Its advisor headcount grew to 17,646.That’s up 111 from a year ago and 188from the prior quarter. At the same time,the average 12-month fees and commissions per advisor were $1.14 million vs.$1.04 million in Q1’ 19 and $1.1 millionin Q4’ 19.
But this type of growth may beunlikely for Q2’ 20, based on the impactof restricted recruiting, face-to-facemeetings with clients and prospectsdue to the coronavirus and market-related issues.
The wealth unit’s revenue was $4.936billion, up $116 million from a year agoand $23 million from Q4’ 19. The pre-taxmargin, though, fell to 23% vs. 29% lastyear and 28% in the prior quarter.
The firm’s wealth unit saw its revenuefall by 8% from a year ago to $4.04 billion. Its net income weakened 6% to$864 million, but it had a pretax marginof 26%in Q1’ 20.
Morgan Stanley has 15,432 advisors,down 36 from the prior quarter and 276from a year ago. Their average yearlyfees and commissions are $1.05 million,about 12% less than the prior quarterand 7% from a year ago.
Total assets for the wealth unit are$2.4 trillion; clients hold about 23%of their assets in cash and short-termsecurities. Average assets per advisor inQ1’ 20 were $155 million vs. $175 millionin Q4’ 19 and $158 million in Q1’ 19.
Fee-based assets are roughly $1.13trillion. Flows of these assets in the firstquarter were $18.4 billion vs. $24.9 billion in the prior quarter and $14.8 billionin the year-ago period.
The firm had net income of about $82million, or $1.07 per share, on net revenues of $913 million vs. $97 million, or$1.22share, on net revenues of $770 million a year ago.
Global Wealth Management brokerage revenues were nearly $180 million,a 17% increase compared with the firstquarter of 2019 and a 3% increase jumpfrom the fourth quarter of 2019.
The firms’ advisor headcount is 2,224,up from 2,222 in the prior quarter and2,160 last year. It has 2,130 employeeadvisors, and 94 independent FAs. Theywork with $277 billion of client assets,down 8% from a year ago; fee-basedassets account for $94 billion, off lastyear’s figure by 6%.
“The next few months have a highlevel of uncertainty, which can drivea wide range of economic outcomes.Longer term, we believe the worldand our economy will overcome thispandemic,” said Chairman and CEORon Kruszewski.
The firm’s net income in the latest quarter fell 11% to $446 million from a yearago; revenues, though, grew 2% to $1.48billion; it had net interest revenue of$332 million, down 8% from last year,and total client assets of $1.2 trillion atthe end of the period.
Its net new assets, or NNA, in the firstthree months of 2020 were $45 billion.They were split between retail investors,58%, and RIA-affiliated clients, 42%.That’s up from about $20 billion a yearago and $29 billion in the prior quarter.
The bank’s Wealth and AssetManagement unit said its financial advisor headcount dropped by 378 year overyear and 62 from the prior quarter to13,450 as of March 31, 2020. (The firmhad 15,086 registered reps on Sept. 30,2016, when it began making headlinesfor its fake-accounts scandal.)
The unit’s profits fell 20% year over
year to $463 million as of March 31;
they were up 82% from the earlier peri-
od. Assets weakened 12% from last year
to $1.6 trillion on lower market returns
and outflows from the Correspondent
Clearing business, Wells Fargo said.
Referrals from community bank cli-
ents, though, rose 16% from last year to
The bank’s Global Wealth Managementunit saw its net income improve 41%over last year to $1.22 million, and itsoperating income grew 14% to $4.55million. In the Americas, profits beforetaxes rose 16% from a year ago, or $52million, from Q1’ 19 to $380 million.Revenue grew $222 million from lastyear to $2.4 billion.
The unit’s total assets stand at $1.23trillion, with net new money of $3.3 billion in the first quarter. Its advisor headcount, though, for the U.S. and LatinAmerica dropped 294 from last year and44 from the prior quarter, ending thequarter at 6,496.
The brokerage firm’s net income was$795 million, down 18% from a year ago.Revenues weakened 4% from Q1’ 19 tohit $2.6 billion. Net interest revenue fell6% from a year ago to $1.57 billion; assetmanagement and fee revenue grew 10%to $827 million; and trading revenuedeclined 13% to $188 million.
The Advisory Services unit hadassets of about $1.65 trillion, down 3%from last year, while Investor Serviceshad $1.85 trillion, for a year-over-yeardecline of 2%.
The firm recently said its flagshipImpact conference, set to take placeNov. 10-13, is going to be held as a virtual event. Bernie Clark, head of thefirm’s Advisor Services unit, said thefirm’s $26 billion merger with rival TDAmeritrade is on track: “We fully expect[government] approval in the secondhalf of the year.”
Janet Levaux is editor-in-chief of InvestmentAdvisor. She can be reached at email@example.com.