Reports

Wealth Income Steady, Group Figure Drops At Morgan Stanley

Tom Burroughes Group Editor April 18, 2019

Wealth Income Steady, Group Figure Drops At Morgan Stanley

The US firm said net income dropped in Q1 but the wealth arm showed a steady result.

Morgan Stanley yesterday reported net revenues of $10.3 billion in the first three months of the year, down from $11.1 billion a year earlier. Net income fell to $2.4 billion from $2.7 billion a year ago, it said.

The US firm’s wealth management arm logged pre-tax income of $1.2 billion, little changed from a year ago. Asset management revenues were $2.361 billion, down from $2.495 billion in Q1 2018.

Fee-based client assets stood at $1.116 trillion at the end of March this year, up from $1.06 trillion a year earlier. There were $14.8 billion of fee-based asset flows in Q1, down from $18.2 billion, it said.

The wealth management business had a pre-tax margin of 27.1 per cent.

“We delivered solid earnings despite a slow start to the year following the turbulent markets in the fourth quarter,” James Gorman, the chief executive, said.

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