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Wealth revenue rises 12% to 15% at JPMorgan, Wells Fargo, Goldman, Citi

JPMorgan's asset and wealth management revenue grew 14% to $6.9 billion, with expenses rising at the same rate.

At a glance

  1. JPMorgan's asset and wealth management unit produced $6.9 billion of revenue, up 14%, largely on management fees lifted by higher average market levels and inflows.
  2. Wells Fargo's wealth and investment management division reported $4.1 billion of revenue, up 12% from a year earlier and 5% from the second quarter.
  3. Citigroup's wealth business grew revenue 15% and net interest income 20% from a year earlier, with expenses up on higher compensation.

Wealth divisions at JPMorgan Chase, Wells Fargo, Goldman Sachs and Citigroup grew revenue 12% to 15% year over year in the third quarter, according to their earnings reports.

JPMorgan's asset and wealth management unit produced $6.9 billion of revenue, up 14%, largely on management fees lifted by higher average market levels and inflows. Assets under management reached $5.2 trillion, up 13%. Expenses rose at the same 14% rate, to $4.4 billion, on higher compensation and what the bank described as growing private banking advisor teams.

FirmWealth unitQ3 revenueYear over year
JPMorgan ChaseAsset and wealth management$6.9B+14%
Wells FargoWealth and investment management$4.1B+12%
Goldman SachsAsset and wealth management$5.05B+14%
CitigroupWealthNot disclosed+15%

Wells Fargo's wealth and investment management division reported $4.1 billion of revenue, up 12% from a year earlier and 5% from the second quarter. Net interest income rose 12% on higher deposit and loan balances and lower deposit costs. Expenses were up both year over year and sequentially.

Citigroup's wealth business grew revenue 15% and net interest income 20% from a year earlier, with expenses up on higher compensation. Goldman Sachs reported $5.05 billion of asset and wealth management revenue, up 14% from a year earlier and 10% sequentially, and more than $400 million ahead of general expectations. Goldman credited significantly higher management and other fees and incentive fees, partly offset by lower net revenues in investments, private banking and lending; the private banking and lending decline was tied to interest paid on previously impaired loans in the prior-year period.

JPMorgan trading slipped

JPMorgan's fixed-income revenue fell 4% year over year, its first decline in two years, and total trading revenue came in below expectations.

Bank of America and Morgan Stanley report next.

Reported by the RIA desk from WealthManagement.com. Published . Corrections

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