8-KOther EventsExhibits & Filings

MORGAN STANLEY 8-K Report, Corporate Update (Jun 27, 2022)

Filed June 27, 2022For Securities:MSMS-PKMS-POMS-PQMS-PAMS-PFMS-PIMS-PLMS-PPMS-PEMSTLW

Summary

Morgan Stanley announced significant capital return initiatives on June 27, 2022, signaling confidence in its financial strength and future performance. The company is set to increase its quarterly common stock dividend by approximately 10.7%, raising it from $0.70 to $0.775 per share. This dividend increase is expected to commence with the dividend declared for the quarter ending September 30, 2022. Furthermore, the Board of Directors has authorized a substantial new multi-year common stock repurchase program valued at up to $20 billion. This program, which has no set expiration date, will begin in the third quarter and will be executed based on market conditions and the company's capital position. The announcement also noted that Morgan Stanley will be subject to a Stress Capital Buffer of 5.8% from October 1, 2022, to September 30, 2023, following the Federal Reserve's 2022 supervisory stress tests.

Key Highlights

  • 1Quarterly common stock dividend increased to $0.775 per share from $0.70 per share, effective Q3 2022.
  • 2New multi-year equity share repurchase program authorized for up to $20 billion.
  • 3Share repurchases to commence in the third quarter with no set expiration date.
  • 4Repurchase execution will consider market conditions, capital position, and future outlook.
  • 5The company will be subject to a Stress Capital Buffer of 5.8% from October 1, 2022, to September 30, 2023.
  • 6The dividend and repurchase announcements suggest management's confidence in the firm's financial stability and future earnings potential.

Frequently Asked Questions

The increased quarterly common stock dividend of $0.775 per share is expected to begin with the dividend declared by the Board of Directors in the quarter ending September 30, 2022 (the 'third quarter').

The Board of Directors authorized a new multi-year equity share repurchase program of outstanding common stock up to $20 billion. This program is set to begin in the third quarter of 2022.

The share repurchases will be exercised from time to time at prices the Company deems appropriate, subject to various considerations including current market conditions, the Company’s capital position, and future economic and earnings outlook. The program does not have a set expiration date.

Following the 2022 supervisory stress tests, Morgan Stanley will be subject to a Stress Capital Buffer of 5.8% from October 1, 2022, to September 30, 2023. This buffer is a component of regulatory capital requirements.