| Schedule of Quarterly Results (Unaudited) |
| | | 2018 Quarter | | $ in millions, except per share data | First | Second | Third | Fourth2,3 | | Total non-interest revenues1 | $ | 10,102 | $ | 9,704 | $ | 8,936 | $ | 7,559 | | Net interest | | 975 | | 906 | | 936 | | 989 | | Net revenues | | 11,077 | | 10,610 | | 9,872 | | 8,548 | | Total non-interest expenses1 | | 7,657 | | 7,501 | | 7,021 | | 6,691 | | Income from continuing operations | | | | | | | | before income taxes | | 3,420 | | 3,109 | | 2,851 | | 1,857 | | Provision for income taxes | | 714 | | 640 | | 696 | | 300 | | Income from continuing | | | | | | | | | | operations | | 2,706 | | 2,469 | | 2,155 | | 1,557 | | Income (loss) from | | | | | | | | | | discontinued operations | | (2) | | (2) | | (1) | | 1 | | Net income | | 2,704 | | 2,467 | | 2,154 | | 1,558 | | Net income applicable to | | | | | | | | | | noncontrolling interests | | 36 | | 30 | | 42 | | 27 | | Net income applicable to | | | | | | | | | | Morgan Stanley | $ | 2,668 | $ | 2,437 | $ | 2,112 | $ | 1,531 | | Preferred stock dividends | | | | | | | | | | and other | 93 | | 170 | | 93 | | 170 | | Earnings applicable to | | | | | | | Morgan Stanley | | | | | | | | | | common shareholders | $ | 2,575 | $ | 2,267 | $ | 2,019 | $ | 1,361 | | Earnings (loss) per basic common share4: | | | | | | Income from | | | | | | | | | | continuing operations | $ | 1.48 | $ | 1.32 | $ | 1.19 | $ | 0.81 | | Income (loss) from | | | | | | | | | | discontinued operations | | — | | — | | — | | — | | Earnings per basic | | | | | | | | | | common share | $ | 1.48 | $ | 1.32 | $ | 1.19 | $ | 0.81 | | Earnings (loss) per diluted common share4: | | | | | | Income from | | | | | | | | | | continuing operations | $ | 1.46 | $ | 1.30 | $ | 1.17 | $ | 0.80 | | Income (loss) from | | | | | | | | | | discontinued operations | | (0.01) | | — | | — | | — | | Earnings per diluted | | | | | | | | | | common share | $ | 1.45 | $ | 1.30 | $ | 1.17 | $ | 0.80 | | Dividends declared | | | | | | | | | | per common share | $ | 0.25 | $ | 0.25 | $ | 0.30 | $ | 0.30 | | Book value per common share | $ | 39.19 | $ | 40.34 | $ | 40.67 | $ | 42.20 |
| | | 2017 Quarter | | $ in millions, except per share data | First | Second | Third | Fourth2, 3 | | Total non-interest revenues | $ | 8,974 | $ | 8,752 | $ | 8,414 | $ | 8,505 | | Net interest | | 771 | | 751 | | 783 | | 995 | | Net revenues | | 9,745 | | 9,503 | | 9,197 | | 9,500 | | Total non-interest expenses | | 6,937 | | 6,861 | | 6,715 | | 7,029 | | Income from continuing operations | | | | | | | | before income taxes | | 2,808 | | 2,642 | | 2,482 | | 2,471 | | Provision for income taxes | | 815 | | 846 | | 697 | | 1,810 | | Income from continuing | | | | | | | | | | operations | | 1,993 | | 1,796 | | 1,785 | | 661 | | Income (loss) from | | | | | | | | | | discontinued operations | | (22) | | (5) | | 6 | | 2 | | Net income | | 1,971 | | 1,791 | | 1,791 | | 663 | | Net income applicable to | | | | | | | | | | noncontrolling interests | | 41 | | 34 | | 10 | | 20 | | Net income applicable | | | | | | | | | | to Morgan Stanley | $ | 1,930 | $ | 1,757 | $ | 1,781 | $ | 643 | | Preferred stock dividends | | | | | | | | | | and other | | 90 | | 170 | | 93 | | 170 | | Earnings applicable | | | | | | | | | | to Morgan Stanley | | | | | | | | | | common shareholders | $ | 1,840 | $ | 1,587 | $ | 1,688 | $ | 473 | | Earnings (loss) per basic common share4: | | | | | | Income from | | | | | | | | | | continuing operations | $ | 1.03 | $ | 0.89 | $ | 0.95 | $ | 0.27 | | Income (loss) from | | | | | | | | | | discontinued operations | | (0.01) | | — | | — | | — | | Earnings per basic | | | | | | | | | | common share | $ | 1.02 | $ | 0.89 | $ | 0.95 | $ | 0.27 | | Earnings (loss) per diluted common share4: | | | | | | Income from | | | | | | | | | | continuing operations | $ | 1.01 | $ | 0.87 | $ | 0.93 | $ | 0.26 | | Income (loss) from | | | | | | | | | | discontinued operations | | (0.01) | | — | | — | | — | | Earnings per diluted | | | | | | | | | | common share | $ | 1.00 | $ | 0.87 | $ | 0.93 | $ | 0.26 | | Dividends declared | | | | | | | | | | per common share | $ | 0.20 | $ | 0.20 | $ | 0.25 | $ | 0.25 | | Book value per common share | $ | 37.48 | $ | 38.22 | $ | 38.87 | $ | 38.52 |
- Effective January 1, 2018, the Firm adopted new accounting guidance related to Revenue from Contracts with Customers, which among other things, requires a gross presentation of certain costs that were previously netted against net revenues. Prior periods have not been restated pursuant to this guidance. For further information on the full impact of adoption of this new accounting guidance, see the following table and Note 21.
- The fourth quarter of 2018 included net intermittent discrete tax benefits of $111 million, primarily associated with the remeasurement of reserves and related interest due to the resolution of multi-jurisdiction tax examinations. The fourth quarter of 2017 included net intermittent discrete tax benefits of $168 million, primarily related to the remeasurement of reserves and related interest due to new information regarding the status of multi-year IRS tax examinations. The fourth quarter of 2017 also included an intermittent net discrete tax provision of approximately $1.2 billion, primarily related to the remeasurement of certain net deferred tax assets using the lower corporate tax rate as a result of the enactment of the Tax Act. Income tax consequences arising from conversion of employee share-based awards are excluded from intermittent net discrete tax provisions (benefits), as we anticipate conversion activity each year (see Notes 2 and 20).
- Total non-interest revenues includes impairments of the Investment Management business segment’s interest in a third-party asset manager of $46 million in 2018 and $53 million in 2017.
- The sum of the quarters’ earnings per common share may not equal the annual amounts due to the averaging effect of the number of shares and share equivalents throughout the year.
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