JPMorgan Chase makes NZ$14 mln half-year profit, double Kiwibank's, and now has nearly NZ$900 mln of assets in NZ

By Gareth Vaughan

Low profile registered bank JPMorgan Chase has recorded New Zealand half-year profit 49% higher than its profit for all of 2010 as its assets almost doubled to approach NZ$1 billion.

JPMorgan Chase bought ANZ's Custodian Services business in November 2009 and completed the migration of the ANZ's customers last November in a move it said had increased the assets held under custody by JPMorgan in Australia and New Zealand by more than 20%. It also said more than 150 ANZ Custodian Services staff in Melbourne and Wellington had taken on jobs at JPMorgan.

JP Morgan's NZ$14 million net profit after tax for the six months to June 30, is NZ$4.6 million, or 49%, more than the NZ$9.4 million it made in the 2010 calander year. It's also significantly more half-year profit than the NZ$7.3 million delivered by the much higher profile state owned Kiwibank, through its NZ$6.5 million June quarter profit and NZ$814,000 March quarter profit.

Meanwhile, JPMorgan's New Zealand assets jumped by NZ$423.285 million from December 31 to June 30, reaching NZ$897.152 million. Total liabilities rose NZ$410.518 million to NZ$876.580 million.

The bank's net interest income, however, was slightly lower for the first-half of 2011 at NZ$10.94 million compared with NZ$10.98 million last year. Total operating income was up NZ$2.4 million to NZ$24 million. First-half operating expenses were just under half the whole of last year's at NZ$4 million.

Net profit before tax for the six months to June was NZ$20 million with income tax paid at NZ$5.99 million.

The bank repatriated NZ$860,000 to its US parent in the first-half year compared with NZ$2.3 million in 2010 and NZ$5.8 million in 2009.

This article was first published in our email for paid subscribers this morning. See here for more details and to subscribe.