JP Morgan Chase's £17.7bn pay and bonus bill
Friday 14 January 2011
US investment bank JP Morgan Chase revealed a $28.1bn (£17.7bn) bill for staff pay and bonuses in 2010 today after a 48% leap in annual earnings.
The group set aside $6.6bn (£4.2bn) for staff compensation in the fourth quarter alone, up 29% on a year earlier.
Pay and bonuses for its investment bankers - including between 7,000 and 8,000 based in London - more than trebled year-on-year in the final three months to 1.8 billion dollars (£1.1bn) in a move likely to raise concerns over the impending bonus round among British banks.
The bumper pay deal for JP Morgan Chase's staff comes after it reported full-year net income of $17.4bn (£11bn) for 2010.
JP Morgan's fourth quarter profit rose 47%, beating market expectations, as revenue increased and it set aside less to cover bad debts.
The bank is the first of the American players to report in the annual results season, with the US sector being watched closely on these shores as UK banks prepare to release figures next month.
It is feared big US bonuses will prompt UK counterparts to follow suit, with concerns also that Government attempts to rein in British banker handouts are failing.
JP Morgan declined to reveal how much had been set aside specifically for its year-end bonus pool, but said in today's results that performance-related pay was higher than in 2009.
It plans to reveal handouts to its staff in the next few weeks.
The ratio of compensation to revenues - a key measure of bank pay - rose to 30% in the fourth quarter from 11% a year earlier in its investment banking arm despite a 21% fall in the division's net income.
The investment bank posted profits of $1.5bn (£946 million) in the October to December quarter, although this was 17% higher than the previous three months thanks to higher fees related to underwriting debt.
Its wider business is also being helped by lower losses on loans turned sour, which had hit earnings during the financial crisis.
JP Morgan said provision for credit losses in the fourth quarter fell to $3bn (£1.9bn) from $7.3bn (£4.6bn) a year earlier.
The US bank reporting season gets into full swing next week, with results from Citigroup on Tuesday, Goldman Sachs on Wednesday and Morgan Stanley and Bank of America later in the week.
- 1 What happens to your body when you give up sugar?
- 3 Japanese island overrun with cats after population explodes
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
California teacher appears to have hanged herself in her classroom
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Ed Miliband deemed less influential than One Direction's Louis Tomlinson by official Doncaster power list
Japanese island overrun with cats after population explodes
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...