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January 17, 2020

Morgan Stanley wealth revenues increase in Q4

The wealth management unit of Morgan Stanley has posted net revenues of $4.58bn for Q4 2019.

This is an 11% rise from last year’s net revenues of $4.14bn.

The division’s pre-tax income increased to $4.6bn from $4.1bn over the period while pre-tax margin was 25.4%.

The unit’s quarterly asset management revenue was $2.65bn, up 3% from $2.57bn a year ago. This was driven by “record positive flows”.

The unit’s transactional revenue of $829m was 96% higher than the prior year. The rise was said to be due to investment gains on employee deferred compensation plans as well as investment banking activity growth.

Net interest income at the wealth management arm dropped 6% year-on-year to $1.03bn. This

Morgan Stanley wealth management client liabilities stood at $90bn at the end of December 2019, versus $83bn in the previous year.

Net revenues at the bank’s Investment Management unit almost doubled from the previous year to $1.35bn. Pre-tax income at the division surged to $447m from $74m.

At a group level, Morgan Stanley registered net revenues of $10.86bn for Q4 2019. This is a 27% jump from $8.55bn in the same quarter of 2018.

Morgan Stanley chairman and CEO James Gorman said: “We delivered strong quarterly earnings across all of our businesses.

“Firmwide revenues were over $10 billion for the fourth consecutive quarter, resulting in record full year revenues and net income. This consistent performance met all of our stated performance targets.”

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