Morgan Stanley posted wealth management results for the second quarter just a hair's breadth short of a key profitability target it set for the end of 2015, but bank executives remained concerned about the high costs of recruiting brokers.
Reuters reports that the bank posted pre-tax profit of $767m in its wealth division in the second quarter, 38.6% of its total profit and the highest since Morgan Stanley began a retail brokerage joint venture with Smith Barney five years ago.
The profit represented 21% of net revenue in the wealth division, a margin that has risen from the single digits and was close to the bank's target of raising pre-tax profit margin to between 22% and 25% by the end of next year.
Morgan Stanley CEO James Gorman said he remained unhappy with the expensive recruiting wars that the company and its three large rivals were waging to lure top brokers from each other.
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