Northern Trust enjoys strong Q1 sec lending results
20 April 2016 Chicago
Image: Shutterstock
Northern Trust secured enough new clients to grow its securities lending business by 5 percent in Q1 2016.
Securities lending achieved $22.6 million in fees, up from $21.6 million in Q1 2015.
The bank attributed the positive results to higher spreads, although gains were partially offset by lower volumes.
The new securities lending business and other ancillary services contributed to a 10 percent increase in Northern Trust鈥檚 鈥榦ther fees鈥� earnings category.
At the same time, custody and fund administration fees, the largest component of corporate and institutional (C&IS) fees, increased 3 percent from Q1 2015 to $286.4 million, up from $277.1 million, also thanks to new business.
But this was partially offset by a shaky equity market and movements in foreign exchange rates.
Assets under custody and administration totalled $7.93 trillion as of 31 March 2016.
Frederick Waddell, chairman and CEO, said: 鈥淣orthern Trust performed well in the first quarter of 2016, despite the volatile market environment and heightened global economic uncertainty.鈥�
鈥淭otal revenue grew 5 percent, with strong growth in net interest income and steady growth in trust, investment and other servicing fees, partially offset by lower foreign exchange trading income.鈥�
鈥淓xpenses increased 5 percent, as we continued to invest in people, technology and regulatory initiatives to support our growing business. Our return on equity was 11.4 percent, within our target range of 10 to 15 percent.鈥�
Securities lending achieved $22.6 million in fees, up from $21.6 million in Q1 2015.
The bank attributed the positive results to higher spreads, although gains were partially offset by lower volumes.
The new securities lending business and other ancillary services contributed to a 10 percent increase in Northern Trust鈥檚 鈥榦ther fees鈥� earnings category.
At the same time, custody and fund administration fees, the largest component of corporate and institutional (C&IS) fees, increased 3 percent from Q1 2015 to $286.4 million, up from $277.1 million, also thanks to new business.
But this was partially offset by a shaky equity market and movements in foreign exchange rates.
Assets under custody and administration totalled $7.93 trillion as of 31 March 2016.
Frederick Waddell, chairman and CEO, said: 鈥淣orthern Trust performed well in the first quarter of 2016, despite the volatile market environment and heightened global economic uncertainty.鈥�
鈥淭otal revenue grew 5 percent, with strong growth in net interest income and steady growth in trust, investment and other servicing fees, partially offset by lower foreign exchange trading income.鈥�
鈥淓xpenses increased 5 percent, as we continued to invest in people, technology and regulatory initiatives to support our growing business. Our return on equity was 11.4 percent, within our target range of 10 to 15 percent.鈥�
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