Northern Trust sees assets under custody/administration decline for Q1
21 April 2020 Chicago
Image: Funtap/Shutterstock.com
Northern Trust has reported $10.9 trillion assets under custody and administration for Q1 2020, representing a 10 percent decrease from Q4 2019’s figure of $12.1 trillion.
Total fees from custody and fund administration were recorded at $394.9 million for Q1 2020, down 1 percent from Q4 2019 but an increase of 5 percent in Q1 2019.
According to the Northern Trust, corporate and institutional services custody and fund administration fees decreased primarily due to unfavourable currency translation, partially offset by favourable lagged markets and new business.
Elsewhere, total assets under management ended Q1 2020 $1.1 trillion, a decrease of 9 percent from Q4 2019 and a 4 percent decrease from the same period last year.
Securities lending for Q1 2020 increased by 3 percent compared to last year’s Q1 result and 1 percent compared to Q4 2019.
Further highlights from the report showed that net income was $360.6 million, compared to $347.1 million in the same period last year and $371.1 million in the prior quarter.
Reflecting on the challenges, Michael O’Grady, chair and CEO of Northern Trust, said: “The ongoing pandemic has brought health and economic challenges on an unprecedented global scale.”
“Our performance this quarter generated revenue growth of 7 percent, earnings per share growth of 5 percent, and a return on average common equity of 13.4 percent.”
“Our results for the quarter reflected the momentum we carried coming into the year, with the quarter’s performance only partially impacted by the pandemic. Turbulent times such as these show the importance of a strong capital base and liquidity profile to continue to support the activities of our clients. We are grateful for the dedication, professionalism and commitment our employees around the world have displayed in coming together to serve our clients and communities,” O’Grady continued.
O’Grady also highlighted that Northern Trust’s focus during this time has been on the safety of our staff, serving our clients, and supporting our communities.
He stated: “We have maintained mission-critical services to our clients even as we transitioned the vast majority of our staff to a remote work environment. We have also continued our long-standing focus on supporting our communities, including facilitating loans through the Small Business Administration Paycheck Protection Program and providing philanthropic support to several nonprofit organisations around the world, beginning with those focused on immediate healthcare, food, and other humanitarian relief efforts.”
Total fees from custody and fund administration were recorded at $394.9 million for Q1 2020, down 1 percent from Q4 2019 but an increase of 5 percent in Q1 2019.
According to the Northern Trust, corporate and institutional services custody and fund administration fees decreased primarily due to unfavourable currency translation, partially offset by favourable lagged markets and new business.
Elsewhere, total assets under management ended Q1 2020 $1.1 trillion, a decrease of 9 percent from Q4 2019 and a 4 percent decrease from the same period last year.
Securities lending for Q1 2020 increased by 3 percent compared to last year’s Q1 result and 1 percent compared to Q4 2019.
Further highlights from the report showed that net income was $360.6 million, compared to $347.1 million in the same period last year and $371.1 million in the prior quarter.
Reflecting on the challenges, Michael O’Grady, chair and CEO of Northern Trust, said: “The ongoing pandemic has brought health and economic challenges on an unprecedented global scale.”
“Our performance this quarter generated revenue growth of 7 percent, earnings per share growth of 5 percent, and a return on average common equity of 13.4 percent.”
“Our results for the quarter reflected the momentum we carried coming into the year, with the quarter’s performance only partially impacted by the pandemic. Turbulent times such as these show the importance of a strong capital base and liquidity profile to continue to support the activities of our clients. We are grateful for the dedication, professionalism and commitment our employees around the world have displayed in coming together to serve our clients and communities,” O’Grady continued.
O’Grady also highlighted that Northern Trust’s focus during this time has been on the safety of our staff, serving our clients, and supporting our communities.
He stated: “We have maintained mission-critical services to our clients even as we transitioned the vast majority of our staff to a remote work environment. We have also continued our long-standing focus on supporting our communities, including facilitating loans through the Small Business Administration Paycheck Protection Program and providing philanthropic support to several nonprofit organisations around the world, beginning with those focused on immediate healthcare, food, and other humanitarian relief efforts.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
