JP Morgan’s Irish profits up 78%

Pre-tax profits at the IFSC-based arm of banking giant JP Morgan increased last year by 78% to $26.7m (€21.8m), new figures show.

Accounts just filed by JP Morgan Bank (Ireland) with the Companies Registration Office show that the assets it had under management increased by 25% from $192.2bn to $240.9bn.

Overall, the fees and commission generated by the firm increased by 25% from $80.7m to $101.3m last year.

The figures show that fees based on the firm’s managed assets increased from $27.8m to $38.4m and the accounts state that the increase in asset-based fees in 2011 “was due to rising markets”.

Increase in non-asset based revenues increased from $56m to $62.9m and the accounts state that “the significant increase in non-asset-based revenues is due to an attribution of revenues earned by other group companies during 2011”.

The figures show that the numbers employed increased from 526 to 532, with staff costs increasing from $50.2m to $56.2m.

The bank provides worldwide security services including fund accounting and global custody, as well as treasury services, to clients based in the eurozone, Britain and the US.

According to the directors’ report “in light of challenging economic, market and geopolitical conditions globally, solid progress has been made on the Treasury and Securities Services firm-wide growth agenda”.

It adds: “Local profitability was well maintained and operating profits for the entity increased by $9m in 2011, which is reflective of a sound infrastructure and quality client base.”

The accounts show that the firm also benefited from a foreign exchange gain of $467,547 last year, compared to a loss under the same heading of $1m in 2010, while it also benefited from a $472,000 profit on the sale of a subsidiary.

On the firm’s future developments, the directors state that “the company continues to pursue new business opportunities from quality clients, whileremaining committed to investing in the growth of the company”.

The bank’s 2011 after-tax profits of $23m were transferred to revenue reserves, bringing total reserves to $261.4m.

The filings show that directors’ fees increased marginally last year from $985,630 to $1m.