Morgan Stanley (MS) CEO James Gorman on Q2 2022 Results - Earnings Call Transcript

Morgan Stanley (NYSE:MS.PK) Q2 2022 Earnings Conference Call July 14, 2022 9:30 AM ET

Company Participants

James Gorman - Chairman and Chief Executive Officer

Sharon Yeshaya - Chief Financial Officer

Conference Call Participants

Christian Bolu - Autonomous

Glenn Schorr - Evercore

Steve Chubak - Wolfe Research

Dan Fannon - Jefferies

Ebrahim Poonawala - Bank of America

Brennan Hawken - UBS

Mike Mayo - Wells Fargo Securities

Gerard Cassidy - RBC Capital Markets

Matt O’Connor - Deutsche Bank

Jim Mitchell - Seaport Global

Operator

Good morning. Welcome to Morgan Stanley’s Second Quarter 2022 Earnings Call. On behalf of Morgan Stanley, I will begin the call with the following information and disclaimers. This call is being recorded. During today’s presentation, we will refer to our earnings release and financial supplement, copies of which are available at morganstanley.com.

Today’s presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Please refer to our notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release. This presentation may not be duplicated or reproduced without our consent.

I will now turn the call over to Chairman and Chief Executive Officer, James Gorman.

James Gorman

Thank you, operator. Good morning, everyone and thank you for joining us. We are doing the call a little differently this time. I am in London, Sharon is in New York. So, if we have any logistical gaps for a second or two please understand, but I think we will be just fine.

The firm delivered a very solid quarter against obviously what is a more challenging backdrop. Our businesses proved resilient, reflecting an important aspect of our strategy, and that is to, as we have said many times, deliver stable performance in a difficult environment while remaining well capitalized. The integrations of E*TRADE and Eaton Vance continued to expand our opportunities to reach new clients, grow assets and support the firm’s overall stability. Net new assets in Wealth Management of over $50 billion, despite the volatility and clients tax-related withdrawals in the quarter, underscored the scale of our business and its power to attract assets. And in the face of a sharp decline of equity markets, Wealth Management delivered a strong PBT and improved margin supported by the benefits of rising rates.

Investment Management benefited from its diversification and we saw continued momentum in private alternatives, parametric customized portfolios and the countercyclicality of our money market business. Finally, in Institutional Securities, our strong franchise in equity and fixed income helps materially counter what everybody knows to be limited activity across Investment Banking.