Northern Trust custody and admin looking up y-o-y
28 January 2014 Chicago
Image: Shutterstock
Investment, trust and other servicing fees at Northern Trust reached $673.8 million in Q4 2013, an 8 percent increase on the previous year, according to the bank’s latest financial report.
The $51.2 million increase over Q4 2012’s $622.6 million “primarily reflects new business and the favourable impact of equity markets, partially offset by higher waived fees in money market mutual funds”.
Assets under custody and assets under management are the primary drivers of Northern Trust’s investment, trust and other servicing fees.
The bank’s corporate and institutional services (C&IS) and wealth management businesses had combined assets of $5.6 trillion under custody and $884.5 trillion under management in Q4 2013.
C&IS trust, investment and other servicing fees increased $26.8 million, or 8 percent, to $371.1 million in Q4 2013 from the prior year quarter’s $344.3 million.
Custody and fund administration fees, the largest component of Northern Trust’s C&IS fees, increased 12 percent, “primarily driven by new business and the favourable impact of equity markets”, said the bank’s report.
Frederick Waddell, chairman and CEO of Northern Trust, commented: “Strong new business and higher equity markets drove client assets under custody and under management up 16 percent and 17 percent, respectively, compared to the prior year.”
“Despite 8 percent growth in trust, investment and other servicing fees, overall revenue growth of 5 percent in 2013 was dampened by the challenging interest rate environment.”
The $51.2 million increase over Q4 2012’s $622.6 million “primarily reflects new business and the favourable impact of equity markets, partially offset by higher waived fees in money market mutual funds”.
Assets under custody and assets under management are the primary drivers of Northern Trust’s investment, trust and other servicing fees.
The bank’s corporate and institutional services (C&IS) and wealth management businesses had combined assets of $5.6 trillion under custody and $884.5 trillion under management in Q4 2013.
C&IS trust, investment and other servicing fees increased $26.8 million, or 8 percent, to $371.1 million in Q4 2013 from the prior year quarter’s $344.3 million.
Custody and fund administration fees, the largest component of Northern Trust’s C&IS fees, increased 12 percent, “primarily driven by new business and the favourable impact of equity markets”, said the bank’s report.
Frederick Waddell, chairman and CEO of Northern Trust, commented: “Strong new business and higher equity markets drove client assets under custody and under management up 16 percent and 17 percent, respectively, compared to the prior year.”
“Despite 8 percent growth in trust, investment and other servicing fees, overall revenue growth of 5 percent in 2013 was dampened by the challenging interest rate environment.”
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