GLOBAL – Total assets under management at JP Morgan Chase surged to $828bn (€692bn) in the third quarter of 2005, up 13% since the third quarter of last year and up $45bn since June 30.

Assets under supervision also climbed to $1.2tn, up 15% on the year and a 5% rise on the quarter.

“The increases were primarily the result of market appreciation, net asset inflows primarily in equities and liquidity products, and the acquisition of a majority interest in Highbridge Capital Management,” said the report.

The figures, announced today by the global financial services firm, saw asset and wealth management operating earnings climb 60% ($118m) from last year to a record $315m.

Performance was attributed to increased revenues partially offset by higher compensation expenses, said the report.

Net revenue in asset and wealth management increased 21% to $1.4bn, while non-interest revenue rose 28% to $1.2bn.

The third-quarter results also reflected a 34% growth in the institutional client segment to $358m “primarily due to the consolidation impact of Highbridge”, the report explained.

Assets under custody increased by 24% on the year to $11tn (excluding assets under custody added from Institutional Trust Services in 2005), up from $10.2tn in the quarter.

This increase contributed towards the 16% increase in the net revenue and 14% increase in the non-interest revenue of the treasury and security services.

Overall, JP Morgan Chase announced net income of $2.5bn for the third quarter.

In other news, JP Morgan Chase president and chief operating officer Jamie Dimon, 49, will succeed William Harrison, 62, as chief executive at the end of the year. Harrison remains chairman of the board.

The change, which was announced today, will come six months earlier than planned due to good progress on the integration of JP Morgan Chase and Bank One following the $57bn acquisition, JP Morgan Chase said.

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