Northern Trust reported a 3 per cent rise in assets under management at its Personal Financial Services division, the firm’s wealth management unit, in the three months to 31 March.

The Chicago-based firm managed $179.1 billion for private individuals at the end of the first quarter, up from $173.7 billion at the end of 2011. Since 31 March 2011, when the firm had $168.4 billion in PFS client assets, the firm has boosted wealth management AuM by 6 per cent.

In total, Northern Trust managed $716.5 billion for individuals, family offices, corporates and institutions on 31 March 2012, up from $662.9 billion on 31 December 2011.

Overall, the firm logged net income of $161.2 million for the first quarter, 7 per cent more than the $151 million the firm reported for the same period last year. Compared with the final three months of 2011, net income rose by 24 per cent. Net income wasn't broken down for the PFS business separately.

In recent days, some of the US's largest asset managers and banks have announced their results for the first quarter of 2011, and many of them – including Citigroup, JP Morgan and Wells Fargo – have seen slight falls in net income in their respective wealth management and private banking divisions.

Acquisitions bear fruit

Consolidated revenue at Northern Trust increased by 8 per cent to $965.4 million for the first quarter, up from $897.9 million in Q1 2011.

The company said that trust, investment and other servicing fees represented 60 per cent of revenue, and rose to $575.2 million in first quarter, up 12 per cent from $514.9 million at the same time last year. Of that $575.2 million in fees, $258.2 million were at the Personal Financial Services business.

Northern Trust attributed the revenue lift to acquisitions made in 2011. In June and July last year, the firm completed the purchases of Omnium, the hedge fund administrator, from Citadel for an undisclosed sum, and of Ireland Securities Services from the Bank of Ireland Group for around $82 million.