Wealth Management Industry Is Poised To Recover

The Wealth management industry is poised to benefit from operating leverage and cyclical exposure, leading to the industry’s recovery. Brad Hintz and team at Bernstein Research point out that with improving revenues since the trough in 2010, the wealth management industry’s profits would improve. Wealth management industry: Improved profitability According to the Bernstein report, the wirehouses such as Morgan Stanley (NYSE:MS), Merrill Lynch, Wells Fargo & Co (NYSE:WFC) and UBS AG (NYSE:UBS) and regional brokers witnessed expanding pre-tax margins over the past three years. The rationalization of FA headcount and segmenting markets to target the most profitable client relationships have allowed…