Morgan Stanley's wealth management unit has reported pre-tax income from continuing operations of $901m for the third quarter of 2016, up 9.3% from $824m a year ago.
The division's net revenues rose to $3.9bn from $3.6bn a year earlier, while pre-tax margin was 23%.
During the quarter, the unit’s asset management fee revenues dropped to $2.1bn from $2.2bn in the third quarter of 2015, reflecting lower average fee rates on fee-based accounts. Transactional revenues stood at $791m, a 21.3% surge from $652m a year ago.
The unit’s net interest income stood at $885m, a jump of 17.8% from $751m a year earlier, mainly driven by higher deposit and loan balances.
As at 30 September 2016, total client assets were $2.1 trillion and client assets in fee-based accounts were $855bn.
The banking group said that the unit's 15,856 wealth management representatives generated average annualised revenue per representative of $977,000 in the quarter. Wealth management client liabilities stood at $70bn, a rise of $9bn from the last year.
Overall, the banking group reported net revenues of $8.9bn for the third quarter of 2016, compared with $7.8bn in the corresponding quarter of 2015. Net income applicable to Morgan Stanley was $1.6bn, compared with income of $1bn in the prior-year quarter.
Morgan Stanley chairman and CEO James Gorman said: “This quarter we saw record revenues in Wealth Management and a strong performance in our Sales and Trading business.
“While the environment was more challenging for our equity underwriting and asset management businesses, our expense initiatives remain on track. Overall the results reflect steady progress against our long term strategic goals.”