Morgan Stanley Files 2023 Annual Report on Form 10-K

TL;DR

<b>Morgan Stanley's 2023 10-K filing provides a comprehensive overview of its financial health and operational landscape.</b>

AI Summary

MORGAN STANLEY (MS-PL) filed a Annual Report (10-K) with the SEC on February 22, 2024. Morgan Stanley's 2023 Form 10-K details financial performance and business operations for the fiscal year ending December 31, 2023. The filing includes comprehensive financial statements, risk factors, and executive compensation information. Key financial data such as revenue, net income, and EPS for 2023, 2022, and 2021 are presented. The report outlines various classes of stock, including common and preferred stock, with associated financial data. Morgan Stanley's principal executive offices are located at 1585 Broadway, New York, NY 10036.

Why It Matters

For investors and stakeholders tracking MORGAN STANLEY, this filing contains several important signals. This 10-K filing is crucial for investors and analysts to assess Morgan Stanley's financial performance, strategic direction, and risk exposure over the past fiscal year. Understanding the detailed financial statements and risk factors disclosed in this report is essential for making informed investment decisions regarding Morgan Stanley.

Risk Assessment

Risk Level: medium — MORGAN STANLEY shows moderate risk based on this filing. The filing is a 10-K, which is a standard annual report. While it contains detailed financial information, it does not present any immediate, significant positive or negative events that would drastically alter the company's risk profile beyond what is typical for a large financial institution.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Morgan Stanley's performance and outlook for the upcoming year.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-22 — Filing Date (FILED AS OF DATE)
• 241 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 001-11758 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• MORGAN STANLEY (company) — FILER
• 0000895421 (company) — CENTRAL INDEX KEY
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240222 (date) — FILED AS OF DATE
• 1585 BROADWAY (address) — BUSINESS ADDRESS STREET 1
• NEW YORK (city) — BUSINESS ADDRESS CITY
• DE (state) — STATE OF INCORPORATION
• 212-761-4000 (phone) — BUSINESS PHONE

FAQ

Industry Context

Morgan Stanley operates within the Security Brokers, Dealers & Flotation Companies industry (SIC code 6211). This sector is characterized by high regulatory oversight and sensitivity to market conditions.

Regulatory Implications

As a major financial institution, Morgan Stanley is subject to extensive regulation by bodies such as the SEC and Federal Reserve, impacting its operations, capital requirements, and risk management practices.

What Investors Should Do

1. Review Morgan Stanley's consolidated financial statements for the fiscal year ended December 31, 2023.
2. Analyze the 'Risk Factors' section to understand potential challenges and uncertainties facing the company.
3. Examine executive compensation details to assess alignment with company performance and shareholder interests.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year 2023, providing a year-end summary of the company's financial position and performance.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value MS New York Stock Exchange D

Filing Documents

• ms-20231231.htm (10-K) — 9438KB
• exhibit41q42023_10k.htm (EX-4.1) — 232KB
• exhibit104q42023_10-k.htm (EX-10.4) — 7KB
• exhibit1020q42023_10-k.htm (EX-10.20) — 169KB
• exhibit1021q42023_10-k.htm (EX-10.21) — 146KB
• exhibit1022q42023_10-k.htm (EX-10.22) — 222KB
• exhibit21q42023_10-k.htm (EX-21) — 12KB
• exhibit22q42023_10-k.htm (EX-22) — 3KB
• exhibit231q42023_10-k.htm (EX-23.1) — 14KB
• exhibit311q42023_10-k.htm (EX-31.1) — 10KB
• exhibit312q42023_10-k.htm (EX-31.2) — 10KB
• exhibit321q42023_10-k.htm (EX-32.1) — 4KB
• exhibit322q42023_10-k.htm (EX-32.2) — 5KB
• exhibit97q42023_10-k.htm (EX-97) — 54KB
• jpg41a.jpg (GRAPHIC) — 13KB
• ms-20231231_g1.jpg (GRAPHIC) — 24KB
• ms-20231231_g10.jpg (GRAPHIC) — 37KB
• ms-20231231_g11.jpg (GRAPHIC) — 44KB
• ms-20231231_g12.jpg (GRAPHIC) — 47KB
• ms-20231231_g2.jpg (GRAPHIC) — 22KB
• ms-20231231_g3.jpg (GRAPHIC) — 21KB
• ms-20231231_g4.jpg (GRAPHIC) — 20KB
• ms-20231231_g5.jpg (GRAPHIC) — 43KB
• ms-20231231_g6.jpg (GRAPHIC) — 48KB
• ms-20231231_g7.jpg (GRAPHIC) — 43KB
• ms-20231231_g8.jpg (GRAPHIC) — 44KB
• ms-20231231_g9.jpg (GRAPHIC) — 181KB
• 0000895421-24-000300.txt (&nbsp;) — 46290KB
• ms-20231231.xsd (EX-101.SCH) — 221KB
• ms-20231231_cal.xml (EX-101.CAL) — 236KB
• ms-20231231_def.xml (EX-101.DEF) — 1187KB
• ms-20231231_lab.xml (EX-101.LAB) — 2128KB
• ms-20231231_pre.xml (EX-101.PRE) — 1667KB
• ms-20231231_htm.xml (XML) — 11088KB

Business

Business I 1 5 Overview 5 Business Segments 5 Competition 5 Supervision and Regulation 6 Human Capital 10 Information about our Executive Officers 12

Risk Factors

Risk Factors 1A 13 Cybersecurity 1C 26

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations II 7 28 Introduction 28 Executive Summary 29 Business Segments 33 Institutional Securities 37 Wealth Management 39 Investment Management 42 Supplemental Financial Information 44 Other Matters 44 Accounting Development Updates 45 Critical Accounting Estimates 46 Liquidity and Capital Resources 48 Balance Sheet 49 Regulatory Requirements 53

Quantitative and Qualitative Disclosures about Risk

Quantitative and Qualitative Disclosures about Risk 7A 61 Risk Management 61 Market Risk 64 Credit Risk 68 Country and Other Risks 75

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 8 80 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) 80 Consolidated Income Statement 82 Consolidated Comprehensive Income Statement 82 Consolidated Balance Sheet 83 Consolidated Statement of Changes in Total Equity 84 Consolidated Cash Flow Statement 85

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 86 1. Introduction and Basis of Presentation 86 2. Significant Accounting Policies 87 3. Cash and Cash Equivalents 97 4. Fair Values 97 5. Fair Value Option 107 Table of Contents Part Item Page 6. Derivative Instruments and Hedging Activities 108 7. Investment Securities 112 8. Collateralized Transactions 113 9. Loans, Lending Commitments and Related Allowance for Credit Losses 116 10. Goodwill and Intangible Assets 119 11. Other Assets—Equity Method Investments and Leases 120 12. Deposits 121 13. Borrowings and Other Secured Financings 121 14. Commitments, Guarantees and Contingencies 123 15. Variable Interest Entities and Securitization Activities 129 16. Regulatory Requirements 133 17. Total Equity 136 18. Interest Income and Interest Expense 139 19. Deferred Compensation Plans and Carried Interest Compensation 139 20. Employee Benefit Plans 141 21. Income Taxes 144 22. Segment, Geographic and Revenue Information 145 23. Parent Company 147 Financial Data Supplement (Unaudited) 150 Glossary of Common Terms and Acronyms 153 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 9 154

Controls and Procedures

Controls and Procedures 9A 154 Other Information 9B 156 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 9C 156 Unresolved Staff Comments I 1B 156

Legal Proceedings

Legal Proceedings 3 156 Mine Safety Disclosures 4 156 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities II 5 156 Directors, Executive Officers and Corporate Governance III 10 157

Executive Compensation

Executive Compensation 11 157

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 12 157 Certain Relationships and Related Transactions and Director Independence 13 157 Principal Accountant Fees and Services 14 157 Exhibits and Financial Statement Schedules IV 15 157 Form 10-K Summary 16 160

Signatures

Signatures 161 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements We have included in or incorporated by reference into this report, and from time to time may make in our public filings, press releases or other public statements, certain statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures about Risk" and "Legal Proceedings" that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. The nature of our business makes predicting the future trends of our revenues, expenses and net income difficult. The risks and uncertainties involved in our businesses could affect the matters referred to in such statements, and it is possible that our actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Important factors that could cause actual results to differ from those in the forward-looking statements include, without limitation: the effect of market conditions, particularly in the global equity, fixed income, currency, credit and commodities markets, including corporate, commercial and residential mortgage lending, real estate and energy markets; the level of individual investor participation in the global markets, as well as the level and mix of client assets; the flow of investment capital into or from AUM; the level and volatility of equity, fixed income and commodity prices, interest rates, inflation and currency values, other market indices or other market factors, such as market liquidity; the

Business

Business Overview We are a global financial services firm that, through our subsidiaries and affiliates, advises, and originates, trades, manages and distributes capital for governments, institutions and individuals. We were originally incorporated under the laws of the State of Delaware in 1981, and our predecessor companies date back to 1924. We are a financial holding company ("FHC") regulated by the Board of Governors of the Federal Reserve System ("Federal Reserve") under the Bank Holding Company Act of 1956, as amended ("BHC Act"). We conduct our business from our headquarters in and around New York City, our regional offices and branches throughout the U.S. and our principal offices in London, Frankfurt, Tokyo, Hong Kong and other world financial centers. Unless the context otherwise requires, the terms "Morgan Stanley," the "Firm," "us," "we" and "our" mean Morgan Stanley (the "Parent Company") together with its consolidated subsidiaries. See the "Glossary of Common Terms and Acronyms" for the definition of certain terms and acronyms used throughout the 2023 Form 10-K. Financial information concerning us, our business segments and geographic regions for each of the years ended December 31, 2023, December 31, 2022, and December 31, 2021 is included in "Financial Statements and Supplementary Data." Business Segments We are a global financial services firm that maintains significant market positions in each of our business segments: Institutional Securities, Wealth Management and Investment Management. Through our subsidiaries and affiliates, we provide a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Additional information related to our business segments, respective clients, and products and services provided is included under "Management's Discussion and Analysis of Financial Condition and Results of Operations." Competition

View Full Filing

View this 10-K filing on SEC EDGAR