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

 
 
 

39 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

7 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 (NewCo) and slashing the workforce of 20,000 by 30 per cent. ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 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 tragedies of MH370 and MH17" h ...
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

Khamenei wants less reliance on oil
Tehran, Oct 23 (IANS) Iran's Supreme Leader Ayatollah Ali Khamenei called on the country's officials Wednesday to formulate plans to cut Iran's dependence on oil revenues and manage the economy on the basis of the domestic capabilities.
 
 
Nigerian parliament approves $1 bn loan to fight Boko Haram
Lagos, Oct 23 (IANS) The Nigerian House of Representatives Wednesday approved President Goodluck Jonathan's request to borrow not more than one billion dollars to tackle the security challenges facing the country.
 
 
Kenya to train 30,000 health workers on Ebola
Nairobi, Oct 23 (IANS) Kenya has plans to train 30,000 health workers on Ebola screening, prevention, control and case management, the health ministry said Wednesday.
 
 
Germany pledges additional five mn euros to fight Ebola
Berlin, Oct 22 (IANS) Germany Wednesday said it would provide over five million euros ($6 million) in additional funds to promote Ebola research.
 
 
 

Latest from the Network

European Champions League standings
Paris, Oct 22 (IANS) Following are the European Champions League standings for Groups E to H after Tuesday's matches (tabulated under matches played, won, drawn, lost, goals for, against, points), according to Xinhua...
Read more on Sport Balla
 
Rogerio set to break Giggs world record
Rio de Janeiro, Oct 22 (IANS) Sao Paulo goalkeeper Rogerio Ceni is one victory away from earning his fourth Guinness World Record by eclipsing a mark held by Manchester United legend Ryan Giggs. The 41-year-old will...
Read more on Sport Balla
 
Ryan Reynolds can't keep his hands off Blake Lively
Ryan Reynolds was ''really sweet'' to Blake Lively at the Angel City Ball. The couple, who got married in September 2012, made their first red carpet appearance together in New York City on Monday night (10.20.14) since...
Read more on Celebrity Balla
 
Kris Jenner doesn't know who Bruce Jenner is dating
Kris Jenner has ''no idea'' whether Bruce Jenner is dating her best friend. The 58-year-old reality TV star, who split from the Olympic gold medallist last October after 23 years of marriage, claims she doesn't know if...
Read more on Celebrity Balla
 
When Rihanna dressed like 'Harry Potter'
New York, Oct 22 (IANS) Singer Rihanna was spotted here in a Harry Potter style costume. She wore the wizard-like get-up while heading for a business meal here Monday, reports mirror.co.uk. The 26-year-old combined a...
Read more on Celebrity Balla
 
Germany raises humanitarian aid to Iraq
Berlin, Oct 22 (IANS) Germany has pledged a further 20 million euros (about 25.5 million dollars) in humanitarian aid to Iraq, the foreign ministry said in a statement Tuesday. The additional funds are immediately...
Read more on Politics Balla
 
India calls on Israel, Palestine to resume peace process
United Nations, Oct 22 (IANS) India has called upon Israelis and Palestinians to resume the peace process as "dialogue remains the only viable option" to address the issues confronting the region. In a brief statement...
Read more on Politics Balla
 
Airstrikes help ground forces fight IS: Pentagon
Washington, Oct 22 (IANS) Kurdish forces are in control of the majority of the Syrian city of Kobane despite efforts by the Islamic State (IS) to take the town, a spokesperson for US defence department said Tuesday....
Read more on Politics Balla
 
Palestine, Israel urged at UN to halt unilateral initiatives
United Nations, Oct 22 (IANS) UN Secretary-General Ban Ki- moon Tuesday called on Palestine and Israel to overcome differences and halt unilateral initiatives that fuel mistrust, so as to pursue long-term stability in...
Read more on Politics Balla
 
China urges Israel to create conditions for peace
United Nations, Oct 22 (IANS) Chinese government has called on Israel to create necessary conditions for the resumption of peace talks with Palestine. At an open debate of the Security Council on the situation of the...
Read more on Politics Balla