Wealth management shines at Morgan Stanley

Wealth management shines at Morgan Stanley
The firm posted record net revenue in wealth management last year, in contrast to investment banking, where it saw a 49% decline in revenue during the fourth quarter.
JAN 17, 2023

Morgan Stanley continues to be buoyed by its giant wealth management business, reporting Tuesday that it saw record net revenue of $24.4 billion in wealth management last year, a year-over-year increase of slightly under 1%.

That new high in wealth management occurred as Morgan Stanley, along with the rest of the wealth management industry, struggled through a tough year for stocks, with the S&P 500 stock index down 19.4% last year. The company also reported wealth management pretax profit of $6.6 billion in 2022, up 7% from 2021.

"Wealth management provided stability with record revenues and over $310 billion in net new assets," chairman and CEO James Gorman said in a statement.

Morgan Stanley noted that its workplace channel for employees was continuing to drive the acquisition of clients and assets, with the company reaching goals of rolling out companion accounts to 90% of participants and achieving 30% retention of stock plan assets. The workplace channel has driven the majority of Morgan Stanley's growth in client relationships, the company said.

Wealth management reported record net revenues for the fourth quarter of $6.6 billion, compared with $6.3 billion a year earlier, with net interest income increasing in 2022 compared to a year earlier as a result of higher interest rates and bank lending growth, according to Morgan Stanley.

The wealth management group's returns were a contrast to Morgan Stanley's investment banking franchise, which reported 49% decline in revenue in the fourth quarter, to $1.25 billion.

"Equity underwriting revenues decreased significantly from a year ago across products, reflecting the substantial decline in global equity underwriting volumes," the company reported.

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.