Steady results from Northern Trust
29 October 2010 Chicago
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Although securities lending revenues declined, Northern Trust Corporation has reported third quarter net income per common share of $.64, compared with net income per common share of $.77 in the third quarter of 2009 and $.82 per common share in the second quarter of 2010.
Net income was $155.6 million in the current quarter, compared with net income of $187.9 million in the prior year's third quarter and $199.6 million in the second quarter of 2010. Return on average common equity was 9.2 per cent in the current quarter, compared to 11.9 per cent in the prior year's third quarter and 12.2 per cent in the second quarter.
Frederick H. Waddell, chairman and chief executive officer, commented: "Although the economic environment continues to be challenging, we are pleased that assets under custody increased by 10 per cent to $3.9 trillion and assets under management increased eight per cent to $657.2 billion as compared to a year ago, reflecting continued business growth. Northern Trust has maintained its strong capital levels, and we remain confident in our competitive position and focused strategy."
Trust, investment and other servicing fees from Corporate & Institutional Services (C&IS) decreased five per cent from the year-ago quarter to $293.2 million, primarily reflecting the decline in securities lending revenue, partially offset by higher fund administration fees. Custody and fund administration fees, the largest component of C&IS fees, increased six per cent to $159.2 million, reflecting new business and improved markets. C&IS investment management fees for the third quarter of 2010 equaled $60.7 million, relatively unchanged from the prior year quarter's $61.0 million.
Net income was $155.6 million in the current quarter, compared with net income of $187.9 million in the prior year's third quarter and $199.6 million in the second quarter of 2010. Return on average common equity was 9.2 per cent in the current quarter, compared to 11.9 per cent in the prior year's third quarter and 12.2 per cent in the second quarter.
Frederick H. Waddell, chairman and chief executive officer, commented: "Although the economic environment continues to be challenging, we are pleased that assets under custody increased by 10 per cent to $3.9 trillion and assets under management increased eight per cent to $657.2 billion as compared to a year ago, reflecting continued business growth. Northern Trust has maintained its strong capital levels, and we remain confident in our competitive position and focused strategy."
Trust, investment and other servicing fees from Corporate & Institutional Services (C&IS) decreased five per cent from the year-ago quarter to $293.2 million, primarily reflecting the decline in securities lending revenue, partially offset by higher fund administration fees. Custody and fund administration fees, the largest component of C&IS fees, increased six per cent to $159.2 million, reflecting new business and improved markets. C&IS investment management fees for the third quarter of 2010 equaled $60.7 million, relatively unchanged from the prior year quarter's $61.0 million.
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