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JPMorgan wealth managers take it on the chin in the first quarter
Wealth Management, Capital Markets
Everybody and his sister is trying to milk the wealth management cow of steady fees.
The markets aren’t cooperating.
Revenue from the wealth management sector fell 6% to $2.2 billion, JPMorgan reported on Wednesday “due to the impact of lower markets and lower brokerage revenue.”
JPMorgan was the first major bank to report earnings for the first quarter and is likely to set the tone for all who follow.
Expenses fell 5% to $2.1 billion, mainly because wealth managers earned less. Assets fell 5% to $1.7 trillion — mainly because markets fell and investors pulled their money. 2016 has been a very tough year for markets. The first 10 days put in the worst performance, with stock indices falling more than 10% before closing the quarter close to flat.
Photo: Fabian Bromann