JP Morgan yesterday released its first quarter 2006 results, which saw its two major wealth management operations – private banking and priv...

JP Morgan yesterday released its first quarter 2006 results, which saw its two major wealth management operations – private banking and private client services – struggle with revenue growth.

The Wall Street bank said revenues grew 5 per cent year-on-year to $441 million for the private banking segment, whereas private client services reported a 2 per cent decline in revenues to $266 million.

This contrasts to the much stronger growth for the bank’s institutional asset management revenues, which were up 35 per cent, to $435 million.

JP Morgan said that assets under supervision, which includes global custody funds, were $1.2 trillion, up 10 per cent, or $105 billion, from the prior year. And this includes a $33 billion reduction due to the sale of BrownCo, an online stockbroker firm.

Assets under management were $873 billion, up 11 per cent, or $83 billion, from the prior year. JP Morgan said the increase was primarily the result of market appreciation and net asset inflows driven by retail flows from third-party distribution, primarily in equity-related products, and institutional flows in liquidity products.

No breakdown was given for the wealth management segment of AUMs.