Reports
Assets, Revenues Rise At Morgan Stanley's Wealth Arm
The US-listed financial group reported results for Q2, including its wealth management arm.
Morgan
Stanley, which is reportedly keen to ramp up wealth business
in Asia, yesterday reported second-quarter 2019 pre-tax income of
$1.2 billion at its wealth arm, producing 28.2 per cent pre-tax
margin. Revenues rose at this part of the US firm’s business.
Net revenues at the wealth management arm stood at $4.4 billion
in Q2, against £4.3 billion in the same quarter of last year.
Rising asset levels – as markets gained ground – boosted asset
management revenues.
Net interest income fell by 3 per cent compared with a year ago,
primarily driven by an increase in mortgage securities prepayment
amortization expense and the higher cost of funds, partially
offset by the impact of growth in bank lending.
Wealth Management client liabilities were $84 billion at quarter
end compared with $82 billion a year ago.
There were $9.8 billion of fee-based asset flows in the second
quarter, decelerating form $15.3 billion a year earlier, Morgan
Stanley said. Total assets were $1.159 trillion, against $1.084
trillion a year before. Within its investment management segment,
total assets under management stood at $497 billion, up from $474
billion.
Among recent stories, the firm has reportedly talked about its
desire to expand significantly in the
Asia-Pacific region's wealth management market.
Group results
Across its entire business lines, Morgan Stanley reported net
revenues of $10.2 billion compared with $10.6 billion a year ago.
Second-quarter earnings were $2.2 billion, or $1.23 a share,
exceeding the $1.14 estimate of analysts surveyed by Refinitiv
(source: CNBC).
“We reported solid quarterly results across all our businesses.
Firm-wide revenues were over $10 billion and we produced an ROE
[return on equity] within our target range, demonstrating the
stability of our franchise. We remain focused on serving our
clients and pursuing growth opportunities while diligently
managing expenses,” James Gorman, chairman and chief executive,
said.
