Credit: Яндекс фото / Wikimedia Commons.

JPMorgan asset and wealth management (AWM) unit has reported a 46% jump in the net income for the fourth quarter of 2021.

The unit’s net income was $1.1bn for the three months to 31 December 2021, compared to $786m in the same period last year.

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Net revenues at the unit increased 16% year-on-year to $4.5bn in Q4.

According to JPMorgan, this rise was driven by increased management fees and growth in deposits and loans. However, the increase was partially offset by deposit margin compression.

During this period, the unit’s assets under management (AuM) rose 15% to $3.1trn, on the back of cumulative net inflows and higher market levels.

Noninterest expense was $3bn for the Q4 2021, up 9% year-on-year.

This was attributed to higher performance-related compensation and distribution fees, higher structural expense, as well as higher investments in the business, partially offset by lower legal expense compared to the prior year.

Group performance

At a group level, JPMorgan Chase & Co reported a net income of $10.4bn, down 14% from $12.1bn in a year earlier.

Net revenue increased 1% to $30.3bn, while net interest income rose 3% to $13.7bn.

The rise in net interest income was driven by balance sheet growth, partially offset by lower net interest income in CIB Markets.

Diluted earnings per share was $3.33 for the quarter as against $3.79 in the year ago period.

JPMorgan Chase & Co group chairman and CEO Jamie Dimon said: “JPMorgan Chase reported solid results across our businesses benefiting from elevated capital markets activity and a pick up in lending activity as firmwide average loans were up 6%.

Dimon added: “In 2021, we extended credit and raised over $3trn  in capital for our consumer and institutional clients around the world, which includes nonprofits and US government entities, including states, municipalities, hospitals and universities. We also accelerated investments to expand our product distribution capabilities, both domestically and internationally, enhance our products and services and modernise our technology.”

JP Morgan reported a profit of $1.2bn in Q3 2021, up 36% from $876m a year ago.