Northern Trust achieved a net income of $230.7 million, marking a 27% increase YoY, reportedly due to a 10% increase in custody and fund administration fees.
New business and higher equity markets contributed towards the revised custody and fund administration fees, as well as the 2% increase in investment management fees. This was also partially offset by the unfavorable impact of movements in foreign exchange rates.
Revenue from securities lending stood at $21.6 million, compared to $22.7 million during Q1 2014, having decreased by 5% YoY. Assets under custody grew by 6%, reaching over $6 trillion, whilst the overall revenue from custody and fund administration increased from $252.2 million to $277.1 million YoY.
“New business and higher equity markets contributed to growth in assets under custody and under management of 6% and 5%, respectively. Total revenue grew 9% and we maintained a disciplined focus on expenses, which increased 3%, producing meaningful operating leverage,” says Frederick Waddell, Chairman and CEO of Northern Trust.
Northern Trust’s Net Income Grew by 27% in Q1 2015
Northern Trust achieved a net income of $230.7 million, marking a 27% increase YoY, reportedly due to a 10% increase in custody and fund administration fees.