JP Morgan results: higher asset management and custody revenues

ProfitJP Morgan Chase reported increased assets under management and assets under custody this week in group results that beat analysts' expectations. Despite a fall in group profit to $6 billion in the second quarter (Q2) compared to $6.5 billion a year earlier, and a decline in revenue, the bank reported $1.46 earnings per share (EPS) – higher than the $1.26 EPS that Thomson Reuters had predicted. Assets under management in the bank's asset management unit were $1.7 trillion, an increase of $237 billion, or 16%, from the prior year, due to the effect of higher market levels and net inflows to long-term products. The business saw its 21st quarter of net long-term inflows. According to Jamie Dimon, group chairman and chief executive, asset management had "excellent performance across all measures". Assets under custody in the bank's investor services unit reached a record $21.7 trillion, up 14% from the prior year and 2% from the prior quarter. Asset management and investor services, two separate business lines, increased revenues and profits while falls were seen in other business lines. Investor services revenue was $1.1 billion, up 5% from the prior year primarily driven by higher net interest income on increased deposits. Asset management profit was $552 million, an increase of $52 million, or 10%, from Q2 in the prior year, reflecting higher net revenue, largely offset by higher noninterest expense. Dimon offered insight that supports a positive outlook for the US economy. "Consumers, middle market companies and corporations are in increasingly good financial shape and the labor market is showing steady improvement." He said JPMorgan Chase provided credit and raised capital of over $1 trillion for clients during the first half of 2014, which included $10 billion for US small businesses. ©2014 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.