JP Morgan’s Irish unit doubled profits last year

Pre-tax profits at an Irish arm of JP Morgan bank more than doubled to $22.68 million (€20.1 million) in 2017 in spite of an unnamed key client of the bank exiting.

Accounts filed by JP Morgan Bank (Ireland) plc show that the business increased its pre-tax profits by 126 per cent in the 12 months to the end of December 2017. It paid corporation tax of $3.44 million (€3.05 million) during the year.

This followed revenues at the bank increasing by 8.6 per cent to $141.64 million (€125.61 million). The bank had $306.5 billion (€271.8 billion) of “assets under custody” at the year end.

The directors state that the decrease in assets-based fees to $40.2 million (€35.65 million) was due to a key client exiting but this was offset by increased revenues from existing clients.

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Double workforce

During 2017, the company purchased the 12,000sq m (129,166sq ft) 200 Capital Dock building on Sir John Rogerson’s Quay. This has given JP Morgan the capacity to double its Irish workforce to 1,000.

The accounts put a cost of $42 million (€37.25 million) on the purchase of the site and the construction costs incurred in 2017 with work ongoing at year end.

Staff salary costs increased by 10 per cent to $33 million (€29.2 million) while other employee costs rose from $8.34 million (€7.4 million) to $10.03 million (€8.89 million). Directors’ remuneration increased by 35 per cent to $1.193 million (€1.06 million).

At the end of 2017, the business had shareholder funds totalling $404 million (€358.27 million) that included accumulated profits of $347.6 million (€308.25 million). JP Morgan has been in Ireland since 1968.