US-based asset manager Northern Trust has registered a 4% year-on-year rise in net income in Q1 2021.
Revenue remained stable as decrease in net interest income were offset by rise in trust, investment and other servicing fees.
Northern Trust’s net Income for the quarter to March 2021 was $375.1m, or $1.70 per share. The prior year figure was $360.6m, or $1.55 per share.
Total revenue remained unchanged at $1.59bn. Net interest income slumped 17% to $346.7m from $416.2m.
Trust, investment and other servicing fees of $1.06bn were 6% higher than the previous year.
Total wealth management trust, investment and other servicing fees increased 3% year-on-year to $443.2m.
This was driven by the regions – Central, East and West – that benefitted from favourable markets, offset by Global Family Office that was hit by higher money market mutual fund fee waivers.
Total assets under custody/administration were $14.8trn at the end of March 2021, up 36% from $10.9trn a year ago. Assets under custody/administration in wealth management increased to $918.8bn from $640.1bn over the period.
Total assets under management were $1.45trn as of 31 March 2021, 29% higher than $1.12trn a year ago.
Assets under management in wealth management increased to $355.4bn from $276.7bn.
Northern Trust chairman and CEO Michael O’Grady said: “In support of our growth, expense increased 5%.
“Our strong capital base and liquidity position enabled us to support the needs of our clients, and this was demonstrated further during the quarter as we saw continued growth in client activity.
“The quarter also benefited from an improved outlook in projected economic conditions driving a release of reserves for credit losses, all of which combined to achieve 4% growth in net income and 9% growth in diluted earnings per common share versus last year and a return on average common equity of 13.7%.”
Northern Trust was recently in the news for reaching an agreement to acquire an equity stake in Equity Data Science (EDS).
A cloud-based analytics platform, EDS offers decision support tools to asset managers.
Earlier this year, Northern Trust also collaborated with data provider IHS Markit in a bid to further bolster its Whole Office strategy.