The firm needs a digital advice offering for clients who don't want a traditional relationship, CEO James Gorman said.

The bank's wealth management businesses earned $124 million on $600 million in revenue in the second quarter.

The firm also said it has benefited from low attrition and its training program.

The firm's headcount has steadily declined since the bogus account scandal came to light last year.

Second-quarter revenue climbed 9% year-over-year even as the number of advisers dropped by 6%.

The wirehouse’s pre-tax earnings jumped 42% year-over-year despite losing 176 advisers in that time.

Dan Arnold expects that upheaval to lead to more movement of advisers and assets.

The firm's Private Client Group saw pretax profits drop to $29 million from $83 million for the year-ago period.

The firm's adviser headcount slipped 98 year-over-year.

The firm reported record revenues, net income and client assets for the first quarter.