
$ in millions	2025		2024		2023
Revenues
Dividends from bank subsidiaries	$	3,886	$	5,571	$	5,770
Dividends from BHC and non-bank subsidiaries	4,325		5,229		6,812
Total dividends from subsidiaries	8,211		10,800		12,582
Trading	(151)		(827)		(775)
Other	(3)		36		(31)
Total non-interest revenues	8,057		10,009		11,776
Interest income	14,234		15,739		13,596
Interest expense	14,195		15,377		13,618
Net interest	39		362		(22)
Net revenues	8,096		10,371		11,754
Non-interest expenses	397		358		287
Income before income taxes	7,699		10,013		11,467
Provision for (benefit from) income taxes	(557)		(499)		(520)
Net income before undistributed gain of subsidiaries	8,256		10,512		11,987
Undistributed (loss) gain of subsidiaries	8,605		2,878		(2,900)
Net income	16,861		13,390		9,087
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	307		(324)		51
Change in net unrealized gains (losses) on available-for-sale securities	988		521		1,098
Pensions and other	25		12		(87)
Change in net debt valuation adjustment	(849)		(551)		(1,250)
Net change in cash flow hedges	58		(51)		20
Comprehensive income	$	17,390	$	12,997	$	8,919
Net income	$	16,861	$	13,390	$	9,087
Preferred stock dividends and other	612		590		557
Earnings applicable to Morgan Stanley common shareholders	$	16,249	$	12,800	$	8,530

Parent Company Only—Condensed Balance Sheet


$ in millions, except share data	At December 31, 2025		At December 31, 2024
Assets
Cash and cash equivalents	$	26,640	$	19,343
Trading assets at fair value	4,333		3,944
Investment securities:
Available-for-sale at fair value (amortized cost of $22,299 and $22,557; $165 and $11,816 were pledged to various parties)	22,044		22,100
Held-to-maturity (fair value of $7,809 and $12,050; $971 and $1,715 were pledged to various parties)	8,541		13,160
Securities purchased under agreement to resell to affiliates	35,331		26,730
Advances to subsidiaries:
Bank and BHC	35,548		37,370
Non-bank	168,633		154,100
Equity investments in subsidiaries:
Bank and BHC	68,190		60,904
Non-bank	55,163		51,100
Other assets	2,536		1,886
Total assets	$	426,959	$	390,637
Liabilities
Trading liabilities at fair value	$	2,011	$	100
Securities sold under agreements to repurchase from affiliates	1,373		13,764
Payables to and advances from subsidiaries	108,245		87,124
Other liabilities and accrued expenses	3,260		3,011
Borrowings (includes $13,019 and $12,814 at fair value)	200,438		182,127
Total liabilities	315,327		286,126
Commitments and contingent liabilities (see Note 14)
Equity
Preferred stock	9,750		9,750
Common stock, $0.01 par value:
Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,582,834,137 and 1,606,653,706	20		20
Additional paid-in capital	31,153		30,179
Retained earnings	115,091		104,989
Employee stock trusts	5,154		5,103
Accumulated other comprehensive income (loss)	(6,285)		(6,814)
Common stock held in treasury at cost, $0.01 par value (456,059,842 and 432,240,273 shares)	(38,097)		(33,613)
Common stock issued to employee stock trusts	(5,154)		(5,103)
Total shareholders’ equity	111,632		104,511
Total liabilities and equity	$	426,959	$	390,637

Parent Company Only—Condensed Cash Flow Statement


$ in millions	2025		2024		2023






Net cash provided by (used for) operating activities	$	18,578	$	10,688	$	24,914
Cash flows from investing activities
Proceeds from (payments for):
AFS securities:
Purchases	(8,542)		(7,806)		(9,362)
Proceeds from sales	550		—		300
Proceeds from paydowns and maturities	8,249		7,444		5,479
HTM securities:
Purchases	—		(1,729)		—
Proceeds from paydowns and maturities	4,674		4,402		4,003
Securities purchased under agreements to resell with affiliates	(8,601)		(2,037)		(1,706)
Securities sold under agreements to repurchase with affiliates	(12,391)		(6,529)		(8,389)
Advances to and investments in subsidiaries	(13,906)		(15,191)		(10,097)
Net cash provided by (used for) investing activities	(29,967)		(21,446)		(19,772)
Cash flows from financing activities
Proceeds from:
Issuance of preferred stock, net of issuance costs	—		995		—
Issuance of Borrowings	31,699		33,385		23,783
Payments for:
Borrowings	(22,224)		(24,500)		(22,554)
Repurchases of common stock and employee tax withholdings	(5,835)		(4,161)		(6,178)
Cash dividends	(6,593)		(6,138)		(5,763)
Net change in advances from subsidiaries	21,032		13,839		(3,029)

Net cash provided by (used for) financing activities	18,079		13,420		(13,741)
Effect of exchange rate changes on cash and cash equivalents	607		(200)		147
Net increase (decrease) in cash and cash equivalents	7,297		2,462		(8,452)
Cash and cash equivalents, at beginning of period	19,343		16,881		25,333
Cash and cash equivalents, at end of period	$	26,640	$	19,343	$	16,881
Cash and cash equivalents:
Cash and due from banks	$	108	$	66	$	107
Deposits with bank subsidiaries	26,532		19,277		16,774
Cash and cash equivalents, at end of period	$	26,640	$	19,343	$	16,881
Restricted cash	$	2,066	$	1,086	$	1,086
Supplemental Disclosure of Cash Flow Information
Cash payments for:
Interest	$	15,736	$	15,971	$	14,437
Income taxes, net of refunds1	1,931		798		599

1.Represents total payments, net of refunds, made to various tax authorities and includes taxes paid on behalf of certain subsidiaries that are subsequently settled between the Parent Company and these subsidiaries. The settlements received from subsidiaries were $2.4 billion, $1.6 billion and $1.6 billion for 2025, 2024 and 2023, respectively.

For information on the Parent Company’s preferred stock, see Note 17.

Parent Company’s Borrowings with Original Maturities Greater than One Year


$ in millions	At December 31, 2025		At December 31, 2024
Senior	$	188,255	$	168,413
Subordinated	12,182		13,713
Total	$	200,437	$	182,126

Transactions with Subsidiaries

The Parent Company has transactions with its consolidated subsidiaries determined on an agreed-upon basis and has guaranteed certain unsecured lines of credit and contractual obligations on certain of its consolidated subsidiaries.

Guarantees

In the normal course of its business, the Parent Company guarantees certain of its subsidiaries’ obligations on a transaction-by-transaction basis under various financial arrangements. The Parent Company has issued guarantees on behalf of its subsidiaries to various U.S. and non-U.S. exchanges and clearinghouses that trade and clear securities and/or futures contracts. Under these guarantee arrangements, the Parent Company may be required to pay the financial obligations of its subsidiaries related to business transacted on or with the exchanges and clearinghouses in the event of a subsidiary’s default on its obligations to the exchange or the clearinghouse. The Parent Company has not recorded any contingent liability in its condensed financial statements for these arrangements and believes that any potential requirements to make payments under these arrangements are remote.

The Parent Company also, in the normal course of business, provides standard indemnities to counterparties on behalf of its subsidiaries for taxes, including U.S. and foreign withholding taxes, on interest and other payments made on derivatives, securities and stock-lending transactions, and certain annuity products, and may also provide indemnities to or on behalf of affiliates from time to time for other arrangements. These indemnity payments could be required, as applicable, based on a change in the tax laws, change in interpretation of applicable tax rulings or claims arising from contractual relationships between affiliates. Certain contracts contain provisions that enable the Parent Company to terminate the agreement upon the occurrence of such events. The maximum potential amount of future payments that the Parent Company could be required to make under these indemnifications cannot be estimated. The Parent Company has not recorded any contingent liability in its condensed financial statements for these indemnifications and believes that the occurrence of any events that would trigger payments under these contracts is remote.

Guarantees of Debt Instruments and Warrants Issued by Subsidiaries


$ in millions	At December 31, 2025		At December 31, 2024
Aggregate balance	$	92,330	$	70,662

Guarantees under Subsidiary Lease Obligations


$ in millions	At December 31, 2025		At December 31, 2024
Aggregate balance1	$	660	$	628

1.Amounts primarily relate to the U.K.

Finance Subsidiary

The Parent Company fully and unconditionally guarantees the securities issued by Morgan Stanley Finance LLC, a wholly owned finance subsidiary. No other subsidiary of the Parent Company guarantees these securities.

Resolution and Recovery Planning

As indicated in the Firm’s 2025 resolution plan submitted to the Federal Reserve and the FDIC, the Parent Company has entered into an amended and restated support agreement with its material entities (including its wholly owned, direct subsidiary Morgan Stanley Holdings LLC (the “Funding IHC”)) and certain other subsidiaries. Under the amended and restated secured support agreement, in the event of a resolution scenario, the Parent Company would be obligated to contribute all of its contributable assets to its supported entities and/or the Funding IHC. The Funding IHC would be obligated to provide capital and liquidity, as applicable, to its supported entities. The obligations of the Parent Company and the Funding IHC under the amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company and certain other assets) and the assets of the Funding IHC.