Morgan Stanley 2014 Annual Report Download - page 143

At December 31, 2013
Institutional
Securities
Corporate
Lending(1)
Institutional
Securities
Other
Lending(2)
Wealth
Management
Lending(3) Total(4)
(dollars in millions)
Corporate loans ...................................... $ 7,837 $ 1,988 $ 3,301 $13,126
Consumer loans ..................................... — — 11,576 11,576
Residential real estate loans ............................ — 1 10,001 10,002
Wholesale real estate loans ............................. — 1,835 6 1,841
Loans held for investment, net of allowance ............. 7,837 3,824 24,884 36,545
Corporate loans ...................................... 6,168 — — 6,168
Consumer loans ..................................... — — — —
Residential real estate loans ............................ — 12 100 112
Wholesale real estate loans ............................. — 49 — 49
Loans held for sale .................................. 6,168 61 100 6,329
Corporate loans ...................................... 2,892 6,882 — 9,774
Consumer loans ..................................... — — — —
Residential real estate loans ............................ — 1,434 — 1,434
Wholesale real estate loans ............................. — 1,404 — 1,404
Loans held at fair value .............................. 2,892 9,720 — 12,612
Total loans ......................................... $16,897 $13,605 $24,984 $55,486
(1) In addition to loans, at December 31, 2013, $61.4 billion of unfunded lending commitments were accounted for as held for investment,
$8.1 billion of unfunded lending commitments were accounted for as held for sale and $9.1 billion of unfunded lending commitments
were accounted for at fair value.
(2) In addition to loans, at December 31, 2013, $1.3 billion of unfunded lending commitments were accounted for as held for investment and
$0.8 billion of unfunded lending commitments were accounted for at fair value.
(3) In addition to loans, at December 31, 2013, $4.5 billion of unfunded lending commitments were accounted for as held for investment.
(4) Amounts exclude customer margin loans outstanding of $29.2 billion and employee loans outstanding of $5.5 billion at December 31,
2013. See Notes 6 and 8 to the Company’s consolidated financial statements in Item 8 for further information.
At December 31, 2014 and December 31, 2013, the allowance for loan losses related to funded loans that were
accounted for as held for investment, was $149 million and $156 million, respectively, and the allowance for
loan losses related to unfunded lending commitments that were accounted for as held for investment, was
$149 million and $127 million, respectively. The aggregate allowance for loan losses for funded and unfunded
loans increased slightly over the year due to the growth of the portfolio and reflected the high quality of the
Company’s lending portfolios resulting from strong credit risk management. See Note 8 to the Company’s
consolidated financial statements in Item 8 for further information.
Institutional Securities Corporate Lending Activities. In connection with certain of its Institutional Securities
business segment activities, the Company provides loans or lending commitments to select corporate clients.
These loans and lending commitments may have varying terms; may be senior or subordinated; may be secured
or unsecured; are generally contingent upon representations, warranties and contractual conditions applicable to
the borrower; and may be syndicated, traded or hedged by the Company.
The Company’s corporate lending credit exposure is primarily from loans and lending commitments used for
general corporate purposes, working capital and liquidity purposes and typically consists of revolving lines of
credit, letter of credit facilities and term loans. In addition, the Company provides “event-driven” loans and
lending commitments associated with a particular event or transaction, such as to support client merger,
acquisition or recapitalization activities. The Company’s “event-driven” loans and lending commitments
typically consist of revolving lines of credit, term loans and bridge loans.
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