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Morgan Stanley’s WM division gets revenue bump

Morgan Stanley’s WM division gets revenue bump

Morgan Stanley wraps up the second quarter earnings for big American banks this week with its wealth management division continuing to deliver higher income.

The US bank said group net revenue for the quarter ending 30 June amounted to $10.6 billion, compared with $9.5 billion a year ago.

Net income was $2.4 billion, compared with $1.8 billion recorded the same period last year.

Its wealth management division reported pre-tax income of $1.2 billion compared with $1.1 billion previously. Revenue was $4.3 billion with a pre-tax margin of 26.8%.

Asset management revenue within the unit, increased from $2.3 billion a year ago to $2.5 billion in the second quarter of 2018.

Transactional revenue, however, decreased from $766 million to $691 million on the back of lower fixed income revenue.

Total client assets were $2.4 trillion and client assets in fee-based accounts were $1.1 trillion at the end of the quarter. Fee-based asset flows were $15.3 billion.

Morgan Stanley’s wealth management representatives of 15,632 produced average annualised revenue per representative of $1.1 million.

Chairman and chief executive James Gorman said the second quarter performance reflected active markets and healthy client engagement.

‘Our strong global franchise positions us well to continue to grow organically across each of our businesses and to deliver operating leverage,’ he added.

Other business units at Morgan Stanley also recorded higher revenues during the quarter. It’s institutional securities division reported net revenue of $5.7 due to strong performance across the group’s sales and trading franchise and investment banking.

Investment management net revenues were $691 million on higher management fees.

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