JP Morgan’s Wealth, Asset Management Net Income Slipped

Across the whole of the US bank, higher provisions for credit losses, and rising costs, offset the effect of higher revenues in the quarter versus the same period of 2023. CEO Jamie Dimon also warned about the difficult geopolitical outlook and its possible impact on the economic environment.          

JP Morgan reported
late last week that its net income in the third quarter of 2024
slipped year-on-year to $1.351 billion from $1.417 billion for
its asset and wealth management business, a unit including its
private bank. 

Net revenue in this segment rose to $5.439 billion in Q3 2024
from $5.005 billion a year earlier; noninterest costs rose to
$3.639 billion from $3.138 billion a year earlier. Provision for
credit losses was $4 million, against a $13 million net release
in Q3 2023, the US-listed banking group said. 

Assets under management were $3.9 trillion and client assets were
$5.7 trillion, each up 23 per cent, driven by higher market
levels and continued net inflows. 

Across the whole of JP Morgan’s business lines, net income fell
to $12.898 billion in Q3 2024, from $13.151 billion;
revenues – on a reported basis – rose on a year earlier, while
noninterest costs also rose. Provision for credit losses rose 125
per cent year-on-year to $3.111 billion, adding to the drop in
the net income result. 

At the end of September, JP Morgan said it had a Basel III Common
Equity Tier capital ratio of 15.3 per cent – a standard
international measure of a bank’s shock absorber capital. 

CEO Jamie Dimon did not mince his words about the economic and
geopolitical outlook.

“We have been closely monitoring the geopolitical situation for
some time, and recent events show that conditions are treacherous
and getting worse. There is significant human suffering, and the
outcome of these situations could have far-reaching effects on
both short-term economic outcomes and more importantly on the
course of history,” he said. “Additionally, while inflation is
slowing and the US economy remains resilient, several critical
issues remain, including large fiscal deficits, infrastructure
needs, restructuring of trade and remilitarisation of the world.
While we hope for the best, these events and the prevailing
uncertainty demonstrate why we must be prepared for any
environment.”