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1、UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-QQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 31,2025 Commission File Number 1-11758(Exact name of Registrant as specified in its charter)Delaware

2、1585 Broadway36-3145972(212)761-4000(State or other jurisdiction ofincorporation or organization)New York,NY 10036(I.R.S.Employer Identification No.)(Registrants telephone number,including area code)(Address of principal executive offices,including Zip Code)Securities registered pursuant to Section

3、12(b)of the Act:Title of each class TradingSymbol(s)Name of exchange onwhich registeredCommon Stock,$0.01 par valueMSNew York Stock ExchangeDepositary Shares,each representing 1/1,000th interest in a share of Floating RateMS/PANew York Stock ExchangeNon-Cumulative Preferred Stock,Series A,$0.01 par

4、valueDepositary Shares,each representing 1/1,000th interest in a share of Fixed-to-Floating RateMS/PENew York Stock ExchangeNon-Cumulative Preferred Stock,Series E,$0.01 par valueDepositary Shares,each representing 1/1,000th interest in a share of Fixed-to-Floating RateMS/PFNew York Stock ExchangeNo

5、n-Cumulative Preferred Stock,Series F,$0.01 par valueDepositary Shares,each representing 1/1,000th interest in a share of Fixed-to-Floating RateMS/PINew York Stock ExchangeNon-Cumulative Preferred Stock,Series I,$0.01 par valueDepositary Shares,each representing 1/1,000th interest in a share of Fixe

6、d-to-Floating RateMS/PKNew York Stock ExchangeNon-Cumulative Preferred Stock,Series K,$0.01 par valueDepositary Shares,each representing 1/1,000th interest in a share of 4.875%MS/PLNew York Stock ExchangeNon-Cumulative Preferred Stock,Series L,$0.01 par valueDepositary Shares,each representing 1/1,0

7、00th interest in a share of 4.250%MS/PONew York Stock ExchangeNon-Cumulative Preferred Stock,Series O,$0.01 par valueDepositary Shares,each representing 1/1,000th interest in a share of 6.500%MS/PPNew York Stock ExchangeNon-Cumulative Preferred Stock,Series P,$0.01 par valueDepositary Shares,each re

8、presenting 1/1,000th interest in a share of 6.625%MS/PQNew York Stock ExchangeNon-Cumulative Preferred Stock,Series Q,$0.01 par valueGlobal Medium-Term Notes,Series A,Fixed Rate Step-Up Senior Notes Due 2026MS/26CNew York Stock Exchangeof Morgan Stanley Finance LLC(and Registrants guarantee with res

9、pect thereto)Global Medium-Term Notes,Series A,Floating Rate Notes Due 2029MS/29New York Stock Exchangeof Morgan Stanley Finance LLC(and Registrants 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

10、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 e

11、very 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 accelera

12、ted 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 f

13、ilerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf 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 pursuan

14、t 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 April 30,2025,there were 1,604,319,158 shares of the Registrants Common Stock,par value$0.01 per share,outstanding.QUARTERLY REPORT ON FOR

15、M 10-QFor the quarter ended March 31,2025 Table of ContentsPartItemPageFinancial InformationI Managements Discussion and Analysis of Financial Condition and Results of OperationsI24Introduction 4Executive Summary 5Business Segments 9Institutional Securities10Wealth Management12Investment Management1

16、5Supplemental Financial Information 17Accounting Development Updates 17Critical Accounting Estimates 17Liquidity and Capital Resources 17Balance Sheet 17Regulatory Requirements 21Quantitative and Qualitative Disclosures about RiskI326Market Risk 26Credit Risk 28Country and Other Risks 34Report of In

17、dependent Registered Public Accounting Firm 36Consolidated Financial Statements and NotesI137Consolidated Income Statement(Unaudited)37Consolidated Comprehensive Income Statement(Unaudited)37Consolidated Balance Sheet(Unaudited at March 31,2025)38Consolidated Statement of Changes in Total Equity(Una

18、udited)39Consolidated Cash Flow Statement(Unaudited)40Notes to Consolidated Financial Statements(Unaudited)411.Introduction and Basis of Presentation 412.Significant Accounting Policies 423.Cash and Cash Equivalents424.Fair Values 425.Fair Value Option476.Derivative Instruments and Hedging Activitie

19、s 487.Investment Securities 528.Collateralized Transactions 549.Loans,Lending Commitments and Related Allowance for Credit Losses 5510.Other Assets 5811.Deposits 5912.Borrowings and Other Secured Financings 5913.Commitments,Guarantees and Contingencies 6014.Variable Interest Entities and Securitizat

20、ion Activities 6315.Regulatory Requirements 6616.Total Equity 6817.Interest Income and Interest Expense 7018.Income Taxes 7019.Segment,Geographic and Revenue Information 70Financial Data Supplement(Unaudited)73Glossary of Common Terms and Acronyms 74Controls and ProceduresI475Other InformationII Leg

21、al ProceedingsII175Risk FactorsII1A75Unregistered Sales of Equity Securities and Use of ProceedsII275Other InformationII575ExhibitsII675Signatures 75Table of Contents2Available InformationWe file annual,quarterly and current reports,proxy statements and other information with the Securities and Exch

22、ange 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 SECs website.Our websit

23、e is .You can access our Investor Relations webpage at 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 pursuan

24、t 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 SECs website,statements of beneficial ownersh

25、ip 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 sustainability initiatives at our commitment to diversity and inclusion at webpages include:Amended and

26、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 Regardin

27、g Corporate Political Activities;Policy Regarding Shareholder Rights Plan;Equity Ownership Commitment;Code of Ethics and Business Conduct;Code of Conduct;Integrity Hotline Information;Environmental and Social Policies;and 2023 ESG Report.Our Code of Ethics and Business Conduct applies to all directo

28、rs,officers and employees,including our Chief Executive Officer,Chief Financial Officer and Deputy Chief Financial Officer.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 Exc

29、hange 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.Table of Contents3Managements Discussion an

30、d Analysis of Financial Condition and Results of OperationsIntroductionMorgan Stanley is a global financial services firm that maintains significant market positions in each of its business segmentsInstitutional Securities,Wealth Management and Investment Management.Morgan Stanley,through its subsid

31、iaries 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.Unless the context otherwise requires,the terms“Morgan Stanley,”“Firm,”“us,”“we”or“our”mean Morga

32、n 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

33、 as follows: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 securi

34、ties 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,Asia wealth management services and certain business-related investments.Lendin

35、g 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

36、to individual investors and small to medium-sized businesses and institutions.Wealth Management covers:financial advisor-led brokerage,custody,administrative and investment advisory services;self-directed brokerage services;financial and wealth planning services;workplace services,including stock pl

37、an 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 market

38、s 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/de

39、fined 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.Managements Discussion and Ana

40、lysis 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 incons

41、istent 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;and other risk factors.These factors also may have an adverse impact on our ability to ach

42、ieve our strategic objectives.Additionally,the discussion of our results of operations herein may contain forward-looking statements.These statements,which reflect managements beliefs and expectations,are subject to risks and uncertainties that may cause actual results to differ materially.For a dis

43、cussion of the risks and uncertainties that may affect our future results,see“Forward-Looking Statements”,“BusinessCompetition”,“BusinessSupervision and Regulation”and“Risk Factors”in the 2024 Form 10-K and“Liquidity and Capital ResourcesRegulatory Requirements”herein.Table of Contents4March 2025 Fo

44、rm 10-QExecutive SummaryOverview of Financial ResultsConsolidated ResultsThree Months Ended March 31,2025 The Firm reported net revenues of$17.7 billion and net income of$4.3 billion reflecting strong results across our business segments.The Firm delivered ROE of 17.4%and ROTCE of 23.0%(see“Selected

45、 Non-GAAP Financial Information”herein).The Firms expense efficiency ratio was 68%.Expenses for the quarter included$144 million of severance costs related to a March employee action across our business segments.(See“Non-Interest Expenses”herein for more information).The Firm accreted$1.9 billion of

46、 Common Equity Tier 1 capital.At March 31,2025,the Firms Standardized Common Equity Tier 1 capital ratio was 15.3%.Institutional Securities reported net revenues of$9.0 billion reflecting strong performance in Equity and in Investment Banking on higher Fixed Income underwriting revenues.Wealth Manag

47、ement delivered a pre-tax margin of 26.6%.Net revenues of$7.3 billion reflect strong Asset management revenues.The business added net new assets of$94 billion and fee-based asset flows were$30 billion.Investment Management results reflect net revenues of$1.6 billion,primarily driven by asset managem

48、ent fees on higher average AUM of$1.7 trillion.Net Revenues($in millions)$15,136$17,7391Q 20241Q 2025Net Income Applicable to Morgan Stanley($in millions)$3,412$4,3151Q 20241Q 2025Earnings per Diluted Common Share$2.02$2.601Q 20241Q 2025We reported net revenues of$17.7 billion in the quarter ended M

49、arch 31,2025(“current quarter,”or“1Q 2025”),which increased by 17%compared with$15.1 billion in the quarter ended March 31,2024(“prior year quarter,”or“1Q 2024”).Net income applicable to Morgan Stanley was$4.3 billion in the current quarter,which increased by 26%compared with$3.4 billion in the prio

50、r year quarter.Diluted earnings per common share was$2.60 in the current quarter,which increased by 29%compared with$2.02 in the prior year quarter.Non-Interest Expenses($in millions)$10,747$12,060$6,696$7,521$4,051$4,539Compensation and benefits expensesNon-compensation expenses1Q 20241Q 2025Table

51、of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q5 Compensation and benefits expenses of$7,521 million in the current quarter increased 12%from the prior year quarter,primarily due to higher discretionary incentive compensation and higher formulaic payout to Wealth Management repres

52、entatives,both on higher revenues,and higher severance costs,partially offset by lower expenses related to certain employee deferred cash-based compensation plans linked to investment performance(“DCP”).During the current quarter,as a result of a March employee action,we recognized severance costs a

53、ssociated with a reduction in force(“RIF”)of$144 million,included in Compensation and benefits expenses.The RIF occurred across our business segments and geographic regions and impacted approximately 2%of our global workforce at that time.The RIF was related to performance management and the alignme

54、nt of our workforce to our business needs,rather than a change in strategy or exit of businesses.We recorded severance costs of$78 million in the Institutional Securities business segment,$50 million in the Wealth Management business segment,and$16 million in the Investment Management business segme

55、nt for the current quarter.These costs were incurred across all regions,with the majority in the Americas.Non-compensation expenses of$4,539 million in the current quarter increased 12%from the prior year quarter,primarily due to higher execution-related expenses.Provision for Credit LossesThe Provi

56、sion for credit losses on loans and lending commitments of$135 million in the current quarter was primarily related to portfolio growth in secured lending facilities and corporate loans,provisions for certain specific loans,including residential real estate loans related to the California wildfires,

57、and deterioration in the macroeconomic outlook.The macroeconomic outlook assumed in our ACL models and Provision for credit losses incorporated the weaker economic outlook and conditions as of March 31,2025.The Provision for credit losses on loans and lending commitments in the prior year quarter wa

58、s a net release of$6 million,primarily as a result of improvements in the macroeconomic outlook,partially offset by provisions for certain specific commercial real estate and corporate loans and modest growth in certain other loan portfolios.For further information on the Provision for credit losses

59、,see“Credit Risk”herein.Business Segment ResultsNet Revenues by Segment1($in millions)$15,136$17,739$7,016$8,983$6,880$7,327$1,377$1,602Institutional SecuritiesWealth ManagementInvestment Management 1Q 20241Q 2025Net Income Applicable to Morgan Stanley by Segment1($in millions)$3,412$4,315$1,819$2,5

60、29$1,403$1,532$192$262Institutional SecuritiesWealth ManagementInvestment Management 1Q 20241Q 20251.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 inters

61、egment eliminations.See Note 19 to the financial statements for details of intersegment eliminations.Institutional Securities net revenues of$8,983 million in the current quarter increased 28%from the prior year quarter,primarily reflecting higher results in Equity and gains on the sale of corporate

62、 loans held-for-sale compared with mark-to-market losses,inclusive of hedges,in the prior year quarter within Other net revenues.Wealth Management net revenues of$7,327 million in the current quarter increased 6%from the prior year quarter,primarily reflecting higher Asset management revenues,partia

63、lly offset by lower Transactional revenues.Investment Management net revenues of$1,602 million in the current quarter increased 16%from the prior year quarter,reflecting higher Performance-based income and other revenues and higher Asset management and related fees.Table of ContentsManagements Discu

64、ssion and Analysis6March 2025 Form 10-QNet Revenues by Region1($in millions)$15,136$17,739$11,567$13,103$1,826$2,291$1,743$2,345AmericasEMEAAsia1Q 20241Q 20251.For a discussion of how the geographic breakdown of net revenues is determined,see Note 22 to the financial statements in the 2024 Form 10-K

65、.Americas net revenues in the current quarter increased 13%from the prior year quarter,driven by higher results across all business segments.EMEA net revenues in the current quarter increased 25%from the prior year quarter,primarily driven by higher Equity revenues within the Institutional Securitie

66、s business segment and higher results within the Investment Management business segment.Asia net revenues in the current quarter increased 35%from the prior year quarter,primarily driven by higher Equity revenues within the Institutional Securities business segment.Selected Financial Information and

67、 Other Statistical Data Three Months EndedMarch 31,$in millions,except per share data20252024Consolidated resultsNet revenues$17,739$15,136 Earnings applicable to Morgan Stanley common shareholders$4,157$3,266 Earnings per diluted common share$2.60$2.02 Consolidated financial measuresExpense efficie

68、ncy ratio1 68%71%ROE2 17.4%14.5%ROTCE2,3 23.0%19.7%Pre-tax margin4 31%29%Effective tax rate 21.2%21.2%Pre-tax margin by segment4Institutional Securities 37%34%Wealth Management 27%26%Investment Management 20%18%$in millions,except per share data,worldwide employees and client assetsAtMarch 31,2025At

69、December 31,2024 Average liquidity resources for three months ended5$351,740$345,440 Loans6$258,969$246,814 Total assets$1,300,296$1,215,071 Deposits$381,563$376,007 Borrowings$305,390$288,819 Common equity$97,062$94,761 Tangible common equity3$74,044$71,604 Common shares outstanding 1,607 1,607 Boo

70、k value per common share7$60.41$58.98 Tangible book value per common share3,7$46.08$44.57 Worldwide employees(in thousands)81 80 Client assets8(in billions)$7,662$7,860 Capital Ratios9Common Equity Tier 1 capitalStandardized 15.3%15.9%Tier 1 capitalStandardized 17.2%18.0%Common Equity Tier 1 capital

71、Advanced 15.7%15.7%Tier 1 capitalAdvanced 17.7%17.8%Tier 1 leverage 6.9%6.9%SLR 5.6%5.6%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

72、 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

73、resources,see“Liquidity and Capital ResourcesBalance SheetLiquidity Risk Management FrameworkLiquidity 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

74、 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 are inve

75、sted in Investment Management products and are therefore also included in Investment Managements AUM.9.For a discussion of our capital ratios,see“Liquidity and Capital ResourcesRegulatory Requirements”herein.Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q7Economic and Market

76、 ConditionsThe economic environment,client and investor confidence and overall market sentiment deteriorated in 2025,as recent developments around global trade and government policies resulted in increased economic uncertainty and market volatility.Geopolitical risks,inflation,as well as the timing

77、and pace of central bank actions related to interest rates present ongoing risks to the economic environment and growth.These factors have impacted,and could continue to impact capital markets and our businesses,as discussed further in“Business Segments”herein.For more information on economic and ma

78、rket conditions,and the potential effects of geopolitical events and acts of war or aggression on our future results,refer to“Risk Factors”and“Forward-Looking Statements”in the 2024 Form 10-K.Selected Non-GAAP Financial Information We prepare our financial statements using U.S.GAAP.From time to time

79、,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

80、 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

81、 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

82、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.We present certain non-GAAP financial measures that exclude the i

83、mpact 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 re

84、venue 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 additional information,see“Management

85、s Discussion and Analysis of Financial Condition and Results of OperationsOther Matters”in the 2024 Form 10-K.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-peri

86、od 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 tangi

87、ble 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 Stan

88、ley 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

89、 tables.Reconciliations from U.S.GAAP to Non-GAAP Consolidated Financial Measures Three Months EndedMarch 31,$in millions20252024Net revenues$17,739$15,136 Adjustment for mark-to-market losses(gains)on DCP1 149 (187)Adjusted Net revenuesnon-GAAP$17,888$14,949 Compensation expense$7,521$6,696 Adjustm

90、ent for mark-to-market gains(losses)on DCP1 2 (249)Adjusted Compensation expensenon-GAAP$7,523$6,447 Wealth Management Net revenues$7,327$6,880 Adjustment for mark-to-market losses(gains)on DCP1 131 (140)Adjusted Wealth Management Net revenuesnon-GAAP$7,458$6,740 Wealth Management Compensation expen

91、se$3,999$3,788 Adjustment for mark-to-market gains(losses)on DCP1 17 (156)Adjusted Wealth Management Compensation expensenon-GAAP$4,016$3,632 1.Net revenues and compensation expense are adjusted for DCP for both Firm and Wealth Management business segment.See“Managements Discussion and Analysis of F

92、inancial Condition and Results of OperationsOther Matters”in the 2024 Form 10-K for more information.$in millionsAtMarch 31,2025AtDecember 31,2024 Tangible equityCommon equity$97,062$94,761 Less:Goodwill and net intangible assets(23,018)(23,157)Tangible common equitynon-GAAP$74,044$71,604 Table of C

93、ontentsManagements Discussion and Analysis8March 2025 Form 10-QAverage Monthly Balance Three Months EndedMarch 31,$in millions20252024Tangible equityCommon equity$95,488$89,913 Less:Goodwill and net intangible assets(23,083)(23,705)Tangible common equitynon-GAAP$72,405$66,208 Non-GAAP Financial Meas

94、ures by Business Segment Three Months EndedMarch 31,$in billions20252024Average common equity1Institutional Securities$48.4$45.0 Wealth Management 29.4 29.1 Investment Management 10.6 10.8 ROE2Institutional Securities 20%15%Wealth Management 20%19%Investment Management 10%7%Average tangible common e

95、quity1Institutional Securities$48.0$44.6 Wealth Management 16.3 15.5 Investment Management 1.0 1.1 ROTCE2Institutional Securities 20%15%Wealth Management 37%35%Investment Management 104%68%1.Average common equity and average tangible common equity for each business segment is determined using our Re

96、quired Capital framework(see“Liquidity and Capital ResourcesRegulatory RequirementsAttribution 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

97、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

98、.Return on Tangible Common Equity GoalWe 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 2024 Form 10-K for further information o

99、n 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 SegmentsSubstantially all of our operating revenues and

100、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

101、 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“Managements Discussion and Analysis of Financial Condition and Result

102、s of OperationsBusiness Segments”in the 2024 Form 10-K.Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q9Institutional SecuritiesIncome Statement InformationThree Months EndedMarch 31,%Change$in millions20252024RevenuesAdvisory$563$461 22%Equity 319 430 (26)%Fixed Income 677 5

103、56 22%Total Underwriting 996 986 1%Total Investment Banking 1,559 1,447 8%Equity 4,128 2,842 45%Fixed Income 2,604 2,485 5%Other 692 242 186%Net revenues 8,983 7,016 28%Provision for credit losses 91 2 N/MCompensation and benefits 2,854 2,343 22%Non-compensation expenses 2,757 2,320 19%Total non-int

104、erest expenses 5,611 4,663 20%Income before provision for income taxes 3,281 2,351 40%Provision for income taxes 696 482 44%Net income 2,585 1,869 38%Net income applicable to noncontrolling interests 56 50 12%Net income applicable to Morgan Stanley$2,529$1,819 39%Investment BankingInvestment Banking

105、 VolumesThree Months EndedMarch 31,$in billions20252024Completed mergers and acquisitions1$140$116 Equity and equity-related offerings2,3 13 17 Fixed Income offerings2,4 98 98 Source:LSEG Data&Risk Analytics(formerly known as Refinitiv)as of April 1,2025.Transaction volumes may not be indicative of

106、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 a

107、dvisors 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-conv

108、ertible preferred stock,mortgage-backed and asset-backed securities,and taxable municipal debt.Excludes leveraged loans and self-led issuances.Investment Banking RevenuesNet revenues of$1,559 million in the current quarter increased 8%from the prior year quarter,reflecting higher Fixed Income underw

109、riting and Advisory revenues,partially offset by lower Equity underwriting revenues.Advisory revenues increased on higher completed M&A transactions.Equity underwriting revenues decreased primarily on lower secondary block share trades and initial public offerings.Fixed Income underwriting revenues

110、increased primarily in non-investment grade loan issuances.While Investment Banking results have shown improvement in recent quarters,we continue to operate in a market environment with lower completed M&A activity relative to longer-term averages.The current economic environment may continue to del

111、ay expectations of increased M&A activity.See“Investment Banking Volumes”herein.Equity,Fixed Income and Other Net RevenuesEquity and Fixed Income Net RevenuesThree Months Ended March 31,2025 Net Interest2All Other3$in millionsTradingFees1TotalFinancing$2,267$156$(596)$1$1,828 Execution services 1,46

112、9 798 (98)131 2,300 Total Equity$3,736$954$(694)$132$4,128 Total Fixed Income$2,407$107$19$71$2,604 Three Months Ended March 31,2024 Net Interest2All Other3$in millionsTradingFees1TotalFinancing$2,022$136$(891)$1$1,268 Execution services 972 609 (41)34 1,574 Total Equity$2,994$745$(932)$35$2,842 Tot

113、al Fixed Income$2,594$104$(292)$79$2,485 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.EquityNet revenues of$4,128 million in the current quarter increased

114、45%compared with the prior year quarter,reflecting an increase in both Execution services and Financing.Financing revenues increased primarily due to higher gains on inventory held to facilitate client activity and increased client activity.Execution services revenues increased primarily due to high

115、er gains on inventory held to facilitate client activity and increased client activity in derivatives and cash equities.Fixed IncomeNet revenues of$2,604 million in the current quarter increased 5%from the prior year quarter,primarily reflecting an increase in Global macro products,partially offset

116、by a decrease in Commodities and Credit products.Global macro products revenues increased primarily on foreign exchange products due to gains compared with Table of ContentsManagements Discussion and Analysis10March 2025 Form 10-Qlosses in the prior year quarter on inventory held to facilitate clien

117、t activity and increased client activity.Credit products revenues decreased primarily due to lower gains on inventory held to facilitate client activity,partially offset by higher lending and securitized products activity.Commodities products and other fixed income revenues decreased primarily due t

118、o lower gains on inventory held to facilitate client activity.Other Net RevenuesOther net revenues were$692 million in the current quarter,compared with$242 million in the prior year quarter,primarily reflecting gains on the sale of corporate loans held-for-sale compared with mark-to-market losses,i

119、nclusive of hedges,in the prior year quarter.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of$91 million in the current quarter was primarily related to portfolio growth in secured lending facilities and corporate loans and deterioration in the macroecon

120、omic outlook.The Provision for credit losses on loans and lending commitments of$2 million in the prior year quarter was primarily related to modest growth in certain loan portfolios and provisions for certain specific commercial real estate and corporate loans,partially offset by improvements in th

121、e macroeconomic outlook.For further information on the Provision for credit losses,see“Credit Risk”herein.Non-Interest ExpensesNon-interest expenses of$5,611 million in the current quarter increased 20%compared with the prior year quarter as a result of higher Compensation and benefits expenses and

122、Non-compensation expenses.Compensation and benefits expenses increased primarily due to higher discretionary incentive compensation on higher revenues,higher expenses related to outstanding deferred cash-and equity-based compensation and higher severance costs associated with a RIF in March.Non-comp

123、ensation expenses increased primarily reflecting higher execution-related expenses.Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q11Wealth ManagementIncome Statement Information Three Months EndedMarch 31,%Change$in millions20252024RevenuesAsset management$4,396$3,829 15%Tra

124、nsactional1 873 1,033 (15)%Net interest 1,902 1,856 2%Other2 156 162 (4)%Net revenues 7,327 6,880 6%Provision for credit losses 44 (8)N/MCompensation and benefits 3,999 3,788 6%Non-compensation expenses 1,333 1,294 3%Total non-interest expenses 5,332 5,082 5%Income before provision for income taxes

125、1,951 1,806 8%Provision for income taxes 419 403 4%Net income applicable to Morgan Stanley$1,532$1,403 9%1.Transactional includes Investment banking,Trading,and Commissions and fees revenues.2.Other includes Investments and Other revenues.Wealth Management Metrics$in billionsAt March 31,2025At Decem

126、ber 31,2024Total client assets1$6,015$6,194 U.S.Bank Subsidiary loans$163$160 Margin and other lending2$28$28 Deposits3$375$370 Annualized weighted average cost of deposits4Period end 2.77%2.73%Period average for three months ended 2.77%2.94%Three Months EndedMarch 31,20252024Net new assets$93.8$94.

127、9 1.Client assets represent those for which Wealth Management is providing services including financial advisor-led brokerage,custody,administrative and investment advisory services;self-directed brokerage and investment advisory services;financial and wealth planning services;workplace services,inc

128、luding stock plan administration,and retirement plan services.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 len

129、ding 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.Annuali

130、zed 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 March 31,2025 and December 31,2024.The period average is based o

131、n daily balances and rates for the period.Net New AssetsNNA represent client asset inflows,inclusive of interest,dividends and asset acquisitions,less client asset outflows,and exclude the impact of business combinations/divestitures and the impact of fees and commissions.The level of NNA in a given

132、 period is influenced by a variety of factors,including macroeconomic factors that impact 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 cli

133、ent channels,and large idiosyncratic inflows and outflows.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.Advisor-Led Channel$in billionsAt March 31,2025At December 31,2024Advisor-led client assets1$4,719$4,758 Fe

134、e-based client assets2$2,349$2,347 Fee-based client assets as a percentage of advisor-led client assets 50%49%Three Months EndedMarch 31,20252024Fee-based asset flows3$29.8$26.2 1.Advisor-led client assets represent client assets in accounts that have a Wealth Management representative assigned.2.Fe

135、e-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 institut

136、ional cash management related activity.For a description of the Inflows and Outflows included in Fee-based asset flows,see Fee-based client assets herein.Self-Directed ChannelAt March 31,2025At December 31,2024Self-directed client assets1(in billions)$1,295$1,437 Self-directed households2(in million

137、s)8.3 8.3 Three Months EndedMarch 31,20252024Daily average revenue trades(“DARTs”)3(in thousands)1,003 841 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 numb

138、er 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 peri

139、od divided by the number of trading days during that period.Workplace Channel1At March 31,2025At December 31,2024Stock plan unvested assets2(in billions)$431$475 Stock plan participants3(in millions)6.7 6.6 1.The workplace channel includes equity compensation solutions for companies,their executives

140、 and employees.2.Stock plan unvested assets represent the market value of public company securities at the end of the period.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 count

141、ed as participants in each plan.Net RevenuesAsset ManagementAsset management revenues of$4,396 million in the current quarter increased 15%compared with the prior quarter,primarily reflecting higher fee-based assets due to higher Table of ContentsManagements Discussion and Analysis12March 2025 Form

142、10-Qmarket levels and the cumulative impact of positive fee-based flows.See“Fee-Based Client Assets Rollforwards”herein.Transactional RevenuesTransactional revenues of$873 million in the current quarter decreased 15%compared with the prior year quarter,primarily driven by losses on DCP investments c

143、ompared with gains in the prior year quarter,partially offset by higher client activity particularly in equity-related transactions.For further information on the impact of DCP,see“Selected Non-GAAP Financial Information”herein.Net InterestNet interest revenues of$1,902 million in the current quarte

144、r increased 2%compared with the prior year quarter,primarily due to lending growth and higher yields on the investment portfolio,partially offset by lower average sweep deposits.The level and pace of interest rate changes and other macroeconomic factors have impacted client preferences for cash allo

145、cation to higher-yielding 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,have impacted our net interest income.To the extent they persist,or other factors arise,such as central bank

146、 actions and changes in the path of interest rates,net interest income may be impacted in future periods.Provision for Credit LossesThe Provision for credit losses on loans and lending commitments of$44 million in the current quarter was primarily related to certain specific loans,including resident

147、ial real estate loans related to the California wildfires.The Provision for credit losses on loans and lending commitments was a net release of$8 million in the prior year quarter as a result of improvements in the macroeconomic outlook.This was partially offset by provisions for certain specific co

148、mmercial real estate loans.Non-Interest ExpensesNon-interest expenses of$5,332 million in the current quarter increased 5%compared with the prior year quarter,primarily as a result of higher Compensation and benefits expenses.Compensation and benefits expenses increased in the current quarter,primar

149、ily as a result of an increase in the formulaic payout to Wealth Management representatives on higher compensable revenues and higher severance costs associated with a RIF in March,partially offset by lower expenses related to DCP.For further information on the impact of DCP,see“Selected Non-GAAP Fi

150、nancial Information”herein.Non-compensation expenses were relatively unchanged compared with the prior year quarter.Fee-Based Client Assets Rollforwards$in billionsAtDec 31,2024Inflows1Outflows2Market Impact3AtMarch 31,2025Separately managed4$719$20$(12)$(5)$722 Unified managed 613 35 (18)(7)623 Adv

151、isor 207 9 (11)(4)201 Portfolio manager 750 33 (27)(13)743 Subtotal$2,289$97$(68)$(29)$2,289 Cash management 58 11 (9)60 Total fee-based client assets$2,347$108$(77)$(29)$2,349$in billionsAtDec 31,2023Inflows1Outflows2Market Impact3AtMar 31,2024Separately managed4$589$16$(13)$39$631 Unified managed

152、501 31 (14)27 545 Advisor 188 9 (11)12 198 Portfolio manager 645 32 (24)35 688 Subtotal$1,923$88$(62)$113$2,062 Cash management 60 12 (10)62 Total fee-based client assets$1,983$100$(72)$113$2,124 1.Inflows include new accounts,account transfers,deposits,dividends and interest.2.Outflows include clos

153、ed 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.Table of ContentsManageme

154、nts Discussion and AnalysisMarch 2025 Form 10-Q13Average Fee Rates1 Three Months EndedMarch 31,Fee rate in bps20252024Separately managed 12 12 Unified managed 90 91 Advisor 79 79 Portfolio manager 88 90 Subtotal 64 65 Cash management 7 6 Total fee-based client assets 63 63 1.Based on Asset managemen

155、t revenues related to advisory services associated with fee-based assets.For a description of fee-based client assets in the previous tables,see“Managements Discussion and Analysis of Financial Condition and Results of OperationsBusiness SegmentsWealth Management Fee-Based Client Assets”in the 2024

156、Form 10-K.Table of ContentsManagements Discussion and Analysis14March 2025 Form 10-QInvestment ManagementIncome Statement Information Three Months EndedMarch 31,%Change$in millions20252024RevenuesAsset management and related fees$1,451$1,346 8%Performance-based income and other1 151 31 N/MNet revenu

157、es 1,602 1,377 16%Compensation and benefits 668 565 18%Non-compensation expenses 611 571 7%Total non-interest expenses 1,279 1,136 13%Income before provision for income taxes 323 241 34%Provision for income taxes 61 49 24%Net income 262 192 36%Net income applicable to Morgan Stanley$262$192 36%1.Inc

158、ludes Investments and Trading,Net interest,and Other revenues.Net RevenuesAsset Management and Related FeesAsset management and related fees of$1,451 million in the current quarter increased 8%from the prior year quarter,primarily driven by higher average AUM on higher market levels.Asset management

159、 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 stra

160、tegies 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 Unde

161、r Management or Supervision”herein.Performance-based Income and OtherPerformance-based income and other revenues of$151 million in the current quarter increased from the prior year quarter,as a result of higher accrued carried interest in infrastructure funds.Non-Interest ExpensesNon-interest expens

162、es of$1,279 million in the current quarter increased 13%from the prior year quarter,as a result of higher Compensation and benefits expenses.Compensation and benefits expenses increased in the current quarter,primarily due to higher compensation associated with carried interest and higher severance

163、costs associated with a RIF in March.Non-compensation expenses increased in the current quarter,primarily due to higher distribution expenses on higher average AUM.Assets Under Management or Supervision Rollforwards$in billionsAtDec 31,2024Inflows1Outflows2Market Impact3Other4AtMar 31,2025 Equity$31

164、2$11$(16)$(9)$3$301 Fixed Income 192 18 (13)3 (1)199 Alternatives and Solutions 593 40 (32)(10)591 Long-Term AUM$1,097$69$(61)$(16)$2$1,091 Liquidity and Overlay Services 569 687 (702)6 (4)556 Total$1,666$756$(763)$(10)$(2)$1,647$in billionsAtDec 31,2023Inflows1Outflows2Market Impact3Other4AtMar 31,

165、2024Equity$295$11$(16)$24$(4)$310 Fixed Income 171 17 (13)1 (2)174 Alternatives and Solutions 508 35 (24)26 (2)543 Long-Term AUM$974$63$(53)$51$(8)$1,027 Liquidity and Overlay Services 485 522 (531)6 (4)478 Total$1,459$585$(584)$57$(12)$1,505 1.Inflows represent investments or commitments from new a

166、nd existing clients in new or existing investment products,including reinvestments of client dividends and increases in invested capital.Inflows exclude the impact of exchanges,whereby a client changes positions within the same asset class.2.Outflows represent redemptions from clients funds,transiti

167、on of funds from the committed capital period to the invested capital period and decreases in invested capital.Outflows exclude the impact of exchanges,whereby a client changes positions within the same asset class.3.Market impact includes realized and unrealized gains and losses on portfolio invest

168、ments.This excludes any funds where market impact does not impact management fees.4.Other contains both distributions and foreign currency impact for all periods.Distributions represent decreases in invested capital due to returns of capital after the investment period of a fund.It also includes fun

169、d dividends that the client has not reinvested.Foreign currency impact reflects foreign currency changes for non-U.S.dollar denominated funds.Average AUM Three Months EndedMarch 31,$in billions20252024Equity$313$302 Fixed income 197 172 Alternatives and Solutions 599 523 Long-term AUM subtotal 1,109

170、 997 Liquidity and Overlay Services 560 482 Total AUM$1,669$1,479 Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q15Average Fee Rates1 Three Months EndedMarch 31,Fee rate in bps20252024Equity 70 71Fixed income 36 36Alternatives and Solutions 28 29Long-term AUM 41 43Liquidity

171、and Overlay Services 13 13Total AUM 32 33 1.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

172、of those fees to the distributor is included in Non-compensation expenses in the income statement.For a description of the asset classes in the previous tables,see“Managements Discussion and Analysis of Financial Condition and Results of OperationsBusiness SegmentsInvestment ManagementAssets Under M

173、anagement or Supervision”in the 2024 Form 10-K.Table of ContentsManagements Discussion and Analysis16March 2025 Form 10-QSupplemental Financial InformationU.S.Bank SubsidiariesOur U.S.Bank Subsidiaries,Morgan Stanley Bank N.A.(“MSBNA”)and Morgan Stanley Private Bank,National Association(“MSPBNA”)(to

174、gether,“U.S.Bank Subsidiaries”),accept deposits,provide loans to a variety of customers,including large corporate and institutional clients,as well as high to ultra-high net worth individuals,and invest in securities.Lending activity in our U.S.Bank Subsidiaries from the Institutional Securities bus

175、iness segment primarily includes Secured lending facilities,Commercial and Residential real estate and Corporate loans.Lending activity in our U.S.Bank Subsidiaries from the Wealth Management business segment primarily includes Securities-based lending,which allows clients to borrow money against th

176、e value of qualifying securities,and Residential real estate loans.For a further discussion of our credit risks,see“Quantitative and Qualitative Disclosures about RiskCredit Risk”herein.For a further discussion about loans and lending commitments,see Notes 9 and 13 to the financial statements.U.S.Ba

177、nk Subsidiaries Supplemental Financial Information1$in billionsAtMarch 31,2025AtDecember 31,2024 Investment securities:Available-for-sale at fair value$78.2$76.5 Held-to-maturity 47.2 47.8 Total Investment securities$125.4$124.3 Wealth Management loans2Residential real estate$67.5$66.6 Securities-ba

178、sed lending and Other3 95.0 92.9 Total Wealth Management loans$162.5$159.5 Institutional Securities loans2Corporate$10.9$7.1 Secured lending facilities 54.0 50.2 Commercial and Residential real estate 11.2 10.5 Securities-based lending and Other 6.1 5.6 Total Institutional Securities loans$82.2$73.4

179、 Total assets$442.4$434.8 Deposits4$375.5$369.7 1.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 segme

180、nts,see“Quantitative and Qualitative Disclosures about RiskCredit Risk”herein.3.Other loans primarily include tailored lending.For a further discussion of Other loans,see“Quantitative and Qualitative Disclosures about RiskCredit Risk”herein.4.For further information on deposits,see“Liquidity and Cap

181、ital ResourcesFunding ManagementBalance SheetUnsecured Financing”herein.Accounting Development UpdatesThe 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

182、 not have a material impact on our financial condition or results of operations upon adoption.We continue to evaluate accounting updates disclosed in the“Accounting Development Updates”section of the 2024 Form 10-K,including the implementation of the Income Tax Disclosures accounting update,and do n

183、ot expect a material impact on our financial condition or results of operations upon adoption.Critical Accounting EstimatesOur 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

184、our significant accounting policies(see Note 2 to the financial statements in the 2024 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 2024 Form

185、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“Managements Discussion and Analysis of Financial Condition and Results of OperationsCritical Accounting Estima

186、tes”in the 2024 Form 10-K.Liquidity and Capital ResourcesOur 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

187、 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/Liabili

188、ty 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 t

189、he Board.Balance SheetWe 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 as

190、sessments.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

191、 the need to re-allocate our balance sheet based on business segment Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q17needs.We also monitor key metrics,including asset and liability size and capital usage.Total Assets by Business SegmentAt March 31,2025$in millionsISWMIMTota

192、lAssetsCash and cash equivalents$73,451$17,204$84$90,739 Trading assets at fair value 385,402 9,614 5,227 400,243 Investment securities 34,722 123,560 158,282 Securities purchased under agreements to resell 94,954 24,094 119,048 Securities borrowed 139,436 790 140,226 Customer and other receivables

193、53,650 37,018 1,485 92,153 Loans1 86,402 162,497 4 248,903 Goodwill 438 10,192 6,084 16,714 Intangible assets 25 2,818 3,462 6,305 Other assets2 15,239 11,192 1,252 27,683 Total assets$883,719$398,979$17,598$1,300,296 At December 31,2024$in millionsISWMIMTotalAssetsCash and cash equivalents$74,079$3

194、1,072$235$105,386 Trading assets at fair value 320,003 6,915 4,966 331,884 Investment securities 38,096 121,583 159,679 Securities purchased under agreements to resell 100,404 18,161 118,565 Securities borrowed 121,901 1,958 123,859 Customer and other receivables 47,321 37,196 1,641 86,158 Loans1 78

195、,607 159,542 4 238,153 Goodwill 435 10,190 6,081 16,706 Intangible assets 27 2,939 3,487 6,453 Other assets2 15,735 11,292 1,201 28,228 Total assets$796,608$400,848$17,615$1,215,071 1.Amounts include loans held for investment,net of ACL,and loans held for sale but exclude loans at fair value,which a

196、re included in Trading assets in the balance sheet(see Note 9 to the financial statements).2.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 equivale

197、nts,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,including management of the investmen

198、t portfolio.Liquidity Risk Management FrameworkThe 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 Firms Required Liquidity Fra

199、mework and Liquidity Stress Tests,see“Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesLiquidity Risk Management Framework”in the 2024 Form 10-K.At March 31,2025 and December 31,2024,we maintained sufficient liquidity to meet current

200、and contingent funding obligations as modeled in our Liquidity Stress Tests.Liquidity ResourcesWe maintain sufficient liquidity resources,which consist of HQLA and cash deposits with banks(“Liquidity Resources”),to cover daily funding needs and to meet strategic liquidity targets sized by the Requir

201、ed 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 entit

202、y,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 R

203、esources 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 cons

204、iderations.Liquidity Resources by Type of InvestmentAverage Daily BalanceThree Months Ended$in millionsMarch 31,2025December 31,2024Cash deposits with central banks$58,279$58,493 Unencumbered HQLA Securities1:U.S.government obligations 167,173 161,952 U.S.agency and agency mortgage-backed securities

205、 92,728 94,512 Non-U.S.sovereign obligations2 26,132 22,646 Other investment grade securities 182 600 Total HQLA1$344,494$338,203 Cash deposits with banks(non-HQLA)7,246 7,237 Total Liquidity Resources$351,740$345,440 1.HQLA is presented prior to applying weightings and includes all HQLA held in sub

206、sidiaries.2.Primarily composed of unencumbered French,U.K.,Japanese,Italian,German,and Spanish government obligations.Table of ContentsManagements Discussion and Analysis18March 2025 Form 10-QLiquidity Resources by Non-Bank and Bank Legal EntitiesAverage Daily BalanceThree Months Ended$in millionsMa

207、rch 31,2025December 31,2024Non-Bank legal entitiesU.S.:Parent Company$79,172$71,981 Non-Parent Company 58,994 61,684 Total U.S.138,166 133,665 Non-U.S.63,092 61,432 Total Non-Bank legal entities 201,258 195,097 Bank legal entitiesU.S.144,302 144,735 Non-U.S.6,180 5,608 Total Bank legal entities 150,

208、482 150,343 Total Liquidity Resources$351,740$345,440 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 estimates of funding needs in a stressed environment,among other factors.Regulat

209、ory Liquidity FrameworkLiquidity Coverage Ratio and Net Stable Funding RatioWe 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

210、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 b

211、anking 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 March 3

212、1,2025,we and our U.S.Bank Subsidiaries are compliant with the minimum LCR and NSFR requirements of 100%.Liquidity Coverage RatioAverage Daily BalanceThree Months Ended$in millionsMarch 31,2025December 31,2024Eligible HQLACash deposits with central banks$53,674$53,836 Securities1 221,883 213,394 Tot

213、al Eligible HQLA$275,557$267,230 Net cash outflows$212,276$205,780 LCR 130%130%1.Primarily includes U.S.Treasuries,U.S.agency mortgage-backed securities,sovereign bonds and investment grade corporate bonds.Funding ManagementWe manage our funding in a manner that reduces the risk of disruption to our

214、 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 dura

215、ble 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 finan

216、cing 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

217、products and other liabilities across the businesses based on the characteristics of those deposits and other liabilities.Secured FinancingFor a discussion of our secured financing activities,see“Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capita

218、l ResourcesFunding ManagementSecured Financing”in the 2024 Form 10-K.Collateralized Financing Transactions$in millionsAtMarch 31,2025 AtDecember 31,2024 Securities purchased under agreements to resell and Securities borrowed$259,274$242,424 Securities sold under agreements to repurchase and Securiti

219、es loaned$85,876$65,293 Securities received as collateral1$3,159$9,625 1.Included within Trading assets in the balance sheet.Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q19 Average Daily Balance Three Months Ended$in millionsMarch 31,2025December 31,2024Securities purchase

220、d under agreements to resell and Securities borrowed$237,750$250,354 Securities sold under agreements to repurchase and Securities loaned$84,782$74,949 See“Total Assets by Business Segment”herein for additional information on the assets shown in the previous table and Note 2 to the financial stateme

221、nts in the 2024 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,wh

222、ich are segregated 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

223、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.Unsecured FinancingFor a discussion of our unsecured financing activities,see“Managements Discussion

224、 and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesFunding ManagementUnsecured Financing”in the 2024 Form 10-K.Deposits$in millionsAtMarch 31,2025 AtDecember 31,2024 Savings and demand deposits:Brokerage sweep deposits1$138,013$142,550 Savings and other 163,

225、877 157,348 Total Savings and demand deposits 301,890 299,898 Time deposits2 79,673 76,109 Total3$381,563$376,007 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.

226、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

227、rates and other macroeconomic conditions.Total deposits in the current quarter increased primarily due to increases in Savings and Time Deposits,partially offset by a reduction in Brokerage sweep deposits,largely due to net outflows to alternative cash equivalent and other investment products.Borrow

228、ings by Maturity at March 31,20251$in millionsParent CompanySubsidiariesTotalOriginal maturities of one year or less$8,393$8,393 Original maturities greater than one year2025$5,874$10,644$16,518 2026 22,605 13,799 36,404 2027 21,175 13,500 34,675 2028 14,025 16,682 30,707 2029 16,636 13,466 30,102 T

229、hereafter 106,898 41,693 148,591 Total greater than one year$187,213$109,784$296,997 Total$187,213$118,177$305,390 Maturities over next 12 months2$22,963 1.Original maturity in the table is generally based on contractual final maturity.For borrowings with put options,maturity represents the earliest

230、 put date.2.Includes only borrowings with original maturities greater than one year.Borrowings of$305 billion as of March 31,2025 increased compared with$289 billion at December 31,2024,primarily due to issuances net of maturities and redemptions.We believe that accessing debt investors through mult

231、iple 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

232、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 m

233、arket 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 t

234、he financial statements.Credit RatingsWe 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 lon

235、ger-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 FactorsLiquidity Risk”in the 2024 Form 10-K.Table of ContentsManagements Discuss

236、ion and Analysis20March 2025 Form 10-QParent Company and U.S.Bank Subsidiaries Issuer Ratings at April 30,2025Parent CompanyShort-Term DebtLong-Term DebtRating OutlookDBRS,Inc.R-1(middle)A(high)PositiveFitch Ratings,Inc.F1A+StableMoodys Investors Service,Inc.P-1A1StableRating and Investment Informat

237、ion,Inc.a-1A+StableS&P Global RatingsA-2A-StableMSBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings,Inc.F1+AA-StableMoodys Investors Service,Inc.P-1Aa3StableS&P Global RatingsA-1A+StableMSPBNAShort-Term DebtLong-Term DebtRating OutlookFitch Ratings,Inc.F1+AA-StableMoodys Investors Service,

238、Inc.P-1Aa3StableS&P Global RatingsA-1A+StableIncremental Collateral or Terminating PaymentsIn 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 r

239、equired 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

240、 position.See Note 6 to the 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 operatio

241、ns 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

242、actions we might take.The liquidity impact of additional collateral requirements is included in our Liquidity Stress Tests.Capital ManagementWe view capital as an important source of financial strength and actively manage our consolidated capital position based upon,among other things,business oppor

243、tunities,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

244、 Months EndedMarch 31,in millions,except for per share data20252024Number of shares 8 12 Average price per share$125.88$86.79 Total$1,000$1,000 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 C

245、apital ResourcesRegulatory RequirementsCapital Plans,Stress Tests and the Stress Capital Buffer”herein.Common Stock Dividend AnnouncementAnnouncement dateApril 11,2025Amount per share$0.925Date to be paidMay 15,2025Shareholders of record as ofApril 30,2025For additional information on our common sto

246、ck dividends,see“Liquidity and Capital ResourcesRegulatory RequirementsCapital 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 ArrangementsWe enter

247、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 w

248、ith securitization activities.For information on our securitization activities,see Note 15 to the financial statements in the 2024 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 discu

249、ssion of our lending commitments,see“Quantitative and Qualitative Disclosures about RiskCredit RiskLoans and Lending Commitments”herein.Regulatory RequirementsRegulatory Capital Framework We are a financial holding company(“FHC”)under the Bank Holding Company Act of 1956,as amended(“BHC Act”)and are

250、 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

251、 capital requirements and Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q21standards 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 also implement certain provision

252、s 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 subsidiarie

253、s 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

254、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 RequirementsWe are required to maintain minimum risk-based and leverage-based capital and TLAC ratios.For more information,see“Managements

255、Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesRegulatory Capital Requirements”in the 2024 Form 10-K.For additional information on TLAC,see“Total Loss-Absorbing Capacity,Long-Term Debt and Clean Holding Company Requirements”herein.Risk-Based Re

256、gulatory 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 buffer requirement.Capital requirements r

257、equire certain adjustments to,and deductions from,capital for purposes of determining these ratios.Risk-Based Regulatory Capital Ratio RequirementsAt March 31,2025 and December 31,2024StandardizedAdvancedCapital buffersCapital conservation buffer2.5%SCB16.0%N/AG-SIB capital surcharge23.0%3.0%CCyB30%

258、0%Capital buffer requirement9.0%5.5%1.For additional information on the SCB,see“Capital Plans,Stress Tests and the Stress Capital Buffer”herein and in the 2024 Form 10-K.2.For a further discussion of the G-SIB capital surcharge,see“Managements Discussion and Analysis of Financial Condition and Resul

259、ts of OperationsLiquidity and Capital ResourcesRegulatory RequirementsG-SIB Capital Surcharge”in the 2024 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 buffer requirement represents the amount of CET1 capital we must maintain above the min

260、imum 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 buffer requirement computed under the standardized approa

261、ches 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 buffer requirement computed under the applicable advanced approaches for calculating credit risk,market risk and operational risk RWAs(“Advanced Ap

262、proach”)is equal to our 2.5%capital conservation buffer,G-SIB capital surcharge and CCyB.Regulatory MinimumAt March 31,2025 and December 31,2024StandardizedAdvancedRequired ratios1CET1 capital ratio 4.5%13.5%10.0%Tier 1 capital ratio 6.0%15.0%11.5%Total capital ratio 8.0%17.0%13.5%1.Required ratios

263、represent the regulatory minimum plus the capital 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 calcula

264、tion of RWA using prescribed risk weights and exposure methodologies,whereas the Advanced Approach utilizes models to calculate exposure amounts and risk weights.At March 31,2025 and December 31,2024,the differences between the actual and required ratios were lower under the Standardized Approach.Le

265、verage-Based Regulatory Capital.Leverage-based capital requirements include a minimum Tier 1 leverage ratio of 4%,a minimum SLR of 3%and an enhanced SLR capital buffer of at least 2%.CECL Deferral.Beginning on January 1,2020,we elected to defer the effect of the adoption of CECL on our risk-based an

266、d leverage-based capital amounts and ratios,as well as our RWA,adjusted average assets and supplementary leverage exposure calculations,over a five-year transition period.The deferral impacts began to phase in at 25%per year from January 1,2022,were phased-in at 75%from January 1,2024 and were fully

267、 phased-in from January 1,2025.Table of ContentsManagements Discussion and Analysis22March 2025 Form 10-QRegulatory Capital RatiosRisk-based capitalStandardizedAdvanced$in millionsAtMarch 31,2025 AtDec 31,2024 AtMarch 31,2025 AtDec 31,2024 Risk-based capitalCET1 capital$76,975$75,095$76,975$75,095 T

268、ier 1 capital 86,674 84,790 86,674 84,790 Total capital 97,772 95,567 97,020 94,846 Total RWA 502,622 471,834 489,316 477,331 Risk-based capital ratiosCET1 capital 15.3%15.9%15.7%15.7%Tier 1 capital 17.2%18.0%17.7%17.8%Total capital 19.5%20.3%19.8%19.9%Required ratios1CET1 capital 13.5%13.5%10.0%10.

269、0%Tier 1 capital 15.0%15.0%11.5%11.5%Total capital 17.0%17.0%13.5%13.5%1.Required ratios are inclusive of any buffers applicable as of the date presented.Leveraged-based capital$in millionsAt March 31,2025At December 31,2024Leveraged-based capitalAdjusted average assets1$1,251,047$1,223,779 Suppleme

270、ntary leverage exposure2 1,552,615 1,517,687 Leveraged-based capital ratiosTier 1 leverage 6.9%6.9%SLR 5.6%5.6%Required ratios3Tier 1 leverage 4.0%4.0%SLR 5.0%5.0%1.Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consoli

271、dated 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,after-tax gain on sale from assets sold into securitizations,investments in our own capital in

272、struments,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 sol

273、d 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.Regulatory Capital

274、$in millionsAtMarch 31,2025AtDecember 31,2024 ChangeCET1 capitalCommon shareholders equity$97,062$94,761$2,301 Regulatory adjustments and deductions:Net goodwill(16,371)(16,354)(17)Net intangible assets(4,888)(5,003)115 Impact of CECL transition 62 (62)Other adjustments and deductions1 1,172 1,629 (

275、457)Total CET1 capital$76,975$75,095$1,880 Additional Tier 1 capitalPreferred stock$9,750$9,750$Noncontrolling interests 881 807 74 Additional Tier 1 capital$10,631$10,557$74 Deduction for investments in covered funds(932)(862)(70)Total Tier 1 capital$86,674$84,790$1,884 Standardized Tier 2 capitalS

276、ubordinated debt$9,051$8,851$200 Eligible ACL 2,299 2,065 234 Other adjustments and deductions(252)(139)(113)Total Standardized Tier 2 capital$11,098$10,777$321 Total Standardized capital$97,772$95,567$2,205 Advanced Tier 2 capitalSubordinated debt$9,051$8,851$200 Eligible credit reserves 1,547 1,34

277、4 203 Other adjustments and deductions(252)(139)(113)Total Advanced Tier 2 capital$10,346$10,056$290 Total Advanced capital$97,020$94,846$2,174 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 rat

278、e for derivative liabilities,defined benefit pension plan assets,after-tax gain on sale from assets sold into securitizations,investments in our own capital instruments and certain deferred tax assets.Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q23RWA Rollforward Three Mon

279、ths EndedMarch 31,2025$in millionsStandardizedAdvancedCredit risk RWABalance at December 31,2024$417,982$316,429 Change related to the following items:Derivatives 8,764 5,652 Securities financing transactions 9,844 1,763 Investment securities(949)49 Commitments,guarantees and loans 1,513 (4,314)Equi

280、ty investments 302 306 Other credit risk 6,167 5,143 Total change in credit risk RWA$25,641$8,599 Balance at March 31,2025$443,623$325,028 Market risk RWABalance at December 31,2024$53,852$54,322 Change related to the following items:Regulatory VaR 1,037 1,037 Regulatory stressed VaR 1,370 1,370 Inc

281、remental risk charge(1,983)(1,983)Comprehensive risk measure(233)(437)Specific risk 4,956 4,956 Total change in market risk RWA$5,147$4,943 Balance at March 31,2025$58,999$59,265 Operational risk RWABalance at December 31,2024N/A$106,580 Change in operational risk RWAN/A (1,557)Balance at March 31,2

282、025N/A$105,023 Total RWA$502,622$489,316 Regulatory VaRVaR for regulatory capital requirementsIn the current quarter,Credit risk RWA increased under both the Standardized and Advanced Approaches.Under the Standardized Approach,the increase was primarily due to higher Securities financing transaction

283、s,Derivatives exposures,Other credit risk driven by higher deferred tax assets and securitizations,and growth in lending.Under the Advanced Approach,the increase was primarily due to higher Derivatives exposures,Securities financing transactions and Other credit risk driven by higher deferred tax as

284、sets and securitizations,partially offset by decreased Corporate lending commitments.Market risk RWA increased in the current quarter under both the Standardized and Advanced Approaches,primarily driven by higher charges on Specific risk,and higher Regulatory Stressed VaR and Regulatory VaR,partiall

285、y offset by decreased charges on incremental risk.The decrease in Operational risk RWA in the current quarter is related to lower execution-related losses.Total Loss-Absorbing Capacity,Long-Term Debt and Clean Holding Company Requirements The Federal Reserve has established external TLAC,long-term d

286、ebt(“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 el

287、igible LTD to equity or otherwise 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 millionsRegulatory MinimumRequired Ratio1AtMarch 31,2025 AtDecember 31,2024 External TLAC2$268

288、,879$266,146 External TLAC as a%of RWA 18.0%21.5%53.5%55.8%External TLAC as a%of leverage exposure 7.5%9.5%17.3%17.5%Eligible LTD3$169,619$169,690 Eligible LTD as a%of RWA 9.0%9.0%33.7%35.5%Eligible LTD as a%of leverage exposure 4.5%4.5%10.9%11.2%1.Required ratios are inclusive of applicable buffers

289、.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 r

290、espective balance sheet date.We are in compliance with all TLAC requirements as of March 31,2025 and December 31,2024.For a further discussion of TLAC and related requirements,see“Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesRegul

291、atory RequirementsTotal Loss-Absorbing Capacity,Long-Term Debt and Clean Holding Company Requirements”in the 2024 Form 10-K.Capital Plans,Stress Tests and the Stress Capital BufferThe Federal Reserve has capital planning and stress test requirements for large BHCs,which form part of the Federal Rese

292、rves 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

293、-looking projections of revenues and losses to monitor and maintain our internal capital adequacy.As banks with less than$250 billion of total assets,our U.S.Bank Subsidiaries are not subject to company-run stress test regulatory requirements.As part of its annual capital supervisory stress testing

294、process,the Federal Reserve determines an SCB for each large BHC,including us.Our SCB will remain at 6.0%through September 30,2025.Together with other features of the regulatory capital framework,this SCB resulted in an aggregate Standardized Approach Common Equity Tier 1 required ratio of 13.5%.For

295、 the 2025 capital planning and stress test cycle,we submitted our capital plan and company-run stress test results Table of ContentsManagements Discussion and Analysis24March 2025 Form 10-Qto the Federal Reserve on April 7,2025.The Federal Reserve is expected to publish summary results of the CCAR a

296、nd Dodd-Frank Act supervisory stress tests of each large BHC,including us,by June 30,2025.We are required to disclose a summary of the results of our company-run stress tests within 15 days of the date the Federal Reserve discloses the results of the supervisory stress tests.For additional informati

297、on,see“Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesRegulatory RequirementsCapital Plans,Stress Tests and the Stress Capital Buffer”in the 2024 Form 10-K.Attribution of Average Common Equity According to the Required Capital Frame

298、work 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 segments relat

299、ive 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 appli

300、cable,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 bet

301、ween 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 prospective regulatory requirements,organic growth,potential future acquisitions and other capit

302、al needs.Average Common Equity Attribution under the Required Capital Framework1 Three Months EndedMarch 31,$in billions20252024Institutional Securities$48.4$45.0 Wealth Management 29.4 29.1 Investment Management 10.6 10.8 Parent Company 7.1 5.0 Total$95.5$89.9 1.The attribution of average common eq

303、uity 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 PlanningWe are required to sub

304、mit once every two years to the Federal Reserve and the FDIC(“Agencies”)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.Our next resolution plan submission is due in July 2025.As

305、 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

306、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“BusinessSupervision and RegulationFinancial Holding CompanyResoluti

307、on and Recovery Planning,”“Risk FactorsLegal,Regulatory and Compliance Risk”and“Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesRegulatory RequirementsResolution and Recovery Planning”in the 2024 Form 10-K.Regulatory Developments and

308、 Other MattersProposed Changes to Capital RequirementsOn 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 Reserves annual stress test results.Under the proposal,

309、our SCB would be based,in part,on the average of the post-stress capital decline embedded in the Federal Reserves 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 mo

310、dify certain elements of the Federal Reserves CCAR program.Table of ContentsManagements Discussion and AnalysisMarch 2025 Form 10-Q25Quantitative and Qualitative Disclosures about RiskManagement believes effective risk management is vital to the success of our business activities.For a discussion of

311、 our Enterprise Risk Management framework and risk management functions,see“Quantitative and Qualitative Disclosures about RiskRisk Management”in the 2024 Form 10-K.Market RiskMarket risk refers to the risk that a change in the level of one or more market prices,rates,spreads,indices,volatilities,co

312、rrelations 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 majo

313、rity 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 l

314、ending 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 RiskMarket Risk”in the 2024 Form 10-K.Trading Risk

315、sWe 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

316、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

317、 about RiskMarket RiskTrading Risks”in the 2024 Form 10-K.95%/One-Day Management VaR for the Trading Portfolio Three Months EndedMarch 31,2025$in millionsPeriod EndAverageHigh1Low1Interest rate and credit spread$25$30$39$22 Equity price 23 23 26 19 Foreign exchange rate 9 11 15 7 Commodity price 22

318、17 27 12 Less:Diversification benefit2(40)(35)N/AN/APrimary Risk Categories$39$46$54$39 Credit Portfolio 18 19 23 18 Less:Diversification benefit2(11)(15)N/AN/ATotal Management VaR$46$50$60$43 Three Months EndedDecember 31,2024$in millionsPeriod EndAverageHigh1Low1Interest rate and credit spread$23$

319、28$43$19 Equity price 21 24 39 18 Foreign exchange rate 10 9 13 6 Commodity price 18 15 20 11 Less:Diversification benefit2(37)(36)N/AN/APrimary Risk Categories$35$40$59$32 Credit Portfolio 20 21 23 20 Less:Diversification benefit2(16)(15)N/AN/ATotal Management VaR$39$46$64$39 1.The high and low VaR

320、 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.

321、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 and average Management VaR for the Primary Risk Categories increased from the th

322、ree months ended December 31,2024,primarily driven by increased exposure in credit spread risk category and higher market volatility.Distribution of VaR Statistics and Net RevenuesWe evaluate the reasonableness of our VaR model by comparing the potential declines in portfolio values generated by the

323、 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 models accuracy.There was one trading loss day in the current quarter,which did not exceed 95

324、%Total Management VaR.Table of Contents26March 2025 Form 10-QDaily 95%/One-Day Total Management VaR for the Current Quarter($in millions)Number of Days6223131$40 to$45$45 to$50$50 to$55$55 to$60$60 to$65Daily Net Trading Revenues for the Current Quarter($in millions)Number of Days128211993$(25)to$0$

325、0 to$25$25 to$50$50 to$75$75 to$100$100 to$125$125Daily 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

326、 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 RisksWe believe that sensitivity analysis is an appropriate representati

327、on of our non-trading risks.The following sensitivity analyses cover substantially all of the non-trading market risk in our portfolio.Credit Spread Risk Sensitivity1$in millionsAtMarch 31,2025AtDecember 31,2024Derivatives$6$6 Borrowings carried at fair value 52 49 1.Amounts represent the potential

328、gain for each 1 bps widening of our credit spread.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,includin

329、g 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.Wealth Management Net Interest Income Sensitivity Analysis$in millionsAtMarch 31,2025AtDecember 31,2024Basis point change+200$563$699

330、+100 285 350-100(313)(371)-200(697)(803)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 se

331、gment.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 mat

332、uring 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

333、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 Mana