Key client exit hits profits at JP Morgan
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.