$4.41 billion. Still, the firm’s overall revenues were $10.2 billion, down 3% from
last year. And its profits fell 10% to $2.2
billion, or $1.23 per share.
Overall, the company’s advisor headcount rose by one from a year ago but is
down 75 from the prior quarter. Average
yearly fees and commissions per advisor
of $1.13 million are up slightly from $1.11
million a year ago and down from $1.19
million in the prior quarter. The average level of assets per advisor is $164 million, and total
assets in the wealth unit are
As for net fee-based asset
flows, they stood at $9.8 billion for Q2’ 19; this is down
about 35% from both Q2’ 18
and 1Q’ 19. Morgan Stanley’s
fee-based asset level is about
$1.16 trillion and represents
45% of total assets.
The firm reported total revenues of
$1.93 billion, up 5% over the prior year;
its net income was $259 million, or $1.80
per share, versus $232 million, or $1.55
Its Private Client Group had a 6%
year-over-year jump in sales and pretax
net income to $1.35 billion and $140 million, respectively. Assets under administration grew 9% from last year and 4%
from the prior quarter to $787.4 billion;
fee-based assets stood at $398 billion.
Raymond James’ advisor headcount
was 7,904 as of June 30, an increase of
185 from a year ago and 42 from March
30. Some 4,700 of these advisors are
independent contractors, while the rest
are employees. According to Chairman
and CEO Paul Reilly: “Recruiting activity remains strong across all of our affiliation options.”
The global bank had a 1% drop in total
revenue from last year to $7.53 billion.
Net income, though, rose 1% to $1.39
billion, or $0.37 per share, from $1.38
billion, or $0.36 per share in the year-ago quarter.
UBS’ Americas Wealth Management
unit had pretax income of $363 million,
up 7% from last year and 10% from the
prior quarter. This business works with
assets of $1.321 trillion, up 4% from
Q2’ 18 and 2% from Q1’ 19. The firm had
net outflows in the Americas of $8.3 bil-
lion, which it said was due to “seasonal
income tax payments.”
As for the number of advisors in the
Americas, UBS had 6,689 as of June
30 — down 248 from last year and 101
from the prior quarter. These advisors
have an average of $1.349 million in
yearly fees and commission and $197
million in client assets.
The Swiss-based bank cautioned that
“operational and supervisory changes for UBS’ U.S. broker-dealers” are
expected as part of the implementation
of Regulation Best Interest and its disclosure and compliance requirements.
The bank had a 19% jump in net income
to $6.2 billion; earnings improved about
33% to $1.30 per share, but revenue was
flat at $21.6 billion. As for the wealth
operations, total assets under management fell 1% to $1.9 trillion. The unit
had a 35% boost in net income, though,
to $602 million.
The firm lost 3% of its advisors vs.
Q2’ 18. It now has 13,799 — down 29 from
the prior quarter, 427 from last year and
1,287 from Sept. 30, 2016 (when news of
its fake-accounts scandal spread).
“Advisor headcount at [Wells Fargo
Advisors] stabilized as we had our
best recruiting quarter since 2016 in
terms of both the number of hires and
the associated production,” according
to a statement.
Fees and commissions, or productivity, of veteran recruits
from rivals rose 84% year to
date, the group says, vs. the
first half of 2018. “Advisor
attrition has dropped, our
pipelines are robust, and the
recruiting activity levels of
our local managers are very
high,” it added.
Separately, Wells Fargo
named Jim Hayes as the
new head of Wells Fargo
Advisors, with prior WFA
Hays has been with Wells Fargo
since late 2005 and most recently
led its newly formed Private Wealth
Financial Advisors group, which
includes advisors grouped in hubs that
serve high-net-worth clients. Earlier,
he led both Wells Fargo’s Private Client
Group and Wealth Brokerage Services.
He started his career at Merrill Lynch
Wells Fargo also hired Julia Wellborn
as head of Private Wealth Management,
a division of its Wealth & Investment
Management unit. In this new role, the
former head of wealth management at
Comerica Bank will lead the Private
Bank and Abbot Downing; the Private
Bank administers $209 billion in client assets and deposits while Abbot
Downing administers $45 billion in
assets and deposits.
Janet Levaux is editor-in-chief of Investment
Advisor. She can be reached at email@example.com.
Merrill says it will not be moving
into an RIA channel anytime soon.
As for a move into a subscription
model, as Charles Schwab did
earlier this year, BofA’s global
wealth unit is “continuously
evaluating pricing strategies.”