Business

Morgan Stanley leans on wealth management to beat estimates


“This quarter ... shows the resiliency of wealth management, which is an important indicator of the health of our business,” Chief Financial Officer Jonathan Pruzan said in an interview.


“Wealth management was able to protect the margin in a tougher backdrop” than the year-ago period, Evercore ISI analyst Glenn Schorr wrote in a note to clients.


Concerns about a slowing global economy, U.S. trade tensions with China and the Federal Reserve’s interest rate policy spurred worries of recession risk early in 2019.


Morgan Stanley’s wealth management profit margin and its return on equity of 13.1 percent were comfortably within the targeted range Chief Executive James Gorman has set.


Gorman, who took the helm in 2010, has defined his tenure by building out the wealth management business, dialing back bond trading and generally reducing risk across the franchise.


By contrast, top rival Goldman Sachs Group Inc remains more weighted toward capital markets businesses and is struggling to produce more stable results.






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