Wealth management businesses have had the wind in their sails this year thanks to robust retail investor activity. Plus, a blockbuster year for IPOs has produced a wave of newly minted millionaires.
Earnings reports posted this week showed growth in client assets in a range between roughly 12% and 25% at major banks, which benefited from stock market appreciation and advisors' bringing in new clients and more money. That bodes well for wealth management companies that are expected to report quarterly earnings later this month, such as Charles Schwab, LPL Financial, and Raymond James Financial.
Among companies that have reported second-quarter earnings this week, Morgan Stanley posted the largest jump in assets on Wednesday: a record $148 billion in net new assets, a 150% increase from the same period a year ago. Net new assets is a closely watched growth metric for the wealth management industry, which typically earns fees based on assets under management.
Morgan Stanley's asset-gathering during the quarter was impressive given tax-season headwinds; clients typically withdraw funds in April to pay tax bills. The company said half of its net new assets came from clients of the company's workplace benefits business that work for companies that came public. It's a sign that Morgan Stanley's efforts to develop a pipeline of future clients is paying off.
IPO events form "the top of the funnel," CFO Sharon Yeshaya said during the company's earnings call on Wednesday.
Total client assets for Morgan Stanley's wealth management unit jumped 25% year over year to $8.08 trillion. The unit includes online brokerage E*Trade, which benefited from robust trading activity. Self-directed client assets increased 25% to $1.8 trillion and daily average revenue trades soared 30% to 1.3 million.
More results. Also on Wednesday, BNY said its wealth solutions unit brought in $25 billion in net new assets during the quarter. For the same period a year ago, the unit saw $10 billion in outflows. Assets under custody and administration ended the quarter at $3.6 trillion, up 20%. The unit includes Pershing, which provides custody, clearing, and technology services to registered investment advisors and other wealth managers.
On Tuesday, banks with large wealth management units reported increases in client assets. JPMorgan Chase said firmwide wealth management assets were $4.9 trillion for the second quarter, a 19% increase from the same period a year ago.
Wells Fargo said total wealth and investment management client assets increased 15% year over year to $2.4 trillion. CFO Mike Santomassimo said asset growth has benefited from market appreciation and recruiting efforts that are bringing advisors, and assets, to Wells Fargo. The bank doesn't disclose total advisor head count. Revenue for Wells Fargo's wealth unit rose 13% to $3.9 billion
Citigroup reported client investment assets rose 14% to $727 billion. Net new investment assets were $16 billion for the quarter, up from $2 billion for the second quarter of 2025. Revenue for Citi's wealth management business increased 13% to $3.2 billion.
Bank of America said that client balances for its wealth management unit rose 12% year over year to $4.9 trillion. The unit includes Merrill and BofA's private bank. Assets under management flows came to $13.7 billion, down from $14.3 billion for the same period a year ago. During the bank's earnings call, CFO Alastair Borthwick said that financial advisor attrition is "near historic lows." Low attrition helps with asset growth because advisors typically take clients and assets with them when they leave to join a competitor. The wealth unit's revenue increased 16% to $6.9 billion.
Banks have placed greater emphasis on growing their wealth management businesses in recent years because overseeing money on behalf of the wealthy can generate steady revenue. A robust macroenvironment for stocks and investing can provide tailwinds for wealth units.
On Wednesday, J.P. Morgan Securities analyst Kenneth B. Worthington raised his December 2026 price target for Schwab to $137 from $131 in part because of better market conditions. He rates shares Overweight.
Write to Andrew Welsch at andrew.welsch@barrons.com
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(END) Dow Jones Newswires
July 16, 2026 15:03 ET (19:03 GMT)
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