View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 17, 2022updated 18 Jan 2022 9:33am

JP Morgan wealth unit records 46% jump in Q4 income

By Krishna Chaitanya

JPMorgan asset and wealth management (AWM) unit has reported a 46% jump in the net income for the fourth quarter of 2021.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

The unit’s net income was $1.1bn for the three months to 31 December 2021, compared to $786m in the same period last year.

Net revenues at the unit increased 16% year-on-year to $4.5bn in Q4.

According to JPMorgan, this rise was driven by increased management fees and growth in deposits and loans. However, the increase was partially offset by deposit margin compression.

During this period, the unit’s assets under management (AuM) rose 15% to $3.1trn, on the back of cumulative net inflows and higher market levels.

Noninterest expense was $3bn for the Q4 2021, up 9% year-on-year.

This was attributed to higher performance-related compensation and distribution fees, higher structural expense, as well as higher investments in the business, partially offset by lower legal expense compared to the prior year.

Group performance

At a group level, JPMorgan Chase & Co reported a net income of $10.4bn, down 14% from $12.1bn in a year earlier.

Net revenue increased 1% to $30.3bn, while net interest income rose 3% to $13.7bn.

The rise in net interest income was driven by balance sheet growth, partially offset by lower net interest income in CIB Markets.

Diluted earnings per share was $3.33 for the quarter as against $3.79 in the year ago period.

JPMorgan Chase & Co group chairman and CEO Jamie Dimon said: “JPMorgan Chase reported solid results across our businesses benefiting from elevated capital markets activity and a pick up in lending activity as firmwide average loans were up 6%.

Dimon added: “In 2021, we extended credit and raised over $3trn  in capital for our consumer and institutional clients around the world, which includes nonprofits and US government entities, including states, municipalities, hospitals and universities. We also accelerated investments to expand our product distribution capabilities, both domestically and internationally, enhance our products and services and modernise our technology.”

JP Morgan reported a profit of $1.2bn in Q3 2021, up 36% from $876m a year ago.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International