of $1.4 billion, primarily driven by increased asset management revenues on higher long-term average AUM.

The firm accreted $1.5 billion of Common Equity Tier 1 capital while supporting clients and executing capital actions. At June 30, 2024, the Firm's Standardized Common Equity Tier 1 capital ratio was 15.2%.

The firm's expense efficiency ratio was 72% for both the second quarter and first half of the year, benefiting from our scale and intentional expense management.

Management notes that the results of operations in the past have been, and in the future may continue to be, materially affected by: competition; risk factors; legislative, legal and regulatory developments; and other factors.

The Provision for credit losses on loans and lending commitments of $76 million in the current quarter was primarily related to provisions for certain specific commercial real estate loans, mainly in the office sector.

The economic environment, client and investor confidence and overall market sentiment improved in the first half of 2024. However, geopolitical risks, inflation and uncertainty regarding the U.S. political cycle and the future path of interest rates, which have remained high relative to recent years, present ongoing risks to the economic environment.

The results of operations in the past have been, and in the future may continue to be, materially affected by: competition; risk factors; legislative, legal and regulatory developments; and other factors.

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.

The results of operations in the past have been, and in the future may continue to be, materially affected by: competition; risk factors; legislative, legal and regulatory developments; and other factors.

The firm's expense efficiency ratio was 72% for both the second quarter and first half of the year, benefiting from our scale and intentional expense management.

Non-compensation expenses of $4,409 million in the current quarter increased 4% compared with the prior year period, primarily due to higher execution-related expenses and increased technology spend.

Compensation and benefits expenses of $6,460 million in the current quarter increased 3% compared with the prior year period, primarily due to higher formulaic payout to Wealth Management representatives driven by higher compensable revenues and higher discretionary compensation on higher revenues.

Non-compensation expenses increased primarily due to higher execution-related expenses and increased technology spend, partially offset by lower legal expenses.

Non-compensation expenses increased primarily due to higher execution-related expenses and increased technology spend, partially offset by lower legal expenses.

The filing does not provide specific details regarding R&D investments or technological capabilities.

The firm accreted $1.5 billion of Common Equity Tier 1 capital while supporting clients and executing capital actions. At June 30, 2024, the Firm's Standardized Common Equity Tier 1 capital ratio was 15.2%.

On June 28, 2024, the firm announced that its Board of Directors reauthorized a multi-year repurchase program of up to $20 billion of outstanding common stock, without a set expiration date, beginning in the third quarter of 2024.

On July 30, 2024, the firm announced that it increased its quarterly common stock dividend to $0.925 per share from $0.85, beginning with the common stock dividend announced on July 16, 2024.

You can access information about our corporate governance at www.morganstanley.com/about-us-governance, our sustainability initiatives at www.morganstanley.com/about-us/sustainability-at-morgan-stanley, and our commitment to diversity and inclusion at www.morganstanley.com/about-us/diversity.

Our webpages include: Environmental and Social Policies; and 2022 ESG Report: Diversity & Inclusion, Climate, and Sustainability.

The filing does not provide specific details regarding environmental commitments, social responsibility initiatives, or governance practices.

The economic environment, client and investor confidence and overall market sentiment improved in the first half of 2024.

However, geopolitical risks, inflation and uncertainty regarding the U.S. political cycle and the future path of interest rates, which have remained high relative to recent years, present ongoing risks to the economic environment.

These factors have impacted, and could continue to impact capital markets and our businesses, as discussed further in “Business Segments” herein.