J.P. Morgan added nearly $1 trillion in assets under custody in the first quarter of 2012, an 8% increase in AuC over the fourth quarter of 2011. Total AuC now stands at $17.9 trillion, a record high for the firm, according to its quarterly earnings statement released today.
Worldwide Securities Services (WSS) revenue of $962 million for the quarter was up 1% year-on-year.
While net revenue in the Treasury & Securities Services division, within which WSS sits, dropped slightly from $2.02 billion in Q4 2011 to $2.01 billion in Q1 2012, net income came out ahead at $351 million compared to $250 million in the previous quarter after factoring in lower noninterest expenses. The firm says increased revenue in the division was driven primarily by a higher Global Corporate Bank credit allocation benefit and the absence of prior-quarter expense related to exiting unprofitable business.
The bank overall had revenue of $27.4 billion, up 24% over the previous quarter and a 6% rise year-on-year. J.P. Morgan ended the first quarter with a Basel I Tier 1 common ratio of 10.4% and an estimated Basel III Tier 1 common ratio of 8.4%.
The bank also said it would increase its annual dividend to $1.20 per share and authorize a new $15 billion equity repurchase program.
As we look toward the future, we continue to build our businesses by investing in infrastructure, systems, technology, and new products, and by adding bankers and offices around the world, CEO Jamie Dimon said in the earnings statement. The strengths that are embedded in this company our people, client relationships, product capabilities, technology, global presence and fortress balance sheet provide us with a foundation that is rock solid and an ability to thrive regardless of what the future brings.
(CG)