NEW YORK, April 18 Morgan Stanley's
wealth management business plans to grow revenue by lending more
of its customer deposits, but the bank is growing its loan book
slowly to avoid taking on excessive risk, Chief Financial
Officer Ruth Porat said on Thursday.
"There's no reason to rush it," Porat said on a conference
call with analysts to discuss Morgan Stanley's first-quarter
earnings report. "We want to make sure that we do it in a
high-quality way and we are leading with risk management."
Chief Executive James Gorman said the bank's mortgage loan
business was higher last quarter, as Morgan Stanley tries to put
deposits to more profitable use.
That business reported a 17 percent profit margin for the
second consecutive quarter, due to expense reductions and
revenue growth. Lending is one way Gorman has said the business
can increase revenue.
Morgan Stanley plans to buy a remaining 35 percent stake in
its wealth management joint venture with Citigroup Inc
that Citi still owns, but is waiting for "process approval" from
the U.S. Federal Reserve, Porat said.