Financial Results

US Banking Titan Has Q4 Net Income Setback But 2014 Figures Set A Record

Tom Burroughes, Group Editor, 15 January 2015

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JP Morgan said its fourth-quarter net income came in at $4.9 billion a fall from $5.3 billion a year earlier. However, full-year net income set a record and was up from 2013’s level.

(Article adds wealth management figures.)

JP Morgan said its fourth-quarter net income came in at $4.9 billion, a fall from $5.3 billion a year earlier; earnings per share were $1.19 per share from $1.3 per share. However, full-year net income set a record and was up from 2013’s level.

JP Morgan said that the parent of its global wealth management business, the asset management division, had a record year, generating $12 billion in revenue, up 5 per cent year-over-year. Net revenue for the quarter was $3.2 billion, flat on the prior year. Client assets were $2.4 trillion, up by 2 per cent compared with the prior year. The asset management division marked its 23rd consecutive quarter of positive net long-term client flows.

JP Morgan said global wealth management “delivered its strongest-ever performance” in 2014, achieving record revenue of $5.7 billion, up 5 per cent. Client assets reached a record at $1.1 trillion. Average loans were $103.3 billion, a record, up 11 per cent from the prior year and up 20 per cent from the prior quarter. Average deposits were $152.0 billion, a record, up by 6 per cent from the prior year and up 1 per cent from the prior quarter.

The bank kicked off the quarterly reporting season, with a slew of results from other American banks due in the next week.

Revenue for the quarter was $23.6 billion, down 2 per cent compared with the same period in 2013. JP Morgan said it returned about $3 billion of capital to shareholders in the fourth quarter.

For the whole of 2014, net income was a record $21.8 billion, compared with $17.9 billion in 2013. Revenue for 2014 was $97.9 billion, down 2 per cent compared with 2013 revenue of $99.8 billion.

"Our businesses continue to demonstrate strong momentum and expense discipline. Consumer & Community Banking delivered impressive growth in deposits and investment assets in the fourth quarter and throughout 2014, while outperforming its expense reduction target for the year,” Jamie Dimon, chief executive, said in a statement on yesterday’s figures.

“Asset management had over $80 billion of net long-term inflows for the second consecutive year and overall AuM grew 9 per cent this quarter compared to the prior year,” Dimon said.

Net income in asset management was $540 million, a drop of $41 million, or 7 per cent, from the prior year, reflecting higher noninterest expense, partially offset by lower provision for credit losses, the bank said.

Revenue from global investment management was $1.7 billion, down 3 per cent compared with the prior year. Revenue from global wealth management was $1.5 billion, up 4 per cent compared with the prior year.

Client assets were $2.4 trillion, an increase of $44 billion, or 2 per cent, compared with the prior year. Excluding retirement plan services, client assets were up 8 per cent compared with the prior year. Assets under management were $1.7 trillion, an increase of $146 billion, or 9 per cent, from the prior year, due to net inflows to long-term products and the effect of higher market levels.

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