In the US, JPMorgan has 55 dedicated private banking offices, from Austin to Seattle, and Cincinnati to Fort Lauderdale. Elsewhere, it focuses heavily on serving high and ultra-high net-worth customers in Europe, where it has eight offices, including the UK and Germany, Asia, through Hong Kong and Singapore, and Latin America, with clients served out of Miami, New York and Switzerland.
The data supports the argument that JPMorgan is in 2023, as it was in 2022, the world’s premier wealth management institution. Net revenues at its asset and wealth management (AWM) division came in at $17.75 billion last year, against $16.96 billion in 2021. Net interest income was $5.24 billion in 2022, up 34.7% year on year, with net income at $4.37 billion and a return on equity of 25%.
Assets under management at JPMorgan held up well in a year when most lenders, large and small, saw assets stall or fall. At the end of 2022, the US bank’s AWM division oversaw total client assets of $4 trillion, double the total from 10 years earlier. Average deposits rose 13.5% in 2022 to $261.5 billion from $230.3 billion the year before.
All the numbers point in the right direction. Over the five years to the end of 2022, AWM client asset inflows totalled $1.1 trillion. The private bank posted revenues of $2.43 billion in the fourth quarter of 2022, against $445 million in the same period a year earlier. AWM generated net income of $1.13 billion in the last three months of 2022. The division posted net revenues of $4.78 billion in the first quarter of 2023, up 4% quarter on quarter and 11% year on year, with net income up 36% year on year, to $1.37 billion.
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“As fiduciaries for clients overseeing more than $4 trillion of their assets, we never take for granted the trust and confidence they place in us. We work tirelessly to re-earn it each and every day,” says Mary Callahan Erdoes, chief executive of JPMorgan AWM.
“We are proud of the breadth and consistency of our success in delivering value to our clients,” she adds. "We remain relentlessly focused on being the adviser of choice to the world’s most prominent institutions, pension funds, central banks, individuals and families."
JPMorgan continues to win awards. Euromoney named it the world’s best private bank earlier this year. It also took the awards for the world’s best private bank for ultra-high net-worth clients – it claims to have relationships with 50% of the world’s deca-billionaires or families with at least $10 billion in assets – and for investment research. It was also named the best international private bank in each of Germany, Italy and Singapore, as well as the best international private bank in Asia.
The number of global private bank client advisers rose 15% year on year last year, to 3,137, of which 460 are based outside the US. In its 2022 annual report, the bank said it was “on a path to 6,000” client advisers, with the aim of achieving $1 trillion in wealth management-specific assets over the next several years. The bank said it was firmly on track to hit that target.
“One of our most significant investments has been in our effort to increase our roster of high-quality private bank advisers globally,” notes Callahan Erdoes. “Our commitment in this area yielded results, and in 2022, for the first time, we surpassed 3,000 private bank advisers globally. Once hired, our advisers go through our world-class training programmes to set them on a path to success and help them grow through each stage of their career.”
The private bank continues to roll out new services, hone and improve existing offerings, and perfect its approach to philanthropy. After a three-year hiatus due to the pandemic, the JPMorgan China Summit returned in spring 2023, welcoming more than 2,800 clients from around the world to Shanghai. In attendance were former US secretaries of state Henry Kissinger and Condoleezza Rice.
As fiduciaries for clients overseeing more than $4 trillion of their assets, we never take for granted the trust and confidence they place in us
The same week, the private bank hosted its eighth annual Tech Exchange, offering insights into the latest trends and investment opportunities to over 240 privately wealthy clients. Another standout event was the private bank’s 40x40 Conference, which took place in Paris in November 2022.
The two-day summit brought together 120 influential clients and prospects under the age of 40, with a combined net worth of $500 billion. The event featured a diverse agenda, ranging from artificial intelligence to the future of media and technology.
And in early 2023, the bank sent a delegation to Kyiv to meet Ukrainian president Volodymyr Zelenskyy to offer advice on rebuilding, financial stabilization, sovereign credit ratings and economic ties to Europe. The team signed a memorandum of understanding with the president’s team; part of the conversation was live-streamed to the private bank’s marquee Summit Conference in Miami.