Northern Trust sees sec lend revenue increase
29 January 2014 Chicago
Image: Shutterstock
Securities lending revenue increased 7 percent at Northern Trust in Q4 2013, according to the bank’s latest financial report.
Investment, trust and other servicing fees at Northern Trust reached $673.8 million in Q4 2013, an 8 percent increase on the previous year.
The $51.2 million increase over Q4 2012’s $622.6 million “primarily reflects new business and the favourable impact of equity markets, partially offset by higher waived fees in money market mutual funds”.
Assets under custody and assets under management are the primary drivers of Northern Trust’s investment, trust and other servicing fees.
The bank’s corporate and institutional services (C&IS) and wealth management businesses had combined assets of $5.6 trillion under custody and $884.5 trillion under management in Q4 2013.
C&IS trust, investment and other servicing fees increased $26.8 million, or 8 percent, to $371.1 million in Q4 2013 from the prior year quarter’s $344.3 million.
Securities lending revenue at Northern Trust increased 7 percent, “primarily reflecting higher volumes in the current quarter”.
But revenue was down 4 percent in Q4 2013 on the previous quarter, due to lower volumes.
Northern Trust’s net income for Q4 2013 was $169.7 million, up 1 percent from $167.7 million in Q4 2012.
Q4 2013 included the $19.2 million pre-tax charge that was needed “to resolve certain long-standing class action litigation related to the [bank’s] securities lending programme”.
Investment, trust and other servicing fees at Northern Trust reached $673.8 million in Q4 2013, an 8 percent increase on the previous year.
The $51.2 million increase over Q4 2012’s $622.6 million “primarily reflects new business and the favourable impact of equity markets, partially offset by higher waived fees in money market mutual funds”.
Assets under custody and assets under management are the primary drivers of Northern Trust’s investment, trust and other servicing fees.
The bank’s corporate and institutional services (C&IS) and wealth management businesses had combined assets of $5.6 trillion under custody and $884.5 trillion under management in Q4 2013.
C&IS trust, investment and other servicing fees increased $26.8 million, or 8 percent, to $371.1 million in Q4 2013 from the prior year quarter’s $344.3 million.
Securities lending revenue at Northern Trust increased 7 percent, “primarily reflecting higher volumes in the current quarter”.
But revenue was down 4 percent in Q4 2013 on the previous quarter, due to lower volumes.
Northern Trust’s net income for Q4 2013 was $169.7 million, up 1 percent from $167.7 million in Q4 2012.
Q4 2013 included the $19.2 million pre-tax charge that was needed “to resolve certain long-standing class action litigation related to the [bank’s] securities lending programme”.
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