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October 14, 2020updated 30 Oct 2020 8:02am

JP Morgan wealth unit reports strong performance in Q3

JPMorgan asset and wealth management (AWM) arm has reported growth in net revenue in the third quarter (Q3) mainly driven by higher deposit and loan balances.

This was supported by growth in net income and AUM and a rise in its wealth management client adviser headcount.

AWM highlights

The AWM unit’s total net revenue was $3.74 bn in the three-month-period ending 30 September 2020, up 5% from $3.57bn in the prior year.

Asset Management contributed $1.92bn to revenue – which climbed 6% from a year earlier – while the remainder was generated by Wealth Management where revenue rose 3% on a year-on-year basis.

AWM’s net income was $877m in Q3 2020, a 31% surge from $668m in the same quarter of 2019.

Total noninterest expense at the division remained stable at $2.62bn.

The number of wealth management client advisers at the end of September 2020 was 2,968, compared with 2,872 a year ago.

Assets under management were $2.6trn, a 16% increase due to cumulative net inflows into liquidity and long-term products.

JPMorgan chairman and CEO Jamie Dimon said: “Asset & Wealth Management generated record revenue and net income and saw strong net inflows into long-term products.”

Group performance

At a group level too, the bank displayed resilience with net income rising 4% to $9.44bn from $9.1bn. Revenue was almost flat at $29.9bn.

The bank set aside $611m in loan loss provisions in Q3 2020. The reserve build was much smaller compared to $10.5bn in the previous quarter.

Noninterest expense of $16.9bn was 3% higher than the prior year, due to higher legal expense.

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