J.P. Morgan Reports Mixed Custody/Securities Results In Q4

J.P. Morgan was the first global investment bank to report its fourth quarter results, in which it reported mixed results in its custody and securities services business despite higher legal costs.

During the quarter, assets under custody were $20.5 trillion, flat from the prior year and down 3% from the prior quarter. Meanwhile assets under management were up by 9% to $1.7 trillion due to net inflows to long-term products and the effect of higher market levels, the bank said in its earnings statement.

Within J.P. Morgan’s corporate and investment banking division, revenue from its securities services business was up 6% to $1.1 billion, “primarily driven by higher fees and commissions as well as higher net interest income on increased deposits,” the bank says.

However, its overall earnings in the quarter were largely hit by higher-than-expected legal expenses. It reported a profit of $4.93 billion, down by $350 million, as legal expenses reached almost $1 billion due its involvement in the FX rigging scandal.