Morgan Stanley Seeks to Boost Loans to 70% of Deposits by 2015

Morgan Stanley (MS), which is set to receive another $57 billion of deposits from Citigroup Inc. as part of its Smith Barney purchase, plans to accelerate lending to put those funds to use.

Morgan Stanley targets a loan-to-deposit ratio of about 70 percent in 2015, compared with about 55 percent last year, according to a presentation on the firm’s website. Chief Financial Officer Ruth Porat is scheduled to speak to investors today at a conference in New York.

In addition to mortgages and securities lending to individual clients, the bank will boost commercial real estate, corporate and warehouse lending, the presentation shows. Each of those business lines has an expected return on equity of at least 15 percent, the firm said.

To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; Christine Harper at charper@bloomberg.net

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