EXHIBIT 12
Morgan Stanley
Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
(dollars in millions)
(unaudited)
| Six Months Ended June 30, 2015 | ||||||||||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||||
Ratio of Earnings to Fixed Charges | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) before income taxes(1) | $ | 5,406 | $ | 3,235 | $ | 3,502 | $ | (29 | ) | $ | 6,647 | $ | 4,657 | |||||||||||
Add: Fixed charges, net | 1,698 | 3,935 | 4,695 | 6,152 | 7,128 | 6,658 | ||||||||||||||||||
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Income before income taxes and fixed charges, net | $ | 7,104 | $ | 7,170 | $ | 8,197 | $ | 6,123 | $ | 13,775 | $ | 11,315 | ||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Total interest expense | $ | 1,576 | $ | 3,679 | $ | 4,414 | $ | 5,858 | $ | 6,842 | $ | 6,379 | ||||||||||||
Interest factor in rents | 122 | 256 | 281 | 294 | 286 | 279 | ||||||||||||||||||
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Total fixed charges | $ | 1,698 | $ | 3,935 | $ | 4,695 | $ | 6,152 | $ | 7,128 | $ | 6,658 | ||||||||||||
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Ratio of earnings to fixed charges | 4.2 | 1.8 | 1.7 | 1.0 | 1.9 | 1.7 | ||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) before income taxes(1) | $ | 5,406 | $ | 3,235 | $ | 3,502 | $ | (29 | ) | $ | 6,647 | $ | 4,657 | |||||||||||
Add: Fixed charges, net | 1,698 | 3,935 | 4,695 | 6,152 | 7,128 | 6,658 | ||||||||||||||||||
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Income before income taxes and fixed charges, net | $ | 7,104 | $ | 7,170 | $ | 8,197 | $ | 6,123 | $ | 13,775 | $ | 11,315 | ||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Total interest expense | $ | 1,576 | $ | 3,679 | $ | 4,414 | $ | 5,858 | $ | 6,842 | $ | 6,379 | ||||||||||||
Interest factor in rents | 122 | 256 | 281 | 294 | 286 | 279 | ||||||||||||||||||
Preferred stock dividends | 284 | 311 | 150 | 96 | 385 | 1,014 | ||||||||||||||||||
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Total fixed charges and preferred stock dividends | $ | 1,982 | $ | 4,246 | $ | 4,845 | $ | 6,248 | $ | 7,513 | $ | 7,672 | ||||||||||||
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Ratio of earnings to fixed charges and preferred stock dividends | 3.6 | 1.7 | 1.7 | 1.0 | 1.8 | 1.5 | ||||||||||||||||||
| (1) | Income (loss) before income taxes does not include dividends on preferred securities subject to mandatory redemption, income (loss) on discontinued operations, noncontrolling interests and income or loss from equity investees. |
Fixed charges consist of interest cost, including interest on deposits, interest on discontinued operations, dividends on preferred securities subject to mandatory redemption, and that portion of rent expense to be representative of the interest factor.
Fixed charges do not include interest expense on uncertain tax liabilities as the Company records these amounts within the Provision for income taxes.
The preferred stock dividend amounts represent pre-tax earnings required to cover dividends on preferred stock.