Northern Trust has reported $11.5 trillion of total assets under custody for Q1 2021, marking an increase of 40 per cent on Q1 last year.
Assets under management came in at $1.4 trillion for Q1 2021, which reflects an increase of 29 per cent compared to last year’s Q1 results.
The total for assets under custody/administration was reported to be $14.7 trillion for Q1 2021 representing an increase of 36 per cent year on year.
Custody and fund administration fees came in at $446 million for Q1 2021, up 13 per cent from Q1 2020 and up 6 per cent on Q4 2020.
According to Northern Trust, custody and fund administration fees increased sequentially primarily due to favourable markets, new business and favourable currency translation.
Custody and fund administration fees increased from the prior-year quarter primarily due to new business, favourable currency translation and higher transaction volume, Northern Trust explains.
Further highlights from the report show securities lending fees decreased from the prior-year quarter primarily due to lower spreads.
Meanwhile, other fees increased sequentially primarily due to higher fees associated with seasonal benefit payment services in the current quarter.
Total trust, investment and other servicing fees up 6 per cent year on year. Net income was $375.1 million, compared to $240.9 million in the prior quarter and $360.6 million in the prior-year quarter.
Commenting on the Q1 results, Michael O’Grady, chair and CEO of Northern Trust, says: “Northern Trust’s asset and fee growth performed well as we continued to navigate through the operational and low interest rate challenges posed by the COVID-19 global pandemic.”
O’Grady notes that revenue was consistent with the prior year, as declines in net interest income and trading related revenue were offset by a 6 per cent increase in trust, investment and other servicing fees, primarily driven by organic growth. In support of our growth, expense increased 5 per cent.
O’Grady also notes: “Performance reflected continued excellent work by Northern Trust employees worldwide to serve the needs of our clients. We continued to focus on enhancing efficiency and investing for future profitable growth.”
