Morgan Stanley said today that its wealth management clients withdrew assets during the second quarter, slowing the firm's recovery plans.
The wealth management division had a net $5.5 billion in outflows of client assets during the quarter, compared to $9.3 billion of net new money added by clients during the first quarter.
In the U.S., clients pulled out $7.9 billion, offset by inflows of $2.4 billion in oversees officers.
Earlier this year, Morgan Stanley Chief Executive James Gorman said he wanted the wealth division to increase client assets by $20 billion this year.
At the end of June, Morgan Stanley had total client assets of $1.5 trillion, down 6 percent from the first quarter.
Overall, the division posted a profit of $110 million, an increase of 11 percent from the first quarter, while net revenues remained relatively flat for the quarter, at $3.1 billion.