360° Coverage : Wealth Management Shines For Morgan Stanley, Shares Rise 4%

2 Updates
Wealth Management Shines For Morgan Stanley, Shares Rise 4%

Wealth Management Shines For Morgan Stanley, Shares Rise 4%

Jan 17 2014, 11:45am CST | by

That joint venture with Citigroup is finally starting to feel good for Morgan Stanley investors. The wealth management unit put up record revenue of $3.7 billion, up 12%, and net income jumped 78%...

Filed under: news

 
 
 

35 weeks ago

Wealth Management Shines For Morgan Stanley, Shares Rise 4%

Jan 17 2014, 11:45am CST | by

That joint venture with Citigroup is finally starting to feel good for Morgan Stanley investors.

The wealth management unit put up record revenue of $3.7 billion, up 12%, and net income jumped 78% to $476 million.

The unit, made up of 16, 456 financial advisors, was the major highlight in Morgan Stanley’s quarterly earnings. Overall, net income fell to $181 million, from $594 million a year earlier. The results included $1.2 billion for legal reserves the firm may need for mortgage-related investigations.

While investment banking revenue had a nice quarter with revenue popping 11%, trading results were disappointing. Revenue from fixed income & commodities trading dropped 15% from a year ago. Overall, total sales & trading revenues fell 4% from the fourth quarter of 2012.

Since the crisis, Morgan’s CEO James Gorman has shifted the firm’s focus to wealth management over trading and investment banking. Wealth management, in general, provides steady fees even in down markets whereas trading is much more volatile.

Morgan Stanley’s major shift to wealth management came in January 2009 when it agreed to a joint venture with Citigroup for a piece of Smith Barney. Slowly, Morgan began buying chunks of Smith Barney and finally got the green light to buy the remaining 35% stake last June.

It’s paying off. Morgan Stanley said it’s increased the pre-tax margin target for the wealth management unit to 22% – 25% by 4Q 2015. That’s up from its previous goal of 20% – 22%.

With that Citi Smith Barney deal complete, Morgan the largest brokerage force in the industry with nearly 16,500 financial advisors. That tops competitor Bank of America Merill Lynch which houses 15,316 advisors.

Both BofA and Morgan have been busy putting more effort behind their wealth management units than ever before. And why not? The Merrill unit has come through for many of BofA’s painful quarters providing much needed revenue, profit and net flows.

Now that is has full claim over the combined brokerage force, Morgan Stanley is banking on its wealth management unit to do the same.

Source: Forbes Business

 
Update
2

3 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewC ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tra ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

FIFA will not ban travel to Ebola-hit countries
Madrid, Sep 24 (IANS/EFE) The medical committee of world soccer's governing body, FIFA, decided Tuesday not to impose a ban on travelling to countries hit with the deadly Ebola outbreak.
 
 
UN chief to convene high-level meeting on Ebola
United Nations, Sep 24 (IANS) UN Secretary-General Ban Ki-moon will convene a meeting of world leaders during the General Assembly's annual high-level session in response to the deadly Ebola virus outbreak, a UN spokesman said Tuesday.
 
 
Thousands of South Sudanese kids face starvation: Unicef
United Nations, Sep 23 (IANS) Thousands of children, up to five years age, are at a risk of dying from malnutrition in South Sudan, the Unicef has warned.
 
 
'Ebola could hit up to 1.4 mn West Africans'
Washington, Sep 23 (IANS) The number of Ebola cases in West Africa could reach as many as 550,000 to 1.4 million by Jan 20 in the worst-case scenario, the US Centers for Disease Control and Prevention ( CDC) warned in a report Tuesday.
 
 
 

Latest from the Network

Kelly Brook to spend 300,000 pounds on yacht?
London, Sep 24 (IANS) Actress-model Kelly Brook, who is getting married to David McIntosh, is reportedly planning to shell out 300,000 pounds per week on a yacht for honeymoon in Greece. Brook is considering hiring a...
Read more on Celebrity Balla
 
'Nobody gets a pass' in tackling climate change: Obama
Washington, Sep 24 (IANS/EFE) US President Barack Obama Tuesday announced measures to help other countries fight climate change, saying that it is necessary to adopt an ambitious worldwide accord in which all countries...
Read more on Politics Balla
 
Ryan Gosling and Eva Mendes are still adjusting to baby
Ryan Gosling and Eva Mendes' newborn daughter is keeping them up all night. The couple, who welcomed their first child into the world earlier this month, are ''exhausted'' but ''infatuated'' with their new arrival. A...
Read more on Celebrity Balla
 
Sarah Hyland secures restraining order against ex-boyfriend
Sarah Hyland has secured a temporary restraining order against ex-boyfriend Matthew Prokop. The 'Modern Family' star, who recently ended her five-year romance with the actor, was granted a protection order against him,...
Read more on Celebrity Balla
 
John Stamos is heartbroken after his mother's death
John Stamos is grieving the death of his mother. The heartbroken actor, 51, paid tribute to Loretta Phillips Stamos on Instagram on Tuesday (09.23.14) after she passed away at her home at the age of 75 on Monday (09.22....
Read more on Celebrity Balla
 
FIFA will not ban travel to Ebola-hit countries
Madrid, Sep 24 (IANS/EFE) The medical committee of world soccer's governing body, FIFA, decided Tuesday not to impose a ban on travelling to countries hit with the deadly Ebola outbreak. However, it recommended the...
Read more on Sport Balla
 
France hopes Iran n-talks yields final agreement
Paris, Sep 24 (IANS) French President Francois Hollande Tuesday expressed hope that Western leaders' negotiations with Iran over its nuclear plan will lead to a lasting compromise to lift sanctions against Tehran. At...
Read more on Politics Balla
 
Simpson feels 'sexier' as wife and mom
Los Angeles, Sep 24 (IANS) Singer Jessica Simpson has two children with husband Eric Johnson and she says she feels sensuous post-marriage. The couple got married in July this year and is on cloud nine. "Being married...
Read more on Celebrity Balla
 
Beyonce shares intimate footage at concert
Los Angeles, Sep 24 (IANS) Singer Beyonce Knowles has revealed naked baby bump photograph while pregnant with daughter Blue Ivy in an intimate clip during her On The Run tour. The 33-year-old is standing completely...
Read more on Celebrity Balla
 
WFP assistance reaches one mn displaced Iraqis
Geneva, Sep 24 (IANS) The United Nations World Food Programme (WFP) Tuesday said it provided food assistance to more than one million civilians across Iraq who were displaced since conflict erupted in mid-June, despite...
Read more on Politics Balla