Private Banking Revenues Rose At JP Morgan's Private Bank In Q2

Tom Burroughes Group Editor London 15 July 2014

Private Banking Revenues Rose At JP Morgan's Private Bank In Q2

The private bank of JP Morgan reported a rise in year-on-year revenues in the second quarter of this year.

JP Morgan today said second-quarter revenues for its private banking arm rose 5 per cent year-on-year to $1.6 billion, following in the wake of Citi Private Bank’s report of a small rise in such revenue a day earlier.

The private banking results of the US bank are contained in its asset management division. The division reported a 15 per cent year-on-year rise in client assets, reaching $2.5 trillion, or rise in $316 billion. Assets under management were $1.7 trillion, an increase of $237 billion, or 16 per cent, from the prior year, driven by higher markets and inflows to long-term client products.

Custody, brokerage, administration and deposit balances were $766 billion, up $79 billion, or 11 per cent, from the prior year, due to the effect of higher market levels and custody inflows, partially offset by brokerage outflows.

Across the bank as a whole, the firm reported net income for the second quarter of 2014 of $6.0 billion, compared with net income of $6.5 billion in the second quarter of 2013. Earnings per share were $1.46, compared with $1.60 in the second quarter of 2013. Revenue for the quarter was $25.3 billion, down 2 per cent compared with the prior year.

“Toward the end of the second quarter, we saw encouraging signs across our businesses including an uptick in wholesale utilization, strengthening pipelines in our commercial and business banking segments, and some improvements in markets activity. While it is too early to assume that this momentum will continue, we have confidence in the long-term growth of the economy,” Jamie Dimon, chairman and chief executive, said in a statement. (As reported a few days ago, Dimon is undergoing treatment for a form of throat cancer said to have a high survival rate.)

The bank noted that it had a common equity Tier 1 ratio at the end of the quarter of 9.8 per cent.

In its corporate and investment banking business, net income was $2.0 billion, down 31 per cent compared with $2.8 billion in the prior year. “These results primarily reflected lower revenue, as well as higher non-interest expense,” the bank said.

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