JPMorgan’s asset management division has reported a net income of US$568 million for the fourth quarter of 2013, an increase of US$85 million, or 18%, from the prior year.
Net revenue was US$3.2 billion, an increase of US$426 million, or 15%, from the prior year. Noninterest revenue was US$2.6 billion, up US$393 million, or 18%, from the prior year, due to net client inflows, higher valuations of seed capital investments and the effect of higher market levels.
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The division’s net interest income was US$585 million, up US$33 million, or 6%, from the prior year, due to higher loan and deposit balances, partially offset by narrower loan spreads.
Revenue from Private Banking was US$1.6 billion, up 11% compared with the prior year. Revenue from Institutional was US$806 million, up 11%. Retail was US$770 million, up 32%.
Client assets were US$2.3 trillion, an increase of US$248 billion, or 12%, compared with the prior year.
For the quarter ended 31 December 2013, assets under management (AuM) were US$1.6 trillion, an increase of US$172 billion, or 12%, from the prior year.
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By GlobalDataCustody, brokerage, administration and deposit balances were US$745 billion, up $76 billion, or 11%, from the prior year, due to the effect of higher market levels and custody inflows, partially offset by brokerage outflows.
Overall, JPMorgan group reported net income of US$5.3 billion for the fourth quarter of 2013, compared with $5.7 billion in the corresponding quarter of 2012. Results were hurt by weaker investment banking revenue and higher legal expenses.
The bank agreed to some US$20 billion of legal settlements in 2013, with US$850 million in the fourth quarter stemming from its deals over its failure to report suspicions of fraud by Ponzi-schemer client Bernard Madoff.
Jamie Dimon, chairman and CEO, said: "Asset Management had excellent performance with positive net long-term client flows of US$90 billion for the full year 2013 and record loan balances, up 21%."
"We are increasingly optimistic about the future of the U.S. economy and will continue to do our part to support growth, economic development and the creation of new jobs around the world," Dimon added.
