Morgan Stanley's wealth division posted a pretax profit margin of 27 percent in the third quarter amid what CEO James Gorman calls the most challenging quarter in 15 years.
Morgan Stanley wealth's revenue rose 3 percent year-over-year to $6.1 billion, while pretax income increased by 8 percent to $1.7 billion year-over-year. Gorman told AdvisorHub that the division demonstrated how this business, even in a very volatile market environment and with indices down over 20 percent this year, continues to attract new client assets and remains highly profitable.
Morgan Stanley has been targeting employees of companies it serves to help convert corporate stock plan customers. CFO Sharon Yeshaya said that outreach is well-received given the market volatility, and the firm is also improving at directing leads to advisors who can close business.
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