MORGAN STANLEY - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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EX-99.1 - EXHIBIT 99.1 - MORGAN STANLEY	a50344688ex99-1.htm

Exhibit 99.2

MORGAN STANLEY

Financial Supplement - 2Q 2012

Table of Contents

MORGAN STANLEY

Quarterly Financial Summary

(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change
Net revenues
Institutional Securities	$	3,234		$	3,023		$	5,159			7	%		(37	%)	$	6,257		$	8,727			(28	%)
Global Wealth Management Group		3,305			3,414			3,440			(3	%)		(4	%)		6,719			6,844			(2	%)
Asset Management		456			533			636			(14	%)		(28	%)		989			1,258			(21	%)
Intersegment Eliminations		(42	)		(35	)		(28	)		(20	%)		(50	%)		(77	)		(48	)		(60	%)
Consolidated net revenues	$	6,953		$	6,935		$	9,207			--			(24	%)	$	13,888		$	16,781			(17	%)

Income (loss) from continuing operations before tax
Institutional Securities	$	508		$	(312	)	$	1,485			*			(66	%)	$	196		$	1,917			(90	%)
Global Wealth Management Group		393			387			317			2	%		24	%		780			661			18	%
Asset Management		43			128			168			(66	%)		(74	%)		171			293			(42	%)
Intersegment Eliminations		(4	)		0			0			*			*			(4	)		0			*
Consolidated income (loss) from continuing operations before tax	$	940		$	203		$	1,970			*			(52	%)	$	1,143		$	2,871			(60	%)

Income (loss) applicable to Morgan Stanley
Institutional Securities	$	381		$	(296	)	$	1,021			*			(63	%)	$	85		$	1,755			(95	%)
Global Wealth Management Group		172			193			178			(11	%)		(3	%)		365			360			1	%
Asset Management		14			25			22			(44	%)		(36	%)		39			90			(57	%)
Intersegment Eliminations		(4	)		0			0			*			*			(4	)		0			*
Consolidated income (loss) applicable to Morgan Stanley	$	563		$	(78	)	$	1,221			*			(54	%)	$	485		$	2,205			(78	%)


Financial Metrics:
Return on average common equity
from continuing operations		3.5	%		*			*									1.4	%		1.0	%
Return on average common equity		3.7	%		*			*									1.5	%		0.8	%

Tier 1 common capital ratio		13.5	%		13.3	%		11.4	%
Tier 1 capital ratio		17.1	%		16.8	%		14.5	%

Book value per common share	$	31.02		$	30.74		$	30.17
Tangible book value per common share	$	27.70		$	27.37		$	26.61

Notes:	-	Results for the quarters ended June 30, 2012, March 31, 2012 and June 30, 2011, include positive (negative) revenue of $350 million, $(1,978) million and $244 million, respectively, related to the movement in Morgan Stanley's credit spreads and other credit factors on certain long-term and short-term debt (Debt Valuation Adjustment, DVA).
	-	Income (loss) applicable to Morgan Stanley represents income (loss) from continuing operations, adjusted for the portion of net income (loss) applicable to noncontrolling interests related to continuing operations. For the quarter ended June 30, 2012, net income (loss) applicable to noncontrolling interests includes $8 million reported as a gain in discontinued operations.
	-	The return on average common equity and tangible book value per common share are non-GAAP measures that the Firm considers to be a useful measure that the Firm and investors use to assess operating performance and capital adequacy.
	-	Tier 1 common capital ratio equals Tier 1 common equity divided by Risk Weighted Assets (RWA).
	-	Tier 1 capital ratio equals Tier 1 capital divided by RWA.
	-	Book value per common share equals common equity divided by period end common shares outstanding.
	-	Tangible book value per common share equals tangible common equity divided by period end common shares outstanding.
	-	See page 4 of the financial supplement for additional information related to the calculation of the financial metrics.
	-	Refer to Legal Notice on page 17.

MORGAN STANLEY

Quarterly Consolidated Income Statement Information

(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change
Revenues:
Investment banking	$	1,104		$	1,063		$	1,695			4	%		(35	%)	$	2,167		$	2,909			(26	%)
Principal transactions:
Trading		2,469			2,407			3,484			3	%		(29	%)		4,876			6,461			(25	%)
Investments		63			85			402			(26	%)		(84	%)		148			731			(80	%)
Commissions and fees		1,040			1,177			1,283			(12	%)		(19	%)		2,217			2,722			(19	%)
Asset management, distribution and admin. fees		2,268			2,152			2,174			5	%		4	%		4,420			4,257			4	%
Other		170			110			237			55	%		(28	%)		280			(237	)		*
Total non-interest revenues		7,114			6,994			9,275			2	%		(23	%)		14,108			16,843			(16	%)

Interest income		1,323			1,542			1,961			(14	%)		(33	%)		2,865			3,820			(25	%)
Interest expense		1,484			1,601			2,029			(7	%)		(27	%)		3,085			3,882			(21	%)
Net interest		(161	)		(59	)		(68	)		(173	%)		(137	%)		(220	)		(62	)		*
Net revenues		6,953			6,935			9,207			--			(24	%)		13,888			16,781			(17	%)

Non-interest expenses:
Compensation and benefits		3,633			4,431			4,622			(18	%)		(21	%)		8,064			8,907			(9	%)

Non-compensation expenses:
Occupancy and equipment		380			392			395			(3	%)		(4	%)		772			792			(3	%)
Brokerage, clearing and exchange fees		405			403			410			--			(1	%)		808			811			--
Information processing and communications		487			459			444			6	%		10	%		946			884			7	%
Marketing and business development		156			146			151			7	%		3	%		302			293			3	%
Professional services		478			412			467			16	%		2	%		890			870			2	%
Other		474			489			748			(3	%)		(37	%)		963			1,353			(29	%)
Total non-compensation expenses		2,380			2,301			2,615			3	%		(9	%)		4,681			5,003			(6	%)

Total non-interest expenses		6,013			6,732			7,237			(11	%)		(17	%)		12,745			13,910			(8	%)

Income (loss) from continuing operations before taxes		940			203			1,970			*			(52	%)		1,143			2,871			(60	%)
Income tax provision / (benefit) from continuing operations		226			54			538			*			(58	%)		280			294			(5	%)
Income (loss) from continuing operations		714			149			1,432			*			(50	%)		863			2,577			(67	%)
Gain (loss) from discontinued operations after tax		36			(15	)		(26	)		*			*			21			(41	)		*
Net income (loss)	$	750		$	134		$	1,406			*			(47	%)	$	884		$	2,536			(65	%)
Net income (loss) applicable to noncontrolling interests		159			228			213			(30	%)		(25	%)		387			375			3	%
Net income (loss) applicable to Morgan Stanley		591			(94	)		1,193			*			(50	%)		497			2,161			(77	%)
Preferred stock dividend / Other		27			25			1,751			8	%		(98	%)		51			1,973			(97	%)
Earnings (loss) applicable to Morgan Stanley common shareholders	$	564		$	(119	)	$	(558	)		*			*		$	446		$	188			137	%

Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations		563			(78	)		1,221			*			(54	%)		485			2,205			(78	%)
Gain (loss) from discontinued operations after tax		28			(16	)		(28	)		*			*			12			(44	)		*
Net income (loss) applicable to Morgan Stanley	$	591		$	(94	)	$	1,193			*			(50	%)	$	497		$	2,161			(77	%)

Pre-tax profit margin		14	%		3	%		21	%								8	%		17	%
Compensation and benefits as a % of net revenues		52	%		64	%		50	%								58	%		53	%
Non-compensation expenses as a % of net revenues		34	%		33	%		28	%								34	%		30	%
Effective tax rate from continuing operations		24.0	%		26.5	%		27.3	%								24.5	%		10.2	%

Notes:	-	Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure that the Firm and investors use to assess operating performance. Percentages represent income from continuing operations before income taxes as a percentage of net revenues.
	-	For the quarter ended June 30, 2012, discontinued operations included operating results related to Saxon (reported in Institutional Securities segment) and a pre-tax gain of $108 million ($73 million after-tax) and other operating income related to the sale of Quilter & Co. Ltd. (Quilter) (reported in the Global Wealth Management business segment).
	-	For the quarter ended March 31, 2012, discontinued operations primarily reflected an after-tax loss related to the first phase of the previously announced disposition of Saxon and the operating results of Quilter.
	-	The quarter ended June 30, 2011, preferred stock dividend/other included a one-time negative adjustment of approximately $1.7 billion related to the conversion of Series B Non-Cumulative Non-Voting Perpetual Convertible Preferred Stock held by Mitsubishi UFJ Financial Group, Inc. (MUFG), into Morgan Stanley common stock (MUFG conversion).
	-	Preferred stock dividend / other includes allocation of earnings to Participating Restricted Stock Units (RSUs).
	-	Refer to Legal Notice on page 17.

MORGAN STANLEY

Quarterly Earnings Per Share

(unaudited, dollars in millions, except for per share data)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change


Income (loss) from continuing operations	$	714		$	149		$	1,432			*			(50	%)	$	863		$	2,577			(67	%)
Net income (loss) from continuing operations applicable to noncontrolling interest		151			227			211			(33	%)		(28	%)		378			372			2	%
Income from continuing operations applicable to Morgan Stanley		563			(78	)		1,221			*			(54	%)		485			2,205			(78	%)
Less: Preferred Dividends		(24	)		(24	)		(24	)		--			--			(48	)		(244	)		80	%
Less: MUFG preferred stock conversion		-			-			(1,726	)		--			*			-			(1,726	)		*
Income from continuing operations applicable to Morgan Stanley, prior to allocation of income to Participating Restricted Stock Units		539			(102	)		(529	)		*			*			437			235			86	%

Basic EPS Adjustments:
Less: Allocation of earnings to Participating Restricted Stock Units		3			1			1			200	%		200	%		3			4			(25	%)
Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	536		$	(103	)	$	(530	)		*			*		$	434		$	231			88	%

Gain (loss) from discontinued operations after tax		36			(15	)		(26	)		*			*			21			(41	)		*
Less: Gain (loss) from discontinued operations after tax applicable to noncontrolling interests		8			1			2			*			*			9			3			200	%
Gain (loss) from discontinued operations after tax applicable to Morgan Stanley		28			(16	)		(28	)		*			*			12			(44	)		*
Less: Allocation of earnings to Participating Restricted Stock Units		0			0			0			--			--			0			1			*
Earnings (loss) from discontinued operations applicable to Morgan Stanley common shareholders		28			(16	)		(28	)		*			*			12			(43	)		*

Earnings (loss) applicable to Morgan Stanley common shareholders	$	564		$	(119	)	$	(558	)		*			*		$	446		$	188			137	%

Average basic common shares outstanding (millions)		1,885			1,877			1,464			--			29	%		1,881			1,460			29	%

Earnings per basic share:
Income from continuing operations	$	0.28		$	(0.05	)	$	(0.36	)		*			*		$	0.23		$	0.16			44	%
Discontinued operations	$	0.02		$	(0.01	)	$	(0.02	)		*			*		$	0.01		$	(0.03	)		*
Earnings per basic share	$	0.30		$	(0.06	)	$	(0.38	)		*			*		$	0.24		$	0.13			85	%

Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	536		$	(103	)	$	(530	)		*			*		$	434		$	231			88	%

Diluted EPS Adjustments:
Earnings (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	536		$	(103	)	$	(530	)		*			*		$	434		$	231			88	%

Earnings (loss) from discontinued operations applicable to Morgan Stanley common shareholders		28			(16	)		(28	)		*			*			12			(43	)		*

Earnings (loss) applicable to Morgan Stanley common shareholders	$	564		$	(119	)	$	(558	)		*			*		$	446		$	188			137	%

Average diluted common shares outstanding and common stock equivalents (millions)		1,912			1,877			1,464			2	%		31	%		1,907			1,477			29	%

Earnings per diluted share:
Income from continuing operations	$	0.28		$	(0.05	)	$	(0.36	)		*			*		$	0.23		$	0.16			44	%
Discontinued operations	$	0.01		$	(0.01	)	$	(0.02	)		*			*		$	-		$	(0.03	)		*
Earnings per diluted share	$	0.29		$	(0.06	)	$	(0.38	)		*			*		$	0.23		$	0.13			77	%

Notes:	-	The Firm calculates earnings per share using the two-class method as described under the accounting guidance for earnings per share. For further discussion of the Firm's earnings per share calculations, see page 14 of the financial supplement and Note 2 to the consolidated financial statements in the Firm's Annual Report on Form 10-K for the year ended December 31, 2011.
	-	Refer to Legal Notice on page 17.

MORGAN STANLEY

Quarterly Consolidated Financial Information and Statistical Data

(unaudited)

	Quarter Ended									Percentage Change From:						Six Months Ended				Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012		June 30, 2011		Change


Regional revenues (1)
Americas	$	5,114		$	4,790		$	6,599			7	%		(23	%)	$	9,904	$	12,065		(18	%)
EMEA (Europe, Middle East, Africa)		978			1,154			1,527			(15	%)		(36	%)		2,132		3,194		(33	%)
Asia		861			991			1,081			(13	%)		(20	%)		1,852		1,522		22	%
Consolidated net revenues	$	6,953		$	6,935		$	9,207			--			(24	%)	$	13,888	$	16,781		(17	%)

Worldwide employees		58,627			59,200			62,577			(1	%)		(6	%)

Firmwide deposits	$	68,252		$	66,441		$	65,525			3	%		4	%
Total assets	$	753,757		$	781,030		$	830,747			(3	%)		(9	%)
Risk weighted assets (2)	$	317,188		$	317,693		$	353,323			--			(10	%)
Global Liquidity Reserve (Billions) (3)	$	173		$	179		$	182			(3	%)		(5	%)
Long-Term Debt Outstanding	$	167,828		$	176,723		$	196,106			(5	%)		(14	%)
Maturities of Long-Term Debt Outstanding (next 12 months)	$	25,356		$	29,458		$	35,848			(14	%)		(29	%)

Common equity		61,333			60,816			58,199			1	%		5	%
Preferred equity		1,508			1,508			1,508			--			--
Morgan Stanley shareholders' equity		62,841			62,324			59,707			1	%		5	%
Junior subordinated debt issued to capital trusts		4,851			4,838			4,826			--			1	%
Less: Goodwill and intangible assets (4)		(6,568	)		(6,660	)		(6,860	)		1	%		4	%
Tangible Morgan Stanley shareholders' equity	$	61,124		$	60,502		$	57,673			1	%		6	%
Tangible common equity	$	54,765		$	54,156		$	51,339			1	%		7	%

Leverage ratio		12.3	x		12.9	x		14.4	x

Tier 1 common capital (5)	$	42,801		$	42,151		$	40,262			2	%		6	%
Tier 1 capital (6)	$	54,281		$	53,527		$	51,170			1	%		6	%

Tier 1 common capital ratio		13.5	%		13.3	%		11.4	%
Tier 1 capital ratio		17.1	%		16.8	%		14.5	%
Tier 1 leverage ratio		7.1	%		7.0	%		6.0	%

Period end common shares outstanding (000's)		1,977,403			1,978,338			1,929,033			--			3	%

Book value per common share	$	31.02		$	30.74		$	30.17
Tangible book value per common share	$	27.70		$	27.37		$	26.61

Notes:	-	All data presented in millions except number of employees, liquidity, ratios and book values.
	-	The number of worldwide employees for all periods has been restated to exclude employees of Quilter.
	-	The goodwill and intangible assets deduction include the Firm's share of Morgan Stanley Smith Barney (MSSB) goodwill and intangible assets.
	-	Tangible common equity equals common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction.
	-	Leverage ratio equals total assets divided by tangible Morgan Stanley shareholders' equity.
	-	Tier 1 leverage ratio equals Tier 1 capital divided by adjusted average total assets (which reflects adjustments for disallowed goodwill, certain intangible assets, deferred tax assets and financial and non-financial equity investments).
	-	Refer to End Notes on pages 15-16 and Legal Notice on page 17.

MORGAN STANLEY

Quarterly Consolidated Financial Information and Statistical Data

(unaudited, dollars in billions)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change:
Average Tier 1 Common Capital (1)
Institutional Securities	$	22.3		$	22.1		$	27.5			1	%		(19	%)	$	22.3		$	26.7			(16	%)
Global Wealth Management Group		3.8			3.6			3.4			6	%		12	%		3.7			3.3			12	%
Asset Management		1.3			1.3			1.5			--			(13	%)		1.3			1.5			(13	%)
Parent capital		15.1			13.9			(0.4	)		9	%		*			14.4			0.0			*
Total - continuing operations		42.5			40.9			32.0			4	%		33	%		41.7			31.5			32	%
Discontinued operations		0.0			0.0			0.0			--			--			0.0			0.0			--
Firm	$	42.5		$	40.9		$	32.0			4	%		33	%	$	41.7		$	31.5			32	%

Average Common Equity (1)
Institutional Securities	$	29.4		$	29.5		$	33.9			--			(13	%)	$	29.5		$	33.5			(12	%)
Global Wealth Management Group		13.3			13.3			13.4			--			(1	%)		13.3			13.2			1	%
Asset Management		2.5			2.5			2.7			--			(7	%)		2.5			2.7			(7	%)
Parent capital		16.2			15.2			(0.4	)		7	%		*			15.7			(0.5	)		*
Total - continuing operations		61.4			60.5			49.6			1	%		24	%		61.0			48.9			25	%
Discontinued operations		0.0			0.0			0.0			--			--			0.0			0.0			--
Firm	$	61.4		$	60.5		$	49.6			1	%		24	%	$	61.0		$	48.9			25	%

Return on average Tier 1 common capital
Institutional Securities		6	%		*			*									0	%		0	%
Global Wealth Management Group		18	%		21	%		*									19	%		8	%
Asset Management		4	%		7	%		*									6	%		*
Total - continuing operations		5	%		*			*									2	%		1	%
Firm		5	%		*			*									2	%		1	%

Return on average common equity
Institutional Securities		5	%		*			*									0	%		0	%
Global Wealth Management Group		5	%		6	%		*									5	%		2	%
Asset Management		2	%		4	%		*									3	%		*
Total - continuing operations		4	%		*			*									1	%		1	%
Firm		4	%		*			*									1	%		1	%

Notes:	-	Beginning in the quarter ended March 31, 2012, Firm and segment required Capital is met by Tier 1 common capital. Prior to the current quarter, the Firm's required Capital was met by regulatory Tier 1 capital or Tier 1 common equity. Segment capital for prior quarters has been recast under this framework. Tier 1 common capital is defined as Tier 1 capital less non-common elements in Tier 1 capital, including perpetual preferred stock and related surplus, minority interest in subsidiaries, trust preferred securities and mandatory convertible preferred securities.
	-	The return on average common equity and average Tier 1 common capital are non-GAAP measures that the Firm considers to be useful measures that the Firm and investors use to assess operating performance.
	-	The MUFG conversion which occurred on June 30, 2011, did not have a material effect on firm or business segment average common equity for the three and six months ended June 30, 2011.
	-	For the quarter and six months ended June 30, 2011, the negative adjustment of $1.7 billion related to the MUFG conversion was allocated to the business segments and included in the numerator for the purpose of calculating the return on average common equity as follows: Institutional Securities $1.4 billion, Global Wealth Management $0.2 billion and Asset Management $0.1 billion. Excluding this negative adjustment, the return on average common equity for the quarter and six months ended June 30, 2011, would have been:
		Quarter: Firm: 10%, Institutional Securities: 12%, Global Wealth Management: 5% and Asset Management: 3%
		Six Months: Firm: 8%, Institutional Secuties: 9%, Global Wealth Management: 5% and Asset Management: 6%
	-	Refer to End Notes on pages 15-16 and Legal Notice on page 17.

MORGAN STANLEY

Quarterly Institutional Securities Income Statement Information

(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change
Revenues:
Investment banking	$	884		$	851		$	1,473			4	%		(40	%)	$	1,735		$	2,481			(30	%)
Principal transactions:
Trading		2,254			2,044			3,208			10	%		(30	%)		4,298			5,855			(27	%)
Investments		46			(49	)		150			*			(69	%)		(3	)		293			*
Commissions and fees		509			548			605			(7	%)		(16	%)		1,057			1,274			(17	%)
Asset management, distribution and admin. fees		33			32			35			3	%		(6	%)		65			65			--
Other		51			58			92			(12	%)		(45	%)		109			(510	)		*
Total non-interest revenues		3,777			3,484			5,563			8	%		(32	%)		7,261			9,458			(23	%)

Interest income		931			1,145			1,579			(19	%)		(41	%)		2,076			3,065			(32	%)
Interest expense		1,474			1,606			1,983			(8	%)		(26	%)		3,080			3,796			(19	%)
Net interest		(543	)		(461	)		(404	)		(18	%)		(34	%)		(1,004	)		(731	)		(37	%)
Net revenues		3,234			3,023			5,159			7	%		(37	%)		6,257			8,727			(28	%)

Compensation and benefits		1,425			2,108			2,210			(32	%)		(36	%)		3,533			4,133			(15	%)
Non-compensation expenses		1,301			1,227			1,464			6	%		(11	%)		2,528			2,677			(6	%)
Total non-interest expenses		2,726			3,335			3,674			(18	%)		(26	%)		6,061			6,810			(11	%)


Income (loss) from continuing operations before taxes		508			(312	)		1,485			*			(66	%)		196			1,917			(90	%)
Income tax provision / (benefit) from continuing operations		72			(105	)		347			*			(79	%)		(33	)		(16	)		(106	%)
Income (loss) from continuing operations		436			(207	)		1,138			*			(62	%)		229			1,933			(88	%)
Gain (loss) from discontinued operations after tax		(29	)		(17	)		(30	)		(71	%)		3	%		(46	)		(53	)		13	%
Net income (loss)		407			(224	)		1,108			*			(63	%)		183			1,880			(90	%)
Net income (loss) applicable to noncontrolling interests		55			89			117			(38	%)		(53	%)		144			178			(19	%)
Net income (loss) applicable to Morgan Stanley	$	352		$	(313	)	$	991			*			(64	%)	$	39		$	1,702			(98	%)

Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations		381			(296	)		1,021			*			(63	%)		85			1,755			(95	%)
Gain (loss) from discontinued operations after tax		(29	)		(17	)		(30	)		(71	%)		3	%		(46	)		(53	)		13	%
Net income (loss) applicable to Morgan Stanley	$	352		$	(313	)	$	991			*			(64	%)	$	39		$	1,702			(98	%)

Return on average common equity
from continuing operations		5	%		*			*									0	%		0	%
Pre-tax profit margin		16	%		*			29	%								3	%		22	%
Compensation and benefits as a % of net revenues		44	%		70	%		43	%								57	%		47	%

Notes:	-	Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure that the Firm and investors use to assess operating performance. Percentages represent income from continuing operations before income taxes as a percentage of net revenues.
	-	For the quarter ended June 30, 2012, discontinued operations included operating results related to Saxon.
	-	For the quarter ended March 31, 2012, discontinued operations included an after-tax loss related to the first phase of the previously announced disposition of Saxon.
	-	For the quarter and six months ended June 30, 2011, the negative adjustment related to the MUFG conversion was included in the numerator in the calculation of the return on average common equity. Excluding this negative adjustment, the return on average common equity for Institutional Securities would have been 12% and 9%, respectively for the quarter and six months ended June 30, 2011.
	-	Refer to Legal Notice on page 17.

MORGAN STANLEY

Quarterly Financial Information and Statistical Data

Institutional Securities

(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change

Investment Banking
Advisory revenues	$	263		$	313		$	533			(16	%)		(51	%)	$	576		$	918			(37	%)
Underwriting revenues
Equity		283			172			419			65	%		(32	%)		455			704			(35	%)
Fixed income		338			366			521			(8	%)		(35	%)		704			859			(18	%)
Total underwriting revenues		621			538			940			15	%		(34	%)		1,159			1,563			(26	%)

Total investment banking revenues	$	884		$	851		$	1,473			4	%		(40	%)	$	1,735		$	2,481			(30	%)

Sales & Trading
Equity	$	1,218		$	1,452		$	1,853			(16	%)		(34	%)	$	2,670		$	3,555			(25	%)
Fixed Income and Commodities		1,046			997			2,098			5	%		(50	%)		2,043			3,875			(47	%)
Other		(11	)		(286	)		(507	)		96	%		98	%		(297	)		(967	)		69	%
Total sales & trading net revenues	$	2,253		$	2,163		$	3,444			4	%		(35	%)	$	4,416		$	6,463			(32	%)

Investments & Other
Investments	$	46		$	(49	)	$	150			*			(69	%)	$	(3	)	$	293			*
Other		51			58			92			(12	%)		(45	%)		109			(510	)		*
Total investments & other revenues	$	97		$	9		$	242			*			(60	%)	$	106		$	(217	)		*

Total Institutional Securities net revenues	$	3,234		$	3,023		$	5,159			7	%		(37	%)	$	6,257		$	8,727			(28	%)


Average Daily 95% / One-Day Value-at-Risk ("VaR") (1)
Primary Market Risk Category ($ millions, pre-tax)
Interest rate and credit spread	$	75		$	57		$	117
Equity price	$	36		$	33		$	31
Foreign exchange rate	$	16		$	16		$	20
Commodity price	$	34		$	31		$	29

Aggregation of Primary Risk Categories	$	81		$	72		$	135

Credit Portfolio VaR	$	33		$	40		$	97

Trading VaR	$	91		$	84		$	145

Notes:	-	For the periods noted below, sales and trading net revenues included positive (negative) revenue related to DVA as follows:
		June 30, 2012: Total QTD: $350 million; Fixed Income & Commodities: $276 million; Equity: $74 million
		March 31, 2012: Total: $(1,978) million; Fixed Income & Commodities: $(1,597) million; Equity: $(381) million
		June 30, 2011: Total QTD: $244 million; Fixed Income & Commodities: $192 million; Equity: $52 million
		June 30, 2012: Total YTD: $(1,628) million; Fixed Income & Commodities: $(1,321) million; Equity: $(307) million
		June 30, 2011: Total YTD: $55 million; Fixed Income & Commodities: $33 million; Equity: $22 million
	-	Refer to End Notes on pages 15-16 and Legal Notice on page 17.

MORGAN STANLEY

Quarterly Financial Information and Statistical Data

Institutional Securities - Corporate Loans and Commitments

(unaudited, dollars in billions)

	Quarter Ended									Percentage Change From:
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011

Loans and commitments at fair value
Corporate funded loans:
Investment grade	$	5.2		$	6.4		$	7.2			(19	%)		(28	%)
Non-investment grade		5.9			6.8			7.1			(13	%)		(17	%)
Total corporate funded loans	$	11.1		$	13.2		$	14.3			(16	%)		(22	%)

Corporate lending commitments:
Investment grade	$	29.5		$	41.5		$	53.2			(29	%)		(45	%)
Non-investment grade		9.3			12.2			18.5			(24	%)		(50	%)
Total corporate lending commitments	$	38.8		$	53.7		$	71.7			(28	%)		(46	%)

Corporate funded loans plus lending commitments:
Investment grade	$	34.7		$	47.9		$	60.4			(28	%)		(43	%)
Non-investment grade		15.2			19.0			25.6			(20	%)		(41	%)
Total loans and commitments at fair value	$	49.9		$	66.9		$	86.0			(25	%)		(42	%)

% investment grade		70	%		72	%		70	%
% non-investment grade		30	%		28	%		30	%

Held for investment (HFI) portfolio	$	32.9		$	18.1		$	1.6			82	%		*

Held for sale (HFS) portfolio	$	8.1		$	0.5		$	-			*			*
Total Corporate Lending Exposure	$	90.9		$	85.5		$	87.6			6	%		4	%

Hedges	$	24.4		$	33.8		$	34.0			(28	%)		(28	%)

Notes:	-	In connection with certain of its Institutional Securities business activities, the Firm provides loans or lending commitments to select clients related to its event driven or relationship lending activities. For a further discussion of this activity, see the Firm's Annual Report on Form 10-K for the year ended December 31, 2011.
	-	Total Corporate Lending exposure represents the Firm's potential loss assuming the market price of funded loans and lending commitments was zero.
	-	On June 30, 2012, March 31, 2012 and June 30, 2011, the "event-driven" portfolio of pipeline commitments and closed deals to non-investment grade borrowers were $4.8 billion, $3.8 billion, and $7.2 billion, respectively.
	-	On June 30, 2012, March 31, 2012 and June 30, 2011, the HFI portfolio allowance for loan losses for funded loans was $58 million, $15 million and $0.6 million, respectively.
	-	On June 30, 2012, March 31, 2012 and June 30, 2011, the HFI portfolio allowance for credit losses for loan commitments was $27 million, $12 million and $0.4 million, respectively.
	-	Held for sale portfolio reflects loans and commitments carried at the lower of cost or fair market value.
	-	The hedge balance reflects the notional amount utilized by the corporate lending business.
	-	Refer to Legal Notice on page 17.

MORGAN STANLEY

Quarterly Global Wealth Management Group Income Statement Information

(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change
Revenues:
Investment banking	$	223		$	205		$	219			9	%		2	%	$	428		$	423			1	%
Principal transactions:
Trading		222			371			289			(40	%)		(23	%)		593			622			(5	%)
Investments		1			2			5			(50	%)		(80	%)		3			9			(67	%)
Commissions and fees		531			630			679			(16	%)		(22	%)		1,161			1,449			(20	%)
Asset management, distribution and admin. fees		1,857			1,739			1,755			7	%		6	%		3,596			3,417			5	%
Other		80			57			147			40	%		(46	%)		137			237			(42	%)
Total non-interest revenues		2,914			3,004			3,094			(3	%)		(6	%)		5,918			6,157			(4	%)

Interest income		489			490			464			--			5	%		979			917			7	%
Interest expense		98			80			118			23	%		(17	%)		178			230			(23	%)
Net interest		391			410			346			(5	%)		13	%		801			687			17	%
Net revenues		3,305			3,414			3,440			(3	%)		(4	%)		6,719			6,844			(2	%)

Compensation and benefits		1,994			2,105			2,132			(5	%)		(6	%)		4,099			4,241			(3	%)
Non-compensation expenses		918			922			991			--			(7	%)		1,840			1,942			(5	%)
Total non-interest expenses		2,912			3,027			3,123			(4	%)		(7	%)		5,939			6,183			(4	%)

Income (loss) from continuing operations before taxes		393			387			317			2	%		24	%		780			661			18	%
Income tax provision / (benefit) from continuing operations		148			121			137			22	%		8	%		269			226			19	%
Income (loss) from continuing operations		245			266			180			(8	%)		36	%		511			435			17	%
Gain (loss) from discontinued operations after tax		61			1			4			*			*			62			6			*
Net income (loss)		306			267			184			15	%		66	%		573			441			30	%
Net income (loss) applicable to noncontrolling interests		81			74			4			9	%		*			155			78			99	%
Net income (loss) applicable to Morgan Stanley	$	225		$	193		$	180			17	%		25	%	$	418		$	363			15	%

Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations		172			193			178			(11	%)		(3	%)		365			360			1	%
Gain (loss) from discontinued operations after tax		53			0			2			*			*			53			3			*
Net income (loss) applicable to Morgan Stanley	$	225		$	193		$	180			17	%		25	%	$	418		$	363			15	%

Return on average common equity
from continuing operations		5	%		6	%		*									5	%		2	%
Pre-tax profit margin		12	%		11	%		9	%								12	%		10	%
Compensation and benefits as a % of net revenues		60	%		62	%		62	%								61	%		62	%

Notes:	-	Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure that the Firm and investors use to assess operating performance. Percentages represent income from continuing operations before income taxes as a percentage of net revenues.
	-	For the quarter ended June 30, 2012, discontinued operations included a pre-tax gain of $108 million ($73 million after-tax) and other operating income related to the sale of Quilter.
	-	For the quarter and six months ended June 30, 2011, the negative adjustment related to the MUFG conversion was included in the numerator in the caluclation of the return on average common equity. Excluding this negative adjustment, the return on average common equity for Global Wealth Management would have been 5% and 5%, respectively, for the quarter and six months ended June 30, 2011.
	-	Net income (loss) applicable to noncontrolling interests reflects the 49% allocation of MSSB's pre-tax results to Citigroup.
	-	Refer to Legal Notice on page 17.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Global Wealth Management Group
(unaudited)

	Quarter Ended									Percentage Change From:
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011

Global representatives		16,934			17,193			17,987			(2	%)		(6	%)

Annualized revenue per global
representative (000's)	$	775		$	787		$	762			(2	%)		2	%

Assets by client segment (billions)
$10m or more		560			588			538			(5	%)		4	%
$1m - $10m		704			735			729			(4	%)		(3	%)
Subtotal - > $1m		1,264			1,323			1,267			(4	%)		--
$100k - $1m		399			381			392			5	%		2	%
< $100k		44			40			38			10	%		16	%
Total client assets (billions)	$	1,707		$	1,744		$	1,697			(2	%)		1	%

% of assets by client segment > $1m		74	%		76	%		75	%

Fee-based client account assets (billions)	$	526		$	531		$	498			(1	%)		6	%
Fee-based assets as a % of client assets		31	%		30	%		29	%


Bank deposit program (millions)	$	112,418		$	111,981		$	110,354			--			2	%

Client assets per global
representative (millions)	$	101		$	101		$	94			--			7	%

Global fee based asset flows (billions)	$	4.1		$	8.7		$	9.5			(53	%)		(57	%)

Global retail locations		740			743			792			--			(7	%)

Notes:	-	Annualized revenue per global representative is defined as annualized revenue divided by average global representative headcount.
	-	Fee-based client account assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
	-	For the quarters ended June 30, 2012, March 31, 2012 and June 30, 2011, approximately $58 billion, $57 billion and $56 billion, respectively, of the assets in the bank deposit program are attributable to Morgan Stanley.
	-	Global fee based asset flows represent the net asset flows, excluding interest and dividends, in client accounts where the basis of payment for services is a fee calculated on those assets.
	-	Client assets per global representative represents total client assets divided by period end global representative headcount.
	-	Refer to Legal Notice on page 17.

MORGAN STANLEY
Quarterly Asset Management Income Statement Information
(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change
Revenues:
Investment banking	$	1		$	7		$	3			(86	%)		(67	%)	$	8		$	5			60	%
Principal transactions:
Trading		(3	)		(6	)		(11	)		50	%		73	%		(9	)		(12	)		25	%
Investments (1)		16			132			247			(88	%)		(94	%)		148			429			(66	%)
Commissions and fees		0			0			0			--			--			0			0			--
Asset management, distribution and admin. fees		408			411			406			(1	%)		--			819			811			1	%
Other		43			(3	)		1			*			*			40			43			(7	%)
Total non-interest revenues		465			541			646			(14	%)		(28	%)		1,006			1,276			(21	%)

Interest income		2			3			3			(33	%)		(33	%)		5			7			(29	%)
Interest expense		11			11			13			--			(15	%)		22			25			(12	%)
Net interest		(9	)		(8	)		(10	)		(13	%)		10	%		(17	)		(18	)		6	%
Net revenues		456			533			636			(14	%)		(28	%)		989			1,258			(21	%)

Compensation and benefits		214			218			280			(2	%)		(24	%)		432			533			(19	%)
Non-compensation expenses		199			187			188			6	%		6	%		386			432			(11	%)
Total non-interest expenses		413			405			468			2	%		(12	%)		818			965			(15	%)

Income (loss) from continuing operations before taxes		43			128			168			(66	%)		(74	%)		171			293			(42	%)
Income tax provision / (benefit) from continuing operations		6			38			54			(84	%)		(89	%)		44			84			(48	%)
Income (loss) from continuing operations		37			90			114			(59	%)		(68	%)		127			209			(39	%)
Gain (loss) from discontinued operations after tax		0			1			0			*			--			1			6			(83	%)
Net income (loss)		37			91			114			(59	%)		(68	%)		128			215			(40	%)
Net income (loss) applicable to noncontrolling interests (1)		23			65			92			(65	%)		(75	%)		88			119			(26	%)
Net income (loss) applicable to Morgan Stanley	$	14		$	26		$	22			(46	%)		(36	%)	$	40		$	96			(58	%)

Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations		14			25			22			(44	%)		(36	%)		39			90			(57	%)
Gain (loss) from discontinued operations after tax		0			1			0			*			--			1			6			(83	%)
Net income (loss) applicable to Morgan Stanley	$	14		$	26		$	22			(46	%)		(36	%)	$	40		$	96			(58	%)

Return on average common equity
from continuing operations		2	%		4	%		*									3	%		*
Pre-tax profit margin		9	%		24	%		26	%								17	%		23	%
Compensation and benefits as a % of net revenues		47	%		41	%		44	%								44	%		42	%

Notes:	-	Pre-tax profit margin is a non-GAAP financial measure that the Firm considers to be a useful measure that the Firm and investors use to assess operating performance.
	-	For the quarter and six months ended June 30, 2011, the negative adjustment related to the MUFG conversion was included in the numerator in the calculation of the return on average common equity. Excluding this negative adjustment, the return on average common equity for Asset Management would have been 3% and 6%, respectively, for the quarter and six months ended June 30, 2011.
		Percentages represent income from continuing operations before income taxes as a percentage of net revenues.
	-	Refer to End Notes on pages 15-16 and Legal Notice on page 17.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Asset Management
(unaudited, dollars in billions)

	Quarter Ended									Percentage Change From:						Six Months Ended						Percentage
	June 30, 2012			Mar 31, 2012			June 30, 2011			Mar 31, 2012			June 30, 2011			June 30, 2012			June 30, 2011			Change

Net Revenues
Traditional Asset Management	$	337		$	342		$	366			(1	%)		(8	%)	$	679		$	692			(2	%)
Real Estate Investing (1)		122			146			166			(16	%)		(27	%)		268			279			(4	%)
Merchant Banking		(3	)		45			104			*			*			42			287			(85	%)
Total Asset Management	$	456		$	533		$	636			(14	%)		(28	%)	$	989		$	1,258			(21	%)

Assets under management or supervision

Net flows by asset class (2)
Traditional Asset Management
Equity	$	1.2		$	(0.9	)	$	1.4			*			(14	%)	$	0.3		$	3.4			(91	%)
Fixed Income		(0.4	)		(0.7	)		(2.4	)		43	%		83	%		(1.1	)		(3.0	)		63	%
Liquidity		11.5			1.2			16.5			*			(30	%)		12.7			18.1			(30	%)
Alternatives		0.8			(0.1	)		0.2			*			*			0.7			0.1			*
Total Traditional Asset Management		13.1			(0.5	)		15.7			*			(17	%)		12.6			18.6			(32	%)

Real Estate Investing		0.0			0.7			(0.1	)		*			*			0.7			0.1			*
Merchant Banking		0.0			0.0			0.1			--			*			0.0			(1.6	)		*
Total net flows	$	13.1		$	0.2		$	15.7			*			(17	%)	$	13.3		$	17.1			(22	%)

Assets under management or supervision by asset class (3)
Traditional Asset Management
Equity	$	113		$	117		$	119			(3	%)		(5	%)
Fixed Income		58			58			61			--			(5	%)
Liquidity		86			75			72			15	%		19	%
Alternatives		26			26			18			--			44	%
Total Traditional Asset Management		283			276			270			3	%		5	%

Real Estate Investing		19			19			17			--			12	%
Merchant Banking		9			9			9			--			--
Total Assets Under Management or Supervision	$	311		$	304		$	296			2	%		5	%
Share of minority stake assets		5			6			7			(17	%)		(29	%)

Notes:	-	The alternatives asset class includes a range of investment products such as funds of hedge funds, funds of private equity funds and funds of real estate funds.
	-	The share of minority stake assets represents Asset Management's proportional share of assets managed by entities in which it owns a minority stake.
	-	Refer to End Notes on pages 15-16 and Legal Notice on page 17.

This page represents an addendum to the 2Q 2012 Financial Supplement, Appendix I

MORGAN STANLEY
Country Risk Exposure (1) - European Peripherals and France
As of June 30, 2012
(unaudited, dollars in millions)

				Net								Exposure
	Net			Counterparty		Funded		Unfunded		CDS		Before
	Inventory (2)			Exposure (3)		Lending		Commitments		Adjustment (4)		Hedges			Hedges (5)			Net Exposure
Greece
Sovereigns	$	24		$	13	$	-	$	-	$	-	$	37		$	-		$	37
Non-sovereigns		86			5		34		-		-		125			(34	)		91
Sub-total		110			18		34		-		-		162			(34	)		128
Ireland
Sovereigns		34			10		-		-		4		48			(2	)		46
Non-sovereigns		103			96		73		3		16		291			(18	)		273
Sub-total		137			106		73		3		20		339			(20	)		319
Italy
Sovereigns		(610	)		279		-		-		279		(52	)		(183	)		(235	)
Non-sovereigns		322			668		426		1,406		166		2,988			(505	)		2,483
Sub-total		(288	)		947		426		1,406		445		2,936			(688	)		2,248
Spain
Sovereigns		(336	)		16		-		-		506		186			(16	)		170
Non-sovereigns		225			472		77		777		184		1,735			(306	)		1,429
Sub-total		(111	)		488		77		777		690		1,921			(322	)		1,599
Portugal
Sovereigns		(285	)		29		-		-		26		(230	)		(83	)		(313	)
Non-sovereigns		66			33		127		-		54		280			(85	)		195
Sub-total		(219	)		62		127		-		80		50			(168	)		(118	)
Total Euro Peripherals (6)
Sovereigns		(1,173	)		347		-		-		815		(11	)		(284	)		(295	)
Non-sovereigns		802			1,274		737		2,186		420		5,419			(948	)		4,471
Sub-total		(371	)		1,621		737		2,186		1,235		5,408			(1,232	)		4,176

France (6)
Sovereigns		(1,879	)		237		-		-		11		(1,631	)		(319	)		(1,950	)
Non-sovereigns		11			2,060		258		1,718		326		4,373			(1,071	)		3,302
Sub-total	$	(1,868	)	$	2,297	$	258	$	1,718	$	337	$	2,742		$	(1,390	)	$	1,352

(1)	Country risk exposure is measured in accordance with the Firm’s internal risk management standards and includes obligations from sovereign and non-sovereigns, which includes governments, corporations, clearinghouses and financial institutions.
(2)	Net inventory representing exposure to both long and short single name and index positions (i.e., bonds and equities at fair value and CDS based on notional amount assuming zero recovery adjusted for any fair value receivable or payable).
(3)	Net counterparty exposure (i.e., repurchase transactions, securities lending and OTC derivatives) taking into consideration legally enforceable master netting agreements and collateral.
(4)	CDS adjustment represents credit protection purchased from European peripheral banks on European peripheral sovereign and financial institution risk, or French banks on French sovereign and financial institution risk.
	Based on the CDS notional amount assuming zero recovery adjusted for any fair value receivable or payable.
(5)	Represents CDS hedges on net counterparty exposure and funded lending. Based on the CDS notional amount assuming zero recovery adjusted for any fair value receivable or payable.
(6)	In addition, at June 30, 2012, the Firm had European Peripherals and French exposure for overnight deposits with banks of approximately $84 million and $19 million, respectively.
	- Refer to Legal Notice on page 17.

This page represents an addendum to the 2Q 2012 Financial Supplement, Appendix II

MORGAN STANLEY
Earnings Per Share Calculation Under Two-Class Method
Three Months Ended June 30, 2012
(unaudited, in millions, except for per share data)

	Allocation of net income from continuing operations
	(A)	(B)	(C)	(D)	(E)	(F)		(G)
						(D)+(E)		(F)/(A)
	Weighted Average # of Shares	% Allocation (2)	Net income from continuing operations applicable to Morgan Stanley (3)	Distributed Earnings (4)	Undistributed Earnings (5)	Total Earnings Allocated		Basic EPS (8)
Basic Common Shares	1,885	99%		$94	$442	$536	(6)	$0.28
Participating Restricted Stock Units (1)	10	1%		$1	$2	$3	(7)	N/A
	1,895	100%	$539	$95	$444	$539


	Allocation of gain (loss) from discontinued operations
	(A)	(B)	(C)	(D)	(E)	(F)		(G)
						(D)+(E)		(F)/(A)
	Weighted Average # of Shares	% Allocation (2)	Gain (loss) from Discontinued Operations Applicable to Common Shareholders, after Tax (3)	Distributed Earnings (4)	Undistributed Earnings (5)	Total Earnings Allocated		Basic EPS (8)
Basic Common Shares	1,885	99%		$0	$28	$28	(6)	$0.02
Participating Restricted Stock Units (1)	10	1%		$0	$0	$0	(7)	N/A
	1,895	100%	$28	$0	$28	$28


	Allocation of net income applicable to common shareholders
	(A)	(B)	(C)	(D)	(E)	(F)		(G)
						(D)+(E)		(F)/(A)
	Weighted Average # of Shares	% Allocation (2)	Net income applicable to Morgan Stanley (3)	Distributed Earnings (4)	Undistributed Earnings (5)	Total Earnings Allocated		Basic EPS (8)
Basic Common Shares	1,885	99%		$94	$470	$564	(6)	$0.30
Participating Restricted Stock Units (1)	10	1%		$1	$2	$3	(7)	N/A
	1,895	100%	$567	$95	$472	$567

Note:

Refer to End Notes on pages 15-16 and Legal Notice on page 17.

MORGAN STANLEY

End Notes

Page 4:

(1)	Reflects the regional view of the Firm's consolidated net revenues, on a managed basis, based on the following methodology:
	Institutional Securities: investment banking - client location, equity capital markets - client location, debt capital markets - revenue
	recording location, sales & trading - trading desk location. Global Wealth Management: financial advisor location. Asset Management:
	client location except for the merchant banking business which is based on asset location.
(2)	Risk weighted assets (RWA) are calculated in accordance with the regulatory capital requirements of the Federal Reserve. RWAs reflect both on
	and off-balance sheet risk of the Firm. Market RWAs reflect capital charges attributable to the risk of loss resulting from adverse changes
	in market prices and other factors. Credit RWAs reflect capital charges attributable to the risk of loss arising from a borrower or counterparty
	failing to meet its financial obligations.
(3)	The Global Liquidity Reserve, which is held within the Parent and operating subsidiaries, is comprised of highly liquid and diversified cash and cash
	equivalents and unencumbered securities. Eligible unencumbered securities include U.S. government securities, U.S. agency securities, U.S.
	agency mortgage-backed securities, FDIC-guaranteed corporate debt and non-U.S. government securities. For a further discussion of the Firm's
	Global Liquidity Reserve, see the Firm's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012.
(4)	Goodwill and intangible balances net of allowable mortgage servicing rights deduction for quarters ended June 30, 2012, March 31, 2012
	and June 30, 2011 of $7 million, $89 million and $120 million, respectively.
(5)	In accordance with the Federal Reserve Board's formalized definition as of December 30, 2011, Tier 1 common capital is defined as Tier 1
	capital less non-common elements in Tier 1 capital, including perpetual preferred stock and related surplus, minority interest in subsidiaries, trust
	preferred securities and mandatory convertible preferred securities. Prior periods have been recast to conform to this definition. This computation
	is a preliminary estimate as of July 19, 2012 (the date of this release) and could be subject to revision in Morgan Stanley’s Quarterly Report on
	Form 10-Q for the quarter ended June 30, 2012.
(6)	Tier 1 capital consists predominately of common shareholders' equity as well as qualifying preferred stock and qualifying restricted core capital
	elements (trust preferred securities and noncontrolling interests) less goodwill, non-servicing intangible assets (excluding allowable mortgage
	servicing rights), net deferred tax assets (recoverable in excess of one year), an after-tax debt valuation adjustment and certain other deductions,
	including equity investments. This computation is a preliminary estimate as of July 19, 2012 (the date of this release) and could be subject to
	revision in Morgan Stanley’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.

Page 5:

(1)	The Firm’s capital estimation is based on the Required Capital framework, an internal capital adequacy measure which considers a risk-based
	going concern capital after absorbing potential losses from extreme stress events at a point in time. Beginning in the quarter ended March 31,
	2012, the Firm's Required Capital is met by Tier 1 common capital. Tier 1 common capital and common equity attribution to business segment is
	based on capital usage calculated by the framework. The difference between the Firm's Tier 1 common capital and aggregate Required Capital is
	the Firm's Parent capital. The Firm generally holds parent capital for prospective regulatory requirements, including Basel III, organic growth,
	acquisitions and other capital needs. The Required Capital framework will continue to evolve over time in response to changes in the business
	and regulatory environment and to incorporate enhancements in modeling techniques.

Page 7:

(1)	Represents the loss amount that one would not expect to exceed, on average, more than five times every one hundred trading days in
	the Firm's trading positions if the portfolio were held constant for a one-day period. Trading VaR for all primary market risk categories
	has been recast for all periods to exclude Credit Portfolio VaR which includes mark-to-market relationship lending exposures and associated
	hedges as well as counterparty credit risk valuation adjustments including its related hedges. Credit Portfolio VaR is disclosed as a separate
	category. The Firm considers this new allocation method to be a more transparent view of the Firm's traded market risk. For further
	discussion of the calculation of VaR and the limitations of the Firm's VaR methodology, see Part II, Item 7A "Quantitative and Qualitative
	Disclosures about Market Risk" included in the Firm's 10-K for the year ended December 31, 2011.

Page 11:

(1)	The quarters ended June 30, 2012, March 31, 2012 and June 30, 2011, include investment gains (losses) for certain funds
	included in the Firm's consolidated financial statements. The limited partnership interests in these gains were reported in net income (loss)
	applicable to noncontrolling interests.

MORGAN STANLEY

End Notes

Page 12:

(1)	Real Estate Investing revenues include gains or losses related to principal investments held by certain consolidated real estate funds.
	These gains or losses are offset in the net income (loss) applicable to noncontrolling interest. The investment gains (losses) for the
	quarters ended June 30, 2012, March 31, 2012 and June 30, 2011, are $24 million, $67 million and $95 million, respectively.

(2)	Net Flows by region [inflow / (outflow)] for the quarters ended June 30, 2012, March 31, 2012 and June 30, 2011 are:
	North America: $7.0 billion, $(2.5) billion and $14.5 billion
	International: $6.1 billion, $2.7 billion and $1.2 billion
(3)	Assets under management or supervision by region for the quarters ended June 30, 2012, March 31, 2012 and June 30, 2011 are:
	North America: $198 billion, $195 billion and $193 billion
	International: $113 billion, $109 billion and $103 billion

Page 14:

(1)	Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid)
	are participating securities and are included in the computation of EPS pursuant to the two-class method. Restricted Stock Units ("RSUs")
	that pay dividend equivalents subject to vesting are not deemed participating securities and are included in diluted shares outstanding
	(if dilutive) under the treasury stock method.
(2)	The percentage of weighted basic common shares and participating RSUs to the total weighted average of basic common shares
	and participating RSUs.
(3)	Represents net income from continuing operations, gain (loss) from discontinued operations (after-tax), and net income applicable
	to Morgan Stanley for the quarter ended June 30, 2012 prior to allocations to participating RSUs.
(4)	Distributed earnings represent the dividends declared on common shares and participating RSUs for the quarter ended June 30, 2012.
	The amount of dividends declared is based upon the number of common shares outstanding as of the dividend record date. During
	the quarter ended June 30, 2012, a $0.05 dividend was declared on common shares outstanding and participating RSUs.
(5)	The two-class method assumes all of the earnings for the reporting period are distributed and allocated to the participating RSUs
	what they would be entitled to based on their contractual rights and obligations of the participating security.
(6)	Total income applicable to common shareholders to be allocated to the common shares in calculating basic and diluted EPS for
	common shares.
(7)	Total income applicable to common shareholders to be allocated to the participating RSUs reflected as a deduction to the numerator in
	determining basic and diluted EPS for common shares.
(8)	Basic and diluted EPS data are required to be presented only for classes of common stock, as described under the accounting guidance
	for earnings per share.

MORGAN STANLEY

Legal Notice

This Financial Supplement contains financial, statistical and business-related information, as well as business and segment trends.

The information should be read in conjunction with the Firm's second quarter earnings press release issued July 19, 2012.

Attached files

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Page #

1	…………….	Quarterly Financial Summary
2	…………….	Quarterly Consolidated Income Statement Information
3	…………….	Quarterly Earnings Per Share Summary
4 - 5	…………….	Quarterly Consolidated Financial Information and Statistical Data
6	…………….	Quarterly Institutional Securities Income Statement Information
7 - 8	…………….	Quarterly Institutional Securities Financial Information and Statistical Data
9	…………….	Quarterly Global Wealth Management Group Income Statement Information
10	…………….	Quarterly Global Wealth Management Group Financial Information and Statistical Data
11	…………….	Quarterly Asset Management Income Statement Information
12	…………….	Quarterly Asset Management Financial Information and Statistical Data
13	…………….	Country Risk Exposure - European Peripherals and France Appendix I
14	…………….	Earnings Per Share Appendix II
15 - 16	…………….	End Notes
17	…………….	Legal Notice