Northern Trust securities lending revenue slips in Q3
19 October 2018 Chicago
Image: Shutterstock
Northern Trust’s securities lending revenue dropped to $24.1 million in Q3 2018 from $30.2 million in Q2 2018, according to the company’s Q3 results.
This reflects lower spreads and volumes in the current quarter, primarily due to the international dividend season that occurred in the previous quarter.
Net income was $374.5 million, compared to $298.4 million in Q3 2017 and $390.4 million in Q2 2018.
Assets under custody and/or administration inched ahead to $10.15 trillion from $10.06 trillion in the previous quarter.
Custody and administration fees slipped to $108.7 million from $30.2 million in the previous quarter.
Northern Trust said this was primarily due to the unfavourable impact of movements in foreign exchange rates and lower transaction volumes, partially offset by favourable markets.
Michael O’Grady, president and CEO, said: “Northern Trust’s third quarter 2018 performance produced earnings per share growth of 32 percent compared to last year and a return on average common equity of 15.1 percent.”
He added: “Trust, investment and other servicing fees, net interest income, and foreign exchange trading income all delivered strong year-over-year growth while the company also produced positive fee and total operating leverage versus last year.”
“Our consistent strategy, focus on attractive growth markets, and long-term relationships position Northern Trust well as we invest for the company’s continued future success.”
This reflects lower spreads and volumes in the current quarter, primarily due to the international dividend season that occurred in the previous quarter.
Net income was $374.5 million, compared to $298.4 million in Q3 2017 and $390.4 million in Q2 2018.
Assets under custody and/or administration inched ahead to $10.15 trillion from $10.06 trillion in the previous quarter.
Custody and administration fees slipped to $108.7 million from $30.2 million in the previous quarter.
Northern Trust said this was primarily due to the unfavourable impact of movements in foreign exchange rates and lower transaction volumes, partially offset by favourable markets.
Michael O’Grady, president and CEO, said: “Northern Trust’s third quarter 2018 performance produced earnings per share growth of 32 percent compared to last year and a return on average common equity of 15.1 percent.”
He added: “Trust, investment and other servicing fees, net interest income, and foreign exchange trading income all delivered strong year-over-year growth while the company also produced positive fee and total operating leverage versus last year.”
“Our consistent strategy, focus on attractive growth markets, and long-term relationships position Northern Trust well as we invest for the company’s continued future success.”
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