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January 21, 2022

Northern Trust profit surges 69% in fourth quarter

Northern Trust has posted a net income of $406.4m, or $1.91 a share in Q4 2021, a 69% growth from $240.9m, or $1.12 per share, in the same period in 2020.

Total revenue increased 9% to $1.68bn from $1.53bn over the period.

Other highlights

The US asset manager’s net interest income for the three-month-period ending 31 December 2021 stood at $370.6m, up 7% from $345.1m in the prior year.

Total consolidated trust, investment and other servicing fees in Q4 2021 were $1.11bn, up 8% from a year ago but stable compared to the previous quarter.

Total wealth management trust, investment and other servicing fees of $485.9m were 13% higher than a year earlier.

The growth was attributed to the Central, East and West regions, which benefitted from favourable markets, offset by Global Family Office that dipped on higher money market mutual fund fee waivers.

Total assets under custody/administration soared to $16.25trn from $14.53trn, while assets under custody/administration in wealth management increased 21% year-on-year to $1.06trn.

Total assets under management increased 14% to $1.61trn from $1.4trn.

Assets under management in wealth management were $416.1bn at the end of December 2021, up 20% from $347.8bn from a year ago.

Northern Trust chairman and CEO Michael O’Grady said: “Revenue growth reflected strong organic growth across each of our businesses, which also contributed to full year earnings growth and a return on average common equity of 13.9%.

“During the year we executed on our key growth initiatives and enhanced our foundational strength through advancements in our data and digital efforts, while also improving our productivity. The year also benefited from an improved outlook in projected economic conditions driving a release of reserves for credit losses.

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