Morgan Stanley's wealth management arm has reported pre-tax income from continuing operations of $891m for the fourth quarter of 2016, up 16% compared to $768m in the year ago quarter.
The division's net revenues rose 6.3% to $3.99bn from $3.75bn in the fourth quarter of 2015, while pre-tax margin stood at 22%.
The unit’s asset management fee revenues during the quarter increased to $2.2bn from $2.1bn in the year ago period, reflecting market appreciation and positive flows. Transactional revenues dropped 10.1% to $774m from $861m in the fourth quarter of 2015.
The unit’s net interest income stood at $984m, a surge of 26.3% from $779m a year ago, driven.
As at 31 December 2016, total client assets were $2.1 trillion and client assets in fee-based accounts were $877bn.
The banking group said that the unit's 15,763 wealth management representatives generated average annualised revenue per representative above $1m in the quarter. Wealth management client liabilities stood at $73bn, a rise of $9bn from a year ago.
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Overall, the banking group reported net revenues of $9bn for the fourth quarter of 2016, compared to $7.7bn in the corresponding quarter of 2015. Net income applicable to Morgan Stanley was $1.7bn, compared to $908m a year earlier.
Morgan Stanley chairman and CEO James Gorman said: “Our quarterly results reflect consistent strong performance, while our annual results show meaningful earnings growth over 2015. We reported solid results in Sales & Trading and Advisory, and record revenues in Wealth Management, while managing expenses prudently.
“We are optimistic about opportunities in 2017 and beyond and remain focused on serving our clients and achieving our strategic objectives.”