JPMorgan just landed a $1 trillion win in a growing business
BlackRock, the world's largest asset manager, announced that it will move over $1 trillion of its assets from the custody of State Street to rival JP Morgan to cut costs for clients. JPMorgan noted it expects to take charge of BlackRock's the next two years.
The bank has been working on growing its Custody & Fund Services business, and the BlackRock deal provides a huge boost to these efforts. Custody involves things like settlement, safekeeping and asset servicing of securities, and accounting and administration services for funds.
"This historic deal expands our relationship with BlackRock and is a validation of the investments we've made and the resources we've added to the custody and fund services business," Daniel Pinto, CEO of JPMorgan's corporate and investment bank, said in a press release on Wednesday.
JPMorgan's business with existing custody services clients has grown by 10% in the last 12 months, and 95% of its clients also use either the bank's investment banking or markets business. The unit enjoys a healthy operating margin of around 25%.
J.P. Morgan
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Prince Harry and Meghan found out about Kate Middleton's cancer diagnosis on TV like everyone else, report says
- Upcoming cars and two-wheelers launching in India in April 2024
- Ice melt in Antarctica and Greenland is slowing Earth's rotation, affecting timekeeping: Study
- Elections on a plate: Poll panels fix menu & expense ceiling for Samosa, tea, biryani & more
- Regenerative farming, cover crops will help farmers increase yields, reduce stubble burning: IDH CEO
- Sustainable Event Planning