Morgan Stanley's net new assets for 2023 fell below the $300 billion mark it recently set as an annual goal on its way to having $10 trillion under management.
Even so, the Wall Street giant's wealth management unit remained the star among its many business divisions. The unit reported nearly $26.3 billion in net revenue for the year, a figure up almost 8% year over year. That produced $5 billion in net income, a number essentially unchanged from 2022.
All told, the firm's wealth and investment management divisions contributed 58% of the firm's total revenue and 62% of its profits. The results were reported in the first quarterly earnings call for
Speaking to analysts on Tuesday, Pick reiterated the firm's goal of
For all of 2023, the firm added $282 billion in net new assets. Though sizable, the figure fell below Morgan Stanley's previously stated target of bringing in more than $300 billion a year on its way to hitting $10 trillion under management.
"In wealth management, we have established ourselves as a leading asset gatherer by expanding our business model across three channels: advisor-led, self-directed and workplace," Pick said on the earnings call. "The business generated a trillion of net new assets over the past three years, and we are relentlessly focused on sustainable growth."
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Much of the talk on Morgan Stanley's earnings call also centered on the firm's goal of raising its wealth unit's pre-tax profit margin to 30%. That margin was 25% for 2023, down from 27% in the previous year.
"Given some of the recent macro headwinds and our continued investments for growth, it's reasonable to expect reported margins to consolidate in the mid-20s range over the near term," Pick said. "The underlying businesses achieved 30% margins before, and we intend to deliver that return profile again in the long term against a higher base of revenue."
For more results from Morgan Stanley's fourth quarter and previous year, scroll down. To read about its third quarter,
