Northern Trust has reported net income of $204.5m for the third quarter of 2014, compared to $206.5 million in the prior year third quarter.
Revenue of $1.08bn was up $31.7m, or 3%, from $1.05bn in the prior year third quarter. Noninterest income increased $19.4m, or 2%, to $829.6m from the prior year third quarter’s $810.2m.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Excluding the prior year third quarter gain on the sale of an office building property, noninterest income increased $52, or 7%, reflecting higher trust, investment and other servicing fees, partially offset by lower foreign exchange trading income as compared to the prior year third quarter.
Trust, investment and other servicing fees were $718.2m, up $70.2, or 11%, from $648m in the prior year third quarter. The increase primarily reflects new business and higher equity markets, the company said in a statement.
Return on average common equity was 10.1%, compared to 10.6% in the prior year third quarter.
Frederick Waddell, chairman and CEO, commented, "Our financial performance in the third quarter of 2014 reflects continued growth in our business serving personal and institutional clients. Trust, investment and other servicing fees, which represent two-thirds of our revenue, increased 11% compared to last year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"New business and higher equity markets contributed to strong growth in assets under custody and under management, which increased 13% and 9%, respectively. Our pre-tax profit margin improved to 28.2% in the quarter and our return on equity was 10.1%. This performance reflects ongoing efforts focused on growing our client franchise while achieving sustainable improvements in productivity."
