(Bloomberg) -- Morgan Stanley will boost profitability as it pays brokers a smaller cut of revenue and the firms commodities business earns better returns following sales of two units, Chief Executive Officer James Gorman said.
The company, which earned a return on equity of about 5% each of the past two years, has a plan to in 2015 and beyond, sustainably drive ROE at 10% or higher, Gorman said yesterday at his banks investor conference in New York. He didnt provide a return target for this year. Last year, he said the firm could post a 10% ROE by 2014 if regulators allowed it to return a reasonable amount of capital to shareholders through dividends and buybacks.
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