Northern Trust's securities lending fees decline for Q4
24 January 2019 Chicago
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Securities lending fees were $22 million for Northern Trusts Q4 2018, down 14 percent year over year and down 10 percent sequentially.
Both the year-over-year and sequential performances were impacted by lower volumes, as well as lower spreads.
Securities lending collateral was $150 billion at quarter end and averaged $158 billion across the quarter. Average collateral levels declined 9 percent year-over-year and 7 percent sequentially.
Commenting on Northern Trust’s 2018 Q4 results, Michael O’Grady, chairman and CEO, commented: “Northern Trust’s performance in the fourth quarter 2018 produced revenue growth of 6 percent and earnings per share growth of 19 percent compared to the prior year.”
“For the full year 2018, the Company generated revenue growth of 11, earnings per share growth of 35 percent and a return on average common equity of 16.2 percent. Our full year results also produced positive fee and total operating leverage, and solid improvements in profitability and returns.”
“We announced yesterday that we are increasing our quarterly dividend to $0.60 per share, representing an increase of 9 percent from the prior quarter and 43 percent compared to one year ago.”
He added: "During 2018, we returned a record $1.4 billion to common shareholders through dividends and the repurchase of 9.0 million shares. As we enter 2019, we remain focused on providing our clients with exceptional service, improving our productivity, and investing in future growth."
Both the year-over-year and sequential performances were impacted by lower volumes, as well as lower spreads.
Securities lending collateral was $150 billion at quarter end and averaged $158 billion across the quarter. Average collateral levels declined 9 percent year-over-year and 7 percent sequentially.
Commenting on Northern Trust’s 2018 Q4 results, Michael O’Grady, chairman and CEO, commented: “Northern Trust’s performance in the fourth quarter 2018 produced revenue growth of 6 percent and earnings per share growth of 19 percent compared to the prior year.”
“For the full year 2018, the Company generated revenue growth of 11, earnings per share growth of 35 percent and a return on average common equity of 16.2 percent. Our full year results also produced positive fee and total operating leverage, and solid improvements in profitability and returns.”
“We announced yesterday that we are increasing our quarterly dividend to $0.60 per share, representing an increase of 9 percent from the prior quarter and 43 percent compared to one year ago.”
He added: "During 2018, we returned a record $1.4 billion to common shareholders through dividends and the repurchase of 9.0 million shares. As we enter 2019, we remain focused on providing our clients with exceptional service, improving our productivity, and investing in future growth."
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