Northern Trust Sees Gains Across the Board in 2013

Northern Trust’s assets under custody for corporate and institutional clients rose 17% in 2013 to $5.08 trillion, up from $4.36 trillion.
By Jake Safane(2147484770)
Northern Trust’s assets under custody for corporate and institutional clients rose 17% in 2013 to $5.08 trillion, up from $4.36 trillion. Compared to the previous quarter, these assets represented a 7% gain, up from $4.77 trillion. Including its wealth management business, Northern Trust’s total AuC reached $5.56 trillion, a 16% gain year over year, and a 6% gain from Q3 2013 to Q4 2013.

The custodian’s Corporate & Institutional Services (C&IS) trust, investment and other servicing fees also saw gains in 2013, rising 8% to $371.1 million compared to $344.3 million at the end of 2012. Within this group, custody and fund administration led the way with a 12% rise year over year, reaching $251.3 million. Northern Trust says these gains were “primarily driven by new business and the favorable impact of equity markets.”

From the previous quarter, total C&IS trust, investment and other servicing fees gained 3%, led by a 5% gain in custody and fund administration.

Securities lending fees also rose 7% to $21.8 million, primarily a reflection of higher volumes over the year. Yet from the third quarter to fourth quarter, fees fell 4% due to lower volumes.

Northern Trust’s Tier 1 capital ratio also rose in 2013 to 13.4% up from 12.8% at the end of 2012. Tier 1 capital was slightly down, though, from the 13.6% ratio in Q3 2013.

For the bank as a whole, net income was $169.7 million in the fourth quarter, up 1% from $167.7 million the previous year’s fourth quarter and down 18% from the $206.5 million mark in the previous quarter.

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