December 2, 2023

Morgan Stanley reported record quarterly revenue for its wealth management division on Tuesday, Star Master once again thriving Universal Bank’s second-quarter earnings report.

Although the parent company’s profit fell year-on-year, the wealth management business was the only business that achieved a year-on-year increase in profit and revenue when the market environment remained severe.Notably, Morgan Stanley also added Wealth Management adds $89.5 billion in client net worth That alone, according to Tuesday’s earnings supplement.

“Combined with investment management inflows, we’re seeing more than $100 billion inflows, six We had approximately $200 billion in net new assets during the month.” Total client assets across the firm reached $6.3 trillion, the bulk of which came from the wealth management division.

The wire factory appears to be ahead of schedule Early goal is $10 trillion in total client assets Gorman said he expects that to be likely to be achieved within the next few years, assuming an average annual increase in customer accounts of 5% over that period.To reach $10 trillion as originally planned, Morgan Stanley will Must add about $83 billion New net assets are about US$333 billion per quarter, which is equivalent to about US$1 trillion in new net assets every three years.

read more: Morgan Stanley client assets hit $6T, wealth arm adds $110B

“I mean, there’s going to be a $50 billion quarter here, and I’m not going to get too excited about it,” Gorman said. “As much as I’m not too excited that we’re ahead.” Still, Gorman is excited about the “unstoppable” growth of the firm’s client assets.

“People will say I’m crazy, I know that’s my term ends’, Gorman said. “But if you do 5% over 14 years, you end up with $20 trillion, which is a $100 billion revenue business. ’” Gorman himself said, having held the top job for about 14 years.

The company’s diluted EPS of $1.24 topped estimates by 8% Analyst consensus is $1.15.this The stock was up 6% as of Tuesday’s close.

“Overall, we believe the results are respectable against a challenging backdrop,” researchers at JMP Securities wrote in an analyst note ahead of the earnings call.

To see the highlights of Morgan Stanley’s second-quarter earnings, scroll down. In response to the company’s first-quarter earnings report, Click here. Looking at the fourth quarter results, Click here.