Wealth management firms have stumbled in recent months, as profits and client asset levels have been buffeted by volatile markets. And with few notable exceptions, advisor headcounts have also fallen at the largest brokerage firms.
Meanwhile, wirehouse and regional broker-dealers particularly those owned by larger banks are trying to boost their profit margins. On an earnings call with analysts, Morgan Stanley CEO James Gorman said that his company's wealth management unit
would boost its pretax profit margin from its current 20% to 25%.
To reach the company's goals, Gorman said that Morgan Stanley would follow a program of cost cuts, digital technology enhancements and pursue greater lending and banking business.
Recent earnings reports give the industry a moment to take stock and see how the firms are measuring up. Click through our slideshow to see how your firm is performing compared to its peers. For a one-page version, click here
.--With additional reporting by Veronica Ni