Financial Results
JP Morgan Saw Net Income Dip In Q1; Private Banking Arm Fared Better
JP Morgan Chase & Co has reported net income for the first quarter of 2014 of $5.3 billion, down from $6.5 billion in the first quarter of 2013, while revenue dropped by 8 per cent year-on-year to $23.9 billion.
JP Morgan Chase & Co has reported that net income for the first quarter of 2014 was $5.3 billion - down from $6.5 billion a year earlier - while revenue fell by 8 per cent year-on-year to $23.9 billion.
The bank fared better at its private banking arm, where revenue was $1.5 billion, up 4 per cent compared with the first quarter of 2013. Revenue from institutional was $500 million, down 12 per cent, while retail logged $769 million, up 20 per cent.
Media reports said earnings data for the blue-blooded bank had come in below consensus forecasts; shares in the bank dropped last Friday.
Net income from asset management operations was $441 million, a decrease of $46 million, or 9 per cent, from a year ago. This reflects higher non-interest expense, largely offset by higher net revenue, JP Morgan said.
Net revenue at the unit, by contrast, rose by 5 per cent year-on-year to $2.8 billion. Non-interest revenue, meanwhile, was $2.2 billion, up $124 million, or 6 per cent. The latter was due to client inflows and the effect of higher market levels, partially offset by lower valuations of seed capital investments.
The New York-listed firm reported that client assets totalled $2.4 trillion, up 10 per cent on the prior year, while AuM rose by 11 per cent to $1.6 trillion off the back of higher market levels and net inflows to long-term products.
Custody, brokerage, administration and deposit balances rose by 8 per cent to $746 billion, due to the effect of higher market levels and custody inflows, partially offset by brokerage outflows.
In February, JP Morgan reached a $614 million settlement with a raft of US government departments to resolve claims relating to the bank’s involvement in federal mortgage insurance programme. The news came after the firm agreed to pay $1.7 billion in January to settle criminal allegations that it did not tell US authorities about suspicious activity from Bernard Madoff.
