Morgan Stanley’s wealth management arm registered a pre-tax income of $885m for the second quarter of 2015, up 16% compared with $763m in the corresponding quarter of 2014.
For the quarter ended 30 June 2015, the unit’s net revenues were $3.9bn, up 4.6% from $3.7bn 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 $872m from $991m a year ago reflecting lower revenues related to investments associated with certain employee deferred compensation plans and lower levels of new issue activity.
The wealth management arm posted a net interest income of $737m, an increase from $577m in the same period a year ago on higher deposit and loan balances.
The unit’s total client assets stood at $2trn, while client assets in fee based accounts was $813bn, up 7% compared to the prior year quarter.
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By GlobalDataFee based asset flows for the quarter stood at $13.9bn, the banking group said in a statement.
Additionally, wealth management representatives of 15,771 produced average annualized revenue per representative of $978,000 for the second quarter, up 8% compared with the prior year quarter.
Overall, Morgan Stanley has reported net revenues of $9.7bn for the second quarter ended 30 June 2015, a 12.8% increase compared to $8.6bn for the same period a year ago.
Morgan Stanley chairman and CEO James Gorman said, "We delivered a strong quarter across each of our businesses, through client-focused execution, expense discipline and prudent risk management. We remain focused on delivering the long-term value of this franchise."
