Morgan Stanley says it had a loss from continuing operations in the second quarter ended June 30 of $159 million vs. income of $689 million a year ago. Net revenues for the quarter were $5.4 billion, compared with $6.1 billion last year, and non-interest expenses were $6.0 billion, compared with $5.2 billion in '08.
Compensation expenses were $3.9 billion vs. $3.1 billion last year, while non-compensation expenses increased slightly from a year ago.
Comparisons of current-quarter results to prior periods are impacted by the results of the Morgan Stanley Smith Barney joint venture (MSSB), which closed on May 31, 2009, the company says.
The joint venture, MSSB, created a new wealth-management business with 18,444 global representatives and $1.4 trillion in client assets, according to a statement. It is being led by James Gorman and Charles Johnston.
The nearly 18,450 Morgan Stanley Smith Barney advisors had average annualized revenue of $671,000 and average client assets of $77 million, according to Morgan Stanley's second-quarter press release.
This marks an improvement from where Morgan Stanley advisors, on their own, were three months ago.
Morgan Stanley had 8,148 financial advisors at the end of the first quarter, March 31.These reps now had annualized revenue of about $630,000 in March, a 20 percent drop for the previous year's $772,000 but above the $603,000 of the quarter ended December 31, 2008.
Total client assets for Morgan Stanley advisors stood at about $525 billion on March 31, down some 25 percent from a year ago. Assets owned by clients with more than $1 million in assets represent 67 percent of total assets. And fee-based assets stand at roughly 24 percent of total assets.
Client assets per Morgan Stanley advisor were $64 million on average, in March, down from $85 million a year ago and $66 million in the quarter ended December 31, 2008.
As for Citi-Smith Barney, it reported 12,659 financial advisors in the first quarter of 2009, including bankers. These advisors had $1.2 trillion in assets under management, and $2.62 billion in revenue for the quarter ended March 31, 2009 – representing about $207,000 per advisor.
Combining average revenue per FA at Citi-Smith Barney in from Q1'08 through Q1'09, the advisors had about $850,000 of sales and commissions per advisor.
Global wealth management group had a net profit of $47 million after the non-controlling interest allocation to Citigroup and before taxes. Other results included:
- Net revenues of $1.9 billion, up 13 percent from a year ago as higher revenues related to MSSB were partly offset by the impact of weaker market conditions.
