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As JPMorgan Chase and other megabanks navigate complex signals in the larger economy, their financial advisor headcount continues to grow.
For at least the sixth consecutive quarter, the bank added more than 500 net advisors year-over-year, according to the earnings report. release January 13th. In total, more than 700 additional advisors will join the company’s wealth management department in 2022, helping the segment boost earnings during times of economic turmoil.
“We have set aside $1.4 billion in reserves based on our macroeconomic outlook, which currently stands in the midst of a central case gradual recession,” CFO Jeremy Burnham said on a conference call with analysts. At the same time, he said, U.S. consumers and small businesses are doing well, as evidenced by rising spending, although concerns over a potential recession may not yet be showing up in the data. As such, he said, “Generally, we are doing well.”
Rising interest rates have also hit earnings, particularly at JP Morgan’s Wealth Management division and its savings accounts. The bank plans to raise interest rates at some point as customers seek the best yields and are considering certificates of deposit, his CEO Jamie Dimon told analysts.
“We’ve never seen interest rates rise so quickly,” he said. “So we expect more to move into CDs, more into money market funds.”
Scroll down the slideshow to see key takeaways on wealth management from JP Morgan’s fourth quarter earnings. For the company’s third quarter earnings, click hereSee below for second quarter results. this link.
Note: The firm does not disclose specific wealth management metrics across the organization, including Global Private Bank in Asset & Wealth Management and JPMorgan Wealth Management in Consumer & Community Banking.
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