J.P. Morgan's AUC Rises 14% Year Over Year

J.P Morgan had a strong second quarter for its securities services business, with revenue of $1.1 billion, a 5% gain year over year and 12% above last quarter. The bank’s assets under custody reached $21.7 trillion, up 14% from the prior year and 2% from last quarter.

The firm says that the increase in securities services revenue primarily came from higher net interest income on increased deposits.

For its asset management business, J.P. Morgan had nearly $3 billion in quarterly revenue, up 8% year over year and 6% for the quarter. Client assets for this business reached $2.5 trillion, an increase of 15% year over year and 3% from last quarter.

For the bank as a whole, total revenue equaled $24.45 billion for the quarter, a 3% fall year over year but a 6% gain from last quarter. As for the first half of the year, revenue is down 6% compared to the same period last year. The bank’s net income for the quarter totaled just under $6 billion, which was an 8% fall from last year and a 13% rise since last quarter.

In the second quarter, J.P. Morgan used the Basel III advanced approach for calculating its capital ratio, which resulted in a Tier 1 capital ratio of 11.1%. In the past, the bank used a standard approach, which would have equaled 12.3% this quarter. Last quarter under the standard approach, the ratio measured 12.1% and in Q2 2013 it measured 11.6%. The bank’s leverage ratio also improved to 7.6%, up from 7.4% last quarter and 7.0% in the second quarter last year.

Lastly, the bank’s total headcount decreased by 8,871 over the past year to 245,192.