J.P. Morgan Reaches Record AuC in 2013

Following up on its record 2012 year, J.P. Morgan’s AuC increased 9% in 2013 to a new high of $20.5 trillion.

Primarily driven by higher custody and fund services revenue, the firm’s securities services revenue also rose 2% year over year to $4.1 billion, largely as a result of the higher AuC and higher deposits. For the fourth quarter of 2013, securities services revenue totaled $1 billion, a 3% rise from the previous quarter.

However, total Markets & Investor Services revenue fell 33% in the fourth quarter from the previous quarter. This was largely due to a $1.5 billion loss as a result of implementing a funding valuation adjustment framework for OTC derivatives and structured notes and debit valuation adjustments on structured notes and derivative liabilities. For the year, Markets & Investor Services revenue fell 4% to $22.2 billion.

In preparation for Basel III, J.P. Morgan raised its Tier 1 common ratio from 9.3% in Q3 2013 to approximately 9.5% in Q4 2013. The firm also recognized that the Basel Committee’s recent publication on the Supplementary Leverage Ratio (SLR) was responsive to industry comments, and the firm anticipates the ability to increase derivatives cash collateral netting over time. J.P. Morgan also said it believes its compliant with the Net Stable Funding Ratio’s most recent definition.

The firm also decreased its workforce by 7,557 for a total headcount of 251,196.