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July 21, 2022

Northern Trust revenue grows 12% in Q2 2022

Northern Trust has reported a net income of $396.2m, or $1.86 a share in Q2 2022, up 8% from $368.1m or $1.72 per share in the second quarter of 2021.

The US asset manager’s total revenue for the three-month-period ending 30 June 2022 stood at 1.8bn, a surge of 12% from $1.5bn a year ago.

Net interest income increased to $469.8m in Q2 from $343.9m in Q2 2021.

The increase was majorly driven by a higher net interest margin and nonrecurring interest received from certain nonaccrual loans and was partially offset by lower average earning assets, the bank said.

Other highlights

Northern Trust’s total assets under custody (AUC) plummeted 13% to $10.7trn in Q2 2022 from $12.2trn in the year-ago quarter,

The firm’s total assets under management (AUM) fell 15% to $1.30trn in the period from $1.53trn in Q1 2021.

Assets under management in wealth management were $921.5bn at the end of Q2, down 5% from $973.0bn a year ago.

Asset servicing trust, investment and other servicing fees climbed 6% year-over-year to $1.14bn while wealth management trust, investment and other servicing fees rose 8% to $500.7m.

Return on average common equity stood at 15.7% in the second quarter, up 13.7% compared with Q2 2021.

Comments

Northern Trust chairman and CEO Michael O’Grady said: “Northern Trust delivered a solid second quarter financial performance, including revenue growth of 12%, earnings per share growth of 8%, both compared to the prior year, and return on average common equity of 15.7%.

“As announced yesterday, our Board of Directors increased our dividend 7% to $0.75 per share for the third quarter, reflecting the strength of our balance sheet and capital position. As we look to the second half of the year, we remain focused on serving our clients, executing on our long-term growth priorities, and investing prudently for the future.”

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