Private Banking Revenue up 21 Per Cent at JP Morgan

Stephen Harris

18 January 2007

Net income at JP Morgan’s asset management division which encompasses the private bank and private client services along with institutional asset management, was a record $407 million in the forth quarter, up by $65 million, or 19 per cent, from the prior year. Net revenue was a record $1.9 billion, up by $436 million, or 29 per cent, from the prior year. Non-interest revenue, principally fees and commissions, of $1.7 billion was up by $448 million, or 36 per cent. This increase was due largely to increased assets under management and higher performance fees, said the bank in a statement. Private Bank revenue grew 21 per cent, year on year, to $528 million, due to higher asset management and placement fees, and deposit balances, partially offset by narrower spreads on deposits. Private Client Services revenue increased 1 per cent, to $254 million, as increased revenue from higher assets under management was offset by narrower spreads on deposits and loans. Assets under management were $1.0 trillion, up 20 per cent, or $166 billion, from the prior year. The increase was the result of net asset inflows in the retail segment, primarily in equity-related products; institutional flows, primarily in liquidity products; and market appreciation.