Morgan Stanley updates on strategic goals

A goal of 22-25% in pre-tax margin in Morgan Stanley's (MS +4%) wealth management unit assumes no change in interest rates and a flat stock market, according to the bank's strategic update being presented on this morning's earnings call (webcast). Margin for 2013 was 18%, up from 14% in 2012.

Goal #2 of a ROE greater than 10% In FICC will be driven by cutting exposure to physical commodities (bank recently sold its global oil merchandising business) and cutting risk-weighted assets. Good progress on this in 2013 has Morgan pulling forward one year to 2015 its target of cutting risk-weighted-assets to less than $180B (they closed 2013 at $235B).

Expense discipline, growth in NIM (by growing securities lending, residential and commercial lending, among other lending), and capital returns complete the plan for a ROE of around 10%.

Previous earnings coverage

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs