Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MORGAN STANLEY

(MS)
  Report
Delayed Quote. Delayed Nyse - 12/03 04:10:00 pm
98.21 USD   -0.66%
12/03IO Biotech Shares Surge Midday on Heavy Volume
MT
12/03MarketScreener's World Press Review - December 3, 2021
12/03NORTH AMERICAN MORNING BRIEFING : Oil Rises, Stock -3-
DJ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

U.S. banks see wealth management boom on borrowing, new assets

10/15/2021 | 12:40pm EST
FILE PHOTO: The Goldman Sachs company logo is on the floor of the NYSE in New York

NEW YORK (Reuters) - Big U.S. banks' wealth management businesses put in another stellar performance in the third quarter, buoyed by record levels of new money flowing into accounts and surging demand from clients to borrow against their investment portfolios.

Morgan Stanley Inc, JPMorgan Chase & Co, Bank of America Corp and Goldman Sachs Group Inc. each reported double-digit growth in wealth management loan balances and revenues this week.

While the COVID-19 pandemic devastated large chunks of the economy and put millions out of work, extraordinary government measures aimed at mitigating the economic blow have also boosted the fortunes of the wealthy by pushing down interest rates and driving a massive stock market rally.

Global financial wealth soared to a record high of $250 trillion in 2020, according to a June report by Boston Consulting Group.

That has increased demand for money managers, increased the value of assets managed by these brokerages, and made it more appealing for customers to borrow.

"At the high net worth end of the spectrum, lending products have been very healthy and you're seeing that at firms like Morgan Stanley where wealth management loan balances are up over 30% year over year," said Devin Ryan, an analyst at JMP Securities.

Morgan Stanley's wealth management business reported revenues of $5.935 billion, up 28% from last year. Wealth management loan balances reached $121 billion, up 33% year-on-year, mostly from clients taking out mortgages and borrowing against their investments.

A booming area of lending for wealth management brokerages, so-called securities based loans or lines of credit, allow clients to borrow up to a certain percent of the value of their investment accounts to spend on anything except more securities. As those investment accounts have grown in value, so have loans.

Bank of America's Merrill Lynch Wealth Management reported record revenues of $4.5 billion, up 19% over last year, while loan balances grew 10% to top $133 billion.

At JPMorgan's asset and wealth management business, revenues 21% to $4.3 billion, while average loans rose 20% from last year.

Both Bank of America and JPMorgan said the primary driver of loan growth was securities based loans, followed by mortgages and custom loans.

Morgan Stanley, which gets around half of its revenues from wealth management, said net new assets rose by 89% to $135 billion in the third quarter from the prior quarter, helped in part by the acquisition of a group of retirement advisers that brought $43 billion in fee-based assets to the bank.

Bank of America reported that, over the past year, it has brought on more than $112 billion in net new assets across its global wealth management business.

Merrill Lynch also added 4,200 net new households, the bank said.

Goldman Sachs, which has a smaller wealth management unit catering to the extremely rich, said wealth management net revenues jumped 40% from last year to $1.64 billion, while loan balances were also up 40% to reach $42 billion.

JPMorgan does not break out net new assets for its asset and wealth management business.

(Reporting by Elizabeth Dilts Marshall and Matt Scuffham in New York; editing by Michelle Price and David Gregorio)

By Elizabeth Dilts Marshall


ę Reuters 2021
All news about MORGAN STANLEY
12/03IO Biotech Shares Surge Midday on Heavy Volume
MT
12/03MarketScreener's World Press Review - December 3, 2021
12/03NORTH AMERICAN MORNING BRIEFING : Oil Rises, Stock -3-
DJ
12/03Citigroup Lifts Morgan Stanley to Buy From Neutral, Price Target to $115 From $105
MT
12/03OPEC+ output increase adds to Goldman's bullish oil market view
RE
12/02Cuscaden Peak Obtains Final Approval for Singapore Press Offer, Waives Walk-Away Right
MT
12/02Morgan Stanley rates SCP as Equal-weight
AQ
12/02POWELL PIVOT CRUSHES YIELD CURVE, DE : McGeever
RE
12/02Morgan Stanley Expects Nonfarm Payrolls to Rise by 560,000 in November
MT
12/02Management turmoil complicates Telecom Italia bid response
RE
More news
Analyst Recommendations on MORGAN STANLEY
More recommendations
Financials (USD)
Sales 2021 59 606 M - -
Net income 2021 14 236 M - -
Net Debt 2021 112 B - -
P/E ratio 2021 12,5x
Yield 2021 2,14%
Capitalization 176 B 176 B -
EV / Sales 2021 4,84x
EV / Sales 2022 4,88x
Nbr of Employees 74 000
Free-Float 69,4%
Chart MORGAN STANLEY
Duration : Period :
Morgan Stanley Technical Analysis Chart | MS | US6174464486 | MarketScreener
Technical analysis trends MORGAN STANLEY
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Last Close Price 98,21 $
Average target price 111,09 $
Spread / Average Target 13,1%
EPS Revisions
Managers and Directors
James Patrick Gorman Chairman & Chief Executive Officer
Andrew Michael Saperstein Co-President
Edward N. Pick Co-President
Sharon Yeshaya Chief Financial Officer
Robert P. Rooney Head-Technology, Operations & Firm Resilience
Sector and Competitors