Morgan Stanley’s wealth management arm has reported pre-tax income from continuing operations of $1.2bn for the first quarter of 2018, an increase of 19% compared with $973m a year ago.
The unit’s net revenues increased 8% to $4.4bn from $4.1bn last year, while pre-tax margin was 26.5%.
The division’s asset management revenues increased to $2.5bn from $2.2bn in the previous year. Transactional revenues dropped 9% to $747m from $823m last year.
The unit’s quarterly net interest income was $1.1bn, as against $994m a year earlier.
As at 31 March 2018, total client assets stood at $2.4 trillion and client assets in fee-based accounts stood at $1.1 trillion.
The banking group said that the unit’s 15,682 wealth management representatives generated average annualised revenue per representative of $1.1m in the quarter.
Wealth management client liabilities were $80bn, compared to $74bn in the previous year.
Overall, the banking group posted net revenues of $11.1bn for the first quarter of 2018, up 13% from $9.7bn in the same period last year.
Net income applicable to Morgan Stanley was $2.7bn, compared to $1.9bn last year.
Morgan Stanley chairman and CEO James Gorman said: “We delivered very strong results this quarter, with record revenues and net income – and an ROE above our target range. Each of our businesses performed well, with significant client engagement across our global franchise, and Sales and Trading a particular highlight in a more active environment.”