MORGAN STANLEY 10-Q

ms-20260630 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2026 Commission File Number 1-11758 (Exact name of Registrant as specified in its charter) Delaware 1585 Broadway 36-3145972 (212) 761-4000 (State or other jurisdiction of incorporation or organization) New York, NY 10036 (I.R.S. Employer Identification No.) (Registrant’s telephone number, including area code) (Address of principal executive offices, including Zip Code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of exchange on which registered Common Stock, $0.01 par value MS New York Stock Exchange Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate MS/PA New York Stock Exchange Non-Cumulative Preferred Stock, Series A, $0.01 par value Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate MS/PE New York Stock Exchange Non-Cumulative Preferred Stock, Series E, $0.01 par value Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate MS/PF New York Stock Exchange Non-Cumulative Preferred Stock, Series F, $0.01 par value Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate MS/PI New York Stock Exchange Non-Cumulative Preferred Stock, Series I, $0.01 par value Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate MS/PK New York Stock Exchange Non-Cumulative Preferred Stock, Series K, $0.01 par value Depositary Shares, each representing 1/1,000th interest in a share of 4.875% MS/PL New York Stock Exchange Non-Cumulative Preferred Stock, Series L, $0.01 par value Depositary Shares, each representing 1/1,000th interest in a share of 4.250% MS/PO New York Stock Exchange Non-Cumulative Preferred Stock, Series O, $0.01 par value Depositary Shares, each representing 1/1,000th interest in a share of 6.500% MS/PP New York Stock Exchange Non-Cumulative Preferred Stock, Series P, $0.01 par value Depositary Shares, each representing 1/1,000th interest in a share of 6.625% MS/PQ New York Stock Exchange Non-Cumulative Preferred Stock, Series Q, $0.01 par value Global Medium-Term Notes, Series A, Floating Rate Notes Due 2029 MS/29 New York Stock Exchange of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ As of July 31, 2026, there were 1,570,566,292 shares of the Registrant’s Common Stock, par value $0.01 per share, outstanding. Table of Contents QUARTERLY REPORT ON FORM 10-Q For the quarter ended June 30, 2026 Table of Contents Part Item Page Financial Information I Management’s Discussion and Analysis of Financial Condition and Results of Operations I 2 4 Introduction 4 Executive Summary 5 Business Segments 9 Institutional Securities 10 Wealth Management 12 Investment Management 15 Supplemental Financial Information 17 O ther Matters 18 Accounting Development Updates 19 Critical Accounting Estimates 19 Liquidity and Capital Resources 19 Balance Sheet 19 Regulatory Requirements 23 Quantitative and Qualitative Disclosures about Risk I 3 29 Market Risk 29 Credit Risk 31 Country and Other Risks 36 Report of Independent Registered Public Accounting Firm 38 Consolidated Financial Statements and Notes I 1 39 Consolidated Income Statement (Unaudited) 39 Consolidated Comprehensive Income Statement (Unaudited) 39 Consolidated Balance Sheet (Un audit ed at June 30, 2026 ) 40 Consolidated Statement of Changes in Total Equity (Unaudited) 41 Consolidated Cash Flow Statement (Unaudited) 42 Notes to Consolidated Financial Statements (Unaudited) 43 1. Introduction and Basis of Presentation 43 2. Significant Accounting Policies 44 3. Cash and Cash Equivalents 44 4. Fair Values 45 5. Fair Value Option 51 6. Derivative Instruments and Hedging Activities 52 7. Investment Securities 56 8. Collateralized Transactions 58 9. Loans, Lending Commitments and Related Allowance for Credit Losses 59 10. Other Assets 63 11. Deposits 64 12. Borrowings and Other Secured Financings 64 13. Commitments, Guarantees and Contingencies 65 14. Variable Interest Entities and Securitization Activities 68 15. Regulatory Requirements 70 16. Total Equity 72 17. Interest Income and Interest Expense 74 18. Income Taxes 74 19. Segment, Geographic and Revenue Information 74 Financial Data Supplement (Unaudited) 77 Glossary of Common Terms and Acronyms 78 Controls and Procedures I 4 79 Other Information II Legal Proceedings II 1 79 Risk Factors II 1A 79 Unregistered Sales of Equity Securities and Use of Proceeds II 2 79 Other Information II 5 79 Exhibits II 6 79 Signatures 79 2 Table of Contents Available Information We file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (“SEC”). The SEC maintains a website, www.sec.gov , that contains annual, quarterly and current reports, proxy and information statements, and other information that issuers file electronically with the SEC. Our electronic SEC filings are available to the public at the SEC’s website. Our website is www.morganstanley.com . You can access our Investor Relations webpage at www.morganstanley.com/about-us-ir . We make available free of charge, on or through our Investor Relations webpage, our proxy statements, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. We also make available, through our Investor Relations webpage, via a link to the SEC’s website, statements of beneficial ownership of our equity securities filed by our directors, officers, 10% or greater shareholders and others under Section 16 of the Exchange Act. You can access information about our corporate governance at www.morganstanley.com/about-us-governance. Our webpages include: • Amended and Restated Certificate of Incorporation; • Amended and Restated Bylaws; • Charters for our Audit Committee, Compensation, Management Development and Succession Committee, Governance and Sustainability Committee, Operations and Technology Committee, and Risk Committee; • Corporate Governance Policies; • Policy Regarding Corporate Political Activities; • Policy Regarding Shareholder Rights Plan; • Equity Ownership Commitment; • Code of Ethics and Business Conduct; • Code of Conduct; and • Integrity Hotline Information. 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. We will post any amendments to the Code of Ethics and Business Conduct and any waivers that are required to be disclosed by the rules of either the SEC or the New York Stock Exchange LLC on our website. You can request a copy of these documents, excluding exhibits, at no cost, by contacting Investor Relations, 1585 Broadway, New York, NY 10036 (212-761-4000). The information on our website is not incorporated by reference into this report. 3 Table of Contents Management’s Discussion and Analysis of Financial Condition and Results of Operations Introduction Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. We operate as an Integrated Firm whereby we serve clients holistically across our business segments. Unless the context otherwise requires, the terms “Morgan Stanley,” “Firm,” “us,” “we” or “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 this Form 10-Q. A description of the clients and principal products and services of each of our business segments is below. Through the Integrated Firm some of our clients may use the products and services of more than one of our business segments. Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Markets business, which comprises Equity and Fixed Income, provides sales, financing, prime brokerage, market-making, and Asia wealth management services and holds certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research. Wealth Management provides a comprehensive array of financial services and solutions to individual investors, including high and ultra-high net worth individuals, and businesses and institutions. Wealth Management supports clients through three channels: Advisor-Led, Self-Directed and Workplace. Wealth Management includes: financial advisor-led brokerage, investment advisory, custody, cash management, and administrative services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors. Management’s Discussion and Analysis includes certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results. Such metrics, when used, are defined and may be different from or inconsistent with metrics used by other companies. The results of operations in the past have been, and in the future may continue to be, materially affected by: competition; legislative, legal and regulatory developments; market and economic conditions; and other risk factors. These factors also may have an adverse impact on our ability to achieve our strategic objectives. Additionally, the discussion of our results of operations herein may contain forward-looking statements. These statements, which reflect management’s beliefs and expectations, are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of the risks and uncertainties that may affect our future results, see “Forward-Looking Statements”, “Business—Competition”, “Business—Supervision and Regulation” and “Risk Factors” in the 2025 Form 10-K and “Liquidity and Capital Resources—Regulatory Requirements” herein. 4 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis Executive Summary Overview of Financial Results Consolidated Results—Three Months Ended June 30, 2026 • The Firm reported net revenues and pre-tax income of $21.3 billion and $7.3 billion, respectively. • The Firm delivered ROE of 20.7% and ROTCE of 26.6% (see “Selected Non-GAAP Financial Information” herein). • The expense efficiency ratio was 65% for both the second quarter and year-to-date, demonstrating operating leverage while we continued to invest in our businesses. • At June 30, 2026, the Firm’s Standardized Common Equity Tier 1 capital ratio was 14.9%. • Institutional Securities reported net revenues of $11.0 billion, primarily reflecting strong results in Equity and higher Investment Banking revenues. • Wealth Management delivered net revenues of $8.9 billion, reflecting strong Asset management revenues, increased Net interest income and higher client activity, generating a pre-tax margin of 30.5%. The business added net new assets of $148 billion and fee-based assets of $39 billion. • Investment Management reported net revenues of $1.6 billion, primarily driven by asset management fees on higher average AUM. The quarter included positive long-term net flows of $7.5 billion . Net Revenues ($ in millions) Net Income Applicable to Morgan Stanley ($ in millions) Earnings per Diluted Common Share We reported net revenues of $21.3 billion in the quarter ended June 30, 2026 (“current quarter,” or “2Q 2026”), which increased by 27% compared with $16.8 billion in the quarter ended June 30, 2025 (“prior year quarter,” or “2Q 2025”). Net income applicable to Morgan Stanley was $5.6 billion in the current quarter, which increased by 58% compared with $3.5 billion in the prior year quarter. Diluted earnings per common share was $3.46 in the current quarter, which increased by 62% compared with $2.13 in the prior year quarter. We reported net revenues of $41.9 billion in the six months ended June 30, 2026 (“current year period,” or “YTD 2026”), which increased by 21% compared with $34.5 billion in the six months ended June 30, 2025 (“prior year period,” or “YTD 2025”). Net income applicable to Morgan Stanley was $11.1 billion in the current year period, which increased by 42% compared with $7.9 billion in the prior year period. Diluted earnings per common share was $6.90 in the current year period, which increased by 46% compared with $4.73 in the prior year period. June 2026 Form 10-Q 5 Table of Contents Management’s Discussion and Analysis Non-Interest Expenses ($ in millions) • Compensation and benefits expenses of $8,187 million in the current quarter and $16,729 million in the current year period increased 14% compared with the prior year periods, primarily due to an increase in the formulaic payout to Wealth Management advisors and higher discretionary incentive compensation within Institutional Securities, both based on higher revenues. During the current year period, as a result of a March workforce management action, we recognized severance costs of $178 million in Compensation and benefits expense. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary” in the Form 10-Q for the quarter ended March 31, 2026. • Non-compensation expenses of $5,715 million in the current quarter and $10,644 million in the current year period increased 19% and 14%, respectively, compared with the prior year periods, primarily due to higher execution-related expenses and increased technology spend. Provision for Credit Losses The Provision for credit losses on loans and lending commitments of $98 million in the current quarter and $196 million in the current year period was primarily related to certain specific commercial real estate and corporate loans and portfolio growth in corporate loans and secured lending facilities. The Provision for credit losses on loans and lending commitments of $196 million in the prior year quarter and $331 million in the prior year period was primarily related to portfolio growth in corporate loans and secured lending facilities and a macroeconomic outlook reflecting slower GDP growth. For further information on the Provision for credit losses, see “Credit Risk” herein. Business Segment Results Net Revenues by Segment 1 ($ in millions) Net Income Applicable to Morgan Stanley by Segment 1 ($ in millions) 1. The amounts in the charts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the total presented on top of the bars due to intersegment eliminations. See Note 19 to the financial statements for details of intersegment eliminations. • Institutional Securities net revenues of $11,040 million in the current quarter and $21,761 million in the current year period increased 44% and 31%, respectively, compared with the prior year periods, primarily reflecting higher results in Equity on increased client activity and higher Investment Banking results. • Wealth Management net revenues of $8,856 million in the current quarter and $17,375 million in the current year period increased 14% and 15%, respectively, compared with the prior year periods, primarily reflecting higher Asset management revenues on higher market levels and the cumulative impact of positive fee-based flows, increased Net interest income and higher client activity. • Investment Management net revenues of $1,646 million in the current quarter and $3,181 million in the current year period increased 6% and 1%, respectively, compared with the prior year periods, reflecting higher Asset management 6 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis and related fees driven by higher average AUM on higher market levels. The increase in net revenues in the current year period was partially offset by lower Performance-based income and other revenues. Net Revenues by Region 1 ($ in millions) 1. For a discussion of how the geographic breakdown of net revenues is determined, see Note 22 to the financial statements in the 2025 Form 10-K. • Americas net revenues increased 22% and 16% in the current quarter and in the current year period, respectively, compared with the prior year periods, primarily driven by higher Asset management revenues within the Wealth Management business segment and higher Investment Banking and Equity results within the Institutional Securities business segment. • EMEA net revenues increased 11% and 13% in the current quarter and in the current year period, respectively, compared with the prior year periods, primarily driven by higher results in our Markets business within the Institutional Securities segment. • Asia net revenues increased 71% and 57% in the current quarter and in the current year period, respectively, compared with the prior year periods, primarily driven by strong results in Equity within the Institutional Securities business segment. Selected Financial Information and Other Statistical Data Three Months Ended June 30, Six Months Ended June 30, $ in millions, except per share data 2026 2025 2026 2025 Consolidated results Net revenues $ 21,348 $ 16,792 $ 41,928 $ 34,531 Earnings applicable to Morgan Stanley common shareholders $ 5,436 $ 3,392 $ 10,847 $ 7,549 Earnings per diluted common share $ 3.46 $ 2.13 $ 6.90 $ 4.73 Consolidated financial measures Expense efficiency ratio 1 65 % 71 % 65 % 70 % ROE 2 20.7 % 13.9 % 20.9 % 15.7 % ROTCE 2, 3 26.6 % 18.2 % 26.8 % 20.6 % Pre-tax margin 4 34 % 28 % 34 % 29 % Effective tax rate 23.1 % 22.7 % 21.4 % 21.8 % Pre-tax margin by segment 4 Institutional Securities 39 % 28 % 39 % 32 % Wealth Management 30 % 28 % 30 % 28 % Investment Management 25 % 21 % 22 % 20 % $ in millions, except per share data, worldwide employees and client assets At June 30, 2026 At December 31, 2025 Average liquidity resources for three months ended 5 $ 404,077 $ 385,884 Loans 6 $ 315,653 $ 289,038 Total assets $ 1,675,057 $ 1,420,270 Deposits $ 446,068 $ 415,523 Borrowings $ 392,556 $ 348,935 Common equity $ 106,579 $ 101,882 Tangible common equity 3 $ 83,602 $ 79,147 Common shares outstanding 1,572 1,583 Book value per common share 7 $ 67.80 $ 64.37 Tangible book value per common share 3, 7 $ 53.18 $ 50.00 Worldwide employees (in thousands) 83 83 Client assets 8 (in billions) $ 10,088 $ 9,276 Capital Ratios 9 Common Equity Tier 1 capital—Standardized 14.9 % 15.0 % Tier 1 capital—Standardized 16.5 % 16.8 % Common Equity Tier 1 capital—Advanced 16.2 % 16.2 % Tier 1 capital—Advanced 18.0 % 18.0 % Tier 1 leverage 6.0 % 6.7 % SLR 4.9 % 5.4 % 1. The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues. 2. ROE and ROTCE represent annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity and average tangible common equity, respectively. 3. Represents a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein. 4. Pre-tax margin represents income before provision for income taxes as a percentage of net revenues. 5. For a discussion of Liquidity resources, see “Liquidity and Capital Resources—Balance Sheet—Liquidity Risk Management Framework—Liquidity Resources” herein. 6. Includes loans held for investment, net of ACL, loans held for sale and also includes loans at fair value, which are included in Trading assets in the balance sheet. 7. Book value per common share and tangible book value per common share equal common equity and tangible common equity, respectively, divided by common shares outstanding. 8. Client assets represents the sum of Wealth Management client assets and Investment Management AUM. Certain Wealth Management client assets, totaling $382 billion and $350 billion as of June 30, 2026 and December 31, 2025, respectively, are invested in Investment Management products and are therefore also included in Investment Management’s AUM. 9. For a discussion of our capital ratios, see “Liquidity and Capital Resources—Regulatory Requirements” herein. June 2026 Form 10-Q 7 Table of Contents Management’s Discussion and Analysis Economic and Market Conditions The economic environment exhibited strength in the second quarter of 2026, characterized by active capital markets supported by the adoption of AI and improved investor sentiment. Geopolitical risk, inflation, rising asset prices, the rate of economic growth and the future path of monetary policy represent ongoing uncertainties which could continue to impact the capital markets and our businesses. We continue to monitor the developments in the Middle East and their impact on the regional economy, global economic conditions, and financial markets. Our direct exposure to the region remains limited. For more information on economic and market conditions, and the potential effects of geopolitical events on our future results, refer to “Risk Factors” and “Forward-Looking Statements” in the 2025 Form 10-K. Selected Non-GAAP Financial Information We prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non-GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non-GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non-GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non-GAAP financial measure. For the prior year periods, we present certain non-GAAP financial measures that exclude the impact of mark-to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period-to-period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses for the prior year period. Beginning in the first quarter of 2026, derivatives were designated as cash flow hedges of the equity price risk associated with the majority of unvested DCP awards within our Wealth Management business segment. Changes in fair value of these cash flow hedging derivatives are recorded in OCI and subsequently reclassified into compensation expense in the same period that the related DCP award vests and is recognized in compensation expense. Additionally, in the first quarter of 2026, we commenced the use of derivatives as economic hedges of the equity price risk primarily associated with the vested DCP awards within our Wealth Management business segment. The Firm presents changes in the fair value of these economic derivative hedges in compensation expense. Previously, the Firm economically hedged DCP awards primarily with cash instrument hedges whereby changes in the fair value of such hedges, net of financing costs, were recorded in net revenues. The use of derivatives as cash flow hedges of certain DCP awards is expected to substantially mitigate timing differences between the recognition of changes in the fair value of the hedging instruments and the deferred recognition of related DCP compensation expense over the vesting period. The expected mitigation of these timing differences, alongside the associated income statement changes described above, enables us to better present the operating performance and revenue trends. Accordingly, we no longer present non-GAAP financial measures excluding DCP. For additional information on DCP, refer to “Other Matters” herein and Note 2 to the financial statements. Tangible common equity is a non-GAAP financial measure that we believe analysts, investors and other stakeholders consider useful to allow for comparability to peers and of the period-to-period use of our equity. The calculation of tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity (“ROTCE”) and tangible book value per common share, also non-GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period-to-period, respectively. The calculation of ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity. The calculation of tangible book value per common share represents tangible common equity divided by common shares outstanding. The principal non-GAAP financial measures presented in this document are set forth in the following tables. 8 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis Reconciliations from U.S. GAAP to Non-GAAP Consolidated Financial Measures $ in millions Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Net revenues $ 16,792 $ 34,531 Adjustment for mark-to-market losses (gains) on DCP 1 (377) (228) Adjusted Net revenues—non-GAAP $ 16,415 $ 34,303 Compensation expense $ 7,190 $ 14,711 Adjustment for mark-to-market gains (losses) on DCP 1 (371) (369) Adjusted Compensation expense—non-GAAP $ 6,819 $ 14,342 Wealth Management Net revenues $ 7,764 $ 15,091 Adjustment for mark-to-market losses (gains) on DCP 1 (294) (163) Adjusted Wealth Management Net revenues—non-GAAP $ 7,470 $ 14,928 Wealth Management Compensation expense $ 4,147 $ 8,146 Adjustment for mark-to-market gains (losses) on DCP 1 (264) (247) Adjusted Wealth Management Compensation expense—non-GAAP $ 3,883 $ 7,899 1. Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment. Beginning in the first quarter of 2026 we use derivatives to hedge our DCP awards and no longer present non-GAAP financial measures adjusted for mark-to-market gains and losses on DCP. See “Other Matters” herein and Note 2 to the financial statements for more information. $ in millions At June 30, 2026 At December 31, 2025 Tangible equity Common equity $ 106,579 $ 101,882 Less: Goodwill and net intangible assets (22,977) (22,735) Tangible common equity—non-GAAP $ 83,602 $ 79,147 Average Monthly Balance Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Tangible equity Common equity $ 104,913 $ 97,512 $ 103,820 $ 96,420 Less: Goodwill and net intangible assets (23,024) (22,964) (23,011) (23,025) Tangible common equity—non-GAAP $ 81,889 $ 74,548 $ 80,809 $ 73,395 Non-GAAP Financial Measures by Business Segment Three Months Ended June 30, Six Months Ended June 30, $ in billions 2026 2025 2026 2025 Average common equity 1 Institutional Securities $ 48.2 $ 48.4 $ 48.2 $ 48.4 Wealth Management 28.7 29.4 28.7 29.4 Investment Management 10.2 10.6 10.2 10.6 ROE 2 Institutional Securities 26 % 12 % 26 % 16 % Wealth Management 29 % 23 % 28 % 21 % Investment Management 12 % 9 % 11 % 10 % Average tangible common equity 1 Institutional Securities $ 47.7 $ 48.0 $ 47.7 $ 48.0 Wealth Management 15.4 16.3 15.4 16.3 Investment Management 0.8 1.0 0.8 1.0 ROTCE 2 Institutional Securities 26 % 12 % 26 % 16 % Wealth Management 53 % 41 % 53 % 39 % Investment Management 159 % 97 % 143 % 100 % 1. Average common equity and average tangible common equity for each business segment is determined using our Required Capital framework (see “Liquidity and Capital Resources—Regulatory Requirements—Attribution of Average Common Equity According to the Required Capital Framework” herein). The sums of the segments’ Average common equity and Average tangible common equity do not equal the Consolidated measures due to Parent Company equity. 2. The calculation of ROE and ROTCE by segment uses net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment. Return on Tangible Common Equity Goal We have an ROTCE goal of 20%. Our ROTCE goal is a forward-looking statement that is based on a normal market environment and may be materially affected by many factors. See “Risk Factors” and “Forward-Looking Statements” in the 2025 Form 10-K for further information on market and economic conditions and their potential effects on our future operating results. ROTCE represents a non-GAAP financial measure. For further information on non-GAAP measures, see “Selected Non-GAAP Financial Information” herein. Business Segments Substantially all of our operating revenues and operating expenses are directly attributable to our business segments. Certain revenues and expenses have been allocated to each business segment, generally in proportion to its respective net revenues, non-interest expenses or other relevant measures. See Note 19 to the financial statements for segment net revenues by income statement line item and information on intersegment transactions. For an overview of the components of our business segments, net revenues, provision for credit losses, compensation expense and income taxes, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Segments” in the 2025 Form 10-K. June 2026 Form 10-Q 9 Table of Contents Management’s Discussion and Analysis Institutional Securities Income Statement Information Three Months Ended June 30, % Change $ in millions 2026 2025 Revenues Advisory $ 798 $ 508 57 % Equity 851 500 70 % Fixed Income 788 532 48 % Total Underwriting 1,639 1,032 59 % Total Investment Banking 2,437 1,540 58 % Equity 6,300 3,721 69 % Fixed Income 2,455 2,180 13 % Other (152) 202 (175) % Net revenues $ 11,040 $ 7,643 44 % Provision for credit losses 71 168 (58) % Compensation and benefits 2,980 2,430 23 % Non-compensation expenses 3,727 2,934 27 % Total non-interest expenses 6,707 5,364 25 % Income before provision for income taxes 4,262 2,111 102 % Provision for income taxes 999 472 112 % Net income 3,263 1,639 99 % Net income applicable to noncontrolling interests 71 35 103 % Net income applicable to Morgan Stanley $ 3,192 $ 1,604 99 % Six Months Ended June 30, % Change $ in millions 2026 2025 Revenues Advisory $ 1,776 $ 1,071 66 % Equity 1,247 819 52 % Fixed Income 1,530 1,209 27 % Total Underwriting 2,777 2,028 37 % Total Investment Banking 4,553 3,099 47 % Equity 11,448 7,849 46 % Fixed Income 5,813 4,784 22 % Other (53) 894 (106) % Net revenues $ 21,761 $ 16,626 31 % Provision for credit losses 163 259 (37) % Compensation and benefits 6,244 5,284 18 % Non-compensation expenses 6,931 5,691 22 % Total non-interest expenses 13,175 10,975 20 % Income before provision for income taxes 8,423 5,392 56 % Provision for income taxes 1,795 1,168 54 % Net income 6,628 4,224 57 % Net income applicable to noncontrolling interests 142 91 56 % Net income applicable to Morgan Stanley $ 6,486 $ 4,133 57 % Investment Banking Investment Banking Volumes Three Months Ended June 30, Six Months Ended June 30, $ in billions 2026 2025 2026 2025 Completed mergers and acquisitions 1 $ 320 $ 171 $ 652 $ 323 Equity and equity-related offerings 2, 3 45 22 60 37 Fixed Income offerings 2, 4 132 92 278 195 Source: LSEG Data & Risk Analytics as of July 1, 2026. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from amounts previously reported due to the subsequent withdrawal, change in value or change in timing of certain transactions. 1. Includes transactions of $100 million or more. Based on full credit to each of the advisors in a transaction. 2. Based on full credit for single book managers and equal credit for joint book managers. 3. Includes Rule 144A issuances and registered public offerings of common stock, convertible securities and rights offerings. 4. Includes Rule 144A and publicly registered issuances, non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Excludes leveraged loans and self-led issuances. Investment Banking Revenues Net revenues of $2,437 million in the current quarter and $4,553 million in the current year period increased 58% and 47%, respectively, compared with the prior year periods, reflecting increases across businesses, particularly in the Americas. • Advisory revenues increased primarily reflecting higher completed M&A transactions. • Equity underwriting revenues increased primarily on higher initial public offerings, follow-on offerings and convertible issuances. • Fixed Income underwriting revenues increased primarily reflecting higher non-investment grade and investment grade bond issuances from client capital raising and strategic activity. See “Investment Banking Volumes” herein. Equity, Fixed Income and Other Net Revenues Equity and Fixed Income Net Revenues Three Months Ended June 30, 2026 Net Interest 2 All Other 3 $ in millions Trading Fees 1 Total Financing $ 3,829 $ 182 $ (810) $ 1 $ 3,202 Execution services 2,111 1,037 (56) 6 3,098 Total Equity $ 5,940 $ 1,219 $ (866) $ 7 $ 6,300 Total Fixed Income $ 1,915 $ 111 $ 302 $ 127 $ 2,455 Three Months Ended June 30, 2025 Net Interest 2 All Other 3 $ in millions Trading Fees 1 Total Financing $ 2,441 $ 156 $ (706) $ — $ 1,891 Execution services 1,059 733 (106) 144 1,830 Total Equity $ 3,500 $ 889 $ (812) $ 144 $ 3,721 Total Fixed Income $ 1,893 $ 107 $ 113 $ 67 $ 2,180 10 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis Six Months Ended June 30, 2026 Net Interest 2 All Other 3 $ in millions Trading Fees 1 Total Financing $ 6,957 $ 354 $ (1,479) $ 3 $ 5,835 Execution services 3,829 1,963 (219) 40 5,613 Total Equity $ 10,786 $ 2,317 $ (1,698) $ 43 $ 11,448 Total Fixed Income $ 4,716 $ 251 $ 617 $ 229 $ 5,813 Six Months Ended June 30, 2025 Net Interest 2 All Other 3 $ in millions Trading Fees 1 Total Financing $ 4,708 $ 312 $ (1,303) $ — $ 3,717 Execution services 2,529 1,531 (204) 276 4,132 Total Equity $ 7,237 $ 1,843 $ (1,507) $ 276 $ 7,849 Total Fixed Income $ 4,300 $ 215 $ 132 $ 137 $ 4,784 1. Includes Commissions and fees and Asset management revenues. 2. Includes funding costs, which are allocated to the businesses based on funding usage. 3. Includes Investments and Other revenues. Equity Net revenues of $6,300 million in the current quarter and $11,448 million in the current year period increased 69% and 46%, respectively, compared with the prior year periods, reflecting an increase in Financing and Execution services, particularly in Asia. • Financing revenues increased primarily due to increased client activity and higher average client balances. • Execution services revenues increased primarily due to higher results in derivatives and increased client activity in cash equities. Fixed Income Net revenues of $2,455 million in the current quarter increased 13% from the prior year quarter, primarily reflecting an increase in Credit products. • Global macro products revenues were relatively unchanged compared with the prior year quarter, primarily driven by a decline in foreign exchange products, offset by higher gains on inventory held to facilitate client activity in rates products. • Credit products revenues increased primarily due to higher results on inventory held to facilitate client activity in corporate credit products and the cumulative impact of lending growth in the securitized products business. • Commodities products and other fixed income revenues increased primarily due to higher results on inventory held to facilitate client activity in power and gas, partially offset by losses compared with gains in the prior year quarter on inventory held to facilitate client activity in oil and products. Net revenues of $5,813 million in the current year period increased 22% from the prior year period, primarily reflecting an increase in Commodities and Credit products. • Global macro products revenues decreased primarily due to lower gains on inventory held to facilitate client activity, partially offset by increased client activity, both in rates and foreign exchange products. • Credit products revenues increased primarily due to higher results in corporate credit products and the cumulative impact of lending growth in the securitized products business. • Commodities products and other fixed income revenues increased primarily due to higher results in oil, power and gas products. Other Net Revenues Other net revenues reflected a loss of $152 million in the current quarter compared with a gain of $202 million in the prior year quarter, primarily reflecting higher mark-to-market losses on corporate loans, inclusive of hedges. Other net revenues reflected a loss of $53 million in the current year period compared with a gain of $894 million in the prior year period, primarily driven by mark-to-market losses on corporate loans, inclusive of hedges, compared with realized gains on the sale of corporate loans held-for-sale in the prior year period. Provision for Credit Losses The Provision for credit losses on loans and lending commitments of $71 million in the current quarter and $163 million in the current year period was primarily related to certain specific commercial real estate and corporate loans and portfolio growth in corporate loans and secured lending facilities. The Provision for credit losses on loans and lending commitments of $168 million in the prior year quarter and $259 million in the prior year period was primarily related to portfolio growth in corporate loans and secured lending facilities and a macroeconomic outlook reflecting slower GDP growth. For further information on the Provision for credit losses, see “Credit Risk” herein. Non-Interest Expenses Non-interest expenses of $6,707 million in the current quarter and $13,175 million in the current year period increased 25% and 20%, respectively, compared with the prior year periods, reflecting higher Non-compensation expenses and Compensation and benefits expenses. • Compensation and benefits expenses increased primarily due to higher discretionary incentive compensation on higher revenues. • Non-compensation expenses increased primarily due to higher execution-related expenses. June 2026 Form 10-Q 11 Table of Contents Management’s Discussion and Analysis Wealth Management Income Statement Information Three Months Ended June 30, % Change $ in millions 2026 2025 Revenues Asset management $ 5,261 $ 4,411 19 % Transactional 1 1,167 1,264 (8) % Net interest 2,254 1,910 18 % Other 2 174 179 (3) % Net revenues 8,856 7,764 14 % Provision for credit losses 27 28 (4) % Compensation and benefits 4,648 4,147 12 % Non-compensation expenses 1,484 1,389 7 % Total non-interest expenses 6,132 5,536 11 % Income before provision for income taxes 2,697 2,200 23 % Provision for income taxes 600 500 20 % Net income applicable to Morgan Stanley $ 2,097 $ 1,700 23 % Six Months Ended June 30, % Change $ in millions 2026 2025 Revenues Asset management $ 10,340 $ 8,807 17 % Transactional 1 2,294 2,137 7 % Net interest 4,424 3,812 16 % Other 2 317 335 (5) % Net revenues 17,375 15,091 15 % Provision for credit losses 33 72 (54) % Compensation and benefits 9,296 8,146 14 % Non-compensation expenses 2,758 2,722 1 % Total non-interest expenses 12,054 10,868 11 % Income before provision for income taxes 5,288 4,151 27 % Provision for income taxes 1,144 919 24 % Net income applicable to Morgan Stanley $ 4,144 $ 3,232 28 % 1. Transactional includes Investment banking, Trading, and Commissions and fees revenues. 2. Other includes Investments and Other revenues. Wealth Management Metrics $ in billions At June 30, 2026 At December 31, 2025 Total client assets 1 $ 8,084 $ 7,381 U.S. Bank Subsidiary loans $ 196 $ 181 Margin and other lending 2 $ 36 $ 31 Deposits 3 $ 436 $ 408 Annualized weighted average cost of deposits 4 Period end 2.60% 2.51% Period average for three months ended 2.54% 2.67% Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net new assets $ 148.1 $ 59.2 $ 266.5 $ 153.0 1. Client assets represent those for which Wealth Management is providing services including financial advisor-led brokerage, investment advisory, custody, cash management, and administrative services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration of vested public company securities and retirement plan services. As part of the Integrated Firm, Wealth Management may provide these services to clients who also use the services of one or more other business segments. See “Advisor-Led Channel” and “Self-Directed Channel” herein for additional information. 2. Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non‐purpose securities-based lending on non‐bank entities. 3. Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other deposits, and time deposits. 4. Annualized weighted average represents the total annualized weighted average cost of the various deposit products. Amounts include the effect of related hedging derivatives. The period end cost of deposits is based upon balances and rates as of June 30, 2026 and December 31, 2025. The period average is based on daily balances and rates for the period. Net New Assets NNA represent client asset inflows, including interest, dividends and asset acquisitions, less client asset outflows, and excluding the impact of business combinations/divestitures and the impact of fees and commissions. Any revenues earned by Wealth Management on client assets will vary depending upon the services and products provided. The level of NNA in a given period is influenced by a variety of factors, including client investment and spending behaviors, seasonality, our ability to attract and retain financial advisors and clients, capital market and corporate activities which may impact the amount of assets in certain client channels, and large idiosyncratic inflows and outflows, including single large client events. These factors have had an impact on our NNA in recent periods. Should these factors continue, the growth rate of our NNA may be impacted. NNA for the current quarter were $148 billion, of which just over half represented inflows related to IPOs of certain clients in our Workplace channel. Advisor-Led Channel $ in billions At June 30, 2026 At December 31, 2025 Advisor-led client assets 1 $ 6,273 $ 5,715 Fee-based client assets 2 $ 3,022 $ 2,753 Fee-based client assets as a percentage of advisor-led client assets 48% 48% Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Fee-based asset flows 3 $ 39.1 $ 42.8 $ 92.8 $ 72.6 1. Advisor-led client assets represent client assets in accounts that have a Wealth Management advisor assigned. 2. Fee‐based client assets represent the amount of client assets where the basis of payment for services is a fee calculated on those assets. 3. Fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest and client fees, and exclude institutional cash management related activity. For a description of the Inflows and Outflows included in Fee-based asset flows, see "Fee-Based Client Assets Rollforwards" herein. 12 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis Self-Directed Channel At June 30, 2026 At December 31, 2025 Self-directed client assets 1 (in billions) $ 1,811 $ 1,667 Self-directed households 2 (in millions) 8.7 8.5 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Daily average revenue trades (“DARTs”) 3 (in thousands) 1,278 983 1,203 993 1. Self-directed client assets represent active accounts which are not advisor led. Active accounts are defined as having at least $25 in assets. 2. Self-directed households represent the total number of households that include at least one active account with self-directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts. 3. DARTs represent the total self-directed trades in a period divided by the number of trading days during that period. Workplace Channel 1 At June 30, 2026 At December 31, 2025 Stock plan unvested public assets 2 (in billions) $ 658 $ 534 Stock plan participants 3 (in millions) 6.6 6.5 1. The workplace channel includes equity compensation solutions for companies, their executives and employees. 2. Stock plan unvested assets are not included in client assets and represent the market value of public company securities at the end of the period, and excludes private company securities. 3. Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan. Net Revenues Asset Management Asset management revenues of $5,261 million in the current quarter and $10,340 million in the current year period increased 19% and 17%, respectively, compared with the prior year periods, primarily reflecting higher fee-based assets due to higher market levels and the cumulative impact of positive fee-based flows. See “Fee-Based Client Assets Rollforwards” herein. Transactional Revenues Transactional revenues of $1,167 million in the current quarter decreased 8% compared with the prior year quarter, primarily driven by $294 million gains on DCP investments in the prior year quarter, which are no longer presented in net revenues, partially offset by higher client activity across products and channels. Transactional revenues of $2,294 million in the current year period increased 7% compared with the prior year period, primarily driven by higher client activity across products and channels, partially offset by $163 million gains on DCP investments in the prior year period, which are no longer presented in net revenues. For further information on the impact of DCP and our use of derivatives as hedges of certain DCP awards beginning in the first quarter of 2026, see “Selected Non-GAAP Financial Information” herein. Net Interest Net interest revenues of $2,254 million in the current quarter and $4,424 million in the current year period increased 18% and 16%, respectively, compared with the prior year periods, primarily due to the cumulative impact of lending growth and higher average sweep deposits. The level and pace of interest rate changes and other macroeconomic factors have impacted client preferences, including cash allocation to other products and client demand for loans. These factors, along with other developments, such as pricing changes to certain deposit types due to various competitive dynamics and central bank actions, have impacted our net interest income. To the extent they persist, or other factors arise, net interest income may be impacted in future periods. Provision for Credit Losses The Provision for credit losses on loans and lending commitments of $27 million in the current quarter was primarily related to certain specific loans in our tailored lending portfolio and portfolio growth. The Provision for credit losses on loans and lending commitments of $28 million in the prior year quarter was primarily related to certain specific loans in our tailored lending portfolio and portfolio growth in residential real estate loans. The Provision for credit losses on loans and lending commitments of $33 million in the current year period was primarily related to certain specific loans in our tailored lending portfolio and portfolio growth. The Provision for credit losses on loans and lending commitments of $72 million in the prior year period was primarily related to certain specific loans in our tailored lending portfolio and residential real estate loans related to California wildfires. For further information on the Provision for credit losses, see “Credit Risk” herein. Non-Interest Expenses Non-interest expenses of $6,132 million in the current quarter and $12,054 million in the current year period increased 11% in both periods compared with the prior year periods, primarily as a result of higher Compensation and benefits expenses. • Compensation and benefits expenses increased, primarily as a result of an increase in the formulaic payout to Wealth Management advisors driven by higher compensable revenues. June 2026 Form 10-Q 13 Table of Contents Management’s Discussion and Analysis For information on the impact of DCP and our use of derivatives as hedges of certain DCP awards beginning in the first quarter, see “Selected Non-GAAP Financial Information” herein. • Non-compensation expenses increased, primarily as a result of higher marketing and business development costs and technology spend. The increase in the current year period was partially offset by lower amortization of intangible assets. Fee-Based Client Assets Rollforwards $ in billions At March 31, 2026 Inflows 1 Outflows 2 Market Impact 3 At June 30, 2026 Separately managed 4 $ 873 $ 42 $ (30) $ (2) $ 883 Unified managed 767 47 (31) 64 847 Advisor 224 18 (15) 21 248 Portfolio manager 852 52 (44) 74 934 Subtotal $ 2,716 $ 159 $ (120) $ 157 $ 2,912 Cash management 76 48 (14) — 110 Total $ 2,792 $ 207 $ (134) $ 157 $ 3,022 $ in billions At March 31, 2025 Inflows 1 Outflows 2 Market Impact 3 At June 30, 2025 Separately managed 4 $ 722 $ 30 $ (10) $ (14) $ 728 Unified managed 623 34 (17) 40 680 Advisor 201 9 (10) 14 214 Portfolio manager 743 33 (26) 43 793 Subtotal $ 2,289 $ 106 $ (63) $ 83 $ 2,415 Cash management 60 15 (12) — 63 Total $ 2,349 $ 121 $ (75) $ 83 $ 2,478 $ in billions At December 31, 2025 Inflows 1 Outflows 2 Market Impact 3 At June 30, 2026 Separately managed 4 $ 833 $ 86 $ (53) $ 17 $ 883 Unified managed 760 99 (57) 45 847 Advisor 229 36 (33) 16 248 Portfolio manager 861 102 (87) 58 934 Subtotal $ 2,683 $ 323 $ (230) $ 136 $ 2,912 Cash management 70 65 (25) — 110 Total $ 2,753 $ 388 $ (255) $ 136 $ 3,022 $ in billions At December 31, 2024 Inflows 1 Outflows 2 Market Impact 3 At June 30, 2025 Separately managed 4 $ 719 $ 49 $ (21) $ (19) $ 728 Unified managed 613 68 (34) 33 680 Advisor 207 17 (19) 9 214 Portfolio manager 750 63 (50) 30 793 Subtotal $ 2,289 $ 197 $ (124) $ 53 $ 2,415 Cash management 58 26 (21) — 63 Total $ 2,347 $ 223 $ (145) $ 53 $ 2,478 1. Inflows include new accounts, account transfers, deposits, dividends and interest. 2. Outflows include closed or terminated accounts, account transfers, withdrawals and client fees. 3. Market impact includes realized and unrealized gains and losses on portfolio investments. 4. Includes non-custody account values based on asset values reported on a quarter lag by third-party custodians. Average Fee Rates 1 Three Months Ended June 30, Six Months Ended June 30, Fee rate in bps 2026 2025 2026 2025 Separately managed 12 12 12 12 Unified managed 89 90 89 90 Advisor 75 78 76 78 Portfolio manager 87 88 87 88 Subtotal 63 64 63 64 Cash management 5 6 5 6 Total 61 62 62 63 1. Based on Asset management revenues related to advisory services associated with fee-based assets. For a description of fee-based client assets in the previous tables, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Segments—Wealth Management Fee-Based Client Assets” in the 2025 Form 10-K. 14 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis Investment Management Income Statement Information Three Months Ended June 30, % Change $ in millions 2026 2025 Revenues Asset management and related fees $ 1,516 $ 1,434 6 % Performance-based income and other 1 130 118 10 % Net revenues 1,646 1,552 6 % Compensation and benefits 559 613 (9) % Non-compensation expenses 683 616 11 % Total non-interest expenses 1,242 1,229 1 % Income before provision for income taxes 404 323 25 % Provision for income taxes 99 77 29 % Net income 305 246 24 % Net income (loss) applicable to noncontrolling interests 1 1 N/M Net income applicable to Morgan Stanley $ 304 $ 245 24 % Six Months Ended June 30, % Change $ in millions 2026 2025 Revenues Asset management and related fees $ 3,012 $ 2,885 4 % Performance-based income and other 1 169 269 (37) % Net revenues 3,181 3,154 1 % Compensation and benefits 1,189 1,281 (7) % Non-compensation expenses 1,308 1,227 7 % Total non-interest expenses 2,497 2,508 — % Income before provision for income taxes 684 646 6 % Provision for income taxes 137 138 (1) % Net income 547 508 8 % Net income (loss) applicable to noncontrolling interests 1 1 N/M Net income applicable to Morgan Stanley $ 546 $ 507 8 % 1. Includes Investments and Trading, Net interest, and Other revenues. Net Revenues Asset Management and Related Fees Asset management and related fees of $1,516 million in the current quarter and $3,012 million in the current year period increased 6% and 4% from the prior year periods, primarily driven by higher average AUM on higher market levels and the cumulative impact of positive long-term net flows, partially offset by lower average fee rates, reflecting a change in asset mix. Asset management revenues are influenced by the level, relative mix of AUM and related fee rates. While higher market levels drove increases in average AUM in the current quarter, there were continued net outflows in the Equity asset class, which may be influenced by the structure and performance of our investment strategies and products relative to their benchmarks, offset by higher net inflows in the Alternatives and Solutions and Fixed Income asset classes, reflecting client preferences. To the extent these conditions continue, we would expect our Asset management revenue to continue to be impacted. See “Assets Under Management or Supervision” herein. Performance-based Income and Other Performance-based income and other revenues of $130 million in the current quarter were relatively unchanged from the prior year quarter, as a result of higher net investment gains, offset by lower accrued carried interest in certain private funds. Performance-based income and other revenues of $169 million in the current year period decreased from the prior year period, primarily due to lower accrued carried interest in certain private funds, partially offset by higher net investment gains in private funds. Non-Interest Expenses Non-interest expenses of $1,242 million in the current quarter and $2,497 million in the current year period were relatively unchanged from the prior year periods, as a result of lower Compensation and benefits expenses, offset by higher Non-compensation expenses. • Compensation and benefits expenses decreased, primarily due to lower expenses related to compensation associated with carried interest. • Non-compensation expenses increased, primarily due to higher brokerage and clearing expenses and increased technology spend. June 2026 Form 10-Q 15 Table of Contents Management’s Discussion and Analysis Assets Under Management or Supervision Rollforwards 1 $ in billions At March 31, 2026 Inflows 2 Outflows 3 Net Flows Distributions 4 Market Impact and Other 5 At June 30, 2026 Equity $ 221 $ 11 $ (23) $ (13) $ (1) $ 27 $ 235 Fixed Income 219 22 (14) 7 (1) 3 229 Alternatives and Solutions 6 770 41 (29) 13 (1) 71 852 Long-Term AUM $ 1,210 $ 74 $ (66) $ 8 $ (3) $ 101 $ 1,316 Liquidity and Overlay Services 658 800 (774) 27 (4) 8 688 Total $ 1,868 $ 874 $ (840) $ 35 $ (7) $ 109 $ 2,004 $ in billions At March 31, 2025 Inflows 2 Outflows 3 Net Flows Distributions 4 Market Impact and Other 5 At June 30, 2025 Equity $ 250 $ 9 $ (12) $ (3) $ — $ 24 $ 271 Fixed Income 186 24 (17) 7 (1) 6 198 Alternatives and Solutions 6 650 33 (25) 8 (1) 43 700 Long-Term AUM $ 1,086 $ 66 $ (54) $ 12 $ (2) $ 73 $ 1,169 Liquidity and Overlay Services 561 647 (670) (23) (4) 10 544 Total $ 1,647 $ 713 $ (724) $ (11) $ (6) $ 83 $ 1,713 $ in billions At December 31, 2025 Inflows 2 Outflows 3 Net Flows Distributions 4 Market Impact and Other 5 At June 30, 2026 Equity $ 253 $ 19 $ (43) $ (24) $ (1) $ 7 $ 235 Fixed Income 217 45 (33) 12 (2) 2 229 Alternatives and Solutions 6 776 83 (60) 23 (3) 56 852 Long-Term AUM $ 1,246 $ 147 $ (136) $ 11 $ (6) $ 65 $ 1,316 Liquidity and Overlay Services 649 1,548 (1,513) 35 (7) 11 688 Total $ 1,895 $ 1,695 $ (1,649) $ 46 $ (13) $ 76 $ 2,004 $ in billions At December 31, 2024 Inflows 2 Outflows 3 Net Flows Distributions 4 Market Impact and Other 5 At June 30, 2025 Equity $ 259 $ 21 $ (28) $ (7) $ — $ 19 $ 271 Fixed Income 179 40 (29) 11 (2) 10 198 Alternatives and Solutions 6 654 68 (51) 17 (3) 32 700 Long-Term AUM $ 1,092 $ 129 $ (108) $ 21 $ (5) $ 61 1,169 Liquidity and Overlay Services 574 1,340 (1,379) (38) (8) 17 544 Total $ 1,666 $ 1,469 $ (1,487) $ (17) $ (13) $ 78 $ 1,713 1. During the first quarter of 2026, certain products were reclassified among asset classes to more closely align reporting with underlying investment strategies, primarily reflecting a reclassification of certain tax-managed solutions from Equity to Alternatives and Solutions. These changes had no impact on total AUM. Prior period amounts have been adjusted to conform with the current period presentation. 2. Inflows represent investments or commitments from new and existing clients in new or existing investment products, including client reinvestments. Inflows exclude the gross impact of exchanges, whereby a client changes positions within the same asset class. 3. Outflows represent redemptions from clients’ funds and exclude the gross impact of exchanges, whereby a client changes positions within the same asset class. 4. Distributions represent returns of capital or returns on investments. Amounts for prior periods have been reclassified from ‘Other’ to conform with the current period presentation. 5. Market Impact and Other includes realized and unrealized gains and losses on portfolio investments and the impact of foreign currency changes for non-U.S. dollar denominated funds, and excludes any funds where market impact does not impact management fees. 6. As of June 30, 2026 and June 30, 2025, Alternatives and Solutions includes Parametric Long-Term period-end AUM of $592 billion and $466 billion, respectively. Parametric Long-Term products generally have lower average fee rates than other Alternatives and Solutions products. Average AUM 1 Three Months Ended June 30, Six Months Ended June 30, $ in billions 2026 2025 2026 2025 Equity $ 233 $ 259 $ 240 $ 261 Fixed income 224 190 222 187 Alternatives and Solutions 823 670 808 667 Long-term AUM subtotal 1,280 1,119 1,270 1,115 Liquidity and Overlay Services 672 553 666 559 Total $ 1,952 $ 1,672 $ 1,936 $ 1,674 For a description of the asset classes, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Segments—Investment Management—Assets Under Management or Supervision Rollforwards” in the 2025 Form 10-K. Average Fee Rates 1,2 Three Months Ended June 30, Six Months Ended June 30, Fee rate in bps 2026 2025 2026 2025 Equity 69 71 69 72 Fixed income 34 35 34 35 Alternatives and Solutions 28 30 28 31 Long-term AUM 36 40 37 41 Liquidity and Overlay Services 12 13 12 13 Investment Management 28 31 28 31 1. As a result of the reclassification described above in the “Assets Under Management or Supervision Rollforwards” table, prior period amounts have been adjusted to conform with the current period presentation. 2. Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees. For certain non-U.S. funds, it includes the portion of advisory fees that the advisor collects on behalf of third-party distributors. The payment of those fees to the distributor is included in Non-compensation expenses in the income statement. 16 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis Supplemental Financial Information U.S. Bank Subsidiaries Morgan Stanley Bank, N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”) are our U.S. Bank Subsidiaries (together, “U.S. Bank Subsidiaries”). MSBNA is a national bank that primarily offers institutional lending and institutional sales and trading, including fixed income and equity derivatives. The institutional lending primarily includes Secured lending facilities, Commercial and Residential real estate and Corporate loans, and together with the institutional sales and trading activity is reported within the Institutional Securities business segment. MSPBNA is a national bank that primarily offers residential mortgage lending, securities-based and other financing, primarily to customers and clients of our Wealth Management business segment. Both MSBNA and MSPBNA source deposits from Wealth Management clients, utilize other sources of funding, and maintain investment portfolios for liquidity and interest rate risk management purposes. Consistent with the Firm’s strategic objective of ongoing growth of eligible assets at MSBNA, on February 14, 2026, the Fixed Income business of Morgan Stanley Capital Services LLC (“MSCS”) was merged into MSBNA, and on March 14, 2026, Morgan Stanley Europe SE (“MSESE”), together with its subsidiary Morgan Stanley Bank AG (collectively, the “MSESE Group”) was acquired by MSBNA (collectively the “Reorganization”). In the following table, U.S. Bank Subsidiaries’ Supplemental Financial Information is presented as if the Reorganization occurred at the beginning of 2025. Prior period amounts have been revised to conform with the current period presentation. For a further discussion of our credit risks, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. For a further discussion about loans and lending commitments, see Notes 9 and 13 to the financial statements. U.S. Bank Subsidiaries’ Consolidated Supplemental Financial Information 1 $ in billions At June 30, 2026 At December 31, 2025 Trading assets at fair value ( $24.7 and $37.8 pledged as collateral) $ 86.7 $ 91.7 Investment securities Available-for-sale at fair value 81.0 88.4 Held-to-maturity 41.3 44.2 Total Investment securities $ 122.3 $ 132.6 Wealth Management loans 2 Residential real estate $ 75.5 $ 72.3 Securities-based lending and Other 3 120.2 108.9 Total Wealth Management loans $ 195.7 $ 181.2 Institutional Securities loans 2 Corporate $ 12.3 $ 8.9 Secured lending facilities 72.8 67.2 Commercial and Residential real estate 12.6 11.2 Securities-based lending and Other 8.8 9.9 Total Institutional Securities loans $ 106.5 $ 97.2 Total assets $ 613.2 $ 598.7 Deposits 4 $ 436.5 $ 408.7 Trading liabilities at fair value $ 31.4 $ 31.7 1. Financial information is presented on a consolidated basis, inclusive of MSBNA, MSPBNA and their subsidiaries. Amounts exclude transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates. 2. Represents loans, net of ACL. For a further discussion of loans in the Wealth Management and Institutional Securities business segments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. 3. Other loans primarily include tailored lending. For a further discussion of Other loans, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” herein. 4. For further information on deposits, see “Liquidity and Capital Resources—Funding Management—Balance Sheet—Unsecured Financing” herein. June 2026 Form 10-Q 17 Table of Contents Management’s Discussion and Analysis Other Matters Deferred Cash-Based Compensation The Firm sponsors a number of deferred cash-based compensation programs and stock-based compensation programs for current and former employees, including financial advisors in the Wealth Management business segment, which generally contain vesting, clawback and cancellation provisions. Deferred compensation for financial advisors in the Wealth Management business segment is generally composed of 75% cash-based awards and 25% stock-based awards. The following discussion relates only to deferred cash-based compensation. Employees are permitted to allocate the value of their deferred cash-based awards among a menu of notional investments, whereby the value of their awards will track the performance of the referenced notional investments. The menu of investments, which is selected by the Firm, includes fixed income, equity, commodity and money market funds. Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards. Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments. Additionally, in the first quarter of 2026, the Firm reduced the amount of deferred compensation as a proportion of total compensation for Wealth Management advisors. For further information see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Other Matters” in the 2025 Form 10-K and “Selected Non-GAAP Financial Information” and Note 2 to the financial statements herein. 18 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis Accounting Development Updates The Financial Accounting Standards Board has issued certain accounting updates that apply to us. Accounting updates not referenced below were assessed and determined to be either not applicable or to not have a material impact on our financial statements upon adoption. • ASU 2025-06 - Internal-Use Software (Issued September 2025). This update introduces targeted improvements to the recognition and capitalization guidance for internal-use software costs. The update eliminates the prior “project stage” framework and instead requires capitalization of software development costs when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform its intended function. In assessing the probability threshold, entities are required to evaluate whether significant development uncertainty exists, including whether the software contains novel or unproven functionality or whether significant performance requirements have not been identified or continue to be substantially revised. The update is effective for the Firm beginning January 1, 2028, with early adoption permitted. Transition may be applied prospectively, retrospectively, or under a modified approach. We are currently evaluating this accounting update. • ASU 2026-02 – Environmental Credits and Environmental Credit Obligations (Issued May 2026). This update establishes guidance on the recognition, measurement, presentation, and disclosure of environmental credit assets and environmental credit obligations. This update requires entities to recognize and measure: (1) environmental credit assets based on their intended use (e.g., compliance environmental credits, noncompliance environmental credits and voluntary credits) as well as how the credits are obtained (e.g., acquired, internally generated); and (2) environmental credit obligations based on whether the entity holds and expects to use compliance environmental credits to settle that obligation. The update is effective for the Firm beginning January 1, 2028, with early adoption permitted. Transition should be applied on a modified retrospective basis. We are currently evaluating this accounting update; however, we do not expect a material impact on our financial statements upon adoption. Critical Accounting Estimates Our financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions (see Note 1 to the financial statements). We believe that of our significant accounting policies (see Note 2 to the financial statements in the 2025 Form 10-K and Note 2 to the financial statements), the fair value of financial instruments, goodwill and intangible assets, legal and regulatory contingencies (see Note 14 to the financial statements in the 2025 Form 10-K and Note 13 to the financial statements) and income taxes policies involve a higher degree of judgment and complexity. For a further discussion about our critical accounting policies, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in the 2025 Form 10-K. Liquidity and Capital Resources Our liquidity and capital policies are established and maintained by senior management, with oversight by the Asset/Liability Management Committee and our Board of Directors (“Board”). Through various risk and control committees, senior management reviews business performance relative to these policies, monitors the availability of alternative sources of financing, and oversees the liquidity, interest rate and currency sensitivity of our asset and liability position. Our Corporate Treasury department (“Treasury”), Firm Risk Committee, Asset/Liability Management Committee, and other committees and control groups assist in evaluating, monitoring and managing the impact that our business activities have on our balance sheet, liquidity and capital structure. Liquidity and capital matters are reported regularly to the Board and the Risk Committee of the Board. Balance Sheet We monitor and evaluate the composition and size of our balance sheet on a regular basis. Our balance sheet management process includes quarterly planning, business-specific thresholds, monitoring of business-specific usage versus key performance metrics and new business impact assessments. We establish balance sheet thresholds at the consolidated and business segment levels. We monitor balance sheet utilization and review variances resulting from business activity and market fluctuations. On a regular basis, we review current performance versus established thresholds and assess the need to re-allocate our balance sheet based on business segment needs. We also monitor key metrics, including asset and liability size and capital usage. Total Assets by Business Segment At June 30, 2026 $ in millions IS WM IM Total Assets Cash and cash equivalents 1 $ 142,940 $ 17,101 $ 94 $ 160,135 Trading assets at fair value 531,345 7,057 5,751 544,153 Investment securities 1 115,688 37,591 — 153,279 Securities purchased under agreements to resell 120,460 9,056 — 129,516 Securities borrowed 180,050 1,308 — 181,358 Customer and other receivables 102,223 47,204 1,583 151,010 Loans 2 106,684 195,688 3 302,375 Goodwill 435 10,580 6,090 17,105 Intangible assets 18 2,529 3,326 5,873 Other assets 3 18,061 10,825 1,367 30,253 Total assets $ 1,317,904 $ 338,939 $ 18,214 $ 1,675,057 June 2026 Form 10-Q 19 Table of Contents Management’s Discussion and Analysis At December 31, 2025 $ in millions IS WM IM Total Assets Cash and cash equivalents $ 81,228 $ 30,426 $ 41 $ 111,695 Trading assets at fair value 410,573 12,428 5,275 428,276 Investment securities 34,111 129,445 — 163,556 Securities purchased under agreements to resell 106,728 13,515 — 120,243 Securities borrowed 150,902 1,006 — 151,908 Customer and other receivables 71,645 41,447 1,628 114,720 Loans 2 96,850 181,241 3 278,094 Goodwill 437 10,199 6,090 16,726 Intangible assets 21 2,607 3,382 6,010 Other assets 3 17,058 10,703 1,281 29,042 Total assets $ 969,553 $ 433,017 $ 17,700 $ 1,420,270 1. In connection with MSBNA’s acquisition of MSESE and the merging of the Fixed Income business of MSCS into MSBNA, the Firm updated its segment balance sheet allocation methodology in the first quarter of 2026. As a result of this update, certain liquid marketable securities and cash which were previously included in the Wealth Management balance sheet are included within the Institutional Securities balance sheet beginning in the first quarter of 2026 to align liquidity resources with segment activities. 2. Amounts include loans held for investment, net of ACL, and loans held for sale but exclude loans at fair value, which are included in Trading assets in the balance sheet (see Note 9 to the financial statements). 3. Other assets primarily includes premises, equipment and software, ROU assets related to leases, other investments and deferred tax assets. A substantial portion of total assets consists of cash and cash equivalents, liquid marketable securities and short-term receivables. In the Institutional Securities business segment, these arise from market-making, financing and prime brokerage activities, and in the Wealth Management business segment, these arise from banking activities. Liquid marketable securities arising from management of the investment portfolio are included in the balance sheets of the Institutional Securities and Wealth Management business segments. For further information, refer to Note 19 to the financial statements. Liquidity Risk Management Framework The core components of our Liquidity Risk Management Framework are the Required Liquidity Framework, Liquidity Stress Tests and Liquidity Resources, which support our target liquidity profile. For a further discussion about the Firm’s Required Liquidity Framework and Liquidity Stress Tests, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Liquidity Risk Management Framework” in the 2025 Form 10-K. At June 30, 2026 and December 31, 2025, we maintained sufficient liquidity to meet current and contingent funding obligations as modeled in our Liquidity Stress Tests. Liquidity Resources We maintain sufficient Liquidity Resources, which consist of HQLA and cash deposits with banks, to cover daily funding needs and to meet strategic liquidity targets sized by the Required Liquidity Framework and Liquidity Stress Tests. We actively manage the amount of our Liquidity Resources considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements. The amount of Liquidity Resources we hold is based on our risk appetite and is calibrated to meet various internal and regulatory requirements and to fund prospective business activities. The Liquidity Resources are primarily held within the Parent Company and its major operating subsidiaries. The Total HQLA values in the tables immediately following are different from Eligible HQLA, which, in accordance with the LCR rule, also takes into account certain regulatory weightings and other operational considerations. Liquidity Resources by Type of Investment Average Daily Balance Three Months Ended $ in millions June 30, 2026 March 31, 2026 Cash deposits with central banks $ 79,632 $ 77,223 Unencumbered HQLA securities 1 : U.S. government obligations 189,124 191,101 U.S. agency and agency mortgage-backed securities 93,887 85,992 Non-U.S. sovereign obligations 2 33,760 32,521 Other investment grade securities 434 460 Total HQLA 1 $ 396,837 $ 387,297 Cash deposits with banks (non-HQLA) 7,240 7,844 Total Liquidity Resources $ 404,077 $ 395,141 1. HQLA is presented prior to applying weightings and includes all HQLA held in subsidiaries. 2. Primarily composed of unencumbered French, U.K., Japanese, German, Italian, and Spanish government obligations. Liquidity Resources by Non-Bank and Bank Legal Entities 1 Average Daily Balance Three Months Ended $ in millions June 30, 2026 March 31, 2026 Non-Bank legal entities U.S.: Parent Company $ 98,290 $ 91,904 Non-Parent Company 61,564 58,460 Total U.S. 159,854 150,364 Non-U.S. 66,971 64,124 Total Non-Bank legal entities 226,825 214,488 Bank legal entities U.S. 152,762 158,442 Non-U.S. 24,490 22,211 Total Bank legal entities 177,252 180,653 Total Liquidity Resources $ 404,077 $ 395,141 1. Liquidity Resources are presented as historically reported and have not been retrospectively adjusted to reflect the merger of the MSCS fixed income business into MSBNA and MSBNA’s acquisition of MSESE in the first quarter of 2026, as the Firm assesses these measures based on the legal-entity structures in effect during the applicable period. Liquidity Resources may fluctuate from period to period based on the overall size and composition of our balance sheet, the maturity profile of our unsecured debt, and 20 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis estimates of funding needs in a stressed environment, among other factors. Regulatory Liquidity Framework Liquidity Coverage Ratio and Net Stable Funding Ratio We and our U.S. Bank Subsidiaries are required to maintain a minimum LCR and NSFR of 100%. The LCR rule requires large banking organizations to have sufficient Eligible HQLA to cover net cash outflows arising from significant stress over 30 calendar days, thus promoting the short-term resilience of the liquidity risk profile of banking organizations. In determining Eligible HQLA for LCR purposes, weightings (or asset haircuts) are applied to HQLA, and certain HQLA held in subsidiaries is excluded. The NSFR rule requires large banking organizations to maintain an amount of available stable funding, which is their regulatory capital and liabilities subject to standardized weightings, equal to or greater than their required stable funding, which is their projected minimum funding needs, over a one-year time horizon. As of June 30, 2026, we and our U.S. Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%. Liquidity Coverage Ratio Average Daily Balance Three Months Ended $ in millions June 30, 2026 March 31, 2026 Eligible HQLA Cash deposits with central banks $ 70,863 $ 71,216 Securities 1 248,302 231,217 Total Eligible HQLA $ 319,165 $ 302,433 Net cash outflows $ 246,717 $ 232,364 LCR 129 % 130 % 1. Primarily includes U.S. Treasuries, U.S. agency mortgage-backed securities, sovereign bonds and investment grade corporate bonds. Net Stable Funding Ratio Average Daily Balance Three Months Ended $ in millions June 30, 2026 March 31, 2026 Available stable funding $ 787,900 $ 745,258 Required stable funding 679,382 632,097 NSFR 116 % 118 % Funding Management We manage our funding in a manner that reduces the risk of disruption to our operations. We pursue a strategy of diversification of secured and unsecured funding sources (by product, investor and region) and attempt to ensure that the tenor of our liabilities equals or exceeds the expected holding period of the assets being financed. Our goal is to achieve an optimal mix of durable secured and unsecured financing. We fund our balance sheet on a global basis through diverse sources. These sources include our equity capital, borrowings, bank notes, securities sold under agreements to repurchase, securities lending, deposits, letters of credit and lines of credit. We have active financing programs for both standard and structured products targeting global investors and currencies. Treasury allocates interest expense to our businesses based on the tenor and interest rate profile of the assets being funded. Treasury similarly allocates interest income to businesses carrying deposit products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities. Secured Financing For a discussion of our secured financing activities, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Funding Management—Secured Financing” in the 2025 Form 10-K. Collateralized Financing Transactions $ in millions At June 30, 2026 At December 31, 2025 Securities purchased under agreements to resell and Securities borrowed $ 310,874 $ 272,151 Securities sold under agreements to repurchase and Securities loaned $ 122,938 $ 95,849 Securities received as collateral 1 $ 19,397 $ 2,449 1. Included within Trading assets in the balance sheet. Average Daily Balance Three Months Ended $ in millions June 30, 2026 December 31, 2025 Securities purchased under agreements to resell and Securities borrowed $ 297,500 $ 255,202 Securities sold under agreements to repurchase and Securities loaned $ 128,329 $ 90,397 See “Total Assets by Business Segment” herein for additional information on the assets shown in the previous table and Note 2 to the financial statements in the 2025 Form 10-K and Note 8 to the financial statements for additional information on collateralized financing transactions. In addition to the collateralized financing transactions shown in the previous table, we engage in financing transactions collateralized by customer-owned securities, which are held in accordance with regulatory requirements. Receivables under these financing transactions, primarily margin loans, are included in Customer and other receivables in the balance sheet, and payables under these financing transactions, primarily to prime brokerage customers, are included in Customer and other payables in the balance sheet. Our risk exposure on these transactions is mitigated by collateral maintenance policies and the elements of our Liquidity Risk Management Framework. June 2026 Form 10-Q 21 Table of Contents Management’s Discussion and Analysis Unsecured Financing For a discussion of our unsecured financing activities, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Funding Management—Unsecured Financing” in the 2025 Form 10-K. Deposits $ in millions At June 30, 2026 At December 31, 2025 Savings and demand deposits: Brokerage sweep deposits 1 $ 148,859 $ 145,237 Savings and other 179,693 170,646 Total Savings and demand deposits 328,552 315,883 Time deposits 2 117,516 99,640 Total 3 $ 446,068 $ 415,523 1. Amounts represent balances swept from client brokerage accounts. 2. Our Time deposits are predominantly brokered certificates of deposit. 3. Our deposits are primarily held in U.S. offices. Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding. Each category of deposits presented above has a different cost profile and clients may respond differently to changes in interest rates and other macroeconomic conditions. Total deposits in the current year period increased primarily due to increases in Time and Savings deposits. Borrowings by Maturity at June 30, 2026 1 $ in millions Parent Company Subsidiaries Total Original maturities of one year or less $ — $ 9,400 $ 9,400 Original maturities greater than one year 2026 $ 7,933 $ 6,914 $ 14,847 2027 15,486 23,601 39,087 2028 15,948 29,177 45,125 2029 24,603 16,093 40,696 2030 23,666 19,937 43,603 Thereafter 136,080 63,718 199,798 Total greater than one year $ 223,716 $ 159,440 $ 383,156 Total $ 223,716 $ 168,840 $ 392,556 Maturities over next 12 months 2 $ 34,304 1. Original maturity in the table is generally based on contractual final maturity. For borrowings with put options, maturity represents the earliest put date. 2. Includes only borrowings with original maturities greater than one year. Borrowings of $393 billion as of June 30, 2026 increased compared with $349 billion at December 31, 2025, primarily due to non-bank issuances net of maturities and redemptions. We believe that accessing debt investors through multiple distribution channels helps provide consistent access to the unsecured markets. In addition, the issuance of borrowings with original maturities greater than one year allows us to reduce reliance on short-term credit-sensitive instruments. Borrowings with original maturities greater than one year are generally managed to achieve staggered maturities, thereby mitigating refinancing risk, and to maximize investor diversification through sales to global institutional and retail clients across regions, currencies and product types. The availability and cost of financing to us can vary depending on market conditions, the volume of certain trading and lending activities, our credit ratings and the overall availability of credit. We also engage in, and may continue to engage in, repurchases of our borrowings as part of our market-making activities. For further information on Borrowings, see Note 12 to the financial statements. Credit Ratings We rely on external sources to finance a significant portion of our daily operations. Our credit ratings are one of the factors in the cost and availability of financing and can have an impact on certain trading revenues, particularly in those businesses where longer-term counterparty performance is a key consideration, such as certain OTC derivative transactions. When determining credit ratings, rating agencies consider both company-specific and industry-wide factors. See also “Risk Factors—Liquidity Risk” in the 2025 Form 10-K. Parent Company and U.S. Bank Subsidiaries Issuer Ratings at July 31, 2026 Parent Company Short-Term Debt Long-Term Debt Rating Outlook DBRS, Inc. R-1 (middle) AA (low) Stable Fitch Ratings, Inc. F1 A+ Stable Moody’s Investors Service, Inc. P-1 A1 Stable Rating and Investment Information, Inc. a-1 A+ Stable S&P Global Ratings A-2 A- Stable MSBNA Short-Term Debt Long-Term Debt Rating Outlook Fitch Ratings, Inc. F1+ AA Stable Moody’s Investors Service, Inc. P-1 Aa3 Stable S&P Global Ratings A-1 A+ Stable MSPBNA Short-Term Debt Long-Term Debt Rating Outlook Fitch Ratings, Inc. F1+ AA Stable Moody’s Investors Service, Inc. P-1 Aa3 Stable S&P Global Ratings A-1 A+ Stable Incremental Collateral or Terminating Payments In connection with certain OTC derivatives and certain other agreements where we are a liquidity provider to certain financing vehicles associated with the Institutional Securities business segment, we may be required to provide additional collateral, immediately settle any outstanding liability balances with certain counterparties or pledge additional collateral to certain clearing organizations in the event of a future credit rating downgrade irrespective of whether we are in a net asset or net liability position. See Note 6 to the 22 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis financial statements for additional information on OTC derivatives that contain such contingent features. While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact it would have on our business and results of operations in future periods is inherently uncertain and would depend on a number of interrelated factors, including, among other things, the magnitude of the downgrade, the rating relative to peers, the rating assigned by the relevant agency before the downgrade, individual client behavior and future mitigating actions we might take. The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests. Capital Management We view capital as an important source of financial strength and actively manage our consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements, such as the SCB, and rating agency guidelines. In the future, we may expand or contract our capital base to address the changing needs of our businesses. Common Stock Repurchases Three Months Ended June 30, Six Months Ended June 30, in millions, except for per share data 2026 2025 2026 2025 Number of shares 8 8 18 16 Average price per share $ 197.64 $ 123.22 $ 181.21 $ 124.54 Total $ 1,500 $ 1,000 $ 3,250 $ 2,000 For additional information on our common stock repurchases, see Note 16 to the financial statements. For a description of our capital plan, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein. Common Stock Dividend Announcement Announcement date July 15, 2026 Amount per share $1.15 Date to be paid August 14, 2026 Shareholders of record as of July 31, 2026 For additional information on our common stock dividends, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” herein. For additional information on our common stock and information on our preferred stock, see Note 16 to the financial statements. Off-Balance Sheet Arrangements We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments. We utilize SPEs primarily in connection with securitization activities. For information on our securitization activities, see Note 15 to the financial statements in the 2025 Form 10-K. For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 13 to the financial statements. For a further discussion of our lending commitments, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Loans and Lending Commitments” herein. Regulatory Requirements Regulatory Capital Framework We are a financial holding company (“FHC”) under the Bank Holding Company Act of 1956, as amended and are subject to the regulation and oversight of the Board of Governors of the Federal Reserve System (“Federal Reserve”). The Federal Reserve establishes capital requirements for us, including “well-capitalized” standards, and evaluates our compliance with such capital requirements. The OCC establishes similar capital requirements and well-capitalized standards for our U.S. Bank Subsidiaries. The regulatory capital requirements are largely based on the Basel III capital standards established by the Basel Committee and on certain provisions of the Dodd-Frank Act. For us to remain an FHC, we must remain well-capitalized in accordance with standards established by the Federal Reserve, and our U.S. Bank Subsidiaries must remain well-capitalized in accordance with standards established by the OCC. In addition, many of our regulated subsidiaries are subject to regulatory capital requirements, including regulated subsidiaries registered as swap dealers with the CFTC or conditionally registered as security-based swap dealers with the SEC or registered as broker-dealers or futures commission merchants. For additional information on regulatory capital requirements for our U.S. Bank Subsidiaries, as well as our subsidiaries that are swap entities, see Note 15 to the financial statements. Regulatory Capital Requirements We are required to maintain minimum risk-based and leverage-based capital and TLAC ratios. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Capital Requirements” in the 2025 Form 10-K. For additional information on TLAC, see “Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” herein. Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus our capital June 2026 Form 10-Q 23 Table of Contents Management’s Discussion and Analysis conservation buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. Capital Buffer Requirements At June 30, 2026 and December 31, 2025 Standardized Advanced Capital buffers Fixed 2.5% buffer —% 2.5% SCB 1 4.3% N/A G-SIB capital surcharge 2 3.0% 3.0% CCyB 3 —% —% Capital conservation buffer requirement 7.3% 5.5% 1. For additional information on the SCB, see “Capital Plans, Stress Tests and the Stress Capital Buffer” herein and in the 2025 Form 10-K. 2. For a further discussion of the G-SIB capital surcharge, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—G-SIB Capital Surcharge” in the 2025 Form 10-K. 3. The CCyB can be set up to 2.5%, but is currently set by the Federal Reserve at zero. The capital conservation buffer requirement represents the amount of CET1 capital we must maintain above the minimum risk-based capital requirements in order to avoid restrictions on our ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. Our capital conservation buffer requirement computed under the standardized approaches for calculating credit risk and market RWAs (“Standardized Approach”) is equal to the sum of our SCB, G-SIB capital surcharge and CCyB, and our capital conservation buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”) is equal to the sum of a fixed 2.5% buffer, our G-SIB capital surcharge and CCyB. Regulatory Minimum At June 30, 2026 and December 31, 2025 Standardized Advanced Required ratios 1 CET1 capital ratio 4.5 % 11.8% 10.0% Tier 1 capital ratio 6.0 % 13.3% 11.5% Total capital ratio 8.0 % 15.3% 13.5% 1. Required ratios represent the regulatory minimum plus the capital conservation buffer requirement. Our risk-based capital ratios are computed under each of (i) the Standardized Approach and (ii) the Advanced Approach. The credit risk RWA calculations between the two approaches differ in that the Standardized Approach requires calculation of RWA using prescribed risk weights and exposure methodologies, whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights. At June 30, 2026 and December 31, 2025, the differences between the actual and required ratios were lower under the Standardized Approach. Leverage-Based Regulatory Capital. Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%, a minimum SLR of 3% and an enhanced supplementary leverage ratio (“eSLR”) capital buffer of at least 0.5%. As of January 1, 2026, the Firm and its U.S. Bank Subsidiaries elected to early adopt the final rulemaking on changes to the eSLR by the U.S. banking agencies. Under the final rule, the eSLR buffer applicable to U.S. G-SIBs equals 50% of each BHC’s Method 1 G-SIB capital surcharge, which equates to 0.5% for the Firm, applied above the 3.0% minimum SLR requirement. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Developments and Other Matters—Final Rulemaking on Changes to the Enhanced Supplementary Leverage Ratio” in the 2025 Form 10-K. Regulatory Capital Ratios Risk-based capital Standardized Advanced $ in millions At June 30, 2026 At Dec 31, 2025 At June 30, 2026 At Dec 31, 2025 Risk-based capital CET1 capital $ 87,568 $ 83,153 $ 87,568 $ 83,153 Tier 1 capital 97,217 92,728 97,217 92,728 Total capital 108,916 103,449 108,243 102,680 Total RWA 589,397 552,515 539,839 514,158 Risk-based capital ratios CET1 capital 14.9 % 15.0 % 16.2 % 16.2 % Tier 1 capital 16.5 % 16.8 % 18.0 % 18.0 % Total capital 18.5 % 18.7 % 20.1 % 20.0 % Required ratios 1 CET1 capital 11.8 % 11.8 % 10.0 % 10.0 % Tier 1 capital 13.3 % 13.3 % 11.5 % 11.5 % Total capital 15.3 % 15.3 % 13.5 % 13.5 % 1. Required ratios are inclusive of any buffers applicable as of the date presented. Leveraged-based capital $ in millions At June 30, 2026 At December 31, 2025 Leveraged-based capital Adjusted average assets 1 $ 1,608,012 $ 1,383,314 Supplementary leverage exposure 2 1,970,884 1,717,775 Leveraged-based capital ratios Tier 1 leverage 6.0 % 6.7 % SLR 4.9 % 5.4 % Required ratios 3 Tier 1 leverage 4.0 % 4.0 % SLR 3.5 % 5.0 % 1. Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, non-cash after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions. 2. Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. 3. Required ratios are inclusive of any buffers applicable as of the date presented. 24 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis Regulatory Capital $ in millions At June 30, 2026 At December 31, 2025 Change CET1 capital Common shareholders' equity $ 106,579 $ 101,882 $ 4,697 Regulatory adjustments and deductions: Net goodwill (16,731) (16,373) (358) Net intangible assets (4,549) (4,663) 114 Other adjustments and deductions 1 2,269 2,307 (38) Total CET1 capital $ 87,568 $ 83,153 $ 4,415 Additional Tier 1 capital Preferred stock $ 9,750 $ 9,750 $ — Noncontrolling interests 866 823 43 Additional Tier 1 capital $ 10,616 $ 10,573 $ 43 Deduction for investments in covered funds (967) (998) 31 Total Tier 1 capital $ 97,217 $ 92,728 $ 4,489 Standardized Tier 2 capital Subordinated debt $ 9,326 $ 8,380 $ 946 Eligible ACL 2,511 2,411 100 Other adjustments and deductions (138) (70) (68) Total Standardized Tier 2 capital $ 11,699 $ 10,721 $ 978 Total Standardized capital $ 108,916 $ 103,449 $ 5,467 Advanced Tier 2 capital Subordinated debt $ 9,326 $ 8,380 $ 946 Eligible credit reserves 1,838 1,642 196 Other adjustments and deductions (138) (70) (68) Total Advanced Tier 2 capital $ 11,026 $ 9,952 $ 1,074 Total Advanced capital $ 108,243 $ 102,680 $ 5,563 1. Other adjustments and deductions used in the calculation of CET1 capital primarily includes net after-tax DVA, the credit spread premium over risk-free rate for derivative liabilities, defined benefit pension plan assets, non-cash after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments and certain deferred tax assets. RWA Rollforward Six Months Ended June 30, 2026 $ in millions Standardized Advanced Credit risk RWA Balance at December 31, 2025 $ 493,206 $ 349,930 Change related to the following items: Derivatives 7,087 3,492 Securities financing transactions 8,107 (656) Investment securities (170) (1,518) Commitments, guarantees and loans 10,979 14,589 Equity investments 476 1,723 Other credit risk 8,468 6,257 Total change in credit risk RWA $ 34,947 $ 23,887 Balance at June 30, 2026 $ 528,153 $ 373,817 Market risk RWA Balance at December 31, 2025 $ 59,309 $ 59,345 Change related to the following items: Regulatory VaR 888 888 Regulatory stressed VaR 1,527 1,527 Incremental risk charge 110 110 Comprehensive risk measure 448 650 Specific risk (1,038) (1,219) Total change in market risk RWA $ 1,935 $ 1,956 Balance at June 30, 2026 $ 61,244 $ 61,301 Operational risk RWA Balance at December 31, 2025 N/A $ 104,883 Change in operational risk RWA N/A (162) Balance at June 30, 2026 N/A $ 104,721 Total RWA $ 589,397 $ 539,839 Regulatory VaR—VaR for regulatory capital requirements In the current year period, Credit risk RWA increased under both the Standardized and Advanced Approaches. Under the Standardized Approach, the increase was primarily due to higher Commitments, guarantees and loans, Securities financing transactions, Other credit risk and Derivatives exposures, particularly in equities. Under the Advanced Approach, the increase was primarily due to higher Commitments, guarantees and loans and Other credit risk. Market risk RWA increased in the current year period under both the Standardized and Advanced Approaches, primarily driven by higher Regulatory stressed VaR and Regulatory VaR, partially offset by Specific Risk due to securitization standardized charges. Operational risk RWA in the current year period remained relatively unchanged. Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements The Federal Reserve has established external TLAC, long-term debt (“LTD”) and clean holding company requirements for top-tier BHCs of U.S. G-SIBs (“covered BHCs”), including the Parent Company. These requirements are designed to ensure that covered BHCs will have enough loss-absorbing resources at the point of failure to be recapitalized through the conversion of eligible LTD to equity or otherwise June 2026 Form 10-Q 25 Table of Contents Management’s Discussion and Analysis by imposing losses on eligible LTD or other forms of TLAC where an SPOE resolution strategy is used. Required and Actual TLAC and Eligible LTD Ratios Actual Amount/Ratio $ in millions Regulatory Minimum Required Ratio 1 At June 30, 2026 At December 31, 2025 External TLAC 2 $ 309,006 $ 284,259 External TLAC as a % of RWA 18.0 % 21.5 % 52.4 % 51.4 % External TLAC as a % of leverage exposure 4 7.5 % 8.0 % 15.7 % 16.5 % Eligible LTD 3 $ 204,872 $ 181,401 Eligible LTD as a % of RWA 9.0 % 9.0 % 34.8 % 32.8 % Eligible LTD as a % of leverage exposure 4 3.0 % 3.0 % 10.4 % 10.6 % 1. Required ratios are inclusive of applicable buffers. 2. External TLAC consists of CET1 capital and Additional Tier 1 capital (each excluding any noncontrolling minority interests), as well as eligible LTD. 3. Consists of TLAC-eligible LTD reduced by 50% for amounts of unpaid principal due to be paid in more than one year but less than two years from each respective balance sheet date. 4. As of December 31, 2025, the required ratio for External TLAC as a percentage of leverage exposure was 9.5%, and the regulatory minimum and required ratio for Eligible LTD as a percentage of leverage exposure was 4.5%. We are in compliance with all TLAC requirements as of June 30, 2026 and December 31, 2025. For a further discussion of TLAC and related requirements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Total Loss-Absorbing Capacity, Long-Term Debt and Clean Holding Company Requirements” in the 2025 Form 10-K. Capital Plans, Stress Tests and the Stress Capital Buffer The Federal Reserve has capital planning and stress test requirements for large BHCs, which form part of the Federal Reserve’s annual CCAR framework. We must submit, on at least an annual basis, a capital plan to the Federal Reserve, taking into account the results of separate annual stress tests designed by us and the Federal Reserve, so that the Federal Reserve may assess our systems and processes that incorporate forward-looking projections of revenues and losses to monitor and maintain our internal capital adequacy. During 2026, as insured depository institutions (“IDIs”) with less than $250 billion of average total assets over the four most recent consecutive quarters through March 31, 2025, our U.S. Bank Subsidiaries are not subject to company-run stress test regulatory requirements by the OCC. Beginning in 2027, based on its average total assets over the four most recent consecutive quarters through March 31, 2026, MSBNA will become subject to company-run stress test regulatory requirements. As part of its annual capital supervisory stress testing process, the Federal Reserve determines an SCB for each large BHC, including us. In 2025, the Federal Reserve proposed revisions to the SCB, CCAR and supervisory stress testing frameworks. While those proposals are under review, the Firm remains subject to its current SCB requirement of 4.3% through October 1, 2027, at which time a new SCB requirement may apply based on the results of the supervisory stress test conducted in 2027. Together with other features of the regulatory capital framework, this SCB resulted in an aggregate Standardized Approach CET1 required ratio of 11.8%. See “Regulatory Developments and Other Matters—Proposed Changes to Capital Requirements” and “Regulatory Developments and Other Matters—Supervisory Stress Testing” herein. For the 2026 capital planning and stress test cycle, we submitted our capital plan and company-run stress test results to the Federal Reserve on April 6, 2026. On June 24, 2026, the Federal Reserve published summary results of its supervisory stress tests of each large BHC, which do not impact firms’ SCB requirements. We also disclosed a summary of the results of our company-run stress tests on our Investor Relations website and increased our quarterly common stock dividend to $1.15 per share from $1.00, beginning with the common stock dividend announced on July 15, 2026. For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer” in the 2025 Form 10-K. Attribution of Average Common Equity According to the Required Capital Framework Our required capital (“Required Capital”) estimation is based on the Required Capital framework, an internal capital adequacy measure. Common equity attribution to the business segments is based on capital usage calculated under the Required Capital framework, as well as each business segment’s relative contribution to our total Required Capital. The Required Capital framework is a risk-based and leverage-based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs ( e.g ., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. We generally hold Parent Company common equity for 26 June 2026 Form 10-Q Table of Contents Management’s Discussion and Analysis prospective regulatory requirements, organic growth, potential future acquisitions and other capital needs. Average Common Equity Attribution under the Required Capital Framework 1 Three Months Ended June 30, Six Months Ended June 30, $ in billions 2026 2025 2026 2025 Institutional Securities $ 48.2 $ 48.4 $ 48.2 $ 48.4 Wealth Management 28.7 29.4 28.7 29.4 Investment Management 10.2 10.6 10.2 10.6 Parent Company 17.8 9.1 16.7 8.0 Total $ 104.9 $ 97.5 $ 103.8 $ 96.4 1. The attribution of average common equity to the business segments is a non-GAAP financial measure. See “Selected Non-GAAP Financial Information” herein. We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate. Resolution and Recovery Planning We are required to submit once every two years to the Federal Reserve and the FDIC a resolution plan that describes our strategy for a rapid and orderly resolution under the U.S. Bankruptcy Code in the event of our material financial distress or failure. We submitted our 2025 targeted resolution plan on June 30, 2025. In May 2026, we received joint feedback on our 2025 targeted resolution plan from the agencies, with no shortcomings or deficiencies identified. As described in our most recent resolution plan, our preferred resolution strategy is an SPOE strategy, which would impose losses on the holders of eligible LTD and other forms of eligible TLAC issued by the Parent Company before any losses are imposed on creditors of our supported entities and without requiring taxpayer or government financial support. For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning,” “Risk Factors—Legal, Regulatory and Compliance Risk” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Regulatory Requirements—Resolution and Recovery Planning” in the 2025 Form 10-K. Regulatory Developments and Other Matters Proposed Changes to Capital Requirements On April 17, 2025, the Federal Reserve proposed revisions to the SCB and CCAR frameworks applicable to us, aimed at reducing the volatility of the capital requirements stemming from the Federal Reserve’s annual stress test results. Under the proposal, our SCB would be based, in part, on the average of the post-stress capital decline embedded in the Federal Reserve’s stress test results over two consecutive years . Additionally, the proposal would shift the annual effective date of the revised SCB from October 1 to January 1 of the following year and modify certain elements of the Federal Reserve’s CCAR program. Supervisory Stress Testing On October 24, 2025, the Federal Reserve proposed revisions to its supervisory stress testing framework through two related proposals. The first proposal would modify the timeline and operation of the annual supervisory stress test, including through revisions to the Federal Reserve’s supervisory stress testing policy statements, and solicits comment on the Federal Reserve’s supervisory stress testing models. The second proposal solicited comment on the Federal Reserve’s proposed scenarios for the 2026 supervisory stress test. On February 4, 2026, the Federal Reserve finalized the second proposal, and in addition announced that it expects the Firm will continue to be subject to its current SCB requirement of 4.3% until October 1, 2027. We continue to monitor developments related to the open proposal. Basel III Proposal On March 19, 2026, the U.S. banking agencies proposed revisions to risk-based capital and related standards applicable to Category I and II banking organizations, including us and our U.S. Bank Subsidiaries (“Basel III Proposal”). The Basel III Proposal would introduce a new measure of RWAs known as “Expanded Total RWAs” (the “Expanded Approach”), reflecting new RWA methodologies that generally align with changes to the global Basel Accord adopted by the Basel Committee. The Basel III Proposal would eliminate the current capital rule’s Advanced Approach and require Category I and II banking organizations to calculate RWAs only under the Expanded Approach, with the Standardized Approach retained for smaller banking organizations. As compared with the Standardized Approach, the Expanded Approach includes more granular risk weights for credit risk and introduces a new market risk framework. In addition, unlike the Standardized Approach, the Expanded Approach includes operational risk and credit valuation adjustment RWA components. The Basel III Proposal would apply the SCB and G-SIB Surcharge to risk-based capital requirements calculated under the Expanded Approach. The effective date of the Basel III Proposal is unspecified in the Basel III Proposal. We continue to evaluate the Basel III Proposal and its potential impacts on our capital requirements and our Required Capital Framework, which will depend in part on related changes to the Federal Reserve’s supervisory stress testing framework and its related proposed rulemaking to revise the G-SIB Surcharge. June 2026 Form 10-Q 27 Table of Contents Management’s Discussion and Analysis G-SIB Surcharge Proposal On March 19, 2026, the Federal Reserve proposed revisions to the G-SIB Surcharge framework applicable to us (“G-SIB Surcharge Proposal”). The G-SIB Surcharge Proposal would modify Method 2 by adjusting the calculation and weighting of the short-term wholesale funding component and, for other systemic indicators, introducing a one-time downward adjustment. All Method 2 systemic indicators would be indexed in the future to nominal U.S. GDP. In addition, for Method 2, the G-SIB Surcharge Proposal would require measurement of most systemic indicators based on the annual average of daily or monthly values and would revise the resulting G-SIB Surcharge from 0.5-percentage point increments to 0.1-percentage point increments. The G-SIB Surcharge Proposal would also result in corresponding technical changes to Method 1 G-SIB surcharge requirements. The G-SIB Surcharge Proposal includes a proposed effective date two calendar quarters after the date of adoption of a final rule by the Federal Reserve and new surcharges calculated under the revised methodology would take effect at a later date. We continue to evaluate the G-SIB Surcharge Proposal and the potential impacts, if adopted, on our capital requirements and our Required Capital Framework. 28 June 2026 Form 10-Q Table of Contents Quantitative and Qualitative Disclosures about Risk Management believes effective risk management is vital to the success of our business activities. For a discussion of our Enterprise Risk Management framework and risk management functions, see “Quantitative and Qualitative Disclosures about Risk—Risk Management” in the 2025 Form 10-K. Market Risk Market risk refers to the risk that a change in the level of one or more market prices, rates, spreads, indices, volatilities, correlations or other market factors, such as market liquidity, will result in losses for a position or portfolio. Generally, we incur market risk as a result of trading, investing and client facilitation activities, principally within the Institutional Securities business segment where the substantial majority of our VaR for market risk exposures is generated. In addition, we incur non-trading market risk, principally within the Wealth Management and Investment Management business segments. The Wealth Management business segment primarily incurs non-trading market risk (including interest rate risk) from lending and deposit-taking activities. The Investment Management business segment primarily incurs non-trading market risk from capital investments in its funds. For a further discussion of market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” in the 2025 Form 10-K. Trading Risks We have exposures to a wide range of risks related to interest rates and credit spreads, equity prices, foreign exchange rates and commodity prices as well as the associated implied volatilities, correlations and spreads of the global markets in which we conduct our trading activities. The statistical technique known as VaR is one of the tools we use to measure, monitor and review the market risk exposures of our trading portfolios. For information regarding our primary risk exposures and market risk management, VaR methodology, assumptions and limitations, see “Quantitative and Qualitative Disclosures about Risk—Market Risk—Trading Risks” in the 2025 Form 10-K. 95%/One-Day Management VaR for the Trading Portfolio Three Months Ended June 30, 2026 $ in millions Period End Average High 1 Low 1 Interest rate and credit spread $ 29 $ 33 $ 40 $ 26 Equity price 37 31 37 25 Foreign exchange rate 10 11 20 6 Commodity price 22 24 34 17 Less: Diversification benefit 2 (47) (49) N/A N/A Primary Risk Categories $ 51 $ 50 $ 57 $ 45 Credit portfolio 20 19 21 17 Less: Diversification benefit 2 (17) (13) N/A N/A Total Management VaR $ 54 $ 56 $ 66 $ 51 Three Months Ended March 31, 2026 $ in millions Period End Average High 1 Low 1 Interest rate and credit spread $ 38 $ 32 $ 42 $ 23 Equity price 37 34 45 30 Foreign exchange rate 13 11 20 5 Commodity price 20 18 27 12 Less: Diversification benefit 2 (47) (47) N/A N/A Primary Risk Categories $ 61 $ 48 $ 68 $ 39 Credit portfolio 19 16 23 13 Less: Diversification benefit 2 (12) (11) N/A N/A Total Management VaR $ 68 $ 53 $ 74 $ 43 1. The high and low VaR values for the Total Management VaR and each of the component VaRs might have occurred on different days during the quarter, and, therefore, the diversification benefit is not an applicable measure. 2. Diversification benefit equals the difference between the total VaR and the sum of the component VaRs. This benefit arises because the simulated one-day losses for each of the components occur on different days. Similar diversification benefits are also taken into account within each component. Average Total Management VaR for the Primary Risk Categories was relatively unchanged from the three months ended March 31, 2026. Period-end Total Management VaR for the Primary Risk Categories decreased from March 31, 2026, primarily driven by reduced exposures in the interest rate and credit spread category. Distribution of VaR Statistics and Net Revenues We evaluate the reasonableness of our VaR model by comparing the potential declines in portfolio values generated by the model with corresponding actual trading results for the Firm, as well as individual business units. For days where losses exceed the VaR statistic, we examine the drivers of trading losses to evaluate the VaR model’s accuracy. There were no trading loss days in the current quarter. June 2026 Form 10-Q 29 Table of Contents Risk Disclosures Daily 95%/One-Day Total Management VaR for the Current Quarter ($ in millions) Daily Net Trading Revenues for the Current Quarter ($ in millions) Daily net trading revenues include profits and losses from Interest rate and credit spread, Equity price, Foreign exchange rate, Commodity price, and Credit portfolio positions and intraday trading activities for our trading businesses. Certain items such as fees, commissions, net interest income and counterparty default risk are excluded from daily net trading revenues and the VaR model. Revenues required for Regulatory VaR backtesting further exclude intraday trading. Non-Trading Risks We believe that sensitivity analysis is an appropriate representation of our non-trading risks. The following sensitivity analyses cover substantially all of the non-trading market risk in our portfolio. Credit Spread Risk Sensitivity 1 $ in millions At June 30, 2026 At March 31, 2026 Derivatives $ 5 $ 5 Borrowings and Deposits carried at fair value 61 58 1. Amounts represent the potential gain for each 1 bps widening of our credit spread. Wealth Management Net Interest Income Sensitivity Analysis $ in millions At June 30, 2026 At March 31, 2026 Basis point change +200 $ 413 $ 408 +100 202 198 -100 (224) (229) -200 (515) (502) The Wealth Management business segment reflects a substantial portion of our non-trading interest rate risk. Net interest income in the Wealth Management business segment primarily consists of interest income earned on non-trading assets held, including loans and investment securities, as well as margin and other lending on non-bank entities and interest expense incurred on non-trading liabilities, primarily deposits. The previous table presents an analysis of selected instantaneous upward and downward parallel interest rate shocks (subject to a floor of zero percent in the downward scenario) on net interest income over the next 12 months for our Wealth Management business segment. These shocks are applied to our 12-month forecast for our Wealth Management business segment, which incorporates market expectations of interest rates and our forecasted balance sheet and business activity. The forecast includes modeled prepayment behavior, reinvestment of net cash flows from maturing assets and liabilities, and deposit pricing sensitivity to interest rates. These key assumptions are updated periodically based on historical data and future expectations. We do not manage to any single rate scenario but rather manage net interest income in our Wealth Management business segment across a range of possible outcomes, including non-parallel rate change scenarios. The sensitivity analysis assumes that we take no action in response to these scenarios, assumes there are no changes in other macroeconomic variables normally correlated with changes in interest rates and includes subjective assumptions regarding customer and market re-pricing behavior and other factors. Our Wealth Management business segment balance sheet is asset sensitive, given assets reprice faster than liabilities, resulting in higher net interest income in higher interest rate scenarios and lower net interest income in lower interest rate scenarios. The level of interest rates may impact the amount of deposits held at the Firm, given competition for deposits from other institutions and alternative cash-equivalent 30 June 2026 Form 10-Q Table of Contents Risk Disclosures products available to depositors. Further, the level of interest rates could also impact client demand for loans. Net interest income sensitivity to interest rates at June 30, 2026 was relatively unchanged from March 31, 2026. Investments Sensitivity, Including Related Carried Interest Loss from 10% Decline $ in millions At June 30, 2026 At March 31, 2026 Investments related to Investment Management activities $ 622 $ 647 Other investments: MUMSS 128 132 Other Firm investments 499 494 We have exposure to public and private companies through direct investments, as well as through funds that invest in these assets. These investments are predominantly equity positions with long investment horizons, a portion of which is for business facilitation purposes. The market risk related to these investments is measured by estimating the potential reduction in net revenues associated with a reasonably possible 10% decline in investment values and related impact on performance-based income, as applicable. The measures reflected in the table above do not reflect the effect of any economic hedges or diversification that may reduce the risk of loss. Asset Management Revenue Sensitivity Certain asset management revenues in the Wealth Management and Investment Management business segments are derived from management fees, which are based on fee-based client assets in Wealth Management or AUM in Investment Management (together, “client holdings”). The assets underlying client holdings are primarily composed of equity, fixed income and alternative investments and are sensitive to changes in related markets. These revenues depend on multiple factors including, but not limited to, the level and duration of a market increase or decline, price volatility, the geographic and industry mix of client assets, and client behavior such as the rate and magnitude of client investments and redemptions. Therefore, overall revenues may not correlate completely with changes in the related markets. Credit Risk Credit risk refers to the risk of loss arising when a borrower, counterparty or issuer does not meet its financial obligations to us. We are primarily exposed to credit risk from institutions and individuals through our Institutional Securities and Wealth Management business segments. For a further discussion of our credit risks, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” in the 2025 Form 10-K. Loans and Lending Commitments At June 30, 2026 $ in millions HFI HFS FVO 1 Total Institutional Securities: Corporate $ 8,955 $ 10,880 $ — $ 19,835 Secured lending facilities 73,537 1,920 — 75,457 Commercial and Residential real estate 7,878 179 6,471 14,528 Securities-based lending and Other 4,163 32 6,434 10,629 Total Institutional Securities 94,533 13,011 12,905 120,449 Wealth Management: Residential real estate 75,627 5 — 75,632 Securities-based lending and Other 120,403 41 — 120,444 Total Wealth Management 196,030 46 — 196,076 Total Investment Management 2 3 — 373 376 Total loans 290,566 13,057 13,278 316,901 ACL (1,248) (1,248) Total loans, net of ACL $ 289,318 $ 13,057 $ 13,278 $ 315,653 Lending commitments 3 $ 179,115 $ 46,518 $ 800 $ 226,433 Total exposure $ 468,433 $ 59,575 $ 14,078 $ 542,086 At December 31, 2025 $ in millions HFI HFS FVO 1 Total Institutional Securities: Corporate $ 7,277 $ 7,202 $ — $ 14,479 Secured lending facilities 69,149 1,817 — 70,966 Commercial and Residential real estate 8,039 320 3,949 12,308 Securities-based lending and Other 3,780 30 6,904 10,714 Total Institutional Securities 88,245 9,369 10,853 108,467 Wealth Management: Residential real estate 72,403 5 — 72,408 Securities-based lending and Other 109,201 — — 109,201 Total Wealth Management 181,604 5 — 181,609 Total Investment Management 2 3 — 91 94 Total loans 269,852 9,374 10,944 290,170 ACL (1,132) (1,132) Total loans, net of ACL $ 268,720 $ 9,374 $ 10,944 $ 289,038 Lending commitments 3 $ 166,989 $ 41,445 $ 732 $ 209,166 Total exposure $ 435,709 $ 50,819 $ 11,676 $ 498,204 Total exposure—consists of Total loans, net of ACL, and Lending commitments 1. FVO includes the fair value of certain unfunded lending commitments. 2. Investment Management business segment loans are related to certain of our activities as an investment adviser and manager. Loans held at fair value are the result of the consolidation of investment vehicles (including CLOs) managed by Investment Management, composed primarily of senior secured loans to corporations. 3. Lending commitments represent the notional amount of legally binding obligations to provide funding to clients for lending transactions. Since commitments associated with these business activities may expire unused or may not be utilized to full capacity, they do not necessarily reflect the actual future cash funding requirements. June 2026 Form 10-Q 31 Table of Contents Risk Disclosures We provide loans and lending commitments to a variety of customers, including large corporate and institutional clients, as well as high to ultra-high net worth individuals. In addition, we purchase loans in the secondary market. Loans and lending commitments are either held for investment, held for sale or carried at fair value. For more information on these loan classifications, see Note 2 to the financial statements in the 2025 Form 10-K. Total loans and lending commitments increased by approximately $44 billion since December 31, 2025, primarily due to growth in corporate relationship lending and secured lending facilities within the Institutional Securities business segment and an increase in securities-based loans within the Wealth Management business segment. See Notes 4, 5, 9 and 13 to the financial statements for further information. Allowance for Credit Losses—Loans and Lending Commitments $ in millions Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 ACL—Loans Beginning balance $ 1,174 $ 1,132 Gross charge-offs (35) (72) Recoveries 2 2 Net (charge-offs)/recoveries (33) (70) Provision for credit losses 110 192 Other (3) (6) Ending balance $ 1,248 $ 1,248 ACL—Lending commitments Beginning balance $ 807 $ 798 Provision for credit losses (12) 4 Other (3) (10) Ending balance $ 792 $ 792 Total ending balance $ 2,040 $ 2,040 Provision for Credit Losses by Business Segment Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 $ in millions IS WM Total IS WM Total Loans $ 82 $ 28 $ 110 $ 158 $ 34 $ 192 Lending commitments (11) (1) (12) 5 (1) 4 Total $ 71 $ 27 $ 98 $ 163 $ 33 $ 196 Credit exposure arising from our loans and lending commitments is measured in accordance with our internal risk management standards. Risk factors considered in determining the allowance for credit losses for loans and lending commitments include the borrower’s financial condition, industry, facility structure, LTV ratio, debt service ratio, collateral and covenants. Qualitative and environmental factors such as economic and business conditions, nature and volume of the portfolio and lending terms, and volume and severity of past due loans may also be considered. The allowance for credit losses for loans and lending commitments increased since December 31, 2025, primarily related to certain specific commercial real estate and corporate loans and portfolio growth in corporate loans and secured lending facilities. Charge-offs in the current year period were primarily related to corporate and commercial real estate loans. The base scenario used in our ACL models as of June 30, 2026 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. Our ACL models incorporate key macroeconomic variables, including U.S. real GDP growth rate with the base scenario for the current quarter incorporating expectations of continued economic growth consistent with our prior quarter forecast. Other key macroeconomic variables used in our ACL models include corporate credit spreads, interest rates and commercial real estate indices. The significance of these key macroeconomic variables on our ACL models varies depending on portfolio composition and economic conditions. We also considered macroeconomic uncertainty in determining the aggregate allowance for credit losses for the current quarter. See Note 2 to the financial statements in the 2025 Form 10-K. Forecasted U.S. Real GDP Growth Rates in Base Scenario 4Q 2026 4Q 2027 Year-over-year growth rate 1.9 % 2.1 % Status of Loans Held for Investment At June 30, 2026 At December 31, 2025 IS WM IS WM Accrual 99.3 % 99.8 % 99.2 % 99.8 % Nonaccrual 1 0.7 % 0.2 % 0.8 % 0.2 % 1. Nonaccrual loans are loans where principal or interest is not expected when contractually due or are past due 90 days or more unless the obligation is well-secured and is in the process of collection. Net Charge-off Ratios for Loans Held for Investment Three Months Ended June 30, 2026 2025 $ in millions Net Charge-off Ratio 1 Average Loans Net Charge-off Ratio 1 Average Loans Corporate 0.31 % $ 9,327 — % $ 7,998 Secured Lending Facilities — % 71,563 — % 54,596 Commercial Real Estate 0.05 % 8,004 0.22 % 8,598 Residential Real Estate — % 74,426 — % 68,304 SBL and Other — % 121,833 — % 101,784 Total 0.01 % $ 285,153 0.01 % $ 241,280 32 June 2026 Form 10-Q Table of Contents Risk Disclosures Six Months Ended June 30, 2026 2025 $ in millions Net Charge-off Ratio 1 Average Loans Net Charge-off Ratio 1 Average Loans Corporate 0.51 % $ 8,766 — % $ 7,585 Secured Lending Facilities — % 70,440 — % 52,614 Commercial Real Estate 0.19 % 8,058 0.49 % 8,536 Residential Real Estate — % 73,634 — % 67,700 SBL and Other 0.01 % 118,238 — % 99,495 Total 0.03 % $ 279,136 0.02 % $ 235,930 SBL—Securities-based lending 1. Net charge-off ratio represents gross charge-offs net of recoveries divided by total average loans held for investment before ACL. Institutional Securities Lending Activities Institutional Securities Loans and Lending Commitments 1 At June 30, 2026 Contractual Years to Maturity $ in millions <1 1-5 5-15 >15 Total Loans AA $ 262 $ 369 $ 36 $ — $ 667 A 868 1,457 182 — 2,507 BBB 6,660 20,520 781 366 28,327 BB 14,015 39,595 4,082 467 58,159 Other NIG 4,708 14,862 2,854 208 22,632 Unrated 2 104 1,511 859 4,823 7,297 Total loans, net of ACL 26,617 78,314 8,794 5,864 119,589 Lending commitments AAA — 75 — — 75 AA 3,416 5,952 275 — 9,643 A 10,853 30,439 545 — 41,837 BBB 9,339 69,576 2,384 178 81,477 BB 5,691 33,192 2,544 1,718 43,145 Other NIG 1,124 23,932 4,083 30 29,169 Unrated 2 18 147 5 1 171 Total lending commitments 30,441 163,313 9,836 1,927 205,517 Total exposure $ 57,058 $ 241,627 $ 18,630 $ 7,791 $ 325,106 At December 31, 2025 Contractual Years to Maturity $ in millions <1 1-5 5-15 >15 Total Loans AA $ 2 $ 163 $ — $ — $ 165 A 989 1,159 158 — 2,306 BBB 3,872 17,798 967 429 23,066 BB 9,948 40,450 2,668 413 53,479 Other NIG 5,288 12,931 3,965 153 22,337 Unrated 2 212 1,587 955 3,596 6,350 Total loans, net of ACL 20,311 74,088 8,713 4,591 107,703 Lending commitments AAA — 75 — — 75 AA 3,795 5,024 275 — 9,094 A 11,952 29,626 983 — 42,561 BBB 9,721 61,325 2,138 148 73,332 BB 2,676 30,373 3,492 1,551 38,092 Other NIG 868 21,087 3,651 3 25,609 Unrated 2 20 88 8 1 117 Total lending commitments 29,032 147,598 10,547 1,703 188,880 Total exposure $ 49,343 $ 221,686 $ 19,260 $ 6,294 $ 296,583 NIG–Non-investment grade 1. Counterparty credit ratings are internally determined by the CRM. 2. Unrated loans and lending commitments are primarily trading positions that are measured at fair value and risk-managed as a component of market risk. For a further discussion of our market risk, see “Quantitative and Qualitative Disclosures about Risk—Market Risk” herein. Institutional Securities Loans and Lending Commitments by Industry $ in millions At June 30, 2026 At December 31, 2025 Industry Financials $ 89,866 $ 83,193 Real estate 56,920 50,923 Industrials 27,003 20,952 Communications Services 22,213 21,292 Information Technology 21,083 17,252 Healthcare 17,940 21,725 Consumer Staples 17,820 16,851 Consumer discretionary 17,763 15,504 Utilities 14,469 13,828 Materials 11,645 9,689 Insurance 11,296 7,443 Energy 10,042 12,946 Other 7,046 4,985 Total exposure $ 325,106 $ 296,583 The Institutional Securities business segment lending activities include Corporate, Secured lending facilities, Commercial and Residential real estate, and Securities-based lending and Other. As of June 30, 2026 and December 31, 2025, over 90% of our Institutional Securities total exposure, which consisted of loans and lending commitments, was investment grade and/or secured by collateral. For a description of Institutional Securities’ lending activities, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” in the 2025 Form 10-K. June 2026 Form 10-Q 33 Table of Contents Risk Disclosures Institutional Securities Loans and Lending Commitments Held for Investment At June 30, 2026 $ in millions Loans Lending Commitments Total Corporate $ 8,955 $ 129,997 $ 138,952 Secured lending facilities 73,537 27,797 101,334 Commercial real estate 7,878 510 8,388 Securities-based lending and Other 4,163 960 5,123 Total, before ACL $ 94,533 $ 159,264 $ 253,797 ACL $ (860) $ (777) $ (1,637) At December 31, 2025 $ in millions Loans Lending Commitments Total Corporate $ 7,277 $ 119,390 $ 126,667 Secured lending facilities 69,149 26,947 96,096 Commercial real estate 8,039 353 8,392 Securities-based lending and Other 3,780 938 4,718 Total, before ACL $ 88,245 $ 147,628 $ 235,873 ACL $ (764) $ (780) $ (1,544) Institutional Securities Commercial Real Estate Loans and Lending Commitments By Region At June 30, 2026 At December 31, 2025 $ in millions Loans 1 LC 1 Total Exposure Loans 1 LC 1 Total Exposure Americas $ 5,082 $ 672 $ 5,754 $ 4,116 $ 202 $ 4,318 EMEA 4,230 173 4,403 4,320 184 4,504 Asia 405 11 416 466 15 481 Total $ 9,717 $ 856 $ 10,573 $ 8,902 $ 401 $ 9,303 By Property Type At June 30, 2026 At December 31, 2025 $ in millions Loans 1 LC 1 Total Exposure Loans 1 LC 1 Total Exposure Industrial $ 3,440 $ 567 $ 4,007 $ 3,603 $ 118 $ 3,721 Office 2,764 106 2,870 2,143 132 2,275 Multifamily 2,050 141 2,191 1,729 96 1,825 Hotel 891 42 933 867 51 918 Retail 572 — 572 560 4 564 Total $ 9,717 $ 856 $ 10,573 $ 8,902 $ 401 $ 9,303 LC–Lending Commitments 1. Amounts include HFI, HFS and FVO loans and lending commitments. HFI loans are presented net of ACL. As of June 30, 2026 and December 31, 2025 , our lending against commercial real estate (“CRE”) properties within the Institutional Securities business segment totaled $10.6 billion and $9.3 billion , respectively. This represents 3.3% and 3.1% , respectively, of total exposure reflected in the Institutional Securities Loans and Lending Commitments table above. Those CRE loans are originated for experienced sponsors and are generally secured by specific institutional CRE properties. In many cases, loans are subsequently syndicated or s ecuritized on a full or partial basis, reducing our ongoing exposure. In addition to the amounts included in the table above, we provide certain secured lending facilities which are typically collateralized by pooled CRE mortgage loans and are included in Secured lending facilities in the Institutional Securities Loans and Lending Commitments Held for Investment table above. These secured lending facilities benefit from structural protections including cross-collateralization and diversification across property types. While we continue to actively monitor all our loan portfolios, the commercial real estate sector remains under heightened focus given its sensitivity to economic and secular factors. Institutional Securities Allowance for Credit Losses—Loans and Lending Commitments Six Months Ended June 30, 2026 $ in millions Corporate Secured Lending Facilities CRE SBL and Other Total ACL—Loans Beginning balance $ 260 $ 201 $ 283 $ 20 $ 764 Gross charge-offs (45) — (17) — (62) Recoveries — — 2 — 2 Net (charge-offs)/ recoveries (45) — (15) — (60) Provision (release) 66 43 46 3 158 Other (2) (2) (2) 4 (2) Ending balance $ 279 $ 242 $ 312 $ 27 $ 860 ACL—Lending commitments Beginning balance $ 625 $ 137 $ 12 $ 6 $ 780 Provision (release) 24 (20) 4 (3) 5 Other (9) (1) — 2 (8) Ending balance $ 640 $ 116 $ 16 $ 5 $ 777 Total ending balance $ 919 $ 358 $ 328 $ 32 $ 1,637 Institutional Securities HFI Loans—Ratios of Allowance for Credit Losses to Balance Before Allowance At June 30, 2026 At December 31, 2025 Corporate 3.1 % 3.6 % Secured lending facilities 0.3 % 0.3 % Commercial real estate 4.0 % 3.5 % Securities-based lending and Other 0.6 % 0.5 % Total Institutional Securities loans 0.9 % 0.9 % 34 June 2026 Form 10-Q Table of Contents Risk Disclosures Wealth Management Lending Activities Wealth Management Loans and Lending Commitments At June 30, 2026 Contractual Years to Maturity $ in millions <1 1-5 5-15 >15 Total Securities-based lending and Other $ 109,467 $ 9,971 $ 679 $ 75 $ 120,192 Residential real estate 2 119 974 74,401 75,496 Total loans, net of ACL $ 109,469 $ 10,090 $ 1,653 $ 74,476 $ 195,688 Lending commitments 17,393 3,024 35 464 20,916 Total exposure $ 126,862 $ 13,114 $ 1,688 $ 74,940 $ 216,604 At December 31, 2025 Contractual Years to Maturity $ in millions <1 1-5 5-15 >15 Total Securities-based lending and Other $ 96,959 $ 11,210 $ 654 $ 137 $ 108,960 Residential real estate 1 116 989 71,175 72,281 Total loans, net of ACL $ 96,960 $ 11,326 $ 1,643 $ 71,312 $ 181,241 Lending commitments 16,907 2,889 66 424 20,286 Total exposure $ 113,867 $ 14,215 $ 1,709 $ 71,736 $ 201,527 The principal Wealth Management business segment lending activities include Securities-based lending and Residential real estate loans. For more information about our Securities-based lending and Residential real estate loans, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk” in the 2025 Form 10-K. Wealth Management Commercial Real Estate Loans and Lending Commitments by Property Type At June 30, 2026 At December 31, 2025 $ in millions Loans 1 LC 1 Total exposure Loans 1 LC 1 Total exposure Office $ 2,210 $ 1 $ 2,211 $ 2,136 $ 1 $ 2,137 Retail 2,189 — 2,189 2,306 — 2,306 Multifamily 1,528 132 1,660 1,701 197 1,898 Industrial 394 — 394 437 — 437 Hotel 352 — 352 385 — 385 Other 288 — 288 311 — 311 Total $ 6,961 $ 133 $ 7,094 $ 7,276 $ 198 $ 7,474 LC–Lending Commitments 1. Amounts include HFI loans and lending commitments. HFI loans are presented net of ACL. As of June 30, 2026 and December 31, 2025 , our direct lending against CRE properties totaled $7.1 billion and $7.5 billion , respectively, within the Wealth Management business segment. This represents 3.3% and 3.7% , respectively, of total exposure reflected in the Wealth Management Loans and Lending Commitments table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our p rivate banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which partially reduce associated credit risk. At both June 30, 2026 and December 31, 2025, greater than 95% of the CRE loans balance in the Wealth Management business segment received gua rantees. All of our lending against CRE properties within Wealth Management are in the Americas region. Wealth Management Allowance for Credit Losses—Loans and Lending Commitments Six Months Ended June 30, 2026 $ in millions Residential Real Estate SBL and Other Total ACL—Loans Beginning balance $ 127 $ 241 $ 368 Gross charge-offs — (10) (10) Provision (release) 9 25 34 Other — (4) (4) Ending balance $ 136 $ 252 $ 388 ACL—Lending commitments Beginning balance $ 5 $ 13 $ 18 Provision (release) — (1) (1) Other — (2) (2) Ending balance $ 5 $ 10 $ 15 Total ending balance $ 141 $ 262 $ 403 As of June 30, 2026 and December 31, 2025, more than 75% of Wealth Management residential real estate loans were to borrowers with “Exceptional” or “Very Good” FICO scores ( i.e., exceeding 740). Additionally, Wealth Management’s securities-based lending portfolio remains well-collateralized and subject to daily client margining, which includes requiring customers to deposit additional collateral or reduce debt positions, when necessary. Customer and Other Receivables Margin Loans and Other Lending $ in millions At June 30, 2026 At December 31, 2025 Institutional Securities $ 64,084 $ 52,657 Wealth Management 36,244 31,214 Total $ 100,328 $ 83,871 The Institutional Securities and Wealth Management business segments provide margin lending arrangements that allow customers to borrow against the value of qualifying securities, primarily for the purpose of purchasing additional securities, as well as to collateralize short positions. Institutional Securities primarily includes margin loans in the Equity Financing business. Wealth Management includes margin loans as well as non-purpose securities-based lending on non-bank entities. Amounts may fluctuate from period to period as overall client balances change as a result of market levels, client positioning and leverage. Credit exposures arising from margin lending activities are generally mitigated by their short-term nature, the value of collateral held and our right to call for additional margin when collateral values decline. However, we could incur losses in the event that the customer fails to meet margin calls and collateral values decline below the loan amount. This risk is elevated in loans backed by collateral pools with significant concentrations in individual issuers or securities with similar June 2026 Form 10-Q 35 Table of Contents Risk Disclosures risk characteristics. For a further discussion, see “Risk Factors—Credit Risk” in the 2025 Form 10-K. Employee Loans For information on employee loans and related ACL, see Note 9 to the financial statements. Derivatives Fair Value of OTC Derivative Assets At June 30, 2026 Counterparty Credit Rating 1 $ in millions AAA AA A BBB NIG Total Less than 1 year $ 1,548 $ 19,215 $ 47,912 $ 25,109 $ 15,318 $ 109,102 1-3 years 868 6,549 18,584 11,604 8,632 46,237 3-5 years 419 6,705 10,383 7,077 6,320 30,904 Over 5 years 3,121 20,888 52,294 29,458 7,791 113,552 Total, gross $ 5,956 $ 53,357 $ 129,173 $ 73,248 $ 38,061 $ 299,795 Counterparty netting (3,382) (42,732) (98,675) (53,002) (23,504) (221,295) Cash and securities collateral (2,264) (8,482) (26,569) (13,924) (7,106) (58,345) Total, net $ 310 $ 2,143 $ 3,929 $ 6,322 $ 7,451 $ 20,155 At December 31, 2025 Counterparty Credit Rating 1 $ in millions AAA AA A BBB NIG Total Less than 1 year $ 969 $ 12,406 $ 41,750 $ 19,551 $ 10,930 $ 85,606 1-3 years 485 5,978 16,718 9,879 7,556 40,616 3-5 years 676 6,324 9,408 7,288 3,223 26,919 Over 5 years 3,124 23,497 52,600 28,599 7,471 115,291 Total, gross $ 5,254 $ 48,205 $ 120,476 $ 65,317 $ 29,180 $ 268,432 Counterparty netting (3,041) (39,093) (90,919) (46,335) (16,243) (195,631) Cash and securities collateral (2,114) (7,346) (25,473) (13,043) (5,669) (53,645) Total, net $ 99 $ 1,766 $ 4,084 $ 5,939 $ 7,268 $ 19,156 $ in millions At June 30, 2026 At December 31, 2025 Industry Financials $ 7,596 $ 7,233 Utilities 3,795 3,626 Energy 1,392 756 Consumer discretionary 1,073 1,174 Industrials 1,002 1,251 Communications Services 808 719 Healthcare 603 618 Regional governments 564 637 Sovereign governments 520 325 Consumer staples 473 541 Materials 442 804 Real estate 368 301 Information technology 356 230 Not-for-profit organizations 126 98 Insurance 122 159 Other 915 684 Total $ 20,155 $ 19,156 1. Counterparty credit ratings are determined internally by the CRM. We are exposed to credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the possibility that a counterparty may fail to perform according to the terms of the contract. For more information on derivatives, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives” in the 2025 Form 10-K and Note 6 to the financial statements. Country Risk Country risk exposure is the risk that events in, or that affect, a foreign country (any country other than the U.S.) might adversely affect us. We actively manage country risk exposure through a comprehensive risk management framework that combines credit and other market fundamentals and allows us to effectively identify, monitor and limit country risk. For a further discussion of our country risk exposure see “Quantitative and Qualitative Disclosures about Risk—Country and Other Risks” in the 2025 Form 10-K. Top 10 Non-U.S. Country Exposures At June 30, 2026 $ in millions United Kingdom France Germany Japan Brazil Sovereign Net inventory 1 $ 3,947 $ 4,855 $ (741) $ 2,666 $ 4,809 Net counterparty exposure 2 118 — 112 33 3 Exposure before hedges 4,065 4,855 (629) 2,699 4,812 Hedges 3 (21) (136) (141) (137) 60 Net exposure $ 4,044 $ 4,719 $ (770) $ 2,562 $ 4,872 Non-sovereign Net inventory 1 $ 2,098 $ 1,271 $ 961 $ (249) $ 97 Net counterparty exposure 2 9,238 4,049 3,429 4,447 383 Loans 12,151 807 2,870 1,579 300 Lending commitments 11,257 3,886 7,210 1,256 329 Exposure before hedges 34,744 10,013 14,470 7,033 1,109 Hedges 3 (1,851) (1,556) (2,304) (394) (34) Net exposure $ 32,893 $ 8,457 $ 12,166 $ 6,639 $ 1,075 Total net exposure $ 36,937 $ 13,176 $ 11,396 $ 9,201 $ 5,947 $ in millions Canada Netherlands Switzerland India Australia Sovereign Net inventory 1 $ 734 $ 744 $ 1 $ 767 $ 31 Net counterparty exposure 2 73 — — 93 5 Exposure before hedges 807 744 1 860 36 Hedges 3 — (12) — — — Net exposure $ 807 $ 732 $ 1 $ 860 $ 36 Non-sovereign Net inventory 1 $ 439 $ 1,022 $ 652 $ 1,236 $ 265 Net counterparty exposure 2 2,142 1,001 1,093 1,558 992 Loans 178 925 141 294 1,417 Lending commitments 1,610 886 3,434 239 1,850 Exposure before hedges 4,369 3,834 5,320 3,327 4,524 Hedges 3 (140) (77) (874) (40) (778) Net exposure $ 4,229 $ 3,757 $ 4,446 $ 3,287 $ 3,746 Total net exposure $ 5,036 $ 4,489 $ 4,447 $ 4,147 $ 3,782 36 June 2026 Form 10-Q Table of Contents Risk Disclosures 1. Net inventory represents exposure to both long and short single-name and index positions ( i.e ., bonds and equities at fair value and CDS based on a notional amount assuming zero recovery adjusted for the fair value of any receivable or payable). 2. Net counterparty exposure ( e.g ., repurchase transactions, securities lending and OTC derivatives) is net of the benefit of collateral received and also is net by counterparty when legally enforceable master netting agreements are in place. 3. Amounts represent net CDS hedges (purchased and sold) on net counterparty exposure and lending executed by trading desks responsible for hedging counterparty and lending credit risk exposures. Amounts are based on the CDS notional amount assuming zero recovery adjusted for the fair value of any receivable or payable. For further description of the contractual terms for purchased credit protection and whether they may limit the effectiveness of our hedges, see “Quantitative and Qualitative Disclosures about Risk—Credit Risk—Derivatives” in the 2025 Form 10-K. Operational Risk Operational risk refers to the risk of loss, or of damage to our reputation, resulting from inadequate or failed processes or systems, human factors ( e.g. , inappropriate or unlawful conduct) or external events (e.g., cyberattacks or third-party vulnerabilities) that may manifest as, for example, loss of information, business disruption, theft and fraud, legal and compliance risks, or damage to physical assets. We may experience operational risk events across the full scope of our business activities, including revenue-generating activities and support and control groups ( e.g. , IT and trade processing). For a further discussion about our operational risk, see “Quantitative and Qualitative Disclosures about Risk—Operational Risk” in the 2025 Form 10-K. Model Risk Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs. Model risk can lead to financial loss, poor business and strategic decision-making, noncompliance with applicable laws and/or regulations or damage to the Firm’s reputation. The risk inherent in a model is a function of the materiality, complexity and uncertainty around inputs and assumptions. Model risk is generated from the use of models impacting financial statements, regulatory filings, capital adequacy assessments and the formulation of strategy. For a further discussion about our model risk, see “Quantitative and Qualitative Disclosures about Risk—Model Risk” in the 2025 Form 10-K. Liquidity Risk Liquidity risk refers to the risk that we will be unable to finance our operations due to a loss of access to the capital markets or difficulty in liquidating our assets. Liquidity risk also encompasses our ability (or perceived ability) to meet our financial obligations without experiencing significant business disruption or reputational damage that may threaten our viability as a going concern. For a further discussion about our liquidity risk, see “Quantitative and Qualitative Disclosures about Risk—Liquidity Risk” in the 2025 Form 10-K and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” herein. Legal, Regulatory and Compliance Risk Legal, regulatory and compliance risk includes the risk of legal or regulatory sanctions, material financial loss, including fines, penalties, judgments, damages and/or settlements, limitations on our business, or loss to reputation that we may suffer as a result of failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. This risk also includes contractual and commercial risk, such as the risk that a counterparty’s performance obligations will be unenforceable. It also includes compliance with AML, terrorist financing, and anti-corruption rules and regulations. For a further discussion about our legal and compliance risk, see “Quantitative and Qualitative Disclosures about Risk—Legal, Regulatory and Compliance Risk” in the 2025 Form 10-K. Climate Risk Climate-related risk consists of physical and transition risks. Physical risks include harm to people and property arising from acute climate-related events, such as floods, hurricanes, heatwaves, droughts and wildfires, and chronic, longer-term shifts in climate patterns, such as higher global average temperatures, rising sea levels and long-term droughts. Transition risks include policy, legal, technology and market changes. Examples of these transition risks include changes in consumer and business sentiment, related technologies, shareholder preferences and any additional regulatory and legislative requirements, including increased disclosure requirements or taxation of carbon emissions. Climate risk, which is not expected to have a significant effect on our consolidated results of operations or financial condition in the near term, is an overarching risk that can impact other categories of risk. For a further discussion about our climate risk, see “Quantitative and Qualitative Disclosures about Risk—Climate Risk” in the 2025 Form 10-K. June 2026 Form 10-Q 37 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Morgan Stanley: Results of Review of Interim Financial Information We have reviewed the accompanying condensed consolidated balance sheet of Morgan Stanley and subsidiaries (the “Firm”) as of June 30, 2026, and the related condensed consolidated income statements, comprehensive income statements and statements of changes in total equity for the three-month and six-month periods ended June 30, 2026 and 2025, and the cash flow statements for the six-month periods ended June 30, 2026 and 2025, and the related notes (collectively referred to as the “interim financial information”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Firm as of December 31, 2025, and the related consolidated income statement, comprehensive income statement, cash flow statement and statement of changes in total equity for the year then ended (not presented herein) included in the Firm’s Annual Report on Form 10-K; and in our report dated February 19, 2026, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2025, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Basis for Review Results This interim financial information is the responsibility of the Firm’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our reviews in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ Deloitte & Touche LLP New York, New York August 4, 2026 38 June 2026 Form 10-Q Table of Contents Consolidated Income Statement (Unaudited) Three Months Ended June 30, Six Months Ended June 30, in millions, except per share data 2026 2025 2026 2025 Revenues Investment banking $ 2,651 $ 1,644 $ 4,940 $ 3,355 Trading 6,723 4,745 13,453 9,856 Investments 226 388 372 757 Commissions and fees 1,833 1,425 3,523 2,906 Asset management 6,912 5,953 13,642 11,916 Other 223 290 515 1,041 Total non-interest revenues 18,568 14,445 36,445 29,831 Interest income 15,902 14,905 31,175 28,653 Interest expense 13,122 12,558 25,692 23,953 Net interest 2,780 2,347 5,483 4,700 Net revenues 21,348 16,792 41,928 34,531 Provision for credit losses 98 196 196 331 Non-interest expenses Compensation and benefits 8,187 7,190 16,729 14,711 Brokerage, clearing and exchange fees 1,464 1,188 2,720 2,410 Information processing and communications 1,203 1,089 2,351 2,139 Professional services 680 711 1,282 1,385 Occupancy and equipment 482 459 965 908 Marketing and business development 401 297 711 535 Other 1,485 1,040 2,615 1,946 Total non-interest expenses 13,902 11,974 27,373 24,034 Income before provision for income taxes 7,348 4,622 14,359 10,166 Provision for income taxes 1,695 1,047 3,068 2,220 Net income $ 5,653 $ 3,575 $ 11,291 $ 7,946 Net income applicable to noncontrolling interests 72 36 143 92 Net income applicable to Morgan Stanley $ 5,581 $ 3,539 $ 11,148 $ 7,854 Preferred stock dividends 145 147 301 305 Earnings applicable to Morgan Stanley common shareholders $ 5,436 $ 3,392 $ 10,847 $ 7,549 Earnings per common share Basic $ 3.50 $ 2.15 $ 6.96 $ 4.78 Diluted $ 3.46 $ 2.13 $ 6.90 $ 4.73 Average common shares outstanding Basic 1,554 1,577 1,558 1,581 Diluted 1,569 1,593 1,573 1,596 Consolidated Comprehensive Income Statement (Unaudited) Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Net income $ 5,653 $ 3,575 $ 11,291 $ 7,946 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments ( 19 ) 204 ( 37 ) 392 Change in net unrealized gains (losses) on available-for-sale securities 3 42 ( 132 ) 400 Pension and other 5 2 9 4 Change in net debt valuation adjustment ( 630 ) ( 174 ) 599 164 Net change in cash flow hedges ( 208 ) 16 ( 506 ) 33 Total other comprehensive income (loss) $ ( 849 ) $ 90 $ ( 67 ) $ 993 Comprehensive income $ 4,804 $ 3,665 $ 11,224 $ 8,939 Net income applicable to noncontrolling interests 72 36 143 92 Other comprehensive income (loss) applicable to noncontrolling interests ( 26 ) 42 ( 23 ) 92 Comprehensive income applicable to Morgan Stanley $ 4,758 $ 3,587 $ 11,104 $ 8,755 See Notes to Consolidated Financial Statements 39 June 2026 Form 10-Q Table of Contents Consolidated Balance Sheet $ in millions, except share data (Unaudited) At June 30, 2026 At December 31, 2025 Assets Cash and cash equivalents $ 160,135 $ 111,695 Trading assets at fair value ( $ 278,278 and $ 213,269 pledged as collateral) 544,153 428,276 Investment securities: Available-for-sale at fair value (amortized cost of $ 107,761 and $ 112,522 ) 105,532 110,466 Held-to-maturity (fair value of $ 40,238 and $ 45,615 ) 47,747 53,090 Securities purchased under agreements to resell (includes $ 109 and $ — at fair value) 129,516 120,243 Securities borrowed 181,358 151,908 Customer and other receivables 151,010 114,720 Loans: Held for investment (net of allowance for credit losses of $ 1,248 and $ 1,132 ) 289,318 268,720 Held for sale 13,057 9,374 Goodwill 17,105 16,726 Intangible assets (net of accumulated amortization of $ 2,042 and $ 1,882 ) 5,873 6,010 Other assets 30,253 29,042 Total assets $ 1,675,057 $ 1,420,270 Liabilities Deposits (includes $ 8,647 and $ 8,755 at fair value) $ 446,068 $ 415,523 Trading liabilities at fair value 255,589 169,569 Securities sold under agreements to repurchase (includes $ 887 and $ 696 at fair value) 102,202 78,539 Securities loaned 20,736 17,310 Other secured financings (includes $ 19,461 and $ 16,871 at fair value) 29,819 21,603 Customer and other payables 279,070 226,519 Other liabilities and accrued expenses 31,577 29,620 Borrowings (includes $ 147,514 and $ 132,479 at fair value) 392,556 348,935 Total liabilities 1,557,617 1,307,618 Commitments and contingent liabilities (see Note 13) Equity Morgan Stanley shareholders’ 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: 1,571,931,108 and 1,582,834,137 20 20 Additional paid-in capital 31,597 31,153 Retained earnings 122,774 115,091 Employee stock trusts 5,912 5,154 Accumulated other comprehensive income (loss) ( 6,329 ) ( 6,285 ) Common stock held in treasury at cost, $ 0.01 par value ( 466,962,871 and 456,059,842 shares) ( 41,483 ) ( 38,097 ) Common stock issued to employee stock trusts ( 5,912 ) ( 5,154 ) Total Morgan Stanley shareholders’ equity 116,329 111,632 Noncontrolling interests 1,111 1,020 Total equity 117,440 112,652 Total liabilities and equity $ 1,675,057 $ 1,420,270 June 2026 Form 10-Q 40 See Notes to Consolidated Financial Statements Table of Contents Consolidated Statement of Changes in Total Equity (Unaudited) Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Preferred stock Beginning and ending balance $ 9,750 $ 9,750 $ 9,750 $ 9,750 Common stock Beginning and ending balance 20 20 20 20 Additional paid-in capital Beginning balance 30,988 29,773 31,153 30,179 Share-based award activity 609 490 444 84 Ending balance 31,597 30,263 31,597 30,263 Retained earnings Beginning balance 118,913 107,653 115,091 104,989 Net income applicable to Morgan Stanley 5,581 3,539 11,148 7,854 Preferred stock dividends 1 ( 145 ) ( 147 ) ( 301 ) ( 305 ) Common stock dividends 1 ( 1,575 ) ( 1,478 ) ( 3,164 ) ( 2,970 ) Other net increases (decreases) — — — ( 1 ) Ending balance 122,774 109,567 122,774 109,567 Employee stock trusts Beginning balance 6,003 5,277 5,154 5,103 Share-based award activity ( 91 ) ( 192 ) 758 ( 18 ) Ending balance 5,912 5,085 5,912 5,085 Accumulated other comprehensive income (loss) Beginning balance ( 5,506 ) ( 5,961 ) ( 6,285 ) ( 6,814 ) Net change in Accumulated other comprehensive income (loss) ( 823 ) 48 ( 44 ) 901 Ending balance ( 6,329 ) ( 5,913 ) ( 6,329 ) ( 5,913 ) Common stock held in treasury at cost Beginning balance ( 39,879 ) ( 34,423 ) ( 38,097 ) ( 33,613 ) Share-based award activity 54 33 1,147 1,253 Repurchases of common stock and employee tax withholdings ( 1,658 ) ( 1,113 ) ( 4,533 ) ( 3,143 ) Ending balance ( 41,483 ) ( 35,503 ) ( 41,483 ) ( 35,503 ) Common stock issued to employee stock trusts Beginning balance ( 6,003 ) ( 5,277 ) ( 5,154 ) ( 5,103 ) Share-based award activity 91 192 ( 758 ) 18 Ending balance ( 5,912 ) ( 5,085 ) ( 5,912 ) ( 5,085 ) Noncontrolling interests Beginning balance 1,098 1,035 1,020 917 Net income applicable to noncontrolling interests 72 36 143 92 Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests ( 26 ) 42 ( 23 ) 92 Other net increases (decreases) ( 33 ) ( 27 ) ( 29 ) ( 15 ) Ending balance 1,111 1,086 1,111 1,086 Total equity $ 117,440 $ 109,270 $ 117,440 $ 109,270 1. See Note 16 for information regarding dividends per share for each class of stock. See Notes to Consolidated Financial Statements 41 June 2026 Form 10-Q Table of Contents Consolidated Cash Flow Statement (Unaudited) Six Months Ended June 30, $ in millions 2026 2025 Cash flows from operating activities Net income $ 11,291 $ 7,946 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Stock-based compensation expense 1,133 1,008 Depreciation and amortization 1,916 2,172 Provision for credit losses 196 331 Other operating adjustments 260 156 Changes in assets and liabilities: Trading assets, net of Trading liabilities ( 29,728 ) ( 65,970 ) Securities borrowed ( 29,450 ) ( 16,100 ) Securities loaned 3,426 3,967 Customer and other receivables and other assets ( 40,203 ) ( 13,253 ) Customer and other payables and other liabilities 56,924 36,316 Securities purchased under agreements to resell ( 9,273 ) 11,810 Securities sold under agreements to repurchase 23,663 19,470 Net cash provided by (used for) operating activities ( 9,845 ) ( 12,147 ) Cash flows from investing activities Proceeds from (payments for): Other assets—Premises, equipment and software ( 1,573 ) ( 1,476 ) Changes in loans, net ( 21,138 ) ( 18,186 ) AFS securities: Purchases ( 16,668 ) ( 18,687 ) Proceeds from sales 6,878 2,462 Proceeds from paydowns and maturities 14,021 9,111 HTM securities: Purchases ( 1,294 ) — Proceeds from paydowns and maturities 6,901 4,520 Other investing activities ( 931 ) ( 450 ) Net cash provided by (used for) investing activities ( 13,804 ) ( 22,706 ) Cash flows from financing activities Net proceeds from (payments for): Other secured financings 5,095 3,374 Deposits 30,977 13,232 Proceeds from issuance of Borrowings 99,444 69,341 Payments for: Borrowings ( 54,037 ) ( 45,092 ) Repurchases of common stock and employee tax withholdings ( 4,547 ) ( 3,159 ) Cash dividends ( 3,385 ) ( 3,200 ) Other financing activities ( 27 ) 216 Net cash provided by (used for) financing activities 73,520 34,712 Effect of exchange rate changes on cash and cash equivalents ( 1,431 ) 3,885 Net increase (decrease) in cash and cash equivalents 48,440 3,744 Cash and cash equivalents, at beginning of period 111,695 105,386 Cash and cash equivalents, at end of period $ 160,135 $ 109,130 Supplemental Disclosure of Cash Flow Information Cash payments for: Interest $ 26,585 $ 24,543 Income taxes, net of refunds 2,171 2,345 June 2026 Form 10-Q 42 See Notes to Consolidated Financial Statements Table of Contents Notes to Consolidated Financial Statements (Unaudited) 1. Introduction and Basis of Presentation The Firm Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments—Institutional Securities, Wealth Management and Investment Management. Morgan Stanley, through its subsidiaries and affiliates, provides a wide variety of products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Morgan Stanley operates as an Integrated Firm whereby it serves clients holistically across its business segments. Unless the context otherwise requires, the terms “Morgan Stanley” or the “Firm” 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 this Form 10-Q. A description of the clients and principal products and services of each of the Firm’s business segments is below. Through the Integrated Firm some of our clients may use the products and services of more than one of our business segments. Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Investment Banking services consist of capital raising and financial advisory services, including the underwriting of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Markets business, which comprises Equity and Fixed Income, provides sales, financing, prime brokerage, market-making, and Asia wealth management services and holds certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research. Wealth Management provides a comprehensive array of financial services and solutions to individual investors, including high and ultra-high net worth individuals, and businesses and institutions. Wealth Management supports clients through three channels: Advisor-Led, Self-Directed and Workplace. Wealth Management includes: financial advisor-led brokerage, investment advisory, custody, cash management, and administrative services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services. Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors. Basis of Financial Information The financial statements are prepared in accordance with U.S. GAAP, which requires the Firm to make estimates and assumptions regarding the valuations of certain financial instruments, the valuations of goodwill and intangible assets, the outcome of legal and tax matters, deferred tax assets, ACL, and other matters that affect its financial statements and related disclosures. The Firm believes that the estimates utilized in the preparation of its financial statements are prudent and reasonable. Actual results could differ materially from these estimates. The Notes are an integral part of the Firm’s financial statements. The Firm has evaluated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto. The accompanying financial statements should be read in conjunction with the Firm’s financial statements and notes thereto included in the 2025 Form 10-K. Certain footnote disclosures included in the 2025 Form 10-K have been condensed or omitted from these financial statements as they are not required for interim reporting under U.S. GAAP. The financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire year. Consolidation The financial statements include the accounts of the Firm, its wholly owned subsidiaries and other entities in which the Firm has a controlling financial interest, including certain VIEs (see Note 14). Intercompany balances and transactions have been eliminated. For consolidated subsidiaries that are not wholly owned, the third-party holdings of equity interests are referred to as Noncontrolling interests. The net income attributable to Noncontrolling interests for such subsidiaries is presented as Net income applicable to noncontrolling interests in the income statement. The portion of shareholders’ equity that is attributable to Noncontrolling interests for such 43 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) subsidiaries is presented as Noncontrolling interests, a component of Total equity, in the balance sheet. For a discussion of the Firm’s significant regulated U.S. and international subsidiaries and its involvement with VIEs, see Note 1 to the financial statements in the 2025 Form 10-K. 2. Significant Accounting Policies For a detailed discussion about the Firm’s significant accounting policies and for further information on accounting updates adopted in the prior year, see Note 2 to the financial statements in the 2025 Form 10-K. During the six months ended June 30, 2026, there were no significant updates to the Firm’s significant accounting policies, other than as described below. In the first quarter of 2026, the Firm began using derivatives to hedge certain of its DCP awards in the Wealth Management business segment. The Firm has accordingly updated certain relevant accounting policies to address such hedging derivatives as described below. Hedge Accounting Cash Flow Hedges—Equity Price Risk The Firm designated total return swaps as hedges of the variability in forecasted cash flows from the majority of unvested DCP obligations due to variability in the underlying DCP investments. The Firm uses regression analysis to perform an ongoing prospective and retrospective assessment of the effectiveness of these hedging relationships. Changes in the fair value of these hedging derivatives designated as cash flow hedges are recorded in OCI and subsequently reclassified into Compensation and benefits expense in the same period that the related DCP award vests and the related Compensation and benefits expense is recognized. Other Hedges In addition to hedges that are designated and qualify for cash flow hedge accounting, the Firm uses derivatives to economically hedge equity price risk primarily associated with vested DCP awards. The Firm presents changes in the fair value of the derivatives related to economic hedges of DCP awards in Compensation and benefits expense. Previously, the Firm economically hedged the awards primarily with cash instruments whereby changes in the fair value of the hedges were recorded in Trading revenues. Deferred Compensation Deferred Cash-Based Compensation Compensation expense for DCP awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards. The majority of unvested DCP awards are subject to cash flow hedge accounting to mitigate the recognition timing difference on compensation expenses. Vested DCP awards are economically hedged using derivatives. For more information regarding cash flow hedge accounting for DCP awards, refer to “Hedge Accounting – Cash Flow Hedges – Equity Price Risk” herein. For more information on economic hedges for DCP awards, refer to “Other Hedges” herein. 3. Cash and Cash Equivalents $ in millions At June 30, 2026 At December 31, 2025 Cash and due from banks $ 6,936 $ 4,462 Interest bearing deposits with banks 153,199 107,233 Total Cash and cash equivalents $ 160,135 $ 111,695 Restricted cash $ 37,098 $ 30,385 For additional information on cash and cash equivalents, including restricted cash, see Note 2 to the financial statements in the 2025 Form 10-K. June 2026 Form 10-Q 44 Table of Contents Notes to Consolidated Financial Statements (Unaudited) 4. Fair Values Recurring Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis At June 30, 2026 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 77,305 $ 72,576 $ — $ — $ 149,881 Other sovereign government obligations 63,853 379 55 — 64,287 State and municipal securities — 4,357 — — 4,357 MABS — 2,423 433 — 2,856 Loans and lending commitments 2 — 11,996 1,282 — 13,278 Corporate and other debt 4,459 40,692 1,532 — 46,683 Corporate equities 3,5 211,054 765 175 — 211,994 Derivative and other contracts: Interest rate 3,340 119,058 468 — 122,866 Credit — 10,738 205 — 10,943 Foreign exchange 21 104,975 256 — 105,252 Equity 11,281 123,733 1,206 — 136,220 Commodity and other 386 13,298 2,757 — 16,441 Netting 1 ( 12,736 ) ( 292,204 ) ( 1,278 ) ( 45,227 ) ( 351,445 ) Total derivative and other contracts 2,292 79,598 3,614 ( 45,227 ) 40,277 Investments 4,5 775 409 1,560 — 2,744 Physical commodities — 670 — — 670 Total trading assets 4 359,738 213,865 8,651 ( 45,227 ) 537,027 Investment securities—AFS 76,026 29,436 70 — 105,532 Securities purchased under agreements to resell — 109 — — 109 Total assets at fair value $ 435,764 $ 243,410 $ 8,721 $ ( 45,227 ) $ 642,668 At June 30, 2026 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 8,645 $ 2 $ — $ 8,647 Trading liabilities: U.S. Treasury and agency securities 22,281 — — — 22,281 Other sovereign government obligations 35,766 43 2 — 35,811 Corporate and other debt 2,738 16,972 28 — 19,738 Corporate equities 3 115,228 323 25 — 115,576 Derivative and other contracts: Interest rate 3,185 108,077 891 — 112,153 Credit — 11,184 94 — 11,278 Foreign exchange 156 95,456 218 — 95,830 Equity 10,343 172,228 2,969 — 185,540 Commodity and other 493 14,534 1,440 — 16,467 Netting 1 ( 12,736 ) ( 292,204 ) ( 1,278 ) ( 52,867 ) ( 359,085 ) Total derivative and other contracts 1,441 109,275 4,334 ( 52,867 ) 62,183 Total trading liabilities 177,454 126,613 4,389 ( 52,867 ) 255,589 Securities sold under agreements to repurchase — 443 444 — 887 Other secured financings — 19,333 128 — 19,461 Borrowings — 146,710 804 — 147,514 Total liabilities at fair value $ 177,454 $ 301,744 $ 5,767 $ ( 52,867 ) $ 432,098 At December 31, 2025 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Assets at fair value Trading assets: U.S. Treasury and agency securities $ 70,801 $ 48,504 $ — $ — $ 119,305 Other sovereign government obligations 44,790 359 59 — 45,208 State and municipal securities — 3,740 — — 3,740 MABS — 2,326 317 — 2,643 Loans and lending commitments 2 — 9,520 1,424 — 10,944 Corporate and other debt 3,720 32,117 1,414 — 37,251 Corporate equities 3,5 161,160 823 276 — 162,259 Derivative and other contracts: Interest rate 2,231 125,002 452 — 127,685 Credit — 10,081 263 — 10,344 Foreign exchange 11 85,969 165 — 86,145 Equity 7,335 85,077 717 — 93,129 Commodity and other 222 13,746 2,494 — 16,462 Netting 1 ( 7,509 ) ( 247,840 ) ( 1,049 ) ( 40,577 ) ( 296,975 ) Total derivative and other contracts 2,290 72,035 3,042 ( 40,577 ) 36,790 Investments 4,5 795 416 1,507 — 2,718 Physical commodities — 685 — — 685 Total trading assets 4 283,556 170,525 8,039 ( 40,577 ) 421,543 Investment securities—AFS 80,907 29,559 — — 110,466 Securities purchased under agreements to resell — — — — — Total assets at fair value $ 364,463 $ 200,084 $ 8,039 $ ( 40,577 ) $ 532,009 At December 31, 2025 $ in millions Level 1 Level 2 Level 3 Netting 1 Total Liabilities at fair value Deposits $ — $ 8,754 $ 1 $ — $ 8,755 Trading liabilities: U.S. Treasury and agency securities 19,297 2 — — 19,299 Other sovereign government obligations 23,534 28 2 — 23,564 Corporate and other debt 1,447 14,138 50 — 15,635 Corporate equities 3 68,989 27 30 — 69,046 Derivative and other contracts: Interest rate 2,189 113,060 606 — 115,855 Credit — 10,520 176 — 10,696 Foreign exchange 70 82,887 129 — 83,086 Equity 6,253 114,930 2,150 — 123,333 Commodity and other 264 13,338 1,574 — 15,176 Netting 1 ( 7,509 ) ( 247,840 ) ( 1,049 ) ( 49,723 ) ( 306,121 ) Total derivative and other contracts 1,267 86,895 3,586 ( 49,723 ) 42,025 Total trading liabilities 114,534 101,090 3,668 ( 49,723 ) 169,569 Securities sold under agreements to repurchase — 251 445 — 696 Other secured financings — 16,565 306 — 16,871 Borrowings — 131,871 608 — 132,479 Total liabilities at fair value $ 114,534 $ 258,531 $ 5,028 $ ( 49,723 ) $ 328,370 MABS—Mortgage- and asset-backed securities 1. For positions with the same counterparty that cross over the levels of the fair value hierarchy, both counterparty netting and cash collateral netting are included in the column titled “Netting.” Positions classified within the same level that are with the same counterparty are netted within that level. For further information on derivative instruments and hedging activities, see Note 6. 2. For a further breakdown by type, see the following Detail of Loans and Lending Commitments at Fair Value table. 3. For trading purposes, the Firm holds or sells short equity securities issued by entities in diverse industries and of varying sizes. 45 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) 4. Amounts exclude certain investments that are measured based on NAV per share, which are not classified in the fair value hierarchy. For additional disclosure about such investments, see “Net Asset Value Measurements” herein. 5. At June 30, 2026 and December 31, 2025, the Firm’s Trading assets included an insignificant amount of equity securities subject to contractual sale restrictions that generally prohibit the Firm from selling the security for a period of time as of the measurement date. Detail of Loans and Lending Commitments at Fair Value $ in millions At June 30, 2026 At December 31, 2025 Commercial real estate $ 1,691 $ 675 Residential real estate 4,780 3,274 Securities-based lending and Other loans 6,807 6,995 Total $ 13,278 $ 10,944 Unsettled Fair Value of Futures Contracts 1 $ in millions At June 30, 2026 At December 31, 2025 Customer and other receivables (payables), net $ 2,192 $ 1,538 1. These contracts are primarily Level 1, actively traded, valued based on quoted prices from the exchange and are excluded from the previous recurring fair value tables. For a description of the valuation techniques applied to the Firm’s major categories of assets and liabilities measured at fair value on a recurring basis, see Note 4 to the financial statements in the 2025 Form 10-K. During the current quarter, there were no significant revisions made to the Firm’s valuation techniques. Rollforward of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Other sovereign government obligations Beginning balance $ 55 $ 29 $ 59 $ 17 Realized and unrealized gains (losses) — 1 — — Purchases 13 4 12 24 Sales ( 1 ) ( 3 ) ( 2 ) ( 11 ) Net transfers ( 12 ) ( 5 ) ( 14 ) ( 4 ) Ending balance $ 55 $ 26 $ 55 $ 26 Unrealized gains (losses) $ — $ — $ — $ — State and municipal securities Beginning balance $ — $ — $ — $ — Purchases — 10 — 10 Ending balance $ — $ 10 $ — $ 10 Unrealized gains (losses) $ — $ — $ — $ — MABS Beginning balance $ 629 $ 346 $ 317 $ 281 Realized and unrealized gains (losses) 2 6 12 6 Purchases 34 87 108 161 Sales ( 22 ) ( 54 ) ( 79 ) ( 83 ) Net transfers ( 210 ) 130 75 150 Ending balance $ 433 $ 515 $ 433 $ 515 Unrealized gains (losses) $ 3 $ — $ 3 $ — Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Loans and lending commitments Beginning balance $ 1,667 $ 2,026 $ 1,424 $ 1,059 Realized and unrealized gains (losses) ( 8 ) ( 36 ) ( 21 ) 22 Purchases and originations 366 177 804 332 Sales ( 295 ) ( 635 ) ( 885 ) ( 700 ) Settlements — — — 281 Net transfers ( 448 ) ( 249 ) ( 40 ) 289 Ending balance $ 1,282 $ 1,283 $ 1,282 $ 1,283 Unrealized gains (losses) $ ( 9 ) $ 5 $ ( 22 ) $ 20 Corporate and other debt Beginning balance $ 1,475 $ 1,434 $ 1,414 $ 1,258 Realized and unrealized gains (losses) ( 59 ) 15 ( 119 ) ( 18 ) Purchases and originations 503 528 770 941 Sales ( 370 ) ( 284 ) ( 510 ) ( 461 ) Net transfers ( 17 ) 66 ( 23 ) 39 Ending balance $ 1,532 $ 1,759 $ 1,532 $ 1,759 Unrealized gains (losses) $ ( 60 ) $ 3 $ ( 124 ) $ 1 Corporate equities Beginning balance $ 184 $ 163 $ 276 $ 154 Realized and unrealized gains (losses) 7 ( 1 ) 7 ( 21 ) Purchases 110 104 117 141 Sales ( 155 ) ( 40 ) ( 313 ) ( 85 ) Net transfers 29 ( 21 ) 88 16 Ending balance $ 175 $ 205 $ 175 $ 205 Unrealized gains (losses) $ 6 $ ( 1 ) $ 7 $ 1 Investments Beginning balance $ 1,587 $ 779 $ 1,507 $ 754 Realized and unrealized gains (losses) 3 2 15 24 Purchases 11 3 91 27 Sales ( 10 ) ( 1 ) ( 25 ) ( 26 ) Net transfers ( 31 ) ( 3 ) ( 28 ) 1 Ending balance $ 1,560 $ 780 $ 1,560 $ 780 Unrealized gains (losses) $ 9 $ 10 $ 18 $ 20 Investment securities—AFS Beginning balance $ — $ — $ — $ — Settlements ( 7 ) — ( 7 ) — Net transfers 77 11 77 11 Ending balance $ 70 $ 11 $ 70 $ 11 Unrealized gains (losses) $ — $ — $ — $ — Net derivatives: Interest rate Beginning balance $ ( 151 ) $ ( 123 ) $ ( 154 ) $ ( 53 ) Realized and unrealized gains (losses) ( 208 ) ( 198 ) ( 234 ) ( 408 ) Purchases 64 77 136 105 Issuances ( 32 ) ( 33 ) ( 75 ) ( 46 ) Settlements ( 18 ) ( 28 ) ( 96 ) 33 Net transfers ( 78 ) ( 152 ) — ( 88 ) Ending balance $ ( 423 ) $ ( 457 ) $ ( 423 ) $ ( 457 ) Unrealized gains (losses) $ ( 101 ) $ ( 198 ) $ ( 101 ) $ ( 374 ) June 2026 Form 10-Q 46 Table of Contents Notes to Consolidated Financial Statements (Unaudited) Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Net derivatives: Credit Beginning balance $ 148 $ 129 $ 87 $ 97 Realized and unrealized gains (losses) ( 58 ) ( 109 ) ( 52 ) ( 45 ) Settlements 21 77 71 23 Net transfers — — 5 22 Ending balance $ 111 $ 97 $ 111 $ 97 Unrealized gains (losses) $ — $ ( 109 ) $ — $ ( 35 ) Net derivatives: Foreign exchange Beginning balance $ ( 44 ) $ 305 $ 36 $ 589 Realized and unrealized gains (losses) 46 ( 20 ) ( 18 ) 45 Purchases 2 2 2 3 Issuances — — — ( 1 ) Settlements 39 ( 681 ) 60 ( 935 ) Net transfers ( 5 ) ( 39 ) ( 42 ) ( 134 ) Ending balance $ 38 $ ( 433 ) $ 38 $ ( 433 ) Unrealized gains (losses) $ ( 30 ) $ ( 20 ) $ ( 30 ) $ 45 Net derivatives: Equity Beginning balance $ ( 1,315 ) $ ( 885 ) $ ( 1,433 ) $ ( 1,148 ) Realized and unrealized gains (losses) ( 524 ) ( 192 ) ( 530 ) 153 Purchases 166 126 277 365 Issuances ( 424 ) ( 530 ) ( 672 ) ( 838 ) Settlements 462 509 740 150 Net transfers ( 128 ) ( 105 ) ( 145 ) 241 Ending balance $ ( 1,763 ) $ ( 1,077 ) $ ( 1,763 ) $ ( 1,077 ) Unrealized gains (losses) $ ( 230 ) $ ( 190 ) $ ( 230 ) $ 69 Net derivatives: Commodity and other Beginning balance $ 1,220 $ 862 $ 920 $ 1,308 Realized and unrealized gains (losses) 429 268 250 116 Purchases 36 43 132 99 Issuances ( 59 ) ( 133 ) ( 156 ) ( 189 ) Settlements ( 459 ) ( 87 ) ( 47 ) ( 108 ) Net transfers 150 ( 66 ) 218 ( 339 ) Ending balance $ 1,317 $ 887 $ 1,317 $ 887 Unrealized gains (losses) $ 34 $ 160 $ 284 $ 124 Deposits Beginning balance $ 1 $ 3 $ 1 $ 1 Realized and unrealized losses (gains) — 1 — — Issuances 1 1 2 3 Settlements — ( 1 ) ( 1 ) ( 1 ) Net transfers — 26 — 27 Ending balance $ 2 $ 30 $ 2 $ 30 Unrealized losses (gains) $ — $ 1 $ — $ — Nonderivative trading liabilities Beginning balance $ 73 $ 28 $ 82 $ 110 Realized and unrealized losses (gains) ( 21 ) — ( 24 ) ( 4 ) Purchases ( 9 ) ( 3 ) ( 26 ) ( 19 ) Sales 17 65 21 107 Net transfers ( 5 ) 24 2 ( 80 ) Ending balance $ 55 $ 114 $ 55 $ 114 Unrealized losses (gains) $ ( 19 ) $ — $ ( 23 ) $ — Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Securities sold under agreements to repurchase Beginning balance $ 449 $ 660 $ 445 $ 444 Realized and unrealized losses (gains) ( 5 ) 2 ( 1 ) 2 Net transfers — ( 216 ) — — Ending balance $ 444 $ 446 $ 444 $ 446 Unrealized losses (gains) $ ( 5 ) $ 2 $ ( 1 ) $ 2 Other secured financings Beginning balance $ 181 $ 435 $ 306 $ 76 Realized and unrealized losses (gains) — — ( 1 ) 10 Purchases — — 6 — Sales — ( 231 ) — ( 231 ) Issuances 57 114 88 253 Settlements ( 154 ) ( 147 ) ( 309 ) ( 152 ) Net transfers 44 ( 27 ) 38 188 Ending balance $ 128 $ 144 $ 128 $ 144 Unrealized losses (gains) $ — $ — $ — $ 10 Borrowings Beginning balance $ 937 $ 902 $ 608 $ 947 Realized and unrealized losses (gains) 35 195 6 238 Issuances 243 644 368 1,179 Settlements ( 35 ) ( 4 ) ( 92 ) ( 109 ) Net transfers ( 376 ) 941 ( 86 ) 423 Ending balance $ 804 $ 2,678 $ 804 $ 2,678 Unrealized losses (gains) $ 18 $ 196 $ 16 $ 234 Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA ( 5 ) ( 13 ) ( 2 ) ( 2 ) Level 3 instruments may be hedged with instruments classified in Level 1 and Level 2. The realized and unrealized gains or losses for assets and liabilities within the Level 3 category presented in the previous tables do not reflect the related realized and unrealized gains or losses on hedging instruments that have been classified by the Firm within the Level 1 and/or Level 2 categories. The unrealized gains (losses) during the period for assets and liabilities within the Level 3 category may include changes in fair value during the period that were attributable to both observable and unobservable inputs. Total realized and unrealized gains (losses) are primarily included in Trading revenues in the income statement. Additionally, in the previous tables, consolidations of VIEs are included in Purchases, and deconsolidations of VIEs are included in Settlements. 47 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Valuation Techniques and Unobservable Inputs Balance / Range (Average 1 ) $ in millions, except inputs At June 30, 2026 At December 31, 2025 Other sovereign government obligations $ 55 $ 59 Comparable pricing: Bond price 65 to 112 points ( 98 points) 58 to 112 points ( 100 points) MABS $ 433 $ 317 Comparable pricing: Bond price 40 to 111 points ( 84 points) 30 to 100 points ( 68 points) Loans and lending commitments $ 1,282 $ 1,424 Comparable pricing: Loan price 44 to 102 points ( 87 points) 54 to 102 points ( 81 points) Corporate and other debt $ 1,532 $ 1,414 Comparable pricing: Bond price 29 to 130 points ( 86 points) 29 to 130 points ( 90 points) Discounted cash flow: Loss given default 40 % to 40 % ( 40 % / 40 %) 40 % to 40 % ( 40 % / 40 %) Option model: Equity volatility 10 % to 140 % ( 46 %) N/M Corporate equities $ 175 $ 276 Comparable pricing: Equity price 100 % 100 % Investments $ 1,560 $ 1,507 Discounted cash flow: WACC 11 % to 21 % ( 16 %) 10 % to 21 % ( 16 %) Exit multiple 9 to 9 times ( 9 times) 9 to 9 times ( 9 times) Market approach: EBITDA multiple 17 times 18 times Comparable pricing: Equity price 24 % to 100 % ( 94 %) 24 % to 100 % ( 95 %) Investment securities —AFS $ 70 N/M Comparable pricing: Bond price 96 to 98 points ( 97 points) N/M Net derivative and other contracts: Interest rate $ ( 423 ) $ ( 154 ) Option model: IR volatility skew 61 % to 87 % ( 71 % / 71 %) 52 % to 86 % ( 67 % / 66 %) IR curve correlation 53 % to 99 % ( 84 % / 85 %) 56 % to 99 % ( 87 % / 88 %) Bond volatility 63 % to 94 % ( 72 % / 72 %) 63 % to 97 % ( 80 % / 80 %) Inflation volatility 32 % to 67 % ( 44 % / 40 %) 32 % to 67 % ( 44 % / 40 %) Credit $ 111 $ 87 Credit default swap model: Cash-synthetic basis 9 points 11 points Bond price 0 to 97 points ( 79 points) 0 to 97 points ( 53 points) Credit spread 22 to 672 bps ( 151 bps) 22 to 680 bps ( 108 bps) Funding spread N/M 6 to 590 bps ( 77 bps) Iswap Model: Lapse rate 2 % to 2 % ( 2 % / 2 %) N/M Balance / Range (Average 1 ) $ in millions, except inputs At June 30, 2026 At December 31, 2025 Foreign exchange 2 $ 38 $ 36 Option model: IR curve - 1 % to 7 % ( 1 % / 0 %) - 1 % to 10 % ( 2 % / 1 %) Foreign exchange volatility skew 6 % to 11 % ( 8 % / 8 %) 6 % to 10 % ( 8 % / 8 %) Contingency probability 90 % to 95 % ( 95 % / 95 %) 80 % to 95 % ( 95 % / 95 %) Equity 2 $ ( 1,763 ) $ ( 1,433 ) Option model: Equity volatility 1 % to 130 % ( 33 %) 1 % to 133 % ( 27 %) Equity volatility skew - 12 % to 2 % (- 1 %) - 11 % to 3 % (- 1 %) Equity correlation - 8 % to 99 % ( 58 %) 0 % to 100 % ( 57 %) FX correlation - 80 % to 90 % (- 31 %) - 90 % to 90 % (- 30 %) IR correlation - 20 % to 84 % ( 19 %) - 5 % to 16 % ( 15 %) Commodity and other $ 1,317 $ 920 Option model: Forward power price $ 5 to $ 142 ($ 63 ) per MWh $ 5 to $ 141 ($ 59 ) per MWh Forward natural gas price $ 1 to $ 9 ($ 3 ) per MMBTu N/M Commodity volatility 14 % to 170 % ( 28 %) 6 % to 137 % ( 29 %) Cross-commodity correlation 61 % to 99 % ( 96 %) 54 % to 99 % ( 98 %) Securities sold under agreements to repurchase $ 444 $ 445 Discounted cash flow: Funding spread 21 to 139 bps ( 69 / 61 bps) 18 to 109 bps ( 63 / 63 bps) Other secured financings $ 128 $ 306 Comparable pricing: Loan price 58 to 93 points ( 61 points) 0 to 98 points ( 66 points) Borrowings $ 804 $ 608 Option model: Equity volatility 9 % to 105 % ( 32 %) 5 % to 102 % ( 44 %) Equity volatility skew - 2 % to 1 % (- 1 %) - 3 % to 1 % (- 1 %) Equity correlation 20 % to 100 % ( 85 %) 20 % to 100 % ( 84 %) Equity - FX correlation - 80 % to 21 % (- 27 %) - 70 % to 30 % (- 19 %) Credit default swap model: Credit spread 317 to 317 bps ( 317 bps) 325 to 325 bps ( 325 bps) Discounted cash flow: Loss given default 40 % to 40 % ( 40 % / 40 %) 40 % to 40 % ( 40 % / 40 %) Nonrecurring Fair Value Measurement Loans $ 1,773 $ 1,319 Corporate loan model: Credit spread 94 to 434 bps ( 249 bps) 87 to 967 bps ( 272 bps) Comparable pricing: Loan price 35 to 85 points ( 71 points) 50 to 100 points ( 67 points) Warehouse model: Credit spread 65 to 115 bps ( 98 bps) 66 to 113 bps ( 82 bps) Points—Percentage of par IR—Interest rate FX—Foreign exchange June 2026 Form 10-Q 48 Table of Contents Notes to Consolidated Financial Statements (Unaudited) 1. A single amount is disclosed for range and average when there is no significant difference between the minimum, maximum and average. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant. 2. Includes derivative contracts with multiple risks ( i.e. , hybrid products). The previous table provides information on the valuation techniques, significant unobservable inputs, and the ranges and averages for each major category of assets and liabilities measured at fair value on a recurring and nonrecurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory of financial instruments. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm’s inventory. Generally, there are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation technique. For a description of the Firm’s significant unobservable inputs and qualitative information about the effect of hypothetical changes in the values of those inputs, see Note 4 to the financial statements in the 2025 Form 10-K. During the three months ended June 30, 2026, there were no significant revisions made to the descriptions of the Firm’s significant unobservable inputs. Net Asset Value Measurements Fund Interests At June 30, 2026 At December 31, 2025 $ in millions Carrying Value Commitment Carrying Value Commitment Private equity and other $ 3,507 $ 605 $ 3,110 $ 671 Real estate 3,539 505 3,551 246 Hedge 80 1 72 1 Total $ 7,126 $ 1,111 $ 6,733 $ 918 Amounts in the previous table represent the Firm’s carrying value of general and limited partnership interests in fund investments, as well as any related performance-based income in the form of carried interest. The carrying amounts are measured based on the NAV of the fund taking into account the distribution terms applicable to the interest held. This same measurement applies whether the fund investments are accounted for under the equity method or fair value. For a description of the Firm’s investments in private equity and other funds, real estate funds and hedge funds, which are measured based on NAV, see Note 4 to the financial statements in the 2025 Form 10-K. See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. See Note 19 for information regarding unrealized carried interest at risk of reversal. Nonredeemable Funds by Contractual Maturity Carrying Value at June 30, 2026 $ in millions Private Equity and Other Real Estate Less than 5 years $ 1,067 $ 2,424 5-10 years 1,585 1,077 Over 10 years 855 38 Total $ 3,507 $ 3,539 Nonrecurring Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis At June 30, 2026 Fair Value $ in millions Level 2 Level 3 1 Total Assets Loans $ 2,336 $ 1,773 $ 4,109 Other assets—Other investments — — — Other assets—ROU assets — — — Total $ 2,336 $ 1,773 $ 4,109 Liabilities Other liabilities and accrued expenses—Lending commitments $ 78 $ 30 $ 108 Total $ 78 $ 30 $ 108 At December 31, 2025 Fair Value $ in millions Level 2 Level 3 1 Total Assets Loans $ 2,385 $ 1,319 $ 3,704 Other assets—Other investments — 64 64 Other assets—ROU assets 20 — 20 Total $ 2,405 $ 1,383 $ 3,788 Liabilities Other liabilities and accrued expenses—Lending commitments $ 53 $ 18 $ 71 Total $ 53 $ 18 $ 71 1. For significant Level 3 balances, refer to “Significant Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements” section herein for details of the significant unobservable inputs used for nonrecurring fair value measurement. Gains (Losses) from Nonrecurring Fair Value Remeasurements 1 Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Assets Loans 2 $ ( 127 ) $ ( 170 ) $ ( 252 ) $ ( 200 ) Other assets—Other investments 3 — — — ( 6 ) Other assets—Premises, equipment and software 4 ( 5 ) ( 40 ) ( 6 ) ( 45 ) Other assets—ROU assets 5 — ( 1 ) — ( 1 ) Total $ ( 132 ) $ ( 211 ) $ ( 258 ) $ ( 252 ) Liabilities Other liabilities and accrued expenses—Lending commitments 2 $ 9 $ ( 3 ) $ ( 1 ) $ ( 8 ) Total $ 9 $ ( 3 ) $ ( 1 ) $ ( 8 ) 1. Gains and losses for Loans and Other assets—Other investments are classified in Other revenues and gains and losses for Other assets—ROU assets are recorded in Occupancy and equipment or Information processing and communication expenses. For other items, gains and losses are recorded in Other revenues if the item is held for sale; otherwise, they are recorded in Other expenses. 49 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) 2. Nonrecurring changes in the fair value of loans and lending commitments, which exclude the impact of related economic hedges, are calculated as follows: for the held-for-investment category, based on the value of the underlying collateral; and for the held-for-sale category, based on recently executed transactions, market price quotations, valuation models that incorporate market observable inputs where possible, such as comparable loan or debt prices and CDS spread levels adjusted for any basis difference between cash and derivative instruments, or default recovery analysis where such transactions and quotations are unobservable. 3. Losses related to Other assets—Other investments were determined using techniques that included discounted cash flow models, methodologies that incorporate multiples of certain comparable companies and recently executed transactions. 4. Losses related to Other assets—Premises, equipment and software generally include impairments as well as write-offs related to the disposal of certain assets. 5. Losses related to Other Assets—ROU assets include impairments related to the discontinued leased properties. Financial Instruments Not Measured at Fair Value At June 30, 2026 Carrying Value Fair Value $ in millions Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 160,135 $ 160,135 $ — $ — $ 160,135 Investment securities—HTM 47,747 7,751 31,042 1,445 40,238 Securities purchased under agreements to resell 129,407 — 128,885 522 129,407 Securities borrowed 181,358 — 181,359 — 181,359 Customer and other receivables 143,415 — 138,498 4,818 143,316 Loans 1 Held for investment 289,318 — 29,397 257,857 287,254 Held for sale 13,057 — 8,119 4,986 13,105 Other assets 1,315 — 1,315 — 1,315 Financial liabilities Deposits $ 437,421 $ — $ 437,794 $ — $ 437,794 Securities sold under agreements to repurchase 101,315 — 101,268 — 101,268 Securities loaned 20,736 — 20,734 — 20,734 Other secured financings 10,358 — 10,354 — 10,354 Customer and other payables 279,045 — 279,045 — 279,045 Borrowings 245,042 — 248,359 227 248,586 Commitment Amount Lending commitments 2 $ 225,633 $ — $ 1,238 $ 1,186 $ 2,424 At December 31, 2025 Carrying Value Fair Value $ in millions Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 111,695 $ 111,695 $ — $ — $ 111,695 Investment securities—HTM 53,090 11,636 32,622 1,357 45,615 Securities purchased under agreements to resell 120,243 — 119,273 1,003 120,276 Securities borrowed 151,908 — 151,909 — 151,909 Customer and other receivables 108,189 — 103,458 4,682 108,140 Loans 1 Held for investment 268,720 — 27,243 238,800 266,043 Held for sale 9,374 — 5,692 3,703 9,395 Other assets 704 — 704 — 704 Financial liabilities Deposits $ 406,768 $ — $ 407,350 $ — $ 407,350 Securities sold under agreements to repurchase 77,843 — 77,832 — 77,832 Securities loaned 17,310 — 17,313 — 17,313 Other secured financings 4,732 — 4,729 — 4,729 Customer and other payables 226,342 — 226,342 — 226,342 Borrowings 216,456 — 220,547 200 220,747 Commitment Amount Lending commitments 2 $ 208,435 $ — $ 1,145 $ 1,087 $ 2,232 1. Amounts include loans measured at fair value on a nonrecurring basis. 2. Represents Lending commitments accounted for as Held for Investment and Held for Sale. For a further discussion on lending commitments, see Note 13. The previous tables exclude all non-financial assets and liabilities, such as Goodwill and Intangible assets, and certain financial instruments, such as equity method investments and certain receivables. June 2026 Form 10-Q 50 Table of Contents Notes to Consolidated Financial Statements (Unaudited) 5. Fair Value Option The Firm has elected the fair value option for certain eligible instruments that are risk managed on a fair value basis to mitigate income statement volatility caused by measurement basis differences between the elected instruments and their associated risk management transactions or to eliminate complexities of applying certain accounting models. Borrowings Measured at Fair Value on a Recurring Basis $ in millions At June 30, 2026 At December 31, 2025 Business Unit Responsible for Risk Management Equity $ 73,349 $ 64,457 Interest rates 50,727 46,394 Commodities 14,212 13,665 Credit 6,702 6,094 Foreign exchange 2,524 1,869 Total $ 147,514 $ 132,479 Net Revenues from Liabilities under the Fair Value Option $ in millions Trading Revenues Interest Expense Net Revenues 1 Three Months Ended June 30, 2026 Borrowings $ ( 5,859 ) $ 325 $ ( 6,184 ) Deposits ( 93 ) 59 ( 152 ) Three Months Ended June 30, 2025 Borrowings $ ( 5,977 ) $ 241 $ ( 6,218 ) Deposits ( 88 ) 54 ( 142 ) $ in millions Trading Revenues Interest Expense Net Revenues 1 Six Months Ended June 30, 2026 Borrowings $ ( 3,314 ) $ 663 $ ( 3,977 ) Deposits ( 32 ) 120 ( 152 ) Six Months Ended June 30, 2025 Borrowings $ ( 7,765 ) $ 441 $ ( 8,206 ) Deposits $ ( 125 ) $ 107 $ ( 232 ) 1. Amounts do not reflect any gains or losses from related economic hedges. Gains (losses) from changes in fair value are recorded in Trading revenues and are mainly attributable to movements in the reference price or index, interest rates or foreign exchange rates. Gains (Losses) Due to Changes in Instrument-Specific Credit Risk Three Months Ended June 30, 2026 2025 $ in millions Trading Revenues OCI Trading Revenues OCI Loans and other receivables 1 $ 42 $ — $ ( 45 ) $ — Lending commitments ( 2 ) — ( 1 ) — Deposits — ( 6 ) — 15 Borrowings ( 4 ) ( 829 ) ( 3 ) ( 248 ) Six Months Ended June 30, 2026 2025 $ in millions Trading Revenues OCI Trading Revenues OCI Loans and other receivables 1 $ 58 $ — $ ( 51 ) $ — Lending commitments ( 5 ) — ( 2 ) — Deposits — 2 — 65 Borrowings ( 13 ) 792 ( 12 ) 150 $ in millions At June 30, 2026 At December 31, 2025 Cumulative pre-tax DVA gain (loss) recognized in AOCI $ ( 3,211 ) $ ( 4,005 ) 1. Loans and other receivables-specific credit gains (losses) were determined by excluding the non-credit components of gains and losses. Difference Between Contractual Principal and Fair Value 1 $ in millions At June 30, 2026 At December 31, 2025 Loans and other receivables 2 $ 11,156 $ 10,746 Nonaccrual loans 2 7,943 8,146 Borrowings 3 3,906 3,680 1. Amounts indicate contractual principal greater than or (less than) fair value. 2. The majority of the difference between principal and fair value amounts for loans and other receivables relates to distressed debt positions purchased at amounts well below par. 3. Excludes borrowings where the repayment of the initial principal amount fluctuates based on changes in a reference price or index. The previous tables exclude non-recourse debt from consolidated VIEs, liabilities related to transfers of financial assets treated as collateralized financings, pledged commodities and other liabilities that have specified assets attributable to them. Fair Value Loans on Nonaccrual Status $ in millions At June 30, 2026 At December 31, 2025 Nonaccrual loans $ 1,109 $ 1,240 Nonaccrual loans 90 or more days past due 99 124 51 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) 6. Derivative Instruments and Hedging Activities Fair Values of Derivative Contracts Assets at June 30, 2026 $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate $ 6 $ — $ — $ 6 Foreign exchange 295 136 — 431 Total 301 136 — 437 Not designated as accounting hedges Economic hedges of loans Credit 19 115 — 134 Other derivatives Interest rate 111,030 11,636 194 122,860 Credit 5,832 4,977 — 10,809 Foreign exchange 99,783 5,001 37 104,821 Equity 48,250 — 87,970 136,220 Commodity and other 12,715 — 3,726 16,441 Total 277,629 21,729 91,927 391,285 Total gross derivatives $ 277,930 $ 21,865 $ 91,927 $ 391,722 Amounts offset Counterparty netting ( 201,656 ) ( 19,639 ) ( 87,371 ) ( 308,666 ) Cash collateral netting ( 40,715 ) ( 2,064 ) — ( 42,779 ) Total in Trading assets $ 35,559 $ 162 $ 4,556 $ 40,277 Amounts not offset 1 Financial instruments collateral ( 15,566 ) — — ( 15,566 ) Net amounts $ 19,993 $ 162 $ 4,556 $ 24,711 Amounts for which master netting or collateral agreements are not in place or may not be legally enforceable, included in Net amounts $ 3,279 Liabilities at June 30, 2026 $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate $ 501 $ 32 $ — $ 533 Foreign exchange 31 25 — 56 Equity 5 — — 5 Total 537 57 — 594 Not designated as accounting hedges Economic hedges of loans Credit 45 951 — 996 Economic hedges of DCP Equity 24 — — 24 Other derivatives Interest rate 100,627 10,831 162 111,620 Credit 5,935 4,347 — 10,282 Foreign exchange 91,149 4,451 174 95,774 Equity 95,510 — 90,001 185,511 Commodity and other 12,798 — 3,669 16,467 Total 306,088 20,580 94,006 420,674 Total gross derivatives $ 306,625 $ 20,637 $ 94,006 $ 421,268 Amounts offset Counterparty netting ( 201,656 ) ( 19,639 ) ( 87,371 ) ( 308,666 ) Cash collateral netting ( 49,849 ) ( 570 ) — ( 50,419 ) Total in Trading liabilities $ 55,120 $ 428 $ 6,635 $ 62,183 Amounts not offset 1 Financial instruments collateral ( 8,693 ) — ( 2,462 ) ( 11,155 ) Net amounts $ 46,427 $ 428 $ 4,173 $ 51,028 Amounts for which master netting or collateral agreements are not in place or may not be legally enforceable, included in Net amounts 7,444 Assets at December 31, 2025 $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate $ 4 $ — $ — $ 4 Foreign exchange 152 82 — 234 Total 156 82 — 238 Not designated as accounting hedges Economic hedges of loans Credit 3 32 — 35 Other derivatives Interest rate 114,368 13,255 58 127,681 Credit 4,962 5,347 — 10,309 Foreign exchange 81,613 4,269 29 85,911 Equity 30,392 — 62,737 93,129 Commodity and other 13,953 — 2,509 16,462 Total 245,291 22,903 65,333 333,527 Total gross derivatives $ 245,447 $ 22,985 $ 65,333 $ 333,765 Amounts offset Counterparty netting ( 174,466 ) ( 21,165 ) ( 62,796 ) ( 258,427 ) Cash collateral netting ( 37,004 ) ( 1,544 ) — ( 38,548 ) Total in Trading assets $ 33,977 $ 276 $ 2,537 $ 36,790 Amounts not offset 1 Financial instruments collateral ( 15,097 ) — — ( 15,097 ) Net amounts $ 18,880 $ 276 $ 2,537 $ 21,693 Amounts for which master netting or collateral agreements are not in place or may not be legally enforceable, included in Net amounts $ 3,084 Liabilities at December 31, 2025 $ in millions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate $ 532 $ 29 $ — $ 561 Foreign exchange 111 22 — 133 Total 643 51 — 694 Not designated as accounting hedges Economic hedges of loans Credit 45 586 — 631 Other derivatives Interest rate 103,066 12,162 66 115,294 Credit 5,292 4,773 — 10,065 Foreign exchange 78,597 4,271 85 82,953 Equity 60,908 — 62,425 123,333 Commodity and other 12,578 — 2,598 15,176 Total 260,486 21,792 65,174 347,452 Total gross derivatives $ 261,129 $ 21,843 $ 65,174 $ 348,146 Amounts offset Counterparty netting ( 174,466 ) ( 21,165 ) ( 62,796 ) ( 258,427 ) Cash collateral netting ( 47,336 ) ( 358 ) — ( 47,694 ) Total in Trading liabilities $ 39,327 $ 320 $ 2,378 $ 42,025 Amounts not offset 1 Financial instruments collateral ( 7,181 ) ( 34 ) ( 743 ) ( 7,958 ) Net amounts $ 32,146 $ 286 $ 1,635 $ 34,067 Amounts for which master netting or collateral agreements are not in place or may not be legally enforceable, included in Net amounts $ 5,345 1. Amounts relate to master netting agreements and collateral agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other netting criteria are not met in accordance with applicable offsetting accounting guidance. See Note 4 for information related to the unsettled fair value of futures contracts not designated as accounting hedges, which are excluded from the previous tables. June 2026 Form 10-Q 52 Table of Contents Notes to Consolidated Financial Statements (Unaudited) Notionals of Derivative Contracts Assets at June 30, 2026 $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ — $ 98 $ — $ 98 Foreign exchange 14 4 — 18 Total 14 102 — 116 Not designated as accounting hedges Economic hedges of loans Credit — 2 — 2 Other derivatives Interest rate 4,810 6,460 899 12,169 Credit 303 183 — 486 Foreign exchange 4,101 305 15 4,421 Equity 994 — 1,006 2,000 Commodity and other 152 — 95 247 Total 10,360 6,950 2,015 19,325 Total gross derivatives $ 10,374 $ 7,052 $ 2,015 $ 19,441 Liabilities at June 30, 2026 $ in billions Bilateral OTC Cleared OTC Exchange- Traded Total Designated as accounting hedges Interest rate $ 2 $ 338 $ — $ 340 Foreign exchange 8 2 — 10 Equity 1 — — 1 Total 11 340 — 351 Not designated as accounting hedges Economic hedges of loans Credit 2 27 — 29 Economic hedges of DCP Equity 5 — — 5 Other derivatives Interest rate 4,996 6,587 1,055 12,638 Credit 310 179 — 489 Foreign exchange 4,027 278 19 4,324 Equity 1,054 — 1,403 2,457 Commodity and other 123 — 109 232 Total 10,517 7,071 2,586 20,174 Total gross derivatives $ 10,528 $ 7,411 $ 2,586 $ 20,525 Assets at December 31, 2025 $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate $ — $ 183 $ — $ 183 Foreign exchange 10 4 — 14 Total 10 187 — 197 Not designated as accounting hedges Economic hedges of loans Credit — — — — Other derivatives Interest rate 4,779 4,143 574 9,496 Credit 248 170 — 418 Foreign exchange 3,641 238 10 3,889 Equity 813 — 813 1,626 Commodity and other 143 — 78 221 Total 9,624 4,551 1,475 15,650 Total gross derivatives $ 9,634 $ 4,738 $ 1,475 $ 15,847 Liabilities at December 31, 2025 $ in billions Bilateral OTC Cleared OTC Exchange-Traded Total Designated as accounting hedges Interest rate $ 3 $ 243 $ — $ 246 Foreign exchange 11 2 — 13 Total 14 245 — 259 Not designated as accounting hedges Economic hedges of loans Credit 2 17 — 19 Other derivatives Interest rate 5,041 3,943 715 9,699 Credit 222 171 — 393 Foreign exchange 3,791 233 19 4,043 Equity 945 — 1,085 2,030 Commodity and other 119 — 86 205 Total 10,120 4,364 1,905 16,389 Total gross derivatives $ 10,134 $ 4,609 $ 1,905 $ 16,648 The notional amounts of derivative contracts generally overstate the Firm’s exposure. In most circumstances, notional amounts are used only as a reference point from which to calculate amounts owed between the parties to the contract. Furthermore, notional amounts do not reflect the benefit of legally enforceable netting arrangements or risk mitigating transactions. For a discussion of the Firm’s derivative instruments and hedging activities, see Note 6 to the financial statements in the 2025 Form 10-K. 53 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) Gains (Losses) on Accounting Hedges Three Months Ended Six Months Ended June 30, June 30, $ in millions 2026 2025 2026 2025 Fair value hedges—Recognized in Interest income Interest rate contracts $ 322 $ ( 309 ) $ 613 $ ( 802 ) Investment Securities—AFS ( 313 ) 320 ( 596 ) 823 Fair value hedges—Recognized in Interest expense Interest rate contracts $ ( 1,297 ) $ 1,544 $ ( 2,550 ) $ 3,862 Deposits 246 ( 29 ) 498 ( 78 ) Borrowings 1,055 ( 1,518 ) 2,064 ( 3,790 ) Net investment hedges—Foreign exchange contracts Recognized in OCI $ 172 $ ( 968 ) $ 389 $ ( 1,404 ) Forward points excluded from hedge effectiveness testing—Recognized in Interest income ( 4 ) 30 59 47 Cash flow hedges—Interest rate contracts 1 Recognized in OCI $ ( 410 ) $ ( 4 ) $ ( 748 ) $ 13 Less: Realized gains (losses) (pre-tax) reclassified from AOCI to interest income ( 11 ) ( 25 ) ( 15 ) ( 31 ) Net change in cash flow hedges included within AOCI ( 399 ) 21 ( 733 ) 44 Cash flow hedges—Equity contracts 1 Recognized in OCI $ 131 $ — $ 73 $ — Less: Realized gains (losses) (pre-tax) reclassified from AOCI to Compensation and benefits expense 5 — 4 — Net change in cash flow hedges included within AOCI 126 — 69 — 1. During the six months ended June 30, 2026, there were no forecasted transactions that failed to occur. The net gains (losses) associated with cash flow hedges expected to be reclassified from AOCI within 12 months as of June 30, 2026, is approximately $( 51 ) million. The maximum length of time over which forecasted cash flows are hedged is 34 months. Fair Value Hedges—Hedged Items $ in millions At June 30, 2026 At December 31, 2025 Investment Securities—AFS Amortized cost basis currently or previously hedged 1 $ 46,402 $ 55,451 Basis adjustments included in amortized cost 2 $ ( 269 ) $ 217 Deposits Carrying amount currently or previously hedged $ 53,354 $ 53,224 Basis adjustments included in carrying amount 2 $ ( 322 ) $ 149 Borrowings Carrying amount currently or previously hedged $ 225,898 $ 199,274 Basis adjustments included in carrying amount — Outstanding hedges $ ( 8,282 ) $ ( 6,252 ) Basis adjustments included in carrying amount — Terminated hedges $ ( 588 ) $ ( 625 ) 1. Carrying amount represents the amortized cost. As of June 30, 2026, and December 31, 2025, the amortized cost of the portfolio layer method closed portfolios was $ 759 million and $ 589 million, respectively. The Firm designated $ 1,273 million and $ 703 million as hedged amounts as of June 30, 2026, and December 31, 2025, respectively, representing the total notional value of all outstanding layers in each portfolio, including both spot-starting and forward-starting layers. The cumulative amount of basis adjustments was $( 1.1 ) million as of June 30, 2026 and $ 2 million as of December 31, 2025. Refer to Note 2 to the financial statements in the 2025 Form 10-K and Note 7 herein for additional information. 2. Hedge accounting basis adjustments are primarily related to outstanding hedges. Gains (Losses) on Economic Hedges of Loans and DCP Three Months Ended Six Months Ended June 30, June 30, $ in millions 2026 2025 2026 2025 Recognized in Other revenues Credit contracts 1 $ ( 154 ) $ ( 74 ) $ ( 172 ) $ ( 91 ) Recognized in Compensation and benefits expense Equity contracts $ 466 $ — $ 383 $ — 1. Amounts related to hedges of certain held-for-investment and held-for-sale loans. Net Derivative Liabilities and Collateral Posted $ in millions At June 30, 2026 At December 31, 2025 Net derivative liabilities with credit risk-related contingent features $ 28,512 $ 26,023 Collateral posted 20,869 20,152 The previous table presents the aggregate fair value of certain derivative contracts that contain credit risk-related contingent features that are in a net liability position for which the Firm has posted collateral in the normal course of business. June 2026 Form 10-Q 54 Table of Contents Notes to Consolidated Financial Statements (Unaudited) Incremental Collateral and Termination Payments upon Potential Future Ratings Downgrade $ in millions At June 30, 2026 One-notch downgrade $ 427 Two-notch downgrade 448 Bilateral downgrade agreements included in the amounts above 1 $ 614 1. Amount represents arrangements between the Firm and other parties where upon the downgrade of one party, the downgraded party must deliver collateral to the other party. These bilateral downgrade arrangements are used by the Firm to manage the risk of counterparty downgrades. The additional collateral or termination payments that may be called in the event of a future credit rating downgrade vary by contract and can be based on ratings by Moody’s Investors Service, Inc., S&P Global Ratings and/or other rating agencies. The previous table shows the future potential collateral amounts and termination payments that could be called or required by counterparties or exchange and clearing organizations in the event of one-notch or two-notch downgrade scenarios based on the relevant contractual downgrade triggers. Maximum Potential Payout/Notional of Credit Protection Sold 1 Years to Maturity at June 30, 2026 $ in billions < 1 1-3 3-5 Over 5 Total Single-name CDS Investment grade $ 20 $ 37 $ 44 $ 11 $ 112 Non-investment grade 8 14 15 1 38 Total $ 28 $ 51 $ 59 $ 12 $ 150 Index and basket CDS Investment grade $ 7 $ 9 $ 14 $ — $ 30 Non-investment grade 10 42 237 20 309 Total $ 17 $ 51 $ 251 $ 20 $ 339 Total CDS sold $ 45 $ 102 $ 310 $ 32 $ 489 Other credit contracts — — — 3 3 Total credit protection sold $ 45 $ 102 $ 310 $ 35 $ 492 CDS protection sold with identical protection purchased $ 407 Years to Maturity at December 31, 2025 $ in billions < 1 1-3 3-5 Over 5 Total Single-name CDS Investment grade $ 16 $ 34 $ 37 $ 11 $ 98 Non-investment grade 8 17 16 1 42 Total $ 24 $ 51 $ 53 $ 12 $ 140 Index and basket CDS Investment grade $ 7 $ 8 $ 8 $ — $ 23 Non-investment grade 7 32 173 18 230 Total $ 14 $ 40 $ 181 $ 18 $ 253 Total CDS sold $ 38 $ 91 $ 234 $ 30 $ 393 Other credit contracts — — — 3 3 Total credit protection sold $ 38 $ 91 $ 234 $ 33 $ 396 CDS protection sold with identical protection purchased $ 339 Fair Value Asset (Liability) of Credit Protection Sold 1 $ in millions At June 30, 2026 At December 31, 2025 Single-name CDS Investment grade $ 2,657 $ 2,394 Non-investment grade 689 777 Total $ 3,346 $ 3,171 Index and basket CDS Investment grade $ 1,140 $ 907 Non-investment grade 972 1,021 Total $ 2,112 $ 1,928 Total CDS sold $ 5,458 $ 5,099 Other credit contracts 122 146 Total credit protection sold $ 5,580 $ 5,245 1. Investment grade/non-investment grade determination is based on the internal credit rating of the reference obligation. Internal credit ratings serve as the CRM’s assessment of credit risk and the basis for a comprehensive credit limits framework used to control credit risk. The Firm uses quantitative models and judgment to estimate the various risk parameters related to each obligor. Protection Purchased with CDS Notional $ in billions At June 30, 2026 At December 31, 2025 Single name $ 177 $ 172 Index and basket 296 232 Tranched index and basket 41 32 Total $ 514 $ 436 Fair Value Asset (Liability) $ in millions At June 30, 2026 At December 31, 2025 Single name $ ( 3,311 ) $ ( 3,363 ) Index and basket ( 1,346 ) ( 1,209 ) Tranched index and basket ( 1,248 ) ( 1,000 ) Total $ ( 5,905 ) $ ( 5,572 ) The Firm enters into credit derivatives, principally CDS, under which it receives or provides protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. A majority of the Firm’s counterparties for these derivatives are banks, broker-dealers, and insurance and other financial institutions. The fair value amounts as shown in the previous tables are prior to cash collateral or counterparty netting. For further information on credit derivatives and other credit contracts, see Note 6 to the financial statements in the 2025 Form 10-K. 55 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) 7. Investment Securities AFS and HTM Securities At June 30, 2026 $ in millions Amortized Cost 1 Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities U.S. Treasury securities $ 76,066 $ 85 $ 125 $ 76,026 U.S. agency securities 2 24,131 35 1,962 22,204 Agency CMBS 5,006 1 270 4,737 State and municipal securities 2,142 20 9 2,153 FFELP student loan ABS 3 417 1 6 412 Unallocated basis adjustment 4 ( 1 ) 1 — — Total AFS securities 107,761 143 2,372 105,532 HTM securities U.S. Treasury securities 8,455 — 704 7,751 U.S. agency securities 2 36,738 45 6,802 29,981 Agency CMBS 589 — 38 551 Non-agency mortgage-backed securities 1,965 38 48 1,955 Total HTM securities 47,747 83 7,592 40,238 Total investment securities $ 155,508 $ 226 $ 9,964 $ 145,770 At December 31, 2025 $ in millions Amortized Cost 1 Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS securities U.S. Treasury securities $ 80,745 $ 187 $ 25 $ 80,907 U.S. agency securities 2 24,031 24 1,943 22,112 Agency CMBS 5,504 1 286 5,219 State and municipal securities 1,754 10 17 1,747 FFELP student loan ABS 3 486 1 6 481 Unallocated basis adjustment 4 2 — 2 — Total AFS securities 112,522 223 2,279 110,466 HTM securities U.S. Treasury securities 12,299 — 663 11,636 U.S. agency securities 2 38,303 67 6,785 31,585 Agency CMBS 709 — 43 666 Non-agency mortgage-backed securities 1,779 12 63 1,728 Total HTM securities 53,090 79 7,554 45,615 Total investment securities $ 165,612 $ 302 $ 9,833 $ 156,081 1. Amounts are net of any ACL. 2. U.S. agency securities consist mainly of agency mortgage pass-through pool securities, CMOs and agency-issued debt. 3. Underlying loans are backed by a guarantee, ultimately from the U.S. Department of Education, of at least 95 % of the principal balance and interest outstanding. 4. Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 and Note 6 herein for additional information. AFS Securities in an Unrealized Loss Position At June 30, 2026 At December 31, 2025 $ in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Treasury securities Less than 12 months $ 25,843 $ 124 $ 47 $ — 12 months or longer 332 1 7,440 25 Total 26,175 125 7,487 25 U.S. agency securities Less than 12 months 1,465 2 75 — 12 months or longer 14,735 1,960 17,290 1,943 Total 16,200 1,962 17,365 1,943 Agency CMBS Less than 12 months 309 1 133 — 12 months or longer 4,109 269 4,675 286 Total 4,418 270 4,808 286 State and municipal securities Less than 12 months 80 1 360 4 12 months or longer 347 8 382 13 Total 427 9 742 17 FFELP student loan ABS 12 months or longer 339 6 383 6 Total 339 6 383 6 Unallocated basis adjustment — — — 2 Total AFS securities in an unrealized loss position Less than 12 months 27,697 128 615 4 12 months or longer 19,862 2,244 30,170 2,273 Unallocated basis adjustment — — — 2 Total $ 47,559 $ 2,372 $ 30,785 $ 2,279 For AFS securities, the Firm believes there are no securities in an unrealized loss position that have credit losses after performing the analysis described in Note 2 in the 2025 Form 10-K and the Firm expects to recover the amortized cost basis of these securities. Additionally, the Firm does not intend to sell these securities and is not likely to be required to sell these securities prior to recovery of the amortized cost basis. As of June 30, 2026 and December 31, 2025, the securities in an unrealized loss position are predominantly investment grade. The HTM securities net carrying amounts at June 30, 2026 and December 31, 2025 reflect an ACL of $ 60 million and $ 60 million, respectively, predominantly related to Non-agency mortgage-backed securities. See Note 2 in the 2025 Form 10-K for a description of the ACL methodology used for HTM Securities. As of June 30, 2026 and December 31, 2025, 96 % and 97 %, respectively, of the Firm’s portfolio of HTM securities were investment grade U.S. agency securities, U.S. Treasury securities and Agency CMBS, which were on accrual status and for which there is an underlying assumption of zero credit losses. Non-investment grade HTM securities primarily consisted of certain Non-agency mortgage-backed securities, for which the expected credit losses were insignificant and were predominantly on accrual status at June 30, 2026 and December 31, 2025. June 2026 Form 10-Q 56 Table of Contents Notes to Consolidated Financial Statements (Unaudited) See Note 14 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, non-agency mortgage-backed securities, and FFELP student loan ABS. Investment Securities by Contractual Maturity At June 30, 2026 $ in millions Amortized Cost 1 Fair Value Annualized Average Yield 2,3 AFS securities U.S. Treasury securities: Due within 1 year $ 32,554 $ 32,536 4.0 % After 1 year through 5 years 43,438 43,415 3.9 % After 5 years through 10 years 74 75 4.2 % Total 76,066 76,026 U.S. agency securities: Due within 1 year 7 8 1.4 % After 1 year through 5 years 254 240 1.8 % After 5 years through 10 years 253 229 1.5 % After 10 years 23,617 21,727 3.3 % Total 24,131 22,204 Agency CMBS: Due within 1 year 305 303 2.2 % After 1 year through 5 years 3,612 3,536 1.9 % After 5 years through 10 years 174 170 1.6 % After 10 years 915 728 1.6 % Total 5,006 4,737 State and municipal securities: Due within 1 year 722 723 4.3 % After 1 year through 5 years 126 123 4.8 % After 5 years through 10 years 312 314 4.6 % After 10 Years 982 993 4.6 % Total 2,142 2,153 FFELP student loan ABS: Due within 1 year 54 52 4.7 % After 1 year through 5 years 63 61 4.6 % After 5 years through 10 years 4 4 0.9 % After 10 years 296 295 4.7 % Total 417 412 Unallocated basis adjustment 4 ( 1 ) — — Total AFS securities $ 107,761 $ 105,532 3.7 % At June 30, 2026 $ in millions Amortized Cost 1 Fair Value Annualized Average Yield 2 HTM securities U.S. Treasury securities: Due within 1 year $ 1,651 $ 1,630 2.2 % After 1 year through 5 years 5,252 5,050 2.7 % After 10 years 1,552 1,071 2.3 % Total 8,455 7,751 U.S. agency securities: After 1 year through 5 years 127 121 2.0 % After 5 years through 10 years 13 12 2.4 % After 10 years 36,598 29,848 2.1 % Total 36,738 29,981 Agency CMBS: Due within 1 year 282 278 1.4 % After 1 year through 5 years 193 180 1.3 % After 5 years through 10 years 91 75 1.5 % After 10 years 23 18 1.3 % Total 589 551 Non-agency mortgage-backed securities Due within 1 year 208 224 4.5 % After 1 year through 5 years 814 803 4.3 % After 5 years through 10 years 301 289 5.1 % After 10 years 642 639 6.5 % Total 1,965 1,955 Total HTM securities $ 47,747 $ 40,238 2.3 % Total investment securities $ 155,508 $ 145,770 3.3 % 1. Amounts are net of any ACL. 2. Annualized average yield is computed using the effective yield, weighted based on the amortized cost of each security. The effective yield is shown pre-tax and excludes the effect of related hedging derivatives. 3. At June 30, 2026, the annualized average yield, including the interest rate swap accrual of related hedges, was 3.9 % for AFS securities contractually maturing within 1 year and 3.7 % for all AFS securities. 4. Represents the amount of unallocated portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Portfolio layer method basis adjustments are not allocated to individual securities. Refer to Note 2 and Note 6 herein for additional information. Gross Realized Gains (Losses) on Sales of AFS Securities Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Gross realized gains $ 10 $ 1 $ 18 $ 22 Gross realized (losses) ( 2 ) ( 1 ) ( 5 ) ( 1 ) Total 1 $ 8 $ — $ 13 $ 21 1. Realized gains and losses are recognized in Other revenues in the income statement. 57 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) 8. Collateralized Transactions Offsetting of Certain Collateralized Transactions At June 30, 2026 $ in millions Gross Amounts Amounts Offset Balance Sheet Net Amounts Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 505,540 $ ( 376,024 ) $ 129,516 $ ( 125,860 ) $ 3,656 Securities borrowed 233,104 ( 51,746 ) 181,358 ( 176,889 ) 4,469 Liabilities Securities sold under agreements to repurchase $ 478,226 $ ( 376,024 ) $ 102,202 $ ( 96,989 ) $ 5,213 Securities loaned 72,482 ( 51,746 ) 20,736 ( 20,440 ) 296 Amounts for which master netting agreements are not in place or may not be legally enforceable, included in Net Amounts Securities purchased under agreements to resell $ 1,126 Securities borrowed 61 Securities sold under agreements to repurchase 3,741 Securities loaned 100 At December 31, 2025 $ in millions Gross Amounts Amounts Offset Balance Sheet Net Amounts Amounts Not Offset 1 Net Amounts Assets Securities purchased under agreements to resell $ 471,144 $ ( 350,901 ) $ 120,243 $ ( 117,509 ) $ 2,734 Securities borrowed 218,753 ( 66,845 ) 151,908 ( 146,726 ) 5,182 Liabilities Securities sold under agreements to repurchase $ 429,440 $ ( 350,901 ) $ 78,539 $ ( 72,407 ) $ 6,132 Securities loaned 84,155 ( 66,845 ) 17,310 ( 17,213 ) 97 Amounts for which master netting agreements are not in place or may not be legally enforceable, included in Net Amounts Securities purchased under agreements to resell $ 1,277 Securities borrowed 38 Securities sold under agreements to repurchase 5,367 Securities loaned — 1. Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. For further discussion of the Firm’s collateralized transactions, see Notes 2 and 8 to the financial statements in the 2025 Form 10-K. For information related to offsetting of derivatives, see Note 6. Gross Secured Financing Balances by Remaining Contractual Maturity At June 30, 2026 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 255,308 $ 111,490 $ 37,020 $ 74,408 $ 478,226 Securities loaned 58,077 207 513 13,685 72,482 Total included in the offsetting disclosure $ 313,385 $ 111,697 $ 37,533 $ 88,093 $ 550,708 Trading liabilities— Obligation to return securities received as collateral 34,414 — — — 34,414 Total $ 347,799 $ 111,697 $ 37,533 $ 88,093 $ 585,122 At December 31, 2025 $ in millions Overnight and Open Less than 30 Days 30-90 Days Over 90 Days Total Securities sold under agreements to repurchase $ 221,938 $ 122,291 $ 43,737 $ 41,474 $ 429,440 Securities loaned 70,433 — 321 13,401 84,155 Total included in the offsetting disclosure $ 292,371 $ 122,291 $ 44,058 $ 54,875 $ 513,595 Trading liabilities— Obligation to return securities received as collateral 7,329 — — — 7,329 Total $ 299,700 $ 122,291 $ 44,058 $ 54,875 $ 520,924 Gross Secured Financing Balances by Class of Collateral Pledged $ in millions At June 30, 2026 At December 31, 2025 Securities sold under agreements to repurchase U.S. Treasury and agency securities $ 259,958 $ 209,470 Other sovereign government obligations 154,421 159,444 Corporate equities 27,492 32,919 Other 36,355 27,607 Total $ 478,226 $ 429,440 Securities loaned Other sovereign government obligations $ 1,849 $ 1,208 Corporate equities 67,014 81,063 Other 3,619 1,884 Total $ 72,482 $ 84,155 Total included in the offsetting disclosure $ 550,708 $ 513,595 Trading liabilities—Obligation to return securities received as collateral Corporate equities $ 34,359 $ 7,017 Other 55 312 Total $ 34,414 $ 7,329 Total $ 585,122 $ 520,924 Carrying Value of Assets Loaned or Pledged without Counterparty Right to Sell or Repledge $ in millions At June 30, 2026 At December 31, 2025 Trading assets $ 63,446 $ 43,182 The Firm pledges certain of its trading assets to collateralize securities sold under agreements to repurchase, securities loaned, other secured financings and derivatives and to cover customer short sales. June 2026 Form 10-Q 58 Table of Contents Notes to Consolidated Financial Statements (Unaudited) Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged as collateral) in the balance sheet. Pledged financial instruments that cannot be sold or repledged by the secured party are included within Trading Assets, but not identified as pledged assets parenthetically in the balance sheet. Fair Value of Collateral Received with Right to Sell or Repledge $ in millions At June 30, 2026 At December 31, 2025 Collateral received with right to sell or repledge $ 1,382,658 $ 1,190,694 Collateral that was sold or repledged 1 1,062,240 900,282 1. Does not include securities used to meet federal regulations for the Firm’s U.S. broker-dealers. The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed, securities-for-securities transactions, derivative transactions, customer margin loans and securities-based lending. In many cases, the Firm is permitted to sell or repledge this collateral to secure securities sold under agreements to repurchase, to enter into securities lending and derivative transactions or to deliver to counterparties to cover short positions. Securities Segregated for Regulatory Purposes $ in millions At June 30, 2026 At December 31, 2025 Segregated securities 1 $ 28,116 $ 22,256 1. Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheet. Customer Margin and Other Lending $ in millions At June 30, 2026 At December 31, 2025 Margin and other lending $ 100,328 $ 83,871 The Firm provides margin lending arrangements that allow customers to borrow against the value of qualifying securities. Receivables from these arrangements are included within Customer and other receivables in the balance sheet. Under these arrangements, the Firm receives collateral, which includes U.S. government and agency securities, other sovereign government obligations, corporate and other debt, and corporate equities. Margin loans are collateralized by customer-owned securities held by the Firm. The Firm monitors required margin levels and established credit terms daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary. For a further discussion of the Firm’s margin lending activities, see Note 8 to the financial statements in the 2025 Form 10-K. Also included in the amounts in the previous table is non-purpose securities-based lending on entities in the Wealth Management business segment. Other Secured Financings The Firm has additional secured liabilities. For a further discussion of other secured financings, see Note 12. Additionally, for certain secured financing transactions that meet applicable netting criteria, the Firm offset Other secured financing liabilities against financing receivables recorded within Trading assets in the amount of $ 4,233 million and $ 3,410 million as of June 30, 2026 and December 31, 2025, respectively. 9. Loans, Lending Commitments and Related Allowance for Credit Losses Loans by Type At June 30, 2026 $ in millions HFI Loans HFS Loans Total Loans Corporate $ 8,955 $ 10,880 $ 19,835 Secured lending facilities 73,537 1,920 75,457 Commercial real estate 7,878 179 8,057 Residential real estate 75,627 5 75,632 Securities-based lending and Other 124,569 73 124,642 Total loans 290,566 13,057 303,623 ACL ( 1,248 ) ( 1,248 ) Total loans, net $ 289,318 $ 13,057 $ 302,375 Loans to non-U.S. borrowers, net $ 36,937 $ 5,781 $ 42,718 At December 31, 2025 $ in millions HFI Loans HFS Loans Total Loans Corporate $ 7,277 $ 7,202 $ 14,479 Secured lending facilities 69,149 1,817 70,966 Commercial real estate 8,039 320 8,359 Residential real estate 72,403 5 72,408 Securities-based lending and Other 112,984 30 113,014 Total loans 269,852 9,374 279,226 ACL ( 1,132 ) ( 1,132 ) Total loans, net $ 268,720 $ 9,374 $ 278,094 Loans to non-U.S. borrowers, net $ 34,532 $ 3,622 $ 38,154 For additional information on the Firm’s held-for-investment and held-for-sale loan portfolios, see Note 9 to the financial statements in the 2025 Form 10-K. Loans by Interest Rate Type At June 30, 2026 At December 31, 2025 $ in millions Fixed Rate Floating or Adjustable Rate Fixed Rate Floating or Adjustable Rate Corporate $ 86 $ 19,749 $ 1 $ 14,478 Secured lending facilities — 75,457 525 70,440 Commercial real estate 331 7,726 327 8,032 Residential real estate 33,088 42,544 32,377 40,031 Securities-based lending and Other 28,341 96,301 27,681 85,334 Total loans, before ACL $ 61,846 $ 241,777 $ 60,911 $ 218,315 59 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) See Note 4 for further information regarding Loans and lending commitments held at fair value. See Note 13 for details of current commitments to lend in the future. Loans Held for Investment before Allowance by Credit Quality and Origination Year At June 30, 2026 At December 31, 2025 Corporate $ in millions IG NIG Total IG NIG Total Revolving $ 3,070 $ 5,608 $ 8,678 $ 2,362 $ 4,580 $ 6,942 2026 — 75 75 2025 — 35 35 125 40 165 2024 78 50 128 79 50 129 2023 — 24 24 — 25 25 2022 — — — — — — Prior 15 — 15 15 1 16 Total $ 3,163 $ 5,792 $ 8,955 $ 2,581 $ 4,696 $ 7,277 At June 30, 2026 At December 31, 2025 Secured Lending Facilities $ in millions IG NIG Total IG NIG Total Revolving $ 18,601 $ 38,209 $ 56,810 $ 15,709 $ 37,915 $ 53,624 2026 999 3,666 4,665 2025 1,528 7,271 8,799 2,514 7,248 9,762 2024 48 1,254 1,302 78 2,620 2,698 2023 266 590 856 596 935 1,531 2022 5 610 615 13 957 970 Prior 9 481 490 7 557 564 Total $ 21,456 $ 52,081 $ 73,537 $ 18,917 $ 50,232 $ 69,149 At June 30, 2026 At December 31, 2025 Commercial Real Estate $ in millions IG NIG Total IG NIG Total Revolving $ 19 $ — $ 19 $ 34 $ — $ 34 2026 — 976 976 2025 634 1,536 2,170 322 2,103 2,425 2024 540 1,374 1,914 577 1,385 1,962 2023 153 394 547 153 409 562 2022 166 895 1,061 332 1,094 1,426 Prior 28 1,163 1,191 37 1,593 1,630 Total $ 1,540 $ 6,338 $ 7,878 $ 1,455 $ 6,584 $ 8,039 At June 30, 2026 Residential Real Estate by FICO Scores by LTV Ratio Total $ in millions ≥ 740 680-739 ≤ 679 ≤ 80% > 80% Revolving $ 184 $ 47 $ 7 $ 238 $ — $ 238 2026 5,453 948 154 5,993 562 6,555 2025 8,650 1,622 181 9,445 1,008 10,453 2024 7,299 1,389 171 8,006 853 8,859 2023 5,711 1,241 182 6,369 765 7,134 2022 9,217 2,056 341 10,712 902 11,614 Prior 24,596 5,554 624 28,779 1,995 30,774 Total $ 61,110 $ 12,857 $ 1,660 $ 69,542 $ 6,085 $ 75,627 At December 31, 2025 Residential Real Estate by FICO Scores by LTV Ratio Total $ in millions ≥ 740 680-739 ≤ 679 ≤ 80% > 80% Revolving $ 172 $ 40 $ 7 $ 219 $ — $ 219 2025 9,096 1,666 189 9,900 1,051 10,951 2024 7,825 1,480 184 8,571 918 9,489 2023 6,099 1,315 187 6,788 813 7,601 2022 9,613 2,138 355 11,159 947 12,106 Prior 25,543 5,841 653 29,944 2,093 32,037 Total $ 58,348 $ 12,480 $ 1,575 $ 66,581 $ 5,822 $ 72,403 At June 30, 2026 Securities-based lending 1 Other 2 $ in millions IG NIG Total Revolving $ 108,745 $ 721 $ 1,694 $ 111,160 2026 1,264 6 986 2,256 2025 2,128 195 560 2,883 2024 532 640 214 1,386 2023 529 140 887 1,556 2022 67 222 1,072 1,361 Prior 232 1,010 2,725 3,967 Total $ 113,497 $ 2,934 $ 8,138 $ 124,569 At December 31, 2025 Securities-based lending 1 Other 2 $ in millions IG NIG Total Revolving $ 97,840 $ 639 $ 1,615 $ 100,094 2025 2,437 199 808 3,444 2024 1,132 690 180 2,002 2023 655 126 981 1,762 2022 132 170 1,260 1,562 Prior 245 1,013 2,862 4,120 Total $ 102,441 $ 2,837 $ 7,706 $ 112,984 IG—Investment Grade NIG—Non-investment Grade 1. Securities-based loans are subject to collateral maintenance provisions, and at June 30, 2026 and December 31, 2025, these loans are predominantly over-collateralized. For more information on the ACL methodology related to securities-based loans, see Note 2 to the financial statements in the 2025 Form 10-K. 2. Other loans primarily include certain loans originated in the tailored lending business within the Wealth Management business segment, which typically consist of bespoke lending arrangements provided to ultra-high net worth clients. These facilities are generally secured by eligible collateral. Past Due Loans Held for Investment before Allowance 1 $ in millions At June 30, 2026 At December 31, 2025 Commercial real estate $ 181 $ 129 Residential real estate 221 298 Securities-based lending and Other 81 41 Total $ 483 $ 468 1. As of June 30, 2026 and December 31, 2025, the majority of the amounts were 90 days or more past due. June 2026 Form 10-Q 60 Table of Contents Notes to Consolidated Financial Statements (Unaudited) Nonaccrual Loans Held for Investment before Allowance 1 $ in millions At June 30, 2026 At December 31, 2025 Corporate $ 146 $ 203 Secured lending facilities 7 14 Commercial real estate 454 476 Residential real estate 193 208 Securities-based lending and Other 207 246 Total $ 1,007 $ 1,147 Nonaccrual loans without an ACL $ 180 $ 180 1. There were no loans held for investment that were 90 days or more past due and still accruing as of June 30, 2026 and December 31, 2025. For further information on the Firm’s nonaccrual policy, see Note 2 to the financial statements in the 2025 Form 10-K. Loan Modifications to Borrowers Experiencing Financial Difficulty The Firm may modify the terms of certain loans for economic or legal reasons related to a borrower’s financial difficulties, and these modifications include interest rate reductions, principal forgiveness, term extensions and other-than-insignificant payment delays or a combination of these aforementioned modifications. Modified loans are typically evaluated individually for allowance for credit losses. Modified Loans Held for Investment Period-end loans held for investment modified during the following periods 1 Three Months Ended June 30, 2026 2025 $ in millions Amortized Cost % of Total Loans 2 Amortized Cost % of Total Loans 2 Term Extension Corporate $ — — % $ 113 1.5 % Commercial real estate 50 0.6 % 330 4.0 % Total $ 50 0.6 % $ 443 2.8 % Other-than-insignificant Payment Delay Securities-based lending and Other $ 5 — % $ — — % Total $ 5 — % $ — — % Multiple Modifications - Term Extension and Interest Rate Reduction Corporate $ 27 0.3 % $ — — % Commercial real estate — — % 75 0.9 % Residential real estate — — % 2 — % Total $ 27 0.3 % $ 77 0.1 % Total Modifications $ 82 0.1 % $ 520 0.6 % Six Months Ended June 30, 2026 2025 $ in millions Amortized Cost % of Total Loans 2 Amortized Cost % of Total Loans 2 Term Extension Corporate $ 5 0.1 % $ 126 1.6 % Commercial real estate 50 0.6 % 330 4.0 % Securities-based lending and Other 4 — % 33 — % Total $ 59 — % $ 489 0.4 % Other-than-insignificant Payment Delay Securities-based lending and Other 5 — % 29 — % Total $ 5 — % $ 29 — % Multiple Modifications - Term Extension and Interest Rate Reduction Corporate $ 27 0.3 % $ — — % Commercial real estate — — % 75 0.9 % Residential real estate — — % 2 — % Total $ 27 0.3 % $ 77 0.1 % Total Modifications $ 91 0.1 % $ 595 0.3 % 1. Lending commitments to borrowers for which the Firm has modified terms of the receivable during the three months ended June 30, 2026 and 2025, were $ 407 million and $ 242 million, as of June 30, 2026 and 2025, respectively. Lending commitments to borrowers for which the Firm has modified terms of the receivable during the six months ended June 30, 2026 and 2025, were $ 1,302 million and $ 401 million, as of June 30, 2026 and 2025, respectively. 2. Percentage of total loans represents the percentage of modified loans to total loans held for investment by loan type. Financial Effect of Modifications on Loans Held for Investment Three Months Ended June 30, 2026 1 Term Extension (Months) Other-than-insignificant Payment Delay (Months) Principal Forgiveness ($ millions) Interest Rate Reduction (%) Single Modifications Commercial real estate 48 0 — — % Securities-based lending and Other 0 4 — — % Multiple Modifications - Term Extension and Interest Rate Reduction Corporate 28 0 $ — 0.1 % Three Months Ended June 30, 2025 1 Term Extension (Months) Other-than-insignificant Payment Delay (Months) Principal Forgiveness ($ millions) Interest Rate Reduction (%) Single Modifications Corporate 26 0 $ — — % Commercial real estate 33 0 — — % Multiple Modifications - Term Extension and Interest Rate Reduction Commercial real estate 65 0 $ — 0.6 % Residential real estate 120 0 — 1.0 % 61 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) Six Months Ended June 30, 2026 1 Term Extension (Months) Other-than-insignificant Payment Delay (Months) Principal Forgiveness ($ millions) Interest Rate Reduction (%) Single Modifications Corporate 20 0 $ — — % Commercial real estate 48 0 — — % Securities-based lending and Other 24 4 — — % Multiple Modifications - Term Extension and Interest Rate Reduction Corporate 28 0 $ — 0.1 % Six Months Ended June 30, 2025 1 Term Extension (Months) Other-than-insignificant Payment Delay (Months) Principal Forgiveness ($ millions) Interest Rate Reduction (%) Single Modifications Corporate 27 0 $ — — % Commercial real estate 33 0 — — % Securities-based lending and Other 12 11 — — % Multiple Modifications - Term Extension and Interest Rate Reduction Commercial real estate 65 0 $ — 0.6 % Residential real estate 120 0 — 1.0 % 1. In instances where more than one loan was modified, modification impact is presented on a weighted-average basis. Performance of Loans Held for Investment Modified in the Last 12 Months At June 30, 2026 $ in millions Current and less than 30 days past due 30-89 days past due 90+ days past due Total Corporate $ 76 $ — $ — $ 76 Secured lending facilities 7 — — 7 Commercial real estate 196 — — 196 Residential real estate 6 — — 6 Securities-based lending and Other 415 5 — 420 Total $ 700 $ 5 $ — $ 705 At June 30, 2025 $ in millions Current and less than 30 days past due 30-89 days past due 90+ days past due Total Corporate $ 152 $ — $ — $ 152 Commercial real estate 546 — — 546 Residential real estate 2 — 2 4 Securities-based lending and Other 84 — — 84 Total $ 784 $ — $ 2 $ 786 At June 30, 2026, there were no loans held for investment that defaulted during the six months ended June 30, 2026 that had been modified in the 12 month period prior to default. At June 30, 2025, there were no loans held for investment that defaulted during the six months ended June 30, 2025 that had been modified in the 12 month period prior to default. Provision for Credit Losses Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Loans $ 110 $ 138 $ 192 $ 219 Lending commitments ( 12 ) 58 4 112 Allowance for Credit Losses Rollforward and Allocation—Loans and Lending Commitments Six Months Ended June 30, 2026 $ in millions Corporate Secured Lending Facilities CRE Residential Real Estate SBL and Other Total ACL—Loans Beginning balance $ 260 $ 201 $ 283 $ 127 $ 261 $ 1,132 Gross charge-offs ( 45 ) — ( 17 ) — ( 10 ) ( 72 ) Recoveries — — 2 — — 2 Net (charge-offs)/ recoveries ( 45 ) — ( 15 ) — ( 10 ) ( 70 ) Provision (release) 66 43 46 9 28 192 Other ( 2 ) ( 2 ) ( 2 ) — — ( 6 ) Ending balance $ 279 $ 242 $ 312 $ 136 $ 279 $ 1,248 Percent of loans to total loans 1 3 % 25 % 3 % 26 % 43 % 100 % ACL—Lending commitments Beginning balance $ 625 $ 137 $ 12 $ 5 $ 19 $ 798 Provision (release) 24 ( 20 ) 4 — ( 4 ) 4 Other ( 9 ) ( 1 ) — — — ( 10 ) Ending balance $ 640 $ 116 $ 16 $ 5 $ 15 $ 792 Total ending balance $ 919 $ 358 $ 328 $ 141 $ 294 $ 2,040 Six Months Ended June 30, 2025 $ in millions Corporate Secured Lending Facilities CRE Residential Real Estate SBL and Other Total ACL—Loans Beginning balance $ 200 $ 140 $ 373 $ 97 $ 256 $ 1,066 Gross charge-offs — — ( 62 ) — — ( 62 ) Recoveries — — 20 — — 20 Net (charge-offs)/ recoveries — — ( 42 ) — — ( 42 ) Provision (release) 63 30 52 23 51 219 Other 8 5 15 — — 28 Ending balance $ 271 $ 175 $ 398 $ 120 $ 307 $ 1,271 Percent of loans to total loans 1 3 % 24 % 3 % 28 % 42 % 100 % ACL—Lending commitments Beginning balance $ 507 $ 88 $ 40 $ 4 $ 17 $ 656 Provision (release) 83 47 ( 21 ) — 3 112 Other 17 3 1 — 1 22 Ending balance $ 607 $ 138 $ 20 $ 4 $ 21 $ 790 Total ending balance $ 878 $ 313 $ 418 $ 124 $ 328 $ 2,061 CRE—Commercial real estate SBL—Securities-based lending 1. Percentage of loans to total loans represents loans held for investment by loan type to total loans held for investment. The allowance for credit losses for loans and lending commitments increased during the six months ended June 30, 2026, primarily related to certain specific commercial real estate and corporate loans and portfolio growth in corporate June 2026 Form 10-Q 62 Table of Contents Notes to Consolidated Financial Statements (Unaudited) loans and secured lending facilities. Charge-offs in the current year period were primarily related to corporate and commercial real estate loans. The base scenario used in the Firm’s ACL models as of June 30, 2026 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. The Firm’s ACL models incorporate key macroeconomic variables, including U.S. real GDP growth rate with the base scenario for the current quarter incorporating expectations of continued economic growth consistent with the prior quarter forecast. Other key macroeconomic variables used in the Firm’s ACL models include corporate credit spreads, interest rates and commercial real estate indices. The significance of these key macroeconomic variables on the Firm’s ACL models varies depending on portfolio composition and economic conditions. The Firm also considered macroeconomic uncertainty in determining the aggregate allowance for credit losses for the current quarter. For a further discussion of the Firm’s loans as well as the Firm’s allowance methodology, refer to Notes 2 and 9 to the financial statements in the 2025 Form 10-K. Gross Charge-offs by Origination Year Three Months Ended June 30, 2026 $ in millions Corporate Secured Lending Facilities CRE Residential Real Estate SBL and Other Total Revolving $ ( 29 ) $ — $ — $ — $ — $ ( 29 ) 2022 — — ( 6 ) — — ( 6 ) Total $ ( 29 ) $ — $ ( 6 ) $ — $ — $ ( 35 ) Three Months Ended June 30, 2025 $ in millions Corporate Secured Lending Facilities CRE Residential Real Estate SBL and Other Total Prior to 2022 $ — $ — $ ( 31 ) $ — $ — $ ( 31 ) Total $ — $ — $ ( 31 ) $ — $ — $ ( 31 ) Six Months Ended June 30, 2026 $ in millions Corporate Secured Lending Facilities CRE Residential Real Estate SBL and Other Total Revolving $ ( 45 ) $ — $ — $ — $ — $ ( 45 ) 2022 — — ( 6 ) — — ( 6 ) Prior to 2022 — — ( 11 ) — ( 10 ) ( 21 ) Total $ ( 45 ) $ — $ ( 17 ) $ — $ ( 10 ) $ ( 72 ) Six Months Ended June 30, 2025 $ in millions Corporate Secured Lending Facilities CRE Residential Real Estate SBL and Other Total 2022 $ — $ — $ ( 10 ) $ — $ — $ ( 10 ) Prior to 2022 — — ( 52 ) — — ( 52 ) Total $ — $ — $ ( 62 ) $ — $ — $ ( 62 ) CRE—Commercial real estate SBL—Securities-based lending Selected Credit Ratios At June 30, 2026 At December 31, 2025 ACL for loans to total HFI loans 0.4 % 0.4 % Nonaccrual HFI loans to total HFI loans 0.3 % 0.4 % ACL for loans to nonaccrual HFI loans 123.9 % 98.7 % Employee Loans $ in millions At June 30, 2026 At December 31, 2025 Currently employed by the Firm 1 $ 4,949 $ 4,769 No longer employed by the Firm 2 90 89 Employee loans $ 5,039 $ 4,858 ACL ( 119 ) ( 127 ) Employee loans, net of ACL $ 4,920 $ 4,731 Remaining repayment term, weighted average in years 5.7 5.7 1. These loans are predominantly current. 2. These loans are predominantly past due for a period of 90 days or more. Employee loans are granted in conjunction with a program established primarily to recruit certain Wealth Management financial advisors, are full recourse and generally require periodic repayments, and are due in full upon termination of employment with the Firm. These loans are recorded in Customer and other receivables in the balance sheet. See Note 2 to the financial statements in the 2025 Form 10-K for a description of the CECL allowance methodology, including credit quality indicators, for employee loans. 10. Other Assets Equity Method Investments $ in millions At June 30, 2026 At December 31, 2025 Investments $ 2,053 $ 2,054 Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Income (loss) $ 86 $ 59 $ 173 $ 121 Equity method investments, other than investments in certain fund interests, are summarized above and are included in Other assets in the balance sheet with related income or loss included in Other revenues in the income statement. See “Net Asset Value Measurements—Fund Interests” in Note 4 for the carrying value of certain of the Firm’s fund interests, which are composed of general and limited partnership interests, as well as any related carried interest. Japanese Securities Joint Venture Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Income (loss) from investment in MUMSS $ 56 $ 30 $ 106 $ 66 63 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) For more information on MUMSS and other relationships with MUFG, see Note 11 to the financial statements in the 2025 Form 10-K. Tax Equity Investments The Firm invests in tax equity investment interests which entitle the Firm to a share of tax credits and other income tax benefits generated by the projects underlying the investments. The Firm accounts for certain renewable energy and other tax equity investments programs using the proportional amortization method. Tax Equity Investments under the Proportional Amortization Method $ in millions At June 30, 2026 At December 31, 2025 Low-income housing $ 1,836 $ 1,897 Renewable energy and other 29 28 Total 1,2 $ 1,865 $ 1,925 1. Amounts include unfunded equity contributions of $ 671 million and $ 707 million as of June 30, 2026 and December 31, 2025, respectively. The corresponding liabilities for the commitments to fund these equity contributions are recorded in Other liabilities and accrued expenses. The majority of these commitments are expected to be funded within 5 years. 2. Amounts exclude $ 42 million and $ 45 million as of June 30, 2026 and December 31, 2025, respectively, of tax equity investments within programs for which the Firm elected the proportional amortization method that do not meet the conditions to apply the proportional amortization method, which are accounted for as equity method investments. Income tax credits and other income tax benefits recognized as well as proportional amortization are included in the Provision for income taxes line in the consolidated income statement and in the Depreciation and amortization line in the consolidated cash flow statement. Net Benefits Attributable to Tax Equity Investments under the Proportional Amortization Method Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Income tax credits and other income tax benefits $ 79 $ 77 $ 157 $ 152 Proportional amortization ( 58 ) ( 62 ) ( 121 ) ( 124 ) Net benefits included in income tax expense 21 15 36 28 Other income — — 1 — Net benefits $ 21 $ 15 $ 37 $ 28 11. Deposits Deposits $ in millions At June 30, 2026 At December 31, 2025 Savings and demand deposits $ 328,552 $ 315,883 Time deposits 117,516 99,640 Total $ 446,068 $ 415,523 Deposits subject to FDIC insurance $ 349,061 $ 331,322 Deposits not subject to FDIC insurance $ 97,007 $ 84,201 Time Deposit Maturities $ in millions At June 30, 2026 2026 $ 31,106 2027 36,562 2028 21,288 2029 13,289 2030 11,242 Thereafter 4,029 Total $ 117,516 12 . Borrowings and Other Secured Financings Borrowings $ in millions At June 30, 2026 At December 31, 2025 Original maturities of one year or less $ 9,400 $ 7,254 Original maturities greater than one year: Senior $ 369,623 $ 329,502 Subordinated 13,533 12,179 Total greater than one year $ 383,156 $ 341,681 Total $ 392,556 $ 348,935 Weighted average stated maturity, in years 1 6.1 6.3 1. Only includes borrowings with original maturities greater than one year. Other Secured Financings $ in millions At June 30, 2026 At December 31, 2025 Original maturities: One year or less $ 21,512 $ 13,892 Greater than one year 8,307 7,711 Total $ 29,819 $ 21,603 Transfers of assets accounted for as secured financings $ 11,572 $ 9,713 Other secured financings include the liabilities related to collateralized notes, transfers of financial assets that are accounted for as financings rather than sales and consolidated VIEs where the Firm is deemed to be the primary beneficiary. These liabilities are generally payable from the cash flows of the related assets accounted for as Trading assets. See Note 14 for further information on other secured financings related to VIEs and securitization activities. For transfers of assets that fail to meet accounting criteria for a sale, the Firm continues to record the assets and recognizes the associated liabilities in the balance sheet. June 2026 Form 10-Q 64 Table of Contents Notes to Consolidated Financial Statements (Unaudited) 13. Commitments, Guarantees and Contingencies Commitments Years to Maturity at June 30, 2026 $ in millions Less than 1 1-3 3-5 Over 5 Total Lending: Corporate $ 24,024 $ 56,551 $ 85,209 $ 5,763 $ 171,547 Secured lending facilities 6,162 8,461 11,335 5,486 31,444 Commercial and Residential real estate 88 181 498 486 1,253 Securities-based lending and Other 17,560 3,793 309 527 22,189 Forward-starting secured financing receivables 1 163,191 1,628 — — 164,819 Central counterparty 15,178 — — — 15,178 Investment activities 3,769 533 166 499 4,967 Letters of credit and other financial guarantees 32 — — 3 35 Total $ 230,004 $ 71,147 $ 97,517 $ 12,764 $ 411,432 Lending commitments participated to third parties $ 14,192 1. These amounts primarily include secured financing receivables yet to settle as of June 30, 2026, with settlement generally occurring within three business days. These amounts also include commitments to enter into certain collateralized financing transactions. Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. For a further description of these commitments, refer to Note 14 to the financial statements in the 2025 Form 10-K. Guarantees At June 30, 2026 Maximum Potential Payout/Notional of Obligations by Years to Maturity Carrying Amount Asset (Liability) $ in millions Less than 1 1-3 3-5 Over 5 Non-credit derivatives 1 $ 1,476,804 $ 817,174 $ 226,173 $ 638,984 $ ( 45,534 ) Standby letters of credit and other financial guarantees issued 2,3 1,764 762 1,356 2,597 16 Liquidity facilities 1,867 — — — 2 Whole loan sales guarantees 29 — 1 23,070 — Securitization representations and warranties 4 — — — 99,464 — General partner guarantees 54 119 95 29 ( 46 ) Client clearing guarantees 2,583 — — — — 1. The carrying amounts of derivative contracts that meet the accounting definition of a guarantee are shown on a gross basis. For further information on derivatives contracts, see Note 6. 2. These amounts include certain issued standby letters of credit participated to third parties, totaling $ 0.7 billion of notional and collateral/recourse, due to the nature of the Firm’s obligations under these arrangements. 3. As of June 30, 2026, the carrying amount of standby letters of credit and other financial guarantees issued includes an allowance for credit losses of $ 102 million. 4. Related to commercial, residential mortgage and asset backed securitizations. The Firm has obligations under certain guarantee arrangements, including contracts and indemnification agreements, that contingently require the Firm to make payments to the guaranteed party based on changes in an underlying measure (such as an interest or foreign exchange rate, security or commodity price, an index, or the occurrence or non-occurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Also included as guarantees are contracts that contingently require the Firm to make payments to the guaranteed party based on another entity’s failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. For more information on the nature of the obligations and related business activities for our guarantees, see Note 14 to the financial statements in the 2025 Form 10-K. Other Guarantees and Indemnities In the normal course of business, the Firm provides guarantees and indemnifications in a variety of transactions. These provisions generally are standard contractual terms. Certain of these guarantees and indemnifications related to indemnities, market value guarantees, exchange and clearinghouse member guarantees, futures and over-the-counter derivatives clearing guarantees and merger and acquisition guarantees are described in Note 14 to the financial statements in the 2025 Form 10-K. In addition, in the ordinary course of business, the Firm guarantees the debt and/or certain trading obligations (including obligations associated with derivatives, foreign exchange contracts and the settlement of physical commodities) of certain subsidiaries. These guarantees generally are entity or product specific and are required by investors or trading counterparties. The activities of the Firm’s subsidiaries covered by these guarantees (including any related debt or trading obligations) are included in the financial statements. 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. Contingencies Legal In addition to the matters described below, in the normal course of business, the Firm has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but 65 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our wealth management businesses, Markets business, and our activities in the capital markets. The Firm is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental or other regulatory agencies regarding the Firm’s business, and involving, among other matters, sales, trading, financing, prime brokerage, market-making activities, investment banking advisory services, capital markets activities, financial products or offerings sponsored, underwritten or sold by the Firm, wealth and investment management services, and tax, accounting, and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief. The Firm contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the financial statements and the Firm can reasonably estimate the amount of that loss or the range of loss, the Firm accrues an estimated loss by a charge to income, including with respect to certain of the individual proceedings or investigations described below. The Firm’s legal expenses can, and may in the future, fluctuate from period to period, given the current environment regarding government or regulatory agency investigations and private litigation affecting global financial services firms, including the Firm. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where the Firm has determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, the Firm may be unable to reasonably estimate the amount of the loss or range of loss. It is particularly difficult to determine if a loss is probable or reasonably possible, or to estimate the amount of loss, where the factual record is being developed or contested or where plaintiffs or government entities seek substantial or indeterminate damages, restitution, forfeiture, disgorgement or penalties. Numerous issues may need to be resolved in an investigation or proceeding before a determination can be made that a loss or additional loss (or range of loss or range of additional loss) is probable or reasonably possible, or to estimate the amount of loss, including through potentially lengthy discovery or determination of important factual matters, determination of issues related to class certification, the calculation of damages or other relief, and consideration of novel or unsettled legal questions relevant to the proceedings or investigations in question. The Firm has identified below any individual proceedings or investigations where the Firm believes a material loss to be reasonably possible. In certain legal proceedings in which the Firm has determined that a material loss is reasonably possible, the Firm is unable to reasonably estimate the loss or range of loss. There are other matters in which the Firm has determined a loss or range of loss to be reasonably possible, but the Firm does not believe, based on current knowledge and after consultation with counsel, that such losses could have a material adverse effect on the Firm’s financial statements as a whole, although the outcome of such proceedings or investigations may significantly impact the Firm’s business or results of operations for any particular reporting period, or cause significant reputational harm. While the Firm has identified below certain proceedings or investigations that the Firm believes to be material, individually or collectively, there can be no assurance that material losses will not be incurred from claims that have not yet been asserted or those where potential losses have not yet been determined to be probable or reasonably possible. Antitrust Related Matters The Firm and other financial institutions are responding to a number of governmental investigations and civil litigation matters related to allegations of anticompetitive conduct in various aspects of the financial services industry, including the matters described below. Beginning in February of 2016, the Firm was named as a defendant in multiple purported antitrust class actions now consolidated into a single proceeding in the United States District Court for the Southern District of New York (“SDNY”) styled In Re: Interest Rate Swaps Antitrust Litigation . Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. and New York state antitrust laws from 2008 through December of 2016 in connection with alleged efforts to prevent the development of electronic exchange-based platforms for interest rate swaps trading. Complaints were filed both on behalf of a purported class of investors who purchased interest rate swaps from defendants, as well as on behalf of three operators of swap execution facilities that allegedly were thwarted by the defendants in their efforts to develop such platforms. The consolidated complaints seek, inter alia, certification of the investor class of plaintiffs and treble damages. On July 28, 2017, the court granted in part and denied in part the defendants’ motion to dismiss the complaints. On December 15, 2023, the court denied the class plaintiffs’ motion for class certification. On December 29, 2023, the class plaintiffs petitioned the United States Court of Appeals for the Second Circuit for leave to appeal that decision. On February 28, 2024, the parties reached an agreement in principle to settle the class claims. On July 17, 2025, the court granted final approval of the settlement. The claims brought by the three operators of swap execution June 2026 Form 10-Q 66 Table of Contents Notes to Consolidated Financial Statements (Unaudited) facilities remain pending, and on March 12, 2026, defendants filed a motion for summary judgment. The Firm is a defendant in three antitrust class action complaints which have been consolidated into one proceeding in the United States District Court for the SDNY under the caption City of Philadelphia, et al. v. Bank of America Corporation, et al. Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws and relevant state laws in connection with alleged efforts to artificially inflate interest rates for Variable Rate Demand Obligations (“VRDO”). The consolidated complaint seeks, inter alia, certification of the class of plaintiffs and treble damages. The complaint was filed on behalf of a class of municipal issuers of VRDO for which defendants served as remarketing agent. On November 2, 2020, the court granted in part and denied in part the defendants’ motion to dismiss the consolidated complaint, dismissing state law claims, but denying dismissal of the U.S. antitrust claims. On September 21, 2023, the court granted plaintiffs’ motion for class certification. On February 5, 2024, the United States Court of Appeals for the Second Circuit granted leave to appeal that decision and, on August 1, 2025, affirmed the court’s decision. On December 1, 2025, defendants filed a petition for writ of certiorari with the United States Supreme Court regarding the Second Circuit’s August 2025 decision, which the Supreme Court denied on April 20, 2026. On July 13, 2026, defendants filed a motion for summary judgment. U.K. Government Bond Matter On February 21, 2025, the U.K. Competition and Markets Authority announced a settlement with the Firm, as well as other financial institutions, in connection with its investigation of suspected anti-competitive arrangements in the financial services sector, specifically regarding the Firm’s activities concerning certain liquid fixed income products between 2009 and 2012. Separately, on June 16, 2023, the Firm was named as a defendant in a purported antitrust class action in the United States District Court for the SDNY styled Oklahoma Firefighters Pension and Retirement System v. Deutsche Bank Aktiengesellschaft, et al. , alleging, inter alia, that the Firm, together with a number of other financial institution defendants, violated U.S. antitrust laws in connection with their alleged effort to fix prices of gilts traded in the United States between 2009 and 2013. The complaint seeks, inter alia, certification of the class of plaintiffs and treble damages. On September 16, 2024, the court granted defendants’ joint motion to dismiss, and the complaint was dismissed without prejudice. In October of 2024, the Firm and certain other defendants reached an agreement in principle to settle the U.S. litigation. On March 17, 2025, the court granted preliminary approval of the settlement. Other On May 17, 2013, the plaintiff in IKB International S.A. in Liquidation, et al. v. Morgan Stanley, et al. filed a complaint against the Firm and certain affiliates in the Supreme Court of the State of New York, New York County. The complaint alleges that defendants made material misrepresentations and omissions in the sale to the plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Firm to the plaintiff was approximately $ 133 million. The complaint alleges causes of action against the Firm for common law fraud, fraudulent concealment, aiding and abetting fraud, and negligent misrepresentation, and seeks, inter alia, compensatory and punitive damages. On October 29, 2014, the court granted in part and denied in part the Firm’s motion to dismiss. All claims regarding four certificates were dismissed. After these dismissals, the remaining amount of certificates allegedly issued by the Firm or sold to the plaintiff by the Firm was approximately $ 116 million. On August 11, 2016, the Appellate Division affirmed the trial court’s order denying in part the Firm’s motion to dismiss the complaint. On July 15, 2022, the Firm filed a motion for summary judgment on all remaining claims. On March 1, 2023, the court granted in part and denied in part the Firm’s motion for summary judgment, narrowing the alleged misrepresentations at issue in the case. On March 26, 2024, the Appellate Division affirmed the trial court’s summary judgment order. On August 27, 2024, the plaintiff notified the court that in light of the court’s rulings to exclude certain evidence at trial, the plaintiff could not prove its claims at trial, and requested that the court dismiss the case, subject to its right to appeal the evidentiary rulings. On August 28, 2024, the court dismissed the case, and judgment was entered in the Firm’s favor. The plaintiff has appealed. Beginning in February of 2024, Morgan Stanley Smith Barney LLC (“MSSB”) and E*TRADE Securities LLC (“E*TRADE Securities”), among others, have been named as defendants in multiple putative class actions pending in the federal district courts for the District of New Jersey and SDNY. The class action claims have been brought on behalf of brokerage, advisory and retirement account holders, alleging various contractual, fiduciary, and statutory claims (including under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §1962(c)-(d)) that MSSB and/or E*TRADE Securities failed to pay a reasonable rate of interest on its cash sweep products. All matters pending in the SDNY (which focus solely on MSSB’s cash sweep program) were consolidated into one action styled Estate of Sherlip, et al. v. Morgan Stanley, et al. An amended class action complaint was filed on August 15, 2025. On September 12, 2025, MSSB moved to dismiss the complaint. The matters pending in the District of New Jersey (which includes claims against both MSSB and E*TRADE Securities) have been consolidated into one action styled In re E*TRADE Cash Sweep Litigation , No. 2:24-cv-00603. A consolidated 67 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) complaint was filed on July 16, 2026. Together, the complaints seek, inter alia, certification of classes of plaintiffs, unspecified compensatory damages, equitable and injunctive relief, and treble damages. The Firm is also responding to requests from state securities regulators regarding brokerage account cash balances swept to the affiliate bank deposit program. 14. Variable Interest Entities and Securitization Activities Consolidated VIE Assets and Liabilities by Type of Activity At June 30, 2026 At December 31, 2025 $ in millions VIE Assets VIE Liabilities VIE Assets VIE Liabilities MABS 1 $ 1,366 $ 479 $ 468 $ 2 Investment vehicles 2 550 382 263 5 MTOB 2,225 2,022 1,781 1,651 Other 170 3 47 3 Total $ 4,311 $ 2,886 $ 2,559 $ 1,661 MTOB—Municipal tender option bonds 1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets and may be in loan or security form. The value of assets is determined based on the fair value of the liabilities and the interests owned by the Firm in such VIEs as the fair values for the liabilities and interests owned are more observable. 2. Amounts include investment funds and CLOs. Consolidated VIE Assets and Liabilities by Balance Sheet Caption $ in millions At June 30, 2026 At December 31, 2025 Assets Cash and cash equivalents $ 45 $ 19 Trading assets at fair value 2,955 1,216 Investment securities 1,304 1,318 Customer and other receivables 6 5 Other assets 1 1 Total $ 4,311 $ 2,559 Liabilities Trading liabilities at fair value $ 4 $ — Other secured financings $ 2,871 $ 1,653 Other liabilities and accrued expenses 8 5 Borrowings 3 3 Total $ 2,886 $ 1,661 Noncontrolling interests $ 72 $ 145 Consolidated VIE assets and liabilities are presented in the previous tables after intercompany eliminations. Generally, most assets owned by consolidated VIEs cannot be removed unilaterally by the Firm and are not available to the Firm while the related liabilities issued by consolidated VIEs are non-recourse to the Firm. However, in certain consolidated VIEs, the Firm either has the unilateral right to remove assets or provides additional recourse through derivatives such as total return swaps, guarantees or other forms of involvement. In general, the Firm’s exposure to loss in consolidated VIEs is limited to losses that would be absorbed on the VIE net assets recognized in its financial statements, net of amounts absorbed by third-party variable interest holders. Non-consolidated VIEs At June 30, 2026 $ in millions MABS 1 CDO MTOB OSF Other 2 VIE assets (UPB) $ 234,747 $ 4,212 $ 3,546 $ 4,268 $ 92,172 Maximum exposure to loss 3 Debt and equity interests $ 32,313 $ 227 $ — $ 2,516 $ 12,806 Derivative and other contracts — — 2,604 — 5,905 Commitments, guarantees and other 10,093 — — — 179 Total $ 42,406 $ 227 $ 2,604 $ 2,516 $ 18,890 Carrying value of variable interests—Assets Debt and equity interests $ 32,313 $ 227 $ — $ 1,950 $ 12,806 Derivative and other contracts — — 3 — 2,387 Total $ 32,313 $ 227 $ 3 $ 1,950 $ 15,193 Additional VIE assets owned 4 $ 17,110 Carrying value of variable interests—Liabilities Derivative and other contracts $ — $ — $ 1 $ — $ 1,095 At December 31, 2025 $ in millions MABS 1 CDO MTOB OSF Other 2 VIE assets (UPB) $ 218,543 $ 3,432 $ 4,620 $ 4,535 $ 87,118 Maximum exposure to loss 3 Debt and equity interests $ 32,074 $ 158 $ — $ 2,611 $ 11,904 Derivative and other contracts — — 3,258 — 4,473 Commitments, guarantees and other 10,414 — — — 190 Total $ 42,488 $ 158 $ 3,258 $ 2,611 $ 16,567 Carrying value of variable interests – Assets Debt and equity interests $ 32,074 $ 158 $ — $ 1,967 $ 11,904 Derivative and other contracts — — 5 — 2,010 Total $ 32,074 $ 158 $ 5 $ 1,967 $ 13,914 Additional VIE assets owned 4 $ 15,907 Carrying value of variable interests—Liabilities Derivative and other contracts $ — $ — $ 2 $ — $ 780 OSF–Other structured financings 1. Amounts include transactions backed by residential mortgage loans, commercial mortgage loans and other types of assets, including consumer or commercial assets, and may be in loan or security form. 2. Other primarily includes exposures to investment funds and equity-linked notes. 3. Where notional amounts are utilized in quantifying the maximum exposure related to derivatives, such amounts do not reflect changes in fair value recorded by the Firm. 4. Additional VIE assets owned represents the carrying value of total exposure to non-consolidated VIEs for which the maximum exposure to loss is less than specific thresholds, primarily interests issued by securitization SPEs. The Firm’s maximum exposure to loss generally equals the fair value of the assets owned. These assets are primarily included in Trading assets and Investment securities and are measured at fair value (see Note 4). The Firm does not provide additional support in these transactions through contractual facilities, guarantees or similar derivatives. The previous tables include VIEs sponsored by unrelated parties, as well as VIEs sponsored by the Firm; examples of the Firm’s involvement with these VIEs include its secondary market-making activities and the securities held in its Investment securities portfolio (see Note 7). The Firm’s maximum exposure to loss is dependent on the nature of the Firm’s variable interest in the VIE and is limited to the notional amounts of certain liquidity facilities and other credit support, total return swaps and written put options, as well as the fair value of certain other derivatives and investments the Firm has made in the VIE. The Firm’s maximum exposure to loss in the previous tables does not include the offsetting benefit of hedges or any reductions associated with the amount of collateral held as June 2026 Form 10-Q 68 Table of Contents Notes to Consolidated Financial Statements (Unaudited) part of a transaction with the VIE or any party to the VIE directly against a specific exposure to loss. Liabilities issued by VIEs generally are non-recourse to the Firm. Detail of Mortgage- and Asset-Backed Securitization Assets At June 30, 2026 At December 31, 2025 $ in millions UPB Debt and Equity Interests UPB Debt and Equity Interests Residential mortgages $ 25,431 $ 3,743 $ 20,130 $ 3,183 Commercial mortgages 89,596 8,386 96,473 11,251 U.S. agency collateralized mortgage obligations 64,458 7,452 58,876 7,136 Other consumer or commercial loans 55,262 12,732 43,064 10,504 Total $ 234,747 $ 32,313 $ 218,543 $ 32,074 Transferred Assets with Continuing Involvement At June 30, 2026 $ in millions RML CML U.S. Agency CMO CLN and Other 1 SPE assets (UPB) 2,3 $ 18,307 $ 88,002 $ 18,560 $ 12,983 Retained interests Investment grade $ 270 $ 506 $ 988 $ — Non-investment grade 655 1,052 — 88 Total $ 925 $ 1,558 $ 988 $ 88 Interests purchased in the secondary market 3 Investment grade $ 119 $ 22 $ — $ — Non-investment grade 14 38 2 10 Total $ 133 $ 60 $ 2 $ 10 Derivative assets $ — $ — $ — $ 1,656 Derivative liabilities — — — 881 At December 31, 2025 $ in millions RML CML U.S. Agency CMO CLN and Other 1 SPE assets (UPB) 2,3 $ 15,089 $ 84,729 $ 18,230 $ 13,312 Retained interests Investment grade $ 288 $ 456 $ 1,127 $ — Non-investment grade 460 1,131 — 123 Total $ 748 $ 1,587 $ 1,127 $ 123 Interests purchased in the secondary market 3 Investment grade $ 62 $ 62 $ 52 $ — Non-investment grade 14 30 — — Total $ 76 $ 92 $ 52 $ — Derivative assets $ — $ — $ — $ 1,522 Derivative liabilities — — — 733 Fair Value At June 30, 2026 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 1,183 $ — $ 1,183 Non-investment grade 49 111 160 Total $ 1,232 $ 111 $ 1,343 Interests purchased in the secondary market 3 Investment grade $ 141 $ — $ 141 Non-investment grade 37 27 64 Total $ 178 $ 27 $ 205 Derivative assets $ 1,656 $ — $ 1,656 Derivative liabilities 881 — 881 Fair Value At December 31, 2025 $ in millions Level 2 Level 3 Total Retained interests Investment grade $ 1,346 $ — $ 1,346 Non-investment grade 122 58 180 Total $ 1,468 $ 58 $ 1,526 Interests purchased in the secondary market 3 Investment grade $ 176 $ — $ 176 Non-investment grade 22 22 44 Total $ 198 $ 22 $ 220 Derivative assets $ 1,522 $ — $ 1,522 Derivative liabilities 733 — 733 RML—Residential mortgage loans CML—Commercial mortgage loans 1. Amounts include CLO transactions managed by unrelated third parties. 2. Amounts include assets transferred by unrelated transferors. 3. Amounts include transactions where the Firm also holds retained interests as part of the transfer. The previous tables include transactions with SPEs in which the Firm, acting as principal, transferred financial assets with continuing involvement and received sales treatment. The transferred assets are carried at fair value prior to securitization, and any changes in fair value are recognized in the income statement. The Firm may act as underwriter of the beneficial interests issued by these securitization vehicles, for which Investment banking revenues are recognized. The Firm may retain interests in the securitized financial assets as one or more tranches of the securitization. Certain retained interests are carried at fair value in the balance sheet with changes in fair value recognized in the income statement. Fair value for these interests is measured using techniques that are consistent with the valuation techniques applied to the Firm’s major categories of assets and liabilities as described in Note 2 in the 2025 Form 10-K and Note 4 herein. Further, as permitted by applicable guidance, certain transfers of assets where the Firm’s only continuing involvement is a derivative are only reported in the following Assets Sold with Retained Exposure table. Proceeds from New Securitization Transactions Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 New transactions 1 $ 14,775 $ 12,136 $ 26,740 $ 26,446 Retained interests 2 159 2,461 290 5,240 1. Amounts include cash and non-cash proceeds from transfers of mortgage loans and mortgage-backed securities to U.S. agency and non-agency securitization entities. Net gains on new transactions were not material for all periods presented. 2. Amounts include principal and interest cash flows received in the period on retained interests held by the Firm. Prior to the second quarter of 2026, Retained interests also included the notional of interests in securitization transactions sold by the Firm in the secondary market during the period, which were $ 3.4 billion for the three months ended March 31, 2026. Principal and interest cash flows were $ 91 million and $ 180 million for the three months and six months ended June 30, 2025, respectively. The Firm has provided, or otherwise agreed to be responsible for, representations and warranties regarding certain assets transferred in securitization transactions sponsored by the Firm (see Note 13). 69 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) Assets Sold with Retained Exposure $ in millions At June 30, 2026 At December 31, 2025 Gross cash proceeds from sale of assets 1 $ 132,445 $ 112,395 Fair value Assets sold $ 134,984 $ 113,159 Derivative assets recognized in the balance sheet 3,170 1,201 Derivative liabilities recognized in the balance sheet 631 438 1. The carrying value of assets derecognized at the time of sale approximates gross cash proceeds. The Firm enters into transactions in which it sells securities, primarily equities, and contemporaneously enters into bilateral OTC derivatives with the purchasers of the securities, through which it retains exposure to the sold securities. For a discussion of the Firm’s VIEs, the determination and structure of VIEs and securitization activities, see Note 15 to the financial statements in the 2025 Form 10-K. 15. Regulatory Requirements Regulatory Capital Framework and Requirements For a discussion of the Firm’s regulatory capital framework, see Note 16 to the financial statements in the 2025 Form 10-K. The Firm is required to maintain minimum risk-based and leverage-based capital ratios under regulatory capital requirements. A summary of the calculations of regulatory capital and RWA follows. Risk-Based Regulatory Capital. Risk-based capital ratio requirements apply to Common Equity Tier 1 (“CET1”) capital, Tier 1 capital and Total capital (which includes Tier 2 capital), each as a percentage of RWA, and consist of regulatory minimum required ratios plus the Firm’s capital conservation buffer requirement. Capital requirements require certain adjustments to, and deductions from, capital for purposes of determining these ratios. At June 30, 2026 and December 31, 2025, the differences between the actual and required ratios were lower under the Standardized Approach. Capital Buffer Requirements At June 30, 2026 and December 31, 2025 Standardized Advanced Capital buffers Fixed 2.5% buffer —% 2.5 % SCB 4.3 % N/A G-SIB capital surcharge 3.0 % 3.0 % CCyB 1 — % — % Capital conservation buffer requirement 7.3 % 5.5 % 1. The CCyB can be set up to 2.5 %, but is currently set by the Federal Reserve at zero . The capital conservation buffer requirement represents the amount of CET1 capital the Firm must maintain above the minimum risk-based capital requirements in order to avoid restrictions on the Firm’s ability to make capital distributions, including the payment of dividends and the repurchase of stock, and to pay discretionary bonuses to executive officers. The Firm’s capital conservation buffer requirement computed under the standardized approaches for calculating credit risk and market risk RWA (“Standardized Approach”) is equal to the sum of the SCB, G-SIB capital surcharge and CCyB. The capital conservation buffer requirement computed under the applicable advanced approaches for calculating credit risk, market risk and operational risk RWA (“Advanced Approach”) is equal to the sum of a fixed 2.5 % buffer, G-SIB capital surcharge and CCyB. Risk-Based Regulatory Capital Ratio Requirements Regulatory Minimum At June 30, 2026 and December 31, 2025 Standardized Advanced Required ratios 1 CET1 capital ratio 4.5 % 11.8 % 10.0 % Tier 1 capital ratio 6.0 % 13.3 % 11.5 % Total capital ratio 8.0 % 15.3 % 13.5 % 1. Required ratios represent the regulatory minimum plus the capital conservation buffer requirement. The Firm’s Regulatory Capital and Capital Ratios Risk-based capital Standardized $ in millions At June 30, 2026 At December 31, 2025 Risk-based capital CET1 capital $ 87,568 $ 83,153 Tier 1 capital 97,217 92,728 Total capital 108,916 103,449 Total RWA 589,397 552,515 Risk-based capital ratio CET1 capital 14.9 % 15.0 % Tier 1 capital 16.5 % 16.8 % Total capital 18.5 % 18.7 % Required ratio 1 CET1 capital 11.8 % 11.8 % Tier 1 capital 13.3 % 13.3 % Total capital 15.3 % 15.3 % 1. Required ratios are inclusive of any buffers applicable as of the date presented. June 2026 Form 10-Q 70 Table of Contents Notes to Consolidated Financial Statements (Unaudited) Leveraged-based capital $ in millions At June 30, 2026 At December 31, 2025 Leveraged-based capital Adjusted average assets 1 $ 1,608,012 $ 1,383,314 Supplementary leverage exposure 2 1,970,884 1,717,775 Leveraged-based capital ratio Tier 1 leverage 6.0 % 6.7 % SLR 4.9 % 5.4 % Required ratio 3 Tier 1 leverage 4.0 % 4.0 % SLR 4 3.5 % 5.0 % 1. Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets for the quarters ending on the respective balance sheet dates, reduced by disallowed goodwill, intangible assets, investments in covered funds, defined benefit pension plan assets, non-cash after-tax gain on sale from assets sold into securitizations, investments in our own capital instruments, certain deferred tax assets and other capital deductions. 2. Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily: (i) for derivatives, potential future exposure and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures. 3. Required ratios are inclusive of any buffers applicable as of the date presented. 4. As of January 1, 2026, the Firm and its U.S. Bank Subsidiaries elected to early adopt the final rulemaking on changes to the enhanced supplementary leverage ratio (“eSLR”) by the U.S. banking agencies, which removed the eSLR threshold for a covered depository institution to be considered well-capitalized and instead implemented the eSLR as a buffer standard. Under the final rule, the eSLR buffer applicable to U.S. G-SIBs equals 50% of each BHC’s Method 1 G-SIB capital surcharge, which equates to 0.5% for the Firm, applied above the 3.0% minimum SLR requirement. U.S. Bank Subsidiaries’ Regulatory Capital and Capital Ratios The OCC establishes capital requirements for the U.S. Bank Subsidiaries, and evaluates their compliance with such capital requirements. Regulatory capital requirements for the U.S. Bank Subsidiaries are calculated in a similar manner to the Firm’s regulatory capital requirements, although G-SIB capital surcharge and SCB requirements do not apply to the U.S. Bank Subsidiaries. The OCC’s regulatory capital framework includes Prompt Corrective Action (“PCA”) standards, including “well-capitalized” PCA standards that are based on specified regulatory capital ratio minimums. For the Firm to remain an FHC, its U.S. Bank Subsidiaries must remain well-capitalized in accordance with the OCC’s PCA standards. In addition, failure by the U.S. Bank Subsidiaries to meet minimum capital requirements may result in certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the U.S. Bank Subsidiaries’ and the Firm’s financial statements. At June 30, 2026 and December 31, 2025, MSBNA and MSPBNA risk-based capital ratios are based on the Standardized Approach rules. MSBNA’s Regulatory Capital 1 Well-Capitalized Requirement Required Ratio 2 At June 30, 2026 At December 31, 2025 $ in millions Amount Ratio Amount Ratio Risk-based capital CET1 capital 6.5 % 7.0 % $ 41,092 18.2 % $ 25,545 20.3 % Tier 1 capital 8.0 % 8.5 % 41,092 18.2 % 25,545 20.3 % Total capital 10.0 % 10.5 % 42,034 18.6 % 26,423 21.0 % Leverage-based capital Tier 1 leverage 5.0 % 4.0 % $ 41,092 10.4 % $ 25,545 10.1 % SLR 3,4 N/A 3.5 % 41,092 7.0 % 25,545 7.6 % MSPBNA’s Regulatory Capital Well-Capitalized Requirement Required Ratio 2 At June 30, 2026 At December 31, 2025 $ in millions Amount Ratio Amount Ratio Risk-based capital CET1 capital 6.5 % 7.0 % $ 16,645 25.0 % $ 17,298 26.1 % Tier 1 capital 8.0 % 8.5 % 16,645 25.0 % 17,298 26.1 % Total capital 10.0 % 10.5 % 17,034 25.6 % 17,665 26.6 % Leverage-based capital Tier 1 leverage 5.0 % 4.0 % $ 16,645 6.7 % $ 17,298 7.0 % SLR 3,4 N/A 3.5 % 16,645 6.5 % 17,298 6.8 % 1. MSBNA’s regulatory capital and capital ratios are presented as historically reported and have not been retrospectively adjusted to reflect the merger of the MSCS fixed income business into MSBNA and MSBNA’s acquisition of MSESE in the first quarter of 2026, as the Firm assesses these measures based on the legal-entity structures in effect during the applicable period. 2. Required ratios are inclusive of any buffers applicable as of the date presented. Failure to maintain the buffers would result in restrictions on the ability to make capital distributions, including the payment of dividends. 3. Beginning January 1, 2026, MSBNA and MSPBNA were subject to a 3.5% SLR standard (inclusive of a 0.5% eSLR buffer based on Method 1 G-SIB capital surcharge of 1.0%). The eSLR buffer applicable to U.S. G-SIBs’ insured depository institution subsidiaries has the same form and calibration as the BHC-level standard but is capped at 1.0%, applied above the 3.0% minimum SLR requirement. 4. As of December 31, 2025, the SLR well-capitalized requirement and required ratio was 6.0% and 3.0%, respectively, for both MSBNA and MSPBNA. Additionally, MSBNA is conditionally registered with the SEC as a security-based swap dealer and is registered with the CFTC as a swap dealer. However, as MSBNA is prudentially regulated as a bank, its capital requirements continue to be determined by the OCC. Other Regulatory Capital Requirements MS&Co. Regulatory Capital $ in millions At June 30, 2026 At December 31, 2025 Net capital $ 26,696 $ 19,272 Excess net capital 20,920 13,905 MS&Co. is registered as a broker-dealer and a futures commission merchant with the SEC and the CFTC, respectively, and is registered as a swap dealer with the CFTC. As an Alternative Net Capital broker-dealer, and in accordance with Securities Exchange Act of 1934 (“Exchange Act”) Rule 15c3-1, Appendix E, MS&Co. is subject to minimum net capital and tentative net capital requirements and operates with capital in excess of its regulatory capital requirements. As a futures commission merchant and registered swap dealer, MS&Co. is subject to CFTC capital 71 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) requirements. In addition, MS&Co. must notify the SEC if its tentative net capital falls below certain levels. At June 30, 2026 and December 31, 2025, MS&Co. exceeded its net capital requirement and had tentative net capital in excess of the minimum and notification requirements. Other Regulated Subsidiaries Certain other subsidiaries are also subject to various regulatory capital requirements. Such subsidiaries include the following, each of which operated with capital in excess of their respective regulatory capital requirements as of June 30, 2026 and December 31, 2025, as applicable: • MSSB, • MSIP, • MSESE, • MSMS, • MSCS, and • MSCG. See Note 16 to the financial statements in the 2025 Form 10-K for further information. 16. Total Equity Preferred Stock Shares Outstanding Carrying Value $ in millions, except per share data At June 30, 2026 Liquidation Preference per Share At June 30, 2026 At December 31, 2025 Series A 44,000 $ 25,000 $ 1,100 $ 1,100 C 1 519,882 1,000 408 408 E 34,500 25,000 862 862 F 34,000 25,000 850 850 I 40,000 25,000 1,000 1,000 K 40,000 25,000 1,000 1,000 L 20,000 25,000 500 500 M 400,000 1,000 430 430 N 3,000 100,000 300 300 O 52,000 25,000 1,300 1,300 P 40,000 25,000 1,000 1,000 Q 40,000 25,000 1,000 1,000 Total $ 9,750 $ 9,750 Shares authorized 30,000,000 1. Series C preferred stock is held by MUFG. For a description of Series A through Series Q preferred stock, see Note 17 to the financial statements in the 2025 Form 10-K. The Firm’s preferred stock has a preference over its common stock upon liquidation. The Firm’s preferred stock qualifies as and is included in Tier 1 capital in accordance with regulatory capital requirements (see Note 15). Share Repurchases Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Repurchases of common stock under the Firm’s Share Repurchase Authorization $ 1,500 $ 1,000 $ 3,250 $ 2,000 On June 24, 2026, the Firm announced that its Board of Directors reauthorized a multi-year repurchase program of up to $ 20 billion of outstanding common stock (the “Share Repurchase Authorization”), without a set expiration date, beginning in the third quarter of 2026, which will be exercised from time to time as conditions warrant and is subject to limitations on distributions from the Federal Reserve. For more information on share repurchases, see Note 17 to the financial statements in the 2025 Form 10-K. Common Shares Outstanding for Basic and Diluted EPS Three Months Ended June 30, Six Months Ended June 30, in millions 2026 2025 2026 2025 Weighted average common shares outstanding, basic 1,554 1,577 1,558 1,581 Effect of dilutive RSUs and PSUs 15 16 15 15 Weighted average common shares outstanding and common stock equivalents, diluted 1,569 1,593 1,573 1,596 Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) — 4 4 4 Dividends $ in millions, except per share data Three Months Ended June 30, 2026 2025 Per Share 1 Total Per Share 1 Total Preferred stock series A $ 293 $ 13 $ 330 $ 15 C 25 13 25 13 E 450 15 450 16 F 434 15 434 14 I 403 16 403 16 K 366 15 366 14 L 305 6 305 6 N 1,794 5 1,952 6 O 266 14 266 14 P 406 16 406 16 Q 414 17 414 17 Total Preferred stock $ 145 $ 147 Common stock $ 1.00 $ 1,575 $ 0.925 $ 1,478 June 2026 Form 10-Q 72 Table of Contents Notes to Consolidated Financial Statements (Unaudited) $ in millions, except per share data Six Months Ended June 30, 2026 2025 Per Share 1 Total Per Share 1 Total Preferred stock series A $ 583 $ 26 $ 659 $ 29 C 50 26 50 26 E 896 31 896 31 F 864 29 864 29 I 801 32 801 32 K 731 29 731 29 L 609 12 609 12 M 2 29 12 29 12 N 3,600 11 3,918 12 O 531 28 531 28 P 813 32 813 32 Q 828 33 828 33 Total Preferred stock $ 301 $ 305 Common stock $ 2.00 $ 3,164 $ 1.85 $ 2,970 1. Common and Preferred Stock dividends are payable quarterly unless otherwise noted. 2. Series M is payable semiannually until September 15, 2026 and thereafter will be payable quarterly. Accumulated Other Comprehensive Income (Loss) Rollforward Three Months Ended June 30, 2026 $ in millions CTA AFS Securities Pension and Other DVA Cash Flow Hedges Total Beginning Balance $ ( 1,176 ) $ ( 1,720 ) $ ( 554 ) $ ( 1,781 ) $ ( 275 ) $ ( 5,506 ) OCI activity: Pre-Tax Gain (Loss) 29 11 1 ( 838 ) ( 279 ) ( 1,076 ) Tax effect ( 48 ) ( 3 ) — 205 67 221 After-tax Gain (Loss) ( 19 ) 8 1 ( 633 ) ( 212 ) ( 855 ) Noncontrolling Interests ( 22 ) — — ( 4 ) — ( 26 ) OCI Activity 3 8 1 ( 629 ) ( 212 ) ( 829 ) Reclassified to Earnings: Pre-tax Reclass. — ( 7 ) 6 4 6 9 Tax effect — 2 ( 2 ) ( 1 ) ( 2 ) ( 3 ) Reclass. After-tax — ( 5 ) 4 3 4 6 Net OCI Activity 3 3 5 ( 626 ) ( 208 ) ( 823 ) Ending Balance $ ( 1,173 ) $ ( 1,717 ) $ ( 549 ) $ ( 2,407 ) $ ( 483 ) $ ( 6,329 ) Three Months Ended June 30, 2025 $ in millions CTA AFS Securities Pension and Other DVA Cash Flow Hedges Total Beginning Balance $ ( 1,332 ) $ ( 2,215 ) $ ( 581 ) $ ( 1,815 ) $ ( 18 ) $ ( 5,961 ) OCI activity: Pre-Tax Gain (Loss) ( 79 ) 55 ( 1 ) ( 236 ) ( 4 ) ( 265 ) Tax effect 283 ( 13 ) — 60 1 331 After-tax Gain (Loss) 204 42 ( 1 ) ( 176 ) ( 3 ) 66 Noncontrolling Interests 36 — — 6 — 42 OCI Activity 168 42 ( 1 ) ( 182 ) ( 3 ) 24 Reclassified to Earnings: Pre-tax Reclass. — — 5 3 25 33 Tax effect — — ( 2 ) ( 1 ) ( 6 ) ( 9 ) Reclass. After-tax — — 3 2 19 24 Net OCI Activity 168 42 2 ( 180 ) 16 48 Ending Balance $ ( 1,164 ) $ ( 2,173 ) $ ( 579 ) $ ( 1,995 ) $ ( 2 ) $ ( 5,913 ) Six Months Ended June 30, 2026 $ in millions CTA AFS Securities Pension and Other DVA Cash Flow Hedges Total Beginning Balance $ ( 1,170 ) $ ( 1,585 ) $ ( 558 ) $ ( 2,995 ) $ 23 $ ( 6,285 ) OCI activity: Pre-Tax Gain (Loss) 74 ( 160 ) 1 781 ( 675 ) 21 Tax effect ( 111 ) 38 — ( 192 ) 161 ( 104 ) After-tax Gain (Loss) ( 37 ) ( 122 ) 1 589 ( 514 ) ( 83 ) Noncontrolling Interests ( 34 ) — — 11 — ( 23 ) OCI Activity ( 3 ) ( 122 ) 1 578 ( 514 ) ( 60 ) Reclassified to Earnings: Pre-tax Reclass. — ( 13 ) 11 13 11 22 Tax effect — 3 ( 3 ) ( 3 ) ( 3 ) ( 6 ) Reclass. After-tax — ( 10 ) 8 10 8 16 Net OCI Activity ( 3 ) ( 132 ) 9 588 ( 506 ) ( 44 ) Ending Balance $ ( 1,173 ) $ ( 1,717 ) $ ( 549 ) $ ( 2,407 ) $ ( 483 ) $ ( 6,329 ) Six Months Ended June 30, 2025 $ in millions CTA AFS Securities Pension and Other DVA Cash Flow Hedges Total Beginning Balance $ ( 1,477 ) $ ( 2,573 ) $ ( 583 ) $ ( 2,146 ) $ ( 35 ) $ ( 6,814 ) OCI activity: Pre-Tax Gain (Loss) ( 25 ) 546 ( 1 ) 203 13 736 Tax effect 417 ( 130 ) — ( 48 ) ( 3 ) 236 After-tax Gain (Loss) 392 416 ( 1 ) 155 10 972 Noncontrolling Interests 79 — — 13 — 92 OCI Activity 313 416 ( 1 ) 142 10 880 Reclassified to Earnings: Pre-tax Reclass. — ( 21 ) 10 12 30 31 Tax effect — 5 ( 5 ) ( 3 ) ( 7 ) ( 10 ) Reclass. After-tax — ( 16 ) 5 9 23 21 Net OCI Activity 313 400 4 151 33 901 Ending Balance $ ( 1,164 ) $ ( 2,173 ) $ ( 579 ) $ ( 1,995 ) $ ( 2 ) $ ( 5,913 ) 73 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) 17. Interest Income and Interest Expense Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Interest income Cash and cash equivalents $ 725 $ 627 $ 1,424 $ 1,286 Investment securities 1,272 1,324 2,615 2,604 Loans 3,805 3,461 7,387 6,786 Securities purchased under agreements to resell 1 3,750 3,780 7,244 7,196 Securities borrowed 2 1,594 2,173 3,292 3,289 Trading assets, net of Trading liabilities 2,008 1,573 3,942 3,012 Customer receivables and Other 2,748 1,967 5,271 4,480 Total interest income $ 15,902 $ 14,905 $ 31,175 $ 28,653 Interest expense Deposits $ 2,699 $ 2,603 $ 5,256 $ 5,125 Borrowings 3,410 3,199 6,593 6,217 Securities sold under agreements to repurchase 3 3,573 3,361 7,188 6,430 Securities loaned 4 774 1,198 1,545 1,454 Customer payables and Other 2,666 2,197 5,110 4,727 Total interest expense $ 13,122 $ 12,558 $ 25,692 $ 23,953 Net interest $ 2,780 $ 2,347 $ 5,483 $ 4,700 1. Includes interest paid on Securities purchased under agreements to resell. 2. Includes fees paid on Securities borrowed. 3. Includes interest received on Securities sold under agreements to repurchase. 4. Includes fees received on Securities loaned. Interest income and Interest expense are classified in the income statement based on the nature of the instrument and related market conventions. When included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues. Otherwise, it is included within Interest income or Interest expense. Accrued Interest $ in millions At June 30, 2026 At December 31, 2025 Customer and other receivables $ 4,539 $ 4,051 Customer and other payables 5,269 4,663 18. Income Taxes The Firm is routinely under examination by the IRS and other tax authorities in certain countries, such as the U.K., and in states and localities in which it has significant business operations, such as New York. The Firm believes that the resolution of these tax examinations will not have a material effect on the annual financial statements, although a resolution could have a material impact in the income statement and on the effective tax rate for any period in which such resolutions occur. 19. Segment, Geographic and Revenue Information Selected Financial Information by Business Segment Three Months Ended June 30, 2026 $ in millions IS WM IM I/E Total Investment banking $ 2,437 $ 252 $ — $ ( 38 ) $ 2,651 Trading 6,650 102 ( 39 ) 10 6,723 Investments 31 11 184 — 226 Commissions and fees 1 1,114 813 — ( 94 ) 1,833 Asset management 1,2 218 5,261 1,516 ( 83 ) 6,912 Other 58 163 6 ( 4 ) 223 Total non-interest revenues 10,508 6,602 1,667 ( 209 ) 18,568 Interest income 12,886 3,210 23 ( 217 ) 15,902 Interest expense 12,354 956 44 ( 232 ) 13,122 Net interest 532 2,254 ( 21 ) 15 2,780 Net revenues 11,040 8,856 1,646 ( 194 ) 21,348 Provision for credit losses 71 27 — — 98 Compensation and benefits 3 2,980 4,648 559 — 8,187 Non-compensation expenses 3 3,727 1,484 683 ( 179 ) 5,715 Total non-interest expenses 6,707 6,132 1,242 ( 179 ) 13,902 Income before provision for income taxes 4,262 2,697 404 ( 15 ) 7,348 Provision for income taxes 999 600 99 ( 3 ) 1,695 Income from continuing operations 3,263 2,097 305 ( 12 ) 5,653 Net income $ 3,263 $ 2,097 $ 305 $ ( 12 ) $ 5,653 Net income applicable to noncontrolling interests 71 — 1 — 72 Net income applicable to Morgan Stanley $ 3,192 $ 2,097 $ 304 $ ( 12 ) $ 5,581 Pre-tax margin 4 39 % 30 % 25 % N/M 34 % Three Months Ended June 30, 2025 $ in millions IS WM IM I/E Total Investment banking $ 1,540 $ 143 $ — $ ( 39 ) $ 1,644 Trading 4,350 433 ( 56 ) 18 4,745 Investments 156 25 207 — 388 Commissions and fees 1 814 688 — ( 77 ) 1,425 Asset management 1,2 183 4,411 1,434 ( 75 ) 5,953 Other 135 154 5 ( 4 ) 290 Total non-interest revenues 7,178 5,854 1,590 ( 177 ) 14,445 Interest income 11,140 4,000 10 ( 245 ) 14,905 Interest expense 10,675 2,090 48 ( 255 ) 12,558 Net interest 465 1,910 ( 38 ) 10 2,347 Net revenues 7,643 7,764 1,552 ( 167 ) 16,792 Provision for credit losses 168 28 — — 196 Compensation and benefits 3 2,430 4,147 613 — 7,190 Non-compensation expenses 3 2,934 1,389 616 ( 155 ) 4,784 Total non-interest expenses 5,364 5,536 1,229 ( 155 ) 11,974 Income before provision for income taxes 2,111 2,200 323 ( 12 ) 4,622 Provision for income taxes 472 500 77 ( 2 ) 1,047 Net income $ 1,639 $ 1,700 $ 246 $ ( 10 ) $ 3,575 Net income applicable to noncontrolling interests 35 — 1 — 36 Net income applicable to Morgan Stanley $ 1,604 $ 1,700 $ 245 $ ( 10 ) $ 3,539 Pre-tax margin 4 28 % 28 % 21 % N/M 28 % June 2026 Form 10-Q 74 Table of Contents Notes to Consolidated Financial Statements (Unaudited) Six Months Ended June 30, 2026 $ in millions IS WM IM I/E Total Investment banking $ 4,553 $ 476 $ — $ ( 89 ) $ 4,940 Trading 13,248 222 ( 49 ) 32 13,453 Investments 78 44 250 — 372 Commissions and fees 1 2,119 1,596 — ( 192 ) 3,523 Asset management 1,2 451 10,340 3,012 ( 161 ) 13,642 Other 240 273 9 ( 7 ) 515 Total non-interest revenues 20,689 12,951 3,222 ( 417 ) 36,445 Interest income 24,708 6,856 45 ( 434 ) 31,175 Interest expense 23,636 2,432 86 ( 462 ) 25,692 Net interest 1,072 4,424 ( 41 ) 28 5,483 Net revenues 21,761 17,375 3,181 ( 389 ) 41,928 Provision for credit losses 163 33 — — 196 Compensation and benefits 3 6,244 9,296 1,189 — 16,729 Non-compensation expenses 3 6,931 2,758 1,308 ( 353 ) 10,644 Total non-interest expenses 13,175 12,054 2,497 ( 353 ) 27,373 Income before provision for income taxes 8,423 5,288 684 ( 36 ) 14,359 Provision for income taxes 1,795 1,144 137 ( 8 ) 3,068 Income from continuing operations 6,628 4,144 547 ( 28 ) 11,291 Net income $ 6,628 $ 4,144 $ 547 $ ( 28 ) $ 11,291 Net income applicable to noncontrolling interests 142 — 1 — 143 Net income applicable to Morgan Stanley $ 6,486 $ 4,144 $ 546 $ ( 28 ) $ 11,148 Pre-tax margin 4 39 % 30 % 22 % N/M 34 % Six Months Ended June 30, 2025 $ in millions IS WM IM I/E Total Investment banking $ 3,099 $ 333 $ — $ ( 77 ) $ 3,355 Trading 9,463 421 ( 63 ) 35 9,856 Investments 305 58 394 — 757 Commissions and fees 1 1,683 1,383 — ( 160 ) 2,906 Asset management 1,2 374 8,807 2,885 ( 150 ) 11,916 Other 768 277 5 ( 9 ) 1,041 Total non-interest revenues 15,692 11,279 3,221 ( 361 ) 29,831 Interest income 21,213 7,959 33 ( 552 ) 28,653 Interest expense 20,279 4,147 100 ( 573 ) 23,953 Net interest 934 3,812 ( 67 ) 21 4,700 Net revenues 16,626 15,091 3,154 ( 340 ) 34,531 Provision for credit losses 259 72 — — 331 Compensation and benefits 3 5,284 8,146 1,281 — 14,711 Non-compensation expenses 3 5,691 2,722 1,227 ( 317 ) 9,323 Total non-interest expenses 10,975 10,868 2,508 ( 317 ) 24,034 Income before provision for income taxes 5,392 4,151 646 ( 23 ) 10,166 Provision for income taxes 1,168 919 138 ( 5 ) 2,220 Net income $ 4,224 $ 3,232 $ 508 $ ( 18 ) $ 7,946 Net income applicable to noncontrolling interests 91 — 1 — 92 Net income applicable to Morgan Stanley $ 4,133 $ 3,232 $ 507 $ ( 18 ) $ 7,854 Pre-tax margin 4 32 % 28 % 20 % N/M 29 % 1. Substantially all revenues are from contracts with customers. 2. Includes certain fees that may relate to services performed in prior periods. 3. The significant expense categories and amounts align with the segment-level information that is regularly provided to the Firm’s chief operating decision maker (“CODM”). 4. Pre-tax margin represents income before provision for income taxes as a percentage of net revenues. For a discussion about the Firm’s business segments, see Note 22 to the financial statements in the 2025 Form 10-K. Detail of Investment Banking Revenues Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Institutional Securities Advisory $ 798 $ 508 $ 1,776 $ 1,071 Institutional Securities Underwriting 1,639 1,032 2,777 2,028 Firm Investment banking revenues from contracts with customers 90 % 88 % 89 % 85 % Trading Revenues by Product Type Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Interest rate $ 1,036 $ 1,036 $ 1,962 $ 2,409 Foreign exchange 587 556 1,260 1,184 Equity 1 5,143 2,987 9,110 6,014 Commodity and other 360 546 1,471 870 Credit ( 403 ) ( 380 ) ( 350 ) ( 621 ) Total $ 6,723 $ 4,745 $ 13,453 $ 9,856 1. Dividend income is included within equity contracts. The previous table summarizes realized and unrealized gains and losses primarily related to the Firm’s Trading assets and liabilities, from derivative and non-derivative financial instruments, included in Trading revenues in the income statement. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes. Investment Management Investments Revenues—Net Cumulative Unrealized Carried Interest $ in millions At June 30, 2026 At December 31, 2025 Net cumulative unrealized performance-based fees at risk of reversing $ 952 $ 926 The Firm’s portion of net cumulative performance-based fees in the form of unrealized carried interest, for which the Firm is not obligated to pay compensation, is at risk of reversing when the returns in certain funds fall below specified performance targets. See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received. 75 June 2026 Form 10-Q Table of Contents Notes to Consolidated Financial Statements (Unaudited) Investment Management Asset Management Revenues—Reduction of Fees Due to Fee Waivers Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Fee waivers $ 36 $ 30 $ 70 $ 56 The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940. Certain Other Fee Waivers Separately, the Firm’s employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees. Other Expenses—Transaction Taxes Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Transaction taxes $ 703 $ 303 $ 1,220 $ 569 Transaction taxes are composed of securities transaction taxes and stamp duties, which are levied on the sale or purchase of securities listed on recognized stock exchanges in certain markets. These taxes are imposed mainly on trades of equity securities in Asia and EMEA. Similar transaction taxes are levied on trades of listed derivative instruments in certain countries. Net Revenues by Region Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Americas $ 15,046 $ 12,347 $ 29,637 $ 25,450 EMEA 2,372 2,142 5,013 4,433 Asia 3,930 2,303 7,278 4,648 Total $ 21,348 $ 16,792 $ 41,928 $ 34,531 For a discussion about the Firm’s geographic net revenues, see Note 22 to the financial statements in the 2025 Form 10-K. Revenues Recognized from Prior Services Three Months Ended June 30, Six Months Ended June 30, $ in millions 2026 2025 2026 2025 Non-interest revenues $ 770 $ 516 $ 1,533 $ 1,061 The previous table includes revenues from contracts with customers recognized where some or all services were performed in prior periods. These revenues primarily include investment banking advisory fees. Receivables from Contracts with Customers $ in millions At June 30, 2026 At December 31, 2025 Customer and other receivables $ 3,344 $ 3,002 Receivables from contracts with customers, which are included within Customer and other receivables in the balance sheet, arise when the Firm has both recorded revenues and the right per the contract to bill the customer. Assets by Business Segment $ in millions At June 30, 2026 At December 31, 2025 Institutional Securities 1 $ 1,317,904 $ 969,553 Wealth Management 1 338,939 433,017 Investment Management 18,214 17,700 Total 2 $ 1,675,057 $ 1,420,270 1. In connection with MSBNA’s acquisition of MSESE and the merging of the Fixed Income business of MSCS into MSBNA, the Firm updated its segment balance sheet allocation methodology in the first quarter of 2026. As a result of this update, certain assets which were previously included in the Wealth Management balance sheet are included within the Institutional Securities balance sheet beginning in the first quarter of 2026. 2. Parent assets have been fully allocated to the business segments. June 2026 Form 10-Q 76 Table of Contents Financial Data Supplement (Unaudited) Average Balances and Interest Rates and Net Interest Income Three Months Ended June 30, 2026 2025 $ in millions Average Daily Balance Interest Annualized Average Rate Average Daily Balance Interest Annualized Average Rate Interest earning assets Cash and cash equivalents: U.S. $ 69,331 $ 462 2.7 % $ 51,730 $ 414 3.2 % Non-U.S. 61,034 263 1.7 % 43,469 213 2.0 % Investment securities 1 156,515 1,272 3.3 % 162,164 1,324 3.3 % Loans 1 299,047 3,805 5.1 % 252,572 3,461 5.5 % Securities purchased under agreements to resell 2: U.S. 84,948 2,692 12.7 % 73,064 2,548 14.0 % Non-U.S. 43,801 1,058 9.7 % 48,337 1,232 10.2 % Securities borrowed 3: U.S. 140,721 1,534 4.4 % 123,010 2,102 6.9 % Non-U.S. 28,030 60 0.9 % 21,096 71 1.3 % Trading assets, net of Trading liabilities: U.S. 149,313 1,670 4.5 % 112,016 1,327 4.8 % Non-U.S. 39,286 338 3.5 % 25,694 246 3.8 % Customer receivables and Other: U.S. 86,992 2,129 9.8 % 57,236 1,450 10.2 % Non-U.S. 28,279 619 8.8 % 17,562 517 11.8 % Total $ 1,187,297 $ 15,902 5.4 % $ 987,950 $ 14,905 6.1 % Interest bearing liabilities Deposits 1 $ 427,835 $ 2,699 2.5 % $ 375,348 $ 2,603 2.8 % Borrowings 1,4 375,534 3,410 3.6 % 304,670 3,199 4.2 % Securities sold under agreements to repurchase 5,7: U.S. 47,178 2,349 20.0 % 18,593 1,999 43.1 % Non-U.S. 60,750 1,224 8.1 % 53,867 1,362 10.1 % Securities loaned 6,7 : U.S. 12,758 454 14.3 % 10,506 964 36.8 % Non-U.S. 7,643 320 16.8 % 7,317 234 12.8 % Customer payables and Other: U.S. 161,873 1,838 4.6 % 135,153 1,441 4.3 % Non-U.S. 85,560 828 3.9 % 62,115 756 4.9 % Total $ 1,179,131 $ 13,122 4.5 % $ 967,569 $ 12,558 5.2 % Net interest income and net interest rate spread $ 2,780 0.9 % $ 2,347 0.9 % Six Months Ended June 30, 2026 2025 $ in millions Average Daily Balance Interest Annualized Average Rate Average Daily Balance Interest Annualized Average Rate Interest earning assets Cash and cash equivalents: U.S. $ 67,698 $ 948 2.8 % $ 53,851 $ 861 3.2 % Non-U.S. 56,696 476 1.7 % 42,976 425 2.0 % Investment securities 1 160,221 2,615 3.3 % 160,290 2,604 3.3 % Loans 1 291,180 7,387 5.1 % 247,258 6,786 5.5 % Securities purchased under agreements to resell 2 : U.S. 83,465 5,055 12.2 % 69,721 4,761 13.8 % Non-U.S. 44,595 2,189 9.9 % 45,058 2,435 10.9 % Securities borrowed 3 : U.S. 138,843 3,180 4.6 % 118,500 3,150 5.4 % Non-U.S. 24,669 112 0.9 % 18,425 139 1.5 % Trading assets, net of Trading liabilities: U.S. 152,458 3,329 4.4 % 111,934 2,575 4.6 % Non-U.S. 35,108 613 3.5 % 22,082 437 4.0 % Customer receivables and Other: U.S. 84,975 4,077 9.7 % 59,087 3,456 11.8 % Non-U.S. 26,678 1,194 9.0 % 17,000 1,024 12.1 % Total $ 1,166,586 $ 31,175 5.4 % $ 966,182 $ 28,653 6.0 % Interest bearing liabilities Deposits 1 $ 419,789 $ 5,256 2.5 % $ 373,039 $ 5,125 2.8 % Borrowings 1,4 364,504 6,593 3.6 % 293,779 6,217 4.3 % Securities sold under agreements to repurchase 5,7 : U.S. 56,714 4,703 16.7 % 18,891 3,785 40.4 % Non-U.S. 66,307 2,485 7.6 % 51,670 2,645 10.3 % Securities loaned 6,7 : U.S. 11,960 969 16.3 % 10,307 993 19.4 % Non-U.S. 7,566 576 15.4 % 6,680 461 13.9 % Customer payables and Other: U.S. 156,376 3,499 4.5 % 127,172 3,217 5.1 % Non-U.S. 81,309 1,611 4.0 % 60,266 1,510 5.1 % Total $ 1,164,525 $ 25,692 4.4 % $ 941,804 $ 23,953 5.1 % Net interest income and net interest rate spread $ 5,483 1.0 % $ 4,700 0.9 % 1. Amounts include primarily U.S. balances. 2. Includes interest paid on Securities purchased under agreements to resell. 3. Includes fees paid on Securities borrowed. 4. Average daily balance includes borrowings carried at fair value but, for certain borrowings, interest expense is considered part of fair value and is recorded in Trading revenues. 5. Includes interest received on Securities sold under agreements to repurchase. 6. Includes fees received on Securities loaned. 7. The annualized average rate was calculated using (a) interest expense incurred on all securities sold under agreements to repurchase and securities-loaned transactions, whether or not such transactions were reported in the balance sheet and (b) net average on-balance sheet balances, which exclude certain securities-for-securities transactions. 77 June 2026 Form 10-Q Table of Contents Glossary of Common Terms and Acronyms 2025 Form 10-K Annual report on Form 10-K for year ended December 31, 2025 filed with the SEC ABS Asset-backed securities ACL Allowance for credit losses AFS Available-for-sale AI Artificial intelligence AML Anti-money laundering AOCI Accumulated other comprehensive income (loss) AUM Assets under management or supervision Balance sheet Consolidated balance sheet BHC Bank holding company bps Basis points; one basis point equals 1/100th of 1% Cash flow statement Consolidated cash flow statement CCAR Comprehensive Capital Analysis and Review CCyB Countercyclical capital buffer CDO Collateralized debt obligation(s), including Collateralized loan obligation(s) CDS Credit default swaps CECL Current Expected Credit Losses, as calculated under the Financial Instruments—Credit Losses accounting update CET1 Common Equity Tier 1 CFTC U.S. Commodity Futures Trading Commission CLN Credit-linked note(s) CLO Collateralized loan obligation(s) CMBS Commercial mortgage-backed securities CMO Collateralized mortgage obligation(s) CRE Commercial real estate CRM Credit Risk Management Department CTA Cumulative foreign currency translation adjustments DCP Employee deferred cash-based compensation plans linked to investment performance DCP investments Investments associated with certain DCP DVA Debt valuation adjustment EBITDA Earnings before interest, taxes, depreciation and amortization EMEA Europe, Middle East and Africa EPS Earnings per common share FDIC Federal Deposit Insurance Corporation FFELP Federal Family Education Loan Program FHC Financial holding company FICO Fair Isaac Corporation Financial statements Consolidated financial statements FVO Fair value option G-SIB Global systemically important bank HFI Held-for-investment HFS Held-for-sale HQLA High-quality liquid assets HTM Held-to-maturity I/E Intersegment eliminations IM Investment Management Income statement Consolidated income statement IRS Internal Revenue Service IS Institutional Securities LCR Liquidity coverage ratio, as adopted by the U.S. banking agencies LTV Loan-to-value M&A Merger, acquisition and restructuring transaction MSBNA Morgan Stanley Bank, N.A. MS&Co. Morgan Stanley & Co. LLC MSCG Morgan Stanley Capital Group Inc. MSCS Morgan Stanley Capital Services LLC MSESE Morgan Stanley Europe SE MSIP Morgan Stanley & Co. International plc MSMS Morgan Stanley MUFG Securities Co., Ltd. MSPBNA Morgan Stanley Private Bank, National Association MSSB Morgan Stanley Smith Barney LLC MUFG Mitsubishi UFJ Financial Group, Inc. MUMSS Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. MWh Megawatt hour N/A Not Applicable N/M Not Meaningful NAV Net asset value Non-GAAP Non-generally accepted accounting principles in the U.S. NSFR Net stable funding ratio, as adopted by the U.S. banking agencies OCC Office of the Comptroller of the Currency OCI Other comprehensive income (loss) OTC Over-the-counter PSU Performance-based stock unit ROE Return on average common equity ROTCE Return on average tangible common equity ROU Right-of-use RSU Restricted stock unit RWA Risk-weighted assets SCB Stress capital buffer SEC U.S. Securities and Exchange Commission SLR Supplementary leverage ratio S&P Standard & Poor’s SPE Special purpose entity SPOE Single point of entry TLAC Total loss-absorbing capacity U.K. United Kingdom UPB Unpaid principal balance U.S. United States of America U.S. Bank Subsidiaries MSBNA and MSPBNA U.S. GAAP Accounting principles generally accepted in the U.S. VaR Value-at-Risk VIE Variable interest entity WACC Implied weighted average cost of capital WM Wealth Management June 2026 Form 10-Q 78 Table of Contents Controls and Procedures Under the supervision and with the participation of the Firm’s management, including the Chief Executive Officer and Chief Financial Officer, the Firm conducted an evaluation of the effectiveness of the Firm’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Firm’s disclosure controls and procedures were effective as of the end of the period covered by this report. No change in the Firm’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) occurred during the period covered by this report that materially affected, or is reasonably likely to materially affect, the Firm’s internal control over financial reporting. Legal Proceedings See “Contingencies—Legal” in Note 13 to the Financial Statements for information about our material legal proceedings. Risk Factors For a discussion of the risk factors affecting the Firm, see “Risk Factors” in Part I, Item 1A of the 2025 Form 10-K. Unregistered Sales of Equity Securities and Use of Proceeds Issuer Purchases of Equity Securities $ in millions, except per share data Total Number of Shares Purchased 1 Average Price Paid per Share 2 Total Shares Purchased as Part of Share Repurchase Authorization 3,4 Dollar Value of Remaining Authorized Repurchase April 2,865,364 $ 182.02 2,007,100 $ 15,285 May 3,825,485 $ 193.80 3,803,795 $ 14,548 June 1,787,311 $ 214.98 1,778,513 $ 14,165 Three Months Ended June 30, 2026 8,478,160 $ 194.28 7,589,408 1. Includes 888,752 shares acquired by the Firm in satisfaction of the tax withholding obligations on stock-based awards granted under the Firm’s stock-based compensation plans during the three months ended June 30, 2026. 2. Excludes excise tax of $11 million levied on share repurchases, net of issuances, payable in April 2027. 3. Share purchases under publicly announced authorizations are made pursuant to open-market purchases, Rule 10b5-1 plans or privately negotiated transactions (including with employee benefit plans) as market conditions warrant and at prices the Firm deems appropriate and may be suspended at any time. As previously announced, on April 18, 2018, the Firm entered into a sales plan (“Plan”) with MUFG and MS&Co., whereby MUFG sold shares of the Firm’s common stock to the Firm, through its agent MS&Co., as part of the Share Repurchase Authorization (as defined below). The Plan was suspended on December 10, 2020 and recommenced effective July 15, 2026. The Plan is intended solely to maintain MUFG’s ownership percentage below 24.9% in order to comply with MUFG’s passivity commitments to the Federal Reserve and has no impact on the strategic alliance between MUFG and the Firm, including the joint venture in Japan. 4. On June 24, 2026, the Firm announced that its Board of Directors reauthorized a multi-year repurchase authorization of up to $20 billion of outstanding common stock (the “Share Repurchase Authorization”), without a set expiration date, beginning in the third quarter of 2026, which will be exercised from time to time as conditions warrant and is subject to limitations on distributions from the Federal Reserve. The Share Repurchase Authorization is for capital management purposes and considers, among other things, business segment capital needs, as well as equity-based compensation and benefit plan requirements. For further information, see “Liquidity and Capital Resources—Regulatory Requirements—Capital Plans, Stress Tests and the Stress Capital Buffer.” Other Information N one. Exhibits Exhibit No. Description 15 Letter of awareness from Deloitte & Touche LLP, dated August 4 , 2026 , concerning unaudited interim financial information. 31.1 Rule 13a-14(a) Certification of Chief Executive Officer. 31.2 Rule 13a-14(a) Certification of Chief Financial Officer. 32.1 Section 1350 Certification of Chief Executive Officer. 32.2 Section 1350 Certification of Chief Financial Officer. 101 Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”). 104 Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MORGAN STANLEY (Registrant) By: /s/ S HARON Y ESHAYA Sharon Yeshaya Executive Vice President and Chief Financial Officer By: /s/ V ICTORIA W ORSTER Victoria Worster Chief Accounting Officer and Controller Date: August 4, 2026 79 June 2026 Form 10-Q