Morgan Stanley (MS) investor relations material

Market environment and strategic outlook

• Capital markets and M&A activity have improved significantly, with narrowing policy volatility and stable credit markets supporting confidence in strategic investments.

• A substantial backlog in M&A and IPOs exists, with pent-up demand expected to drive multi-year recovery as market conditions continue to normalize.

• Private equity monetization is increasing due to LP pressure and compensation needs, with over 1,500 PE-owned U.S. companies valued at $1B+ poised for activity.

• The IPO market has rebounded, providing alternative exit options and reducing execution risk, which is stimulating broader M&A engagement.

• Global macroeconomic trends, including energy transition, AI adoption, and industrial policy shifts, are reshaping corporate strategies and asset allocation.

Business performance and growth drivers

• Market share gains are attributed to a focused, integrated strategy, leveraging global scale and investments in technology, credit, and sector expertise.

• The bank's balance sheet has doubled in loans and deposits over six years, with plans to move more ISG assets into the bank funding model for efficiency and regulatory alignment.

• Wealth management has expanded from 2.5 million to 20 million households, with strong asset growth, high client retention, and a robust lead generation model.

• Investment management has quadrupled AUM since 2018, driven by global diversification, alternatives, and the success of platforms like Parametric and private credit.

• Private markets and credit are seen as major secular growth areas, with $250B in private markets AUM and a sixfold increase in credit assets under management.

Capital deployment and innovation

• A more rational regulatory environment is enabling greater certainty in capital planning, supporting investments in lending, financing, and technology.

• Dividend growth remains a priority, with continued focus on organic growth and selective innovation-driven acquisitions rather than large-scale deals.

• Integration across business units is a key strategic focus, with synergies realized by serving client segments holistically and leveraging cross-business relationships.

• Workplace and digital platforms are expanding the client funnel, enhancing stickiness and deepening relationships across corporate and wealth segments.

• The firm is positioned as a holistic partner for asset managers, corporates, and affluent individuals, with a unique ability to deliver integrated solutions at scale.