The wealth management unit of Morgan Stanley has reported net revenues of $4.41bn for the second quarter of 2019.
This is a 2% increase from last year’s figure of $4.32bn.
The unit’s pre-tax income was $1.2bn in the quarter, while pre-tax margin was 28.2%
The wealth division’s asset management revenue for the three-month period ended 30 June 2019 was $2.54bn, up 1% from $2.51bn in the same quarter of 2018.
Transactional revenues increased 5% to $728m from $691m.
This was said to be driven by investment gains on certain employee deferred compensation plans.
The wealth division’s net interest income dropped 3% on a year-on-year basis.
The decrease was said to be due to an “increase in mortgage securities prepayment amortisation expense and higher cost of funds”.
Morgan Stanley wealth management client liabilities were $84bn at the end of June 2019.
In Investment Management, pre-tax income surged 42% to $199m from $140m.
Net revenues at the unit jumped 21% year-on-year to $839m.
Overall, Morgan Stanley posted net revenues of $10.24bn for the second quarter of 2019.
This is a fall of 3% from $10.61bn in the previous year.
Net income applicable to Morgan Stanley dipped to $2.2bn from $2.4bn.
Morgan Stanley chairman and CEO James Gorman said: “We reported solid quarterly results across all our businesses. Firm wide revenues were over $10 billion and we produced an ROE within our target range, demonstrating the stability of our franchise.”