Net Income Rises At Northern Trust In Q2

Tom Burroughes

19 July 2017

today reported $267.9 million of net income in the second quarter of 2017, a rise from $236 million a year ago.

At June 30, 2017, wealth management assets under custody/administration rose 15 per cent year-on-year to $603.4 billion. Across the whole of Northern Trust’s business, assets under custody/administration rose 15 per cent to $9.294 trillion, it said in a statement. As far as assets under management are concerned, the wealth segment logged a 14 per cent rise to $266.1 billion.

As of June 30, 2017 Northern Trust had assets under custody of $7.4 trillion, and assets under management of US$1.0 trillion.

The second quarter figure included cost charges of $22.8 million associated with severance and related activities. The prior-year quarter included a net pre-tax gain in revenue of $96.6 million from the sale of Visa Inc shares. When such items are stripped out, Q2 net income was $282 million, from $255 million.

Trust, investment and other servicing fees increased primarily due to favorable equity markets and new business, partially offset by the unfavorable impact of movements in foreign exchange rates. Foreign exchange trading income decreased primarily due to lower currency volatility, it said.