Stock and bond markets haven't yet gained back losses from 2022, and that weighed on JPMorgan Chase & Co.'s asset and wealth management division in the fourth quarter.
The largest U.S. bank's asset and wealth management unit reported having $2.8 trillion in assets under management in the fourth quarter, down 11% quarter-over-quarter and up 6% year-over-year.
Falling market valuations and net outflows from more liquid products were partially offset by inflows: there were $10 billion of net inflows to long-term products and $33 billion of net inflows to liquidity products, the bank said in earnings Friday.
Despite the lower AUM, the unit reported $4.6 billion in revenue, up 3% compared to a year earlier. Profits in the fourth quarter were $1.1 billion, up 1% year-over-year.
"Higher net interest income more than offset the impact of lower market levels," Jamie Dimon, chairman and CEO of the bank, said in a press release about the unit's results. The JPMAM unit's expenses rose to $3 billion, up 1% from a year ago. That was due to "higher investments in the business and structural expense, predominantly offset by lower volume- and revenue-related expense," the bank said in its earnings presentation.