Morgan Stanley’s wealth management arm has reported pre-tax income from continuing operations of $1.2bn for the second quarter of 2018, an increase of 9% compared with $1.1bn in the same period last year.
The unit’s net revenues rose 2% to $4.3bn from $4.2 billion a year ago, while pre-tax margin was 26.8%.
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The division’s asset management revenues were $2.5bn, versus $2.3bn in the previous year.
Transactional revenues of the unit dropped 10% to $691m from $766m last year. The unit’s net interest income increased 3% year-on-year to $1bn.
As at 30 June 2018, total client assets stood at $2.4 trillion and client assets in fee-based accounts stood at $1.1 trillion.
The banking group said that the unit’s 15,632 wealth management representatives generated average annualised revenue per representative of $1.1m in the quarter.
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By GlobalDataWealth management client liabilities were $82bn at the end of June 2018, as against $77bn in the same period of 2017.
Overall, the banking group posted net revenues of $10.6bn for the second quarter of 2018, up 12% from $9.5bn in the corresponding quarter of 2017.
Net income applicable to Morgan Stanley was $2.4bn, a 39% surge compared to $1.8bn last year.
Morgan Stanley chairman and CEO James Gorman said: “We reported robust revenue and earnings growth this quarter with strength across all businesses and geographies.
“The second quarter performance reflected active markets and healthy client engagement. Our strong global franchise positions us well to continue to grow organically across each of our businesses and to deliver operating leverage.”
