Net Income Rises At JP Morgan Asset Management Arm; Private Banking AuM Dips

Tom Burroughes Group Editor 16 January 2017

Net Income Rises At JP Morgan Asset Management Arm; Private Banking AuM Dips

The US bank reported final quarter and full-year results, kicking off the reporting season with a raft of other lenders due to issue figures in the coming days.

tag|JP Morgan">JP Morgan late last week kicked off the quarterly and 2016 full-year reporting season.

JP Morgan's asset management division, which contains private banking, reported net income before tax of $2.251 billion in 2016, 16 per cent higher than a year ago. In the final three months of last year, pre-tax net income was $586 million, up from $507 million a year ago.

The Wall Street-listed bank said private banking assets under management at the end of last year stood at $435 billion, down slightly from $437 billion at the end of 2015. As for total client assets, private banking had $1.98 trillion, up from $1.05 trillion at the end of 2015, it said in a statement.

The US lender gave relatively few other details on the financial performance of its private banking business.

For the asset management division as a whole, total AuM was $1.771 trillion, up from $1.723 trillion.

Across JP Morgan’s operations, net income in 2016 was $24.73 billion, a gain of 1 per cent from 2015. In the last quarter of 2016, that figure was $6.727 billion, a 24 per cent year-on-year increase.

Total net revenue was $23.376 billion in Q4, a 2 per cent rise.

The common equity tier one capital ratio – a commonly-used measure of a bank’s financial strength – was 12.4 per cent at the end of last year, a gain from 11.8 per cent a year before.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes