Morgan Stanley’s Numbers Decrease This Quarter

Posted by adaniels in Blog on July 23, 2012

Morgan Stanley Smith Barney took a hit in its second quarter 2012 numbers. OnWallStreet.com reports that while the company’s revenue increased from $193 million to $225 million, revenue dropped from $3.4 billion to $3.3 billion. In addition, money from commissions decreased from $1.2 billion to $976 million.

Money from the company’s ultra-high-net-worth customers decreased as well, going from $580 billion to $560 billion. Morgan Stanley customers who had assets of between $1 million to $10 million saw those assets go down from $735 billion in assets to $704 billion. However, customers who had assets under management of less than $1 million did see their assets gain as much as 10%, OnWallStreet.com reports.

In all, client assets decreased a total of $37 billion, going down to $1.71 trillion. In addition, the fee-based part of Morgan Stanley went up from $1.8 billion to $1.9 billion. The company also lost 259 advisors, going down to 16,934 advisors.

According to a statement from Morgan Stanley, “Expense control is the reason net income increased while revenues declined,” and said that the money from commissions decreased, “primarily reflecting reduced commissions and fees from lower levels of client activity.”

James Gorman, CEO and chairman of Morgan Stanley, said that “in Global Wealth Management, we increased our pre-tax margin to 12 % in an environment marked by investor caution, and we integrated substantially all of our technology systems, which should bring additional value to our clients.” He said that the company was “focused on taking the necessary steps to deliver strong returns for our shareholders.”

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