J.P. Morgan's AuC Rises 10%, While Total Revenue Declines

Assets under custody at J.P. Morgan reached $21.1 trillion at the end of the first quarter of 2014, a 10% gain year over year and a 3% rise from the previous quarter. However, the bank's earnings as a whole fell short of last year.
By Jake Safane(2147484770)
Assets under custody at J.P. Morgan reached $21.1 trillion at the end of the first quarter of 2014, a 10% gain year over year and a 3% rise from the previous quarter. However, the bank’s earnings as a whole fell short of last year.

For Markets & Investor Services, revenue for the quarter was $5.9 billion, down 18% from the prior year, yet within this group, securities services revenue was $1 billion, up 4% from the prior year. This rise was primarily driven by higher net interest income on higher deposits and higher asset-based custody fees.

Overall, the bank’s net income for the first quarter of 2014 of $5.3 billion, down from net income of $6.5 billion in the first quarter of 2013. Earnings per share were $1.28, compared with $1.59 in the first quarter of 2013, and revenue for the quarter was $23.9 billion, down 8% compared with the prior year. The bank said these figures reflect the impact of lower loan yields and lower trading and investment securities balances, some of which was offset by higher investment securities yields, lower long term debt and deposit interest expense.

J.P. Morgan’s Basel III Tier 1 common ratio measured 9.5%, the same as last quarter but up from 8.9% in the first quarter of 2013.

Total headcount at the firm declined by 8,904 employees since last year, with the current tally at 246,994.

«