Northern Trust assets under custody jump $1 trillion

Northern Trust has continued to grow its assets under custody in the first quarter of 2017.
By Paul Walsh
Northern Trust has recorded a 13% increase in assets under custody and administration in its Q1 2017 figures.

Total assets under custody and administration stood at $8.9 trillion compared to $7.9 trillion 12 months ago. Between Q4 2016 and Q1 2017, assets under custody increased 4%. 

Assets under administration increased 11% to $1 trillion compared to $900 billion at the same time in 2016 and $942 billion at the end of Q4 2016.

Other results show custody and fund administration fees increased to $307.5 million, representing a 7% increase compared to 12 months ago and a 1% increase compared to Q4 2016.

This increase has been put down to “favourable equity markets and new business.”

In addition, securities lending fees decreased by 6% standing at $23.8 million compared to $25.2 million in Q4 2016. Securities lending fees did see a 5% increase compared to $22.6 million 12 months ago.

“Northern Trust’s first quarter revenue increased 8% compared to one year ago, reflecting strong growth in trust, investment and other servicing fees and net interest income,” said Frederick Waddell, chairman and CEO at Northern Trust.

“We use our strong capital position to pursue our strategic initiatives that meet our clients’ complex financial needs.”

Northern Trust’s increase follows BNY Mellon reaching a new record of $30.6 trillion in assets under custody.

Other Q1 results show JP Morgan obtained a 4% uptick in securities services revenues in the first quarter to $916 million. In contrast, Citi recorded a 3% year-on-year decline in its securities services revenue of $543 million.