THE IFSC-BASED arm of banking giant JP Morgan grew pre-tax profits 6 per cent to $15 million (€10.5 million) in 2010 on the back of recovering markets.

Accounts recently filed for JP Morgan Bank (Ireland) show assets under management at the bank rose almost 14 per cent to $192 million. Revenue from fees based on these assets increased from $22.9 to $27.9 million, a jump attributed to rising markets.

Transaction-based revenues climbed from $46.3 million to $58.7 million. According to the company’s accounts, this jump was due to an attribution of revenues earned by other group companies during the year.

The bank provides worldwide security services (WSS), including fund accounting and global custody, as well as treasury services (TS) to clients based in the euro zone, the UK and US.

In the accounts, the directors said despite downward pressure on margins experienced globally in the WSS line of business, “local profitability” was maintained.

The bank’s 2010 after-tax profits of $13 million were transferred to revenue reserves, bringing total reserves to $239.5 million.

Separately, accounts for JP Morgan’s Dublin hedge fund administration unit showed pre-tax losses narrowed to $1.6 million in 2010 from $4.3 million a year earlier.

This pushed total accumulated losses for JP Morgan Hedge Fund Services (Ireland) up to $27.6 million.

The company’s directors said in the accounts it has continued to build its operation to provide hedge fund administration services to a broader client base.

In February 2009, the company was sold by JP Morgan Bank (Ireland) to another group company, JP Morgan International Finance Limited.