JPMorgan Chase’s asset and wealth management business reversed the shrinking of its advisor ranks during the third quarter, and saw year-over-year net income soar.
The firm had 2,646 global private bank client advisors at the end of September, up 211 from 2,435 at the end of June. The total compares to 2,520 at the end of September 2020, according to the company’s third-quarter earnings report.
Asset under management in the asset and wealth management segment, inched up. reaching $2.996 trillion as of the end of the third quarter, compared to $2.987 trillion JPMorgan at mid-year. Still, year-over-year growth was still substantial, the company says.
“In Asset & Wealth Management, AUM of $3 trillion grew 17% driven by higher asset values and strong net inflows, and loans continue to be strong, up 20% primarily driven by securities-based lending,” JPMorgan chief executive officer Jamie Dimon said in a statement.
Total client assets, which also includes custody, brokerage, administration and deposits, reached $4.10 trillion by the end of September, up from $4.04 trillion at the end of June and from $3.37 trillion at the end of September 2020, according to the report.
Total net revenue in the asset and wealth management unit was $4.3 billion in the latest quarter, which was 5% higher compared to the second quarter and 21% higher year-over-year, JPMorgan reported. The firm attributes the growth primarily to “higher management fees and growth in deposit and loan balances, partially offset by deposit margin compression.”
The unit’s non-interest expenses in the third quarter, meanwhile, rose to $2.8 billion, which was 7% higher than in the prior quarter and 13% above year-ago figures, according to the report. The rise was largely due to “higher performance-related compensation, distribution fees, and structural expense,” the company reported.
As a result, net income in the division in the third quarter was $1.2 billion, a 4% increase from the second quarter and a 36% jump from the third quarter of 2020, according to the report.
Overall, JPMorgan is “making important investments, including strategic, add-on acquisitions that will drive our firm’s future prospects and position it to grow and prosper for decades,” Dimon said in the statement.
“This quarter, we became the first bank to have branches in all of the lower 48 states, allowing us to serve more households, businesses and communities across the country,” he boasted.
That puts JPMorgan more than halfway through its goal of adding 400 branches in new markets before 2022 ends. So far, about 30% of these branches in low- to-moderate income communities, Dimon noted.
“We are also expanding our retail presence internationally, most recently launching our digital retail bank in the U.K.”
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