Reports

Wealth Management Net Revenues Dip At Morgan Stanley

Tom Burroughes Group Editor April 20, 2020

Wealth Management Net Revenues Dip At Morgan Stanley

The US firm reported how the adverse turn in markets has affected its results in the first three months of this year.

Morgan Stanley has reported a drop at its wealth business in first-quarter 2020 net revenues from a year earlier, with the figure sliding to $4.04 billion from $4.389 billion a year earlier. The March falls in global markets amid the virus pandemic took its toll on the figures.

Net interest income fell by 21 per cent on a year earlier, to $896 million. Total costs fell to $2.982 billion from $3.201 billion a year before, the Wall Street-listed firm said in a statement.  

Investment management AuM rose to $584 billion from $480 billion. Within wealth management, there were $1.144 trillion in AuM, versus $1.151 trillion a year before.

Wealth management produced a pre-tax margin of 26.1 per cent. Bank lending rose by 15 per cent; deposits rose to $55 billion from a year before.

Across the whole of Morgan Stanley, net revenues fell to $9.5 billion in Q1 from $10.3 billion a year earlier. 

“Over the past two months, we have witnessed more market volatility, uncertainty and anxiety as a result of the devastating COVID-19 than at any time since the financial crisis. While it’s too early to predict how this will unfold, Morgan Stanley navigated the quarter well given the conditions, and our results bear testament to the strength of our balanced business model,” James Gorman, chief executive and chairman, said in a statement.

Register for FamilyWealthReport today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes