Morgan Stanley’s wealth management arm has reported pre-tax income from continuing operations of $1.1bn for the third quarter (Q3) ended 30 September 2017, a 24% surge compared to $901m in the same quarter a year earlier.
The division’s net revenues rose by 9% to $4.2bn from $3.9bn the last year, while pre-tax margin was 26.5%.
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The unit’s asset management fee revenues increased to $2.4bn from $2.1bn in the previous year. Transactional revenues dropped to $739m from $791m the last year.
The unit’s quarterly net interest income was $1bn, up from $885m a year ago. As at 30 September 2017, total client assets stood at $2.3 trillion and client assets in fee-based accounts stood at $1 trillion.
The banking group said that the unit’s 15,759 wealth management representatives generated average annualised revenue per representative of $1.1m in the quarter.
Wealth management client liabilities increased from $70bn to $78bn.
Overall, the banking group posted net revenues of $9.2bn for the third quarter of 2017, up by 3% compared with $8.9bn in the corresponding quarter of 2016.
Net income applicable to Morgan Stanley was $1.8bn, an increase of 12% as against $1.6bn the last year.
Morgan Stanley chairman and CEO James Gorman said: “Our third quarter results reflected the stability our Wealth Management, Investment Banking and Investment Management businesses bring when our Sales and Trading business faces a subdued environment.
“Our balanced business model and the consistent performance of our franchise enabled us to deliver solid returns for our shareholders.”
