Strong increase in JP Morgan profits

An Irish branch of global banking giant JP Morgan last year recorded a large increase in profits compared to the previous year.

Pre-tax profits at JP Morgan Dublin PLC rose by almost $6.5m (€5m) to $15.6m in the 12 months to December 2013.

The company — which is separate to another of the banking giant’s Irish operations, JP Morgan Bank (Ireland) — is focused on lending to companies in which the JP Morgan Group has an equity or affiliate interest.

In 2013, the company decided that it no longer required its status as an authorised banking institution in Ireland and as such handed back its banking license to the Central Bank.

According to annual accounts filed with the Companies Office, the company “continues to manage a portfolio of notes it acquired from Bear Stearns”.

Despite the strong increase in pre-tax profit, operating profit fell from $10.4m to $7.2m in 2013.

The sale of a 25% stake in fund administration company Quintillion Holding Company Ltd — acquired in 2006 for $7.5m — brought in $11m which helped the company to its improved pre-tax position.

The company paid just $6,000 in corporation tax last year as losses previously incurred were carried forward to offset the majority of the $563,000 tax charge on profit on ordinary activities which amounted to $4.5m.

To the end of 2013, the company had $781m in outstanding loans. The company’s total assets fell from $4bn to $1.6bn as securities available for sale fell to nil.

Accounts filed with the Companies Office for JP Morgan Bank (Ireland) last year show that its profits more than halved to $12m while the assets under its management increased by 8% from $241bn to $260bn in the 12 months to the end of 2012.