Reports
Wealth Management Net Revenues Rise At Morgan Stanley
The wealth business added net new assets of $438 billion and total client assets under management were $4.9 trillion. When investment assets are added to the mix, the total AuM figure is $6.5 trillion.
Wealth management at Morgan Stanley reported net revenues in the fourth quarter of 2021 of $6.3 billion, up from $5.7 billion a year ago. Pre-tax income in Q4 stood at $1.4 billion, a margin of 22.6 per cent.
The wealth business added net new assets of $438 billion and total client assets under management were $4.9 trillion, up 23 per cent from a year ago, it said yesterday. Fee-based client assets stood at $1.839 trillion at the end of December 2021, up from $1.47 trillion a year ago.
For the Morgan Stanley group as a whole, it reported net revenues of $14.5 billion for the fourth quarter ended December 31 compared with $13.6 billion a year ago. Net income applicable to shareholders was $3.7 billion, or $2.01 per diluted share, compared with $3.4 billion, or $1.81 per diluted share.
When wealth and investment management assets are added up, the Wall Street firm has $6.5 trillion of client assets.
“Our integrated investment bank has continued to gain wallet share. We have a sustainable business model with scale, capital flexibility, momentum and growth,” James Gorman, chairman and chief executive, said.
Among other details in wealth management, Morgan Stanley said transactional revenues were essentially unchanged excluding the impact of mark-to-market gains on investments associated with certain employee deferred compensation plans. Net interest income increased from a year ago primarily driven by strong growth in bank lending and higher brokerage sweep deposits.
Compensation costs rose from a year ago driven by higher compensable revenues and higher benefits cost, partially offset by lower expenses related to certain deferred compensation plans linked to investment performance. Non-compensation costs rose, driven by higher professional services and integration-related expenses. (The integration comment refers to the absorption of the E*TRADE and Eaton Vance businesses.)
