Reports
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.
