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JP Morgan's Wealth, Asset Management Net Income Rises In Q3
Editorial Staff
17 October 2022
JP Morgan’s wealth and asset management arm reported third-quarter net income of $1.2 billion, rising 2 per cent on a year before, achieved on a 6 per cent year-on-year rise in net revenue, standing at $4.5 billion. Non-interest costs were $3.0 billion, up 10 per cent year-on-year in Q3, driven by higher structural expense and investments in the business, including compensation.
Revenues were mostly driven by deposits and loans on higher margins and balances, largely offset by lower management fees due to lower market levels, the US bank said in a statement last Friday.
The provision for credit losses was a net benefit of $102 million, mostly caused by a net reserve release, JP Morgan said.
Assets under management were $2.6 trillion, falling 13 per cent on a year before, mostly caused by falling market levels and from clients pulling money from liquidity products. This outflow was partially offset by continued net inflows for long-term products, the group said.
At the level of the entire JP Morgan business, net income was $9.7 billion in Q3, down from $11.687 billion a year before, driven by a net credit reserve build of $808 million versus a net reserve release in the prior year. Net interest revenue surged to $17.6 billion, rising 34 per cent a year before, and benefiting from higher US official interest rates imposed by the Federal Reserve.