Saturday 15 December 2018

Key client exit hits profits at JP Morgan

Accounts filed by JP Morgan Bank (Ireland) plc to the Companies Office show that the assets it had under management at the end of December 2016 decreased by 18pc from $335.4bn to $275.6bn
Accounts filed by JP Morgan Bank (Ireland) plc to the Companies Office show that the assets it had under management at the end of December 2016 decreased by 18pc from $335.4bn to $275.6bn

Gordon Deegan

Pre-tax profits at the IFSC- based arm of banking giant JP Morgan decreased in 2016 by 41pc to $10m (€8m).

Accounts filed by JP Morgan Bank (Ireland) plc to the Companies Office show that the assets it had under management at the end of December 2016 decreased by 18pc from $335.4bn to $275.6bn.

Revenues from fees and commissions at the JP Morgan arm declined by 3.5pc going from $135m to $130.3m in the 12 months to the end of December in 2016. The directors state that the drop in profit was as a result of a key client exiting under Investor Services during 2016.

Numbers employed at the bank decreased from 479 to 411 with staff costs of over $49.2m.

The accounts show that fees earned from asset-based revenues declined from $49.7m to $40.7m with non-asset-based fee revenues increasing from $85.4m to $92m.

The directors state that the decrease in asset-based fees in 2016 was due to a key client exiting while the increase in non-asset-based fee revenues was due to a rise in the attribution of revenues earned by other group companies in 2016.

The figures show staff costs decreased from $50.87m to $49.2m - that includes salaries totalling $32m and other staff costs of $8.3m. Directors remuneration declined from €1m to €883,958. Shareholder funds of $384m which includes accumulated profits of $327.7m. The company's cash pile remained at $266m. The company made an operating profit of $7.9m and benefited from $2m in net interest receivable.

Irish Independent

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