Northern Trust’s Q3 custody and fund administration servicing fees totalled £3.95 billion, representing just a 1 percent increase on the same period last year.
The Chicago-based bank explained that the small increase was primarily due to favourable currency translation and new business, partially offset by unfavourable markets.
Comparing the results to the Q2 figure of £3.92 billion, custody and fund administration servicing fees saw a 5 percent increase, which Northern Trust said primarily due to favourable currency translation and favourable markets.
The Q3 results showed that assets under custody/administration totalled $13 trillion, representing a 13 percent increase compared to the same period as last year.
Total assets under management reached $1.31 trillion at the end of September 2020, a 9 percent rise from Q2 this year.
Elsewhere, revenue from securities lending in Q3 came in at $19.7 million, marking the first quarter Northern Trust has failed to earn at least $20 million in the past five years. Prior to 2015, Northern Trust reported securities lending revenue on an annual basis.
Michael O’Grady, chairman and CEO, said: “Northern Trust continued to perform well amid the challenging interest rate environment. Our performance in the quarter resulted in a
return on average common equity of 10.5 percent. Noninterest revenue grew 3 percent compared to the prior year, while net interest income declined 21 percent, as we navigated the low interest rate environment.”
“Assets under custody and administration and assets under management performed well, ending the quarter at $13.1 trillion, up 13 percent and $1.3 trillion, up 9 percent from the prior year, respectively.”
O’Grady added: “Our balance sheet and capital strength, which support our clients’ liquidity
needs, continued to evidence resilience through the recent market turbulence. Throughout the shifting climate, we continue to focus on serving our clients and the communities of which we are a part with distinction while continuing to drive efficiencies into our businesses and invest for future growth.”
