Assets under management for the Asset and Wealth Management business at JPMorgan Chase rose 4% from the end of the third quarter 2021 and 15% year-over-year to $3.1 trillion, according to quarterly earnings figures released by the company on Jan. 14.
Chief Financial Officer Jeremy Barnum said the increases were driven by cumulative net inflows, as well as higher market levels.
“Asset and wealth management reported net income of $1.1 billion [in Q4 2021] with a pre-tax margin of 34%. Revenue of $4.5 billion was up 16% year on year as higher management fees and growth in deposits and loans were partially offset by deposit margin compression,” Barnum said during the call.
For the year, the unit saw net revenue of $16.96 billion, a 19% increase from 2020.
Noninterest expense was $3.0 billion, up 9%, driven by higher performance-related compensation and distribution fees, higher structural expense, as well as higher investments in the business, partially offset by lower legal expense compared to the prior year.
“Asset & Wealth Management delivered robust results as we saw positive inflows into long-term products of $34 billion across all channels and regions, as well as continued strong loan growth, up 18%, primarily driven by securities-based lending,” said Jamie Dimon, Chairman and CEO.
Barnum added that net long-term inflows totaled a record $164 billion for the year.
“Overall client assets of $4.3 trillion, up 15% and 18% year on year, respectively, were driven by strong net inflows and higher market levels,” Barnum said.
JPMorgan Chase had $3.7 trillion in assets and $294.1 billion in stockholders’ equity as of December 31, 2021. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management.
“JPMorgan Chase reported solid results across our businesses benefiting from elevated capital markets activity and a pick up in lending activity as firmwide average loans were up 6%,” Dimon said in a general statement on the company’s Q4 2021 earnings. “The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks. Credit continues to be healthy with exceptionally low net charge-offs, and we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth.”
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
