JPMorgan Asset and Wealth Mgmt AUM Up 15% YoY

By Alex Padalka July 14, 2020

JPMorgan Chase & Co.’s asset and wealth management business grew its in assets in the second quarter but shed a few advisors, according to the company’s second quarter earnings report.

Assets under management reached $2.5 trillion in the second quarter, up 12% from the previous quarter and up 15% year-over-year, according to the company’s second-quarter earnings report. JPMorgan attributes the growth to net inflows into liquidity and long-term products. 

Client assets, meanwhile, ended the second quarter at $3.4 trillion, up from $3 trillion in the previous quarter and the second quarter of 2019, according to the report. 

JPMorgan ended the second quarter of 2020 with 2,869 wealth management client advisors, down slightly from 2,878 in the previous quarter but up from 2,735 the company had in the second quarter of 2019, the company says. 

Net revenue in the asset and wealth management unit was $3.6 billion in the second quarter of 2020, or about the same as in the previous quarter and up 1% from the second quarter of 2019, which the firm attributes to higher deposit and loan balances and higher brokerage activity, offset by deposit margin compression. Non-interest expense went down to $2.5 billion in the second quarter of this year, compared to $2.7 billion in the previous quarter and $2.6 in the second quarter of 2019, JPMorgan says. 

But provisions for credit losses, driven by reserve builds, shot up to $223 million in the latest quarter, up from $94 million in the first quarter of 2020 and just $2 million in the first quarter of 2019, according to the report. That contributed to a drop in net income for the unit to $658 million in the second quarter of 2020, down from $664 million in the prior quarter and $719 million in the same quarter last year, JPMorgan says. 

The unit’s average loans in the second quarter of 2020 were $163 billion, up 12% year-over-year, and average deposits were $169 billion, up 20% year-over-year, according to the report.  

In a statement accompanying the earnings report, JPMorgan chairman and CEO Jamie Dimon also touched on the initiatives the firm has undertaken in light of the coronavirus pandemic and the nationwide reckoning with racism exemplified by the Black Lives Matter protests following the killing of George Floyd, an African-American, while in policy custody at the end of May.

“We are fully committed to doing our part both in promoting the safety of our employees and customers and helping the economies of the world recover from the impact of the ongoing Covid-19 crisis, including helping to drive policies and programs for the benefit of all of society and create opportunity for those who have been left out of the economy for far too long,” Dimon says. 

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