8-KOther EventsExhibits & Filings

MORGAN STANLEY 8-K Report, Corporate Update (Jun 30, 2023)

Filed June 30, 2023For Securities:MSMS-PKMS-POMS-PQMS-PAMS-PFMS-PIMS-PLMS-PPMS-PEMSTLW

Summary

Morgan Stanley announced a significant capital return initiative to shareholders, demonstrating confidence in its financial strength and future prospects. The company is increasing its quarterly common stock dividend by approximately 9.7% to $0.85 per share, effective from the third quarter of 2023. This increase signals a positive outlook and a commitment to rewarding investors. In addition to the dividend hike, Morgan Stanley has reauthorized a substantial $20 billion multi-year common equity share repurchase program, commencing in the third quarter. This program offers flexibility in its execution, allowing repurchases to be made based on market conditions, the company's capital position, and its economic outlook. The company also noted its expected Stress Capital Buffer (SCB) of 5.4% following the Federal Reserve's 2023 supervisory stress tests, a factor that will influence capital management decisions.

Key Highlights

  • 1Quarterly common stock dividend increased to $0.85 per share from $0.775 per share.
  • 2Dividend increase signifies a 9.7% rise for shareholders.
  • 3New multi-year common equity share repurchase program authorized for up to $20 billion.
  • 4Share repurchase program begins in the third quarter of 2023 with no set expiration date.
  • 5Company expects a Stress Capital Buffer (SCB) of 5.4% from October 1, 2023, to September 30, 2024.
  • 6Capital return initiatives reflect confidence in financial stability and future earnings outlook.
  • 7Repurchase program execution is subject to market conditions and capital position.

Frequently Asked Questions

The increased dividend will begin with the dividend expected to be declared for the quarter ending September 30, 2023 (the third quarter). The share repurchase program will also commence in the third quarter of 2023.

The company has reauthorized a multi-year common equity share repurchase program of up to $20 billion. This program does not have a set expiration date.

Following the Federal Reserve's 2023 supervisory stress tests, Morgan Stanley expects to be subject to a Stress Capital Buffer (SCB) of 5.4% from October 1, 2023, to September 30, 2024.

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.