) rose 1% on the day following its announcement of entering a
deal to sell its Swiss private banking unit to Bank J. Safra
Sarasin AG, the Swiss unit of J. Safra Sarasin Group on April 30.
With this deal, the NY-based financial services provider will be
completely exiting from the European wealth management business.
Bank J. Safra Sarasin is a pioneer in sustainable investment and
offers investment advisory and asset management services to both
the private and institutional clients. It has offices in Basel,
Berne, Geneva, Lucerne, Lugano and Zurich.
As a matter of fact, Morgan Stanley had been contemplating the
closure or divestiture of its Swiss private banking unit, Bank
Morgan Stanley AG, for quite a while. It finally found Bank J.
Safra Sarasin AG as the buyer. The Basel-Switzerland-based bank
was looking to consolidate its presence in the Swiss private
banking market. Though Safra Group's Swiss unit has not disclosed
the terms of the deal, the transaction will likely be completed
by the second half of 2015.
The aforementioned deal will help J. Safra Sarasin, which already
has private banking business in Europe, the Middle East and
Africa (EMEA) and Latin America, to strengthen its overall
private banking business. For Morgan Stanley, the transaction
forms part of its strategy of shedding overseas non-core
operations to improve efficiency.
This is not the first time Morgan Stanley is engaged in closing
its wealth management operations. Last year, the bank sold its
failing Indian wealth management unit to London-based Standard
Chartered Plc. The bank also sold its private wealth management
in Europe and the Middle East to
Credit Suisse Group AG
We believe that Morgan Stanley's initiatives to reduce its
overseas wealth management operations will aid in meeting
Currently, Morgan Stanley carries a Zacks Rank #3 (Hold).
Some better-ranked banks include
Wells Fargo & Company
). All of these stocks carry a Zacks Rank #2 (Buy).
CREDIT SUISSE (CS): Free Stock Analysis
KEYCORP NEW (KEY): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
To read this article on Zacks.com click here.