Uptick in Q4 custody and sec lending results

Northern Trust and BNY Mellon have both reported modest increases in their assets under custody and strong rises in securities lending revenues for Q4.

Assets under custody grew slightly compared with 2014, with both firms citing the strength of the US dollar as offsetting further rises.

Northern Trust recorded a 2% increase in assets under custody to $6.07 trillion.

The group also recorded an increase in securities lending to $427.9 million compared to $409.5 million in Q4 2014. Northern Trust said the rise was down to new business.

BNY Mellon’s assets under custody figures increased 1% to $28.9 trillion, in part due to new business, but was offset by the ‘unfavourable impact of a stronger U.S. dollar’.

The same impact has also led to an increase in securities lending revenue, which stands at $46 million, compared to $37 million in Q4 2014.

In other results, Citi’s securities service revenues were up 2% in Q4 to $517 million reflecting “increased activity and higher client balances”.

BlackRock’s securities lending revenue grew by $20 million compared with Q4 2014 due to “average balances of securities on loan”, said the asset manager.

Goldman Sachs’ securities services revenues increased by 9% to $1.64 billion.

JP Morgan’s securities services business saw a drop in revenue, ending December 2015 at $3.78 billion, down 13% from the $4.35 billion declared for the same period last year.