Revenue from Private Banking was $1.4 billion, up 19% from the prior year. Revenue from Institutional was $729 million, up 31%. Revenue from Retail was $583 million, up 13%.
Assets under supervision were $2.1 trillion, an increase of $174 billion, or 9%, from the prior year. Assets under management were $1.4 trillion, an increase of $90 billion, or 7%, due to the effect of higher market levels and net inflows to long-term products, partially offset by net outflows from liquidity products . Custody, brokerage, administration and deposit balances were $669 billion, up $84 billion, or 14%, due to the effect of higher market levels and custody and brokerage inflows.
The provision for credit losses was $19 million, compared with $24 million in the prior year.
Noninterest expense was $1.9 billion, an increase of $191 million, or 11%, from the prior year, due to higher performance-based compensation and higher headcount-related 2 expense.
Key Metrics and Business Updates: (All comparisons refer to the prior-year quarter except as noted)
- Pretax margin 2 was 29%, up from 22% in the prior year.
- Return on equity was 27% on $7.0 billion of average allocated capital.
- For the 12 months ended December 31, 2012, assets under management reflected net inflows of $17 billion, driven by net inflows of $60 billion to long-term products and net outflows of $43 billion from liquidity products. For the quarter, net inflows were $32 billion reflecting net inflows of $24 billion to liquidity products and net inflows of $8 billion to long-term products.
- Net long-term client flows were positive for the fifteenth consecutive quarter.
- Assets under management ranked in the top two quartiles for investment performance were 76% over 5 years, 74% over 3 years and 67% over 1 year.
- Customer assets in 4 and 5 Star–rated funds were 47% of all rated mutual fund assets.
- Record assets under supervision were $2.1 trillion, up 9% from the prior year and 3% from the prior quarter.
- Record average loans were $76.5 billion, up 40% from the prior year and 7% from the prior quarter.
- Record end-of-period loans were $80.2 billion, up 39% from the prior year and 7% from the prior quarter.
- Record average deposits were $133.7 billion, up 10% from the prior year and 5% from the prior quarter.
Results forCorporate/Private Equity($ millions)
|4Q12||3Q12||4Q11||$ O/(U)||O/(U) %||$ O/(U)||O/(U) %|
|Provision for Credit Losses||(6)||(11)||(10)||5||45||4||40|
Discussion of Results:
Net income was $498 million, compared with $233 million in the prior year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV