The wealth management arm of Morgan Stanley has reported pre-tax income of $836m for the third quarter of 2014, an increase of 25% compared with $668m for the same period last year.
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The quarter’s pre-tax margin was 22%. Net revenues for the current quarter rose to $3.8bn, up 9% from US$3.5bn a year ago.
The division reported asset management fee revenues of $2.2bn, compared to $1.9bn a year ago driven by market appreciation and positive flows.
During the quarter, transactional revenues were dropped to $912m from $1bn a year ago driven by losses related to investments in the firm’s deferred compensation plans and lower fixed income activity.
The wealth management arm has registered a net interest income of $601m, an increase from $493m in the same period last year.
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By GlobalDataFor the quarter ended 30 September 2014, the unit’s total client assets exceeded $2 trillion, while client assets in fee based accounts of $768bn, up 18% compared to the prior year quarter.
Fee based asset flows for the quarter stood at $6.5bn, the banking group said in a statement.
In addition, wealth management representatives of 16,162 declined from 16,517 compared with the prior year quarter.
Overall, Morgan Stanley has reported net revenues of $8.9bn for the third quarter ended 30 September 2014, a 12% increase compared to $8bn for the same period a year ago.
James Gorman, chairman and CEO of Morgan Stanley, said: "Morgan Stanley has delivered another quarter of earnings growth and strong performance based on consistent execution for our clients. We are well positioned to create superior returns for our shareholders, particularly as the US economy continues to strengthen."
