[ad_1]
Morgan Stanley is getting help from its wealth management arm as the ongoing trading drought hits Wall Street traders hard.
The company’s wealth management business added $282 billion in net new assets in 2023, an increase of 7%, according to results released on Jan. 16. Meanwhile, investment banking revenue fell 13% to $4.6 billion due to weaker trading activity.
The bank is one of the few that has successfully acquired wealth management services from wealthy clients, and fees have proven to be less volatile than investment banking services.
Investment banking revenue fell 13% for the year due to lower fees due to M&A.
Compensation expenses at investment bank Morgan Stanley’s institutional securities division continued to rise, from $1.6 billion in the final quarter of 2022 to $1.7 billion in the same period last year, due to an increase in bonus accruals during the period. increased to $.
Investment banking revenue in the final quarter was $1.25 billion, beating analyst expectations..
Morgan Stanley cut about 3,400 jobs in June amid the deepest deal shortage since the 2008 financial crisis. The move follows rivals such as Goldman Sachs and Citigroup, both of which have been forced to make painful job cuts as the M&A drought continues into its second year. Goldman has scaled back on acquisitions this year after a failed attempt to focus on wealth management for the wealthy.
Goldman plans to increase bonuses for some traders, while Morgan Stanley has begun cutting them. Wall Street banks have cut bonuses for investment bankers by 10% to 15% year over year. financial news This was announced to the staff on January 10th.
read Will Morgan Stanley’s new boss be able to deliver on Mr. Gorman’s promise?
Global investment banking fees fell 15% to $67.1 billion last year, according to data provider Dealogic. Morgan Stanley maintained his fourth place in the sales ranking, gaining a market share of 5.4%. Bank of America’s fees fell 2% in 2023, while JPMorgan’s fees fell 4% and Citigroup’s trading team fell 11%.
In October, Morgan Stanley appointed Ted Pick as its new chief executive officer, succeeding James Gorman, who had held the position since 2010. Pick, previously head of institutional securities, won a three-horse race for the top spot. , he started on January 1st.
To contact the authors of this article with feedback or news, email Paul Clarke and Justin Cash.
[ad_2]
Source link
