{"id":764890,"date":"2026-07-15T19:17:09","date_gmt":"2026-07-15T19:17:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/764890\/"},"modified":"2026-07-15T19:17:09","modified_gmt":"2026-07-15T19:17:09","slug":"wells-fargo-morgan-stanley-report-strong-q2-wealth-gains","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/764890\/","title":{"rendered":"Wells Fargo, Morgan Stanley Report Strong Q2 Wealth Gains"},"content":{"rendered":"

Wealth units at wirehouses and larger public banks continued to beat estimates in the second quarter of 2026, with Morgan Stanley touting that stock market IPOs<\/a> (like SpaceX<\/a>) are turbocharging net new wealth assets, while Wells Fargo claims the bank has continued to hit near-record advisor recruiting in the past year.<\/p>\n

In the second quarter, Wells Fargo reported $3.8 billion in total revenue from its wealth and investment management division, up 13% year-over-year and slightly higher than the prior quarter.<\/p>\n

Net interest income climbed by 17% based on \u201clower deposit pricing, and higher deposit and loan balances,\u201d while noninterest expenses rose 10% on higher revenue-related advisor compensation. In the bank’s earnings call, Chief Financial Officer Mike Santomassimo said the company expects it \u201cshould be able to run this company with less headcount\u201d than it currently has, and that it will continue looking for ways to cut expenses.<\/p>\n

Related:Morgan Stanley Hauled in Billions of Wealth Assets From IPOs<\/a><\/p>\n

\u201cThere\u2019s more opportunity to make things more automated \u2026 and to make things more efficient in terms of how we serve clients every day, and we think there\u2019s a long way to go,\u201d he said.<\/p>\n

However, it doesn\u2019t seem like those personnel reductions are coming from advisors, as Santomassimo said the wirehouse had close to a record level of recruiting (in terms of revenue brought into the firm) over the last three quarters, with purportedly record-low attrition.<\/p>\n

He boasted about Wells\u2019 success despite acknowledging that the wirehouse hadn\u2019t changed its deal to recruit advisors and doesn\u2019t plan to, and therefore potentially misses out on attracting some teams.<\/p>\n

\u201cThe pipeline we\u2019ve got is quite good in terms of what we\u2019ve got over the rest of the year,\u201d he said.<\/p>\n

At Morgan Stanley, the wealth division reported second quarter net revenue of $8.9 billion (up from $7.9 billion year-over-year), pre-tax income of $2.7 billion, and a pre-tax margin of 30.5%. Net interest income jumped from $1.9 billion to $2.2 billion year-over-year, mainly due to \u201chigher average sweep deposits and the cumulative impact of lending growth,\u201d according to the wirehouse\u2019s earnings report.<\/p>\n

The report highlighted net new assets of $148 billion, over half of which were attributable to inflows from IPOs<\/a> by certain clients in the wirehouse\u2019s Workplace channel. Morgan Stanley was one of the two lead banks in SpaceX\u2019s IPO earlier this year, and the company’s founders and employees (and others) are looking for ways to invest the vast sums of money they made in the offering.<\/p>\n

In an earnings call, Chief Financial Officer Sharon Yeshaya touted the IPO figure as evidence for sticking with the wirehouse, saying clients are \u201cnot going to be able to have that corporate relationship at a much smaller level.\u201d<\/p>\n

Related:Merrill To Allow Advisor Trainees To Join Teams Sooner<\/a><\/p>\n

Like their peers, banks Goldman Sachs and JPMorgan Chase both reported higher year-over-year net revenue. Goldman Sachs revenue in the second quarter was up 20% year-over-year, at about $4.6 billion, while total client assets in wealth stood at approximately $2 trillion (with net interest income in the full division of $662 million).<\/p>\n

JPMorgan\u2019s net revenue in the second quarter sat at $6.9 billion, up 19%. Like Morgan Stanley and Wells Fargo, the bank also saw its wealth expenses grow, largely due to revenue-related compensation and the firm\u2019s moves to bulk up its private banking advisor teams. The firm\u2019s AUM was up 18% from last year to $5.1 trillion, with total client assets rising to $7.7 trillion, largely driven by market performance.<\/p>\n","protected":false},"excerpt":{"rendered":"Wealth units at wirehouses and larger public banks continued to beat estimates in the second quarter of 2026,…\n","protected":false},"author":2,"featured_media":764891,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-764890","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/764890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=764890"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/764890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/764891"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=764890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=764890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=764890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}