Morgan Stanley’s wealth management arm has posted a pre-tax income from continuing operations of $824m for the third quarter of 2015, up 3% compared with $800m in the corresponding quarter of 2014.
For the quarter ended 30 September 2015, the unit’s net revenues were $3.6bn compared to $3.8bn a year ago. Pre-tax margin was 23%.
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The division reported asset management fee revenues of $2.2bn, compared to $2.1bn a year ago driven by an increase in fee based assets and positive flows.
During the quarter, transactional revenues dropped to $652m from $912m a year ago primarily reflecting losses related to investments associated with certain employee deferred compensation plans, lower levels of new issue activity and lower commission revenues.
The wealth management unit posted a net interest income of $751m, an increase from $599m in the same period a year ago on higher deposit and loan balances.
The unit’s total client assets stood at $1.9 trillion, while client assets in fee based accounts were $770bn.
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By GlobalDataFee based asset flows for the quarter stood at $7.7bn, the banking group said in a statement. The unit’s wealth management client liabilities were $61bn at quarter end, up $13bn compared with the prior year quarter.
Additionally, wealth management representatives of 15,807 produced average annualized revenue per representative of $922,000 for the third quarter.
Overall, Morgan Stanley has reported net revenues of $7.8bn for the third quarter of 2015 compared to $8.9bn for the same period a year ago.
Morgan Stanley chairman and CEO James Gorman said: "The volatility in global markets in the third quarter led to a difficult environment, impacting in particular our Fixed Income business and our Asia Merchant Banking business.
"The Firm benefited from the stability of the Wealth Management business, our ongoing leadership in Equities and the continued strength of our Investment Banking franchise. Our business model provides a steady foundation for the Firm as we navigate these challenging markets and focus intensely on addressing areas of underperformance."
