Equity Markets Drive Northern Trust Core Businesses In Q4

Northern Trust saw profits rise 43% to $244 million and revenues up 8% to $1.13 billion during the fourth quarter of last year, as stronger equity markets boosted its custodian business.

According to a release from the Chicago-based bank, new business and higher equity markets drove client assets under custody and under management up by 7% and 6% respectively throughout the year.

Assets under custody from corporate and institutional clients were $5.45 trillion, and assets under management were $934.1 billion.

Furthermore fees from trust, investment and other services also increased 6% to $728.2m, of which fees from custody and fund administration was 281.6 million, up 12%, while fees from securities lending was flat at $21.8 million.

“Fourth quarter and full year results reflect a continued focus on serving the complex and evolving needs of our clients, while enhancing profitability and returns for our shareholders,” says Frederick Waddelll, chairman and CEO, Northern Trust.

Results from Northern Trust are in contrast to that of J.P. Morgan where assets under custody at the investment bank were flat year-on-year at $20.5 trillion.

Furthermore it outperformed other major banks such as Goldman Sachs where revenue from its securities services business was down 18% to $351 million. Citi also saw revenues from the Markets and Securities Services segment of the institutional clients group fall by 9% to $3 billion.