MSMEDIUM SIGNALFINANCIAL10-K

Morgan Stanley reported strong net income growth of 26% alongside meaningful balance sheet expansion, while updating technology risk disclosures to include generative AI and tokenization threats.

The solid earnings growth demonstrates the firm's ability to capitalize on favorable market conditions and execute its strategic initiatives effectively. However, the substantial expansion in total debt and liabilities indicates increased leverage and risk profile that warrants monitoring, particularly given the evolving competitive landscape from new technologies.

Comparing 2026-02-19 vs 2025-02-21View on EDGAR →
FINANCIAL ANALYSIS

Morgan Stanley delivered robust financial performance with net income growing 26% to $16.9 billion, while the balance sheet expanded meaningfully across all major categories. Total assets increased 17% to $1.4 trillion, accompanied by a 20% rise in total debt to $341.7 billion and an 18% increase in total liabilities to $1.3 trillion. The growth in deposits by 11% to $415.5 billion provides a stable funding base, though the overall expansion reflects both business growth and increased financial leverage.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+25.9%
$13.4B$16.9B

Net income grew 25.9% — bottom-line growth signals improving overall business health.

Total Debt
Balance Sheet
+20.2%
$284.3B$341.7B

Debt rose 20.2% — additional borrowing for investment or operations; monitor coverage ratios.

Total Liabilities
Balance Sheet
+17.8%
$1.1T$1.3T

Liabilities increased 17.8% — monitor debt-to-equity ratio and interest coverage.

Total Assets
Balance Sheet
+16.9%
$1.2T$1.4T

Asset base grew 16.9% — expansion through organic growth, acquisitions, or capital deployment.

Total Deposits
Balance Sheet
+10.5%
$376.0B$415.5B

Deposits grew 10.5% — expanding customer base or increased trust in the institution.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-21
ADDED
As of January 31, 2026, there were 1,587,860,206 shares of the Registrant s common stock, $0.01 par value, outstanding.
You can access information about our corporate governance at www.morganstanley.com/about-us-governance.
Our Code of Ethics and Business Conduct applies to all directors, officers and employees, including our Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer and Controller.
In addition, restrictive laws and regulations applicable to certain global financial services institutions may prohibit us from engaging in certain transactions, impose more stringent capital and liquidity requirements, and increase costs, and can put us at a competitive disadvantage to competitors in certain businesses not subject to these same requirements.
In particular, the ability to execute securities, derivatives and other financial instrument trades electronically on exchanges, swap execution facilities and other automated trading platforms, and the introduction and application of new technologies, including generative artificial intelligence and tokenization, will likely continue the pressure on our revenues.
Our most recent resolution plan, which was a targeted resolution plan, was submitted on June 30, 2025.
Bank Subsidiaries under this rule will be in 2026 and will include targeted information.
Bank Subsidiaries and certain of their subsidiaries may have to any one affiliate and to all affiliates and require collateral for those exposures.
MSSB s relationship with its investment advisory clients is subject to the fiduciary and other obligations imposed on investment advisers.
Regulation herein for a discussion of other regulations that impact our Investment Management business activities.
REMOVED
As of January 31, 2025, there were 1,612,855,585 shares of the Registrant s common stock, $0.01 par value, outstanding.
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 Code of Ethics and Business Conduct applies to all directors, officers and employees, including our Chief Executive Officer, Chief Financial Officer and Deputy Chief Financial Officer.
In addition, restrictive laws and regulations applicable to certain global financial services institutions, which have been increasing in complexity and volume, may prohibit us from engaging in certain transactions, impose more stringent capital and liquidity requirements, and increase costs, and can put us at a competitive disadvantage to competitors in certain businesses not subject to these same requirements.
In particular, the ability to execute securities, derivatives and other financial instrument trades electronically on exchanges, swap execution facilities and other automated trading platforms, and the introduction and application of new technologies will likely continue the pressure on our revenues.
For additional information, see Management s Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Regulatory Requirements Regulatory Developments and Other Matters Basel III Endgame Proposal.
Our next resolution plan submission will be a targeted resolution plan in July 2025.
Bank Subsidiaries generally will not be required during a year which the Parent Company is required to submit a resolution plan to the Federal Reserve and FDIC.
In addition, the OCC requires IDIs with assets of $100 billion or more, including our U.S.
Bank Subsidiaries, to develop recovery plans detailing the actions they would take to remain a going concern when they experience considerable financial or non-financial stress, but have not deteriorated to the point that resolution is imminent.
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