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JPMorgan Asset and Wealth Mgmt Unit’s AUM Up 7% YoY, FA Count Flat

By Alex Padalka April 15, 2020

JPMorgan’s asset and wealth management division grew its assets and held on to its financial advisors during the first quarter amid the coronavirus pandemic.

The division’s assets under management totaled $2.24 trillion at the end of the first quarter, down 5% from the previous quarter but up 7% over the prior year, according to the company’s first-quarter earnings report.

JPMorgan says cumulative net inflows were partly offset by lower market valuations at the end of the first quarter.

The number of wealth management client advisors slipped from 2,890 at the end of 2019 to 2,878 in the first quarter of 2020, which is essentially flat compared to the first quarter of 2019, when JPMorgan had 2,877 advisors, the company says.

Net revenue in the asset and wealth management division during the first three months of 2020 was $3.6 billion, a 3% drop from the previous quarter but a 3% increase over the first quarter of 2019, according to the report. Non-interest income remained essentially flat in the first three months of 2020, at $2.7 billion.

But the firm’s provision for credit losses during the first quarter of 2020 shot up to $94 million, compared to $13 million in the prior quarter and just $2 million in the first quarter of 2019, according to the report. This contributed to a drop in net income in the first three months of 2020 to $664 million, which was a 15% decrease from the prior quarter but essentially flat compared to the first quarter of 2019.

Jamie Dimon (Getty)

The asset and wealth management business “saw strong growth in both loans and deposits,” Jamie Dimon, JPMorgan’s chairman and CEO, says in a statement. “More importantly, we proactively reached out and helped clients manage their risk."

The unit had $75 billion in liquidity loans.

“My heart goes out to the communities and individuals, including healthcare workers and first responders, most deeply hit by the Covid-19 crisis,” Dimon also says in the statement.

Dimon doesn’t mention in that statement that he had emergency heart surgery in early March for an acute aortic dissection, from which he has since recovered enough to return to work. But he does directly thank co-presidents Daniel Pinto and Gordon Smith in the statement. The two executives led the firm while Dimon was recuperating.

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Tags:  Finding and winning new clients , Client retention , Fees and compensation , Staffing and recruiting , JPMorgan

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