While some of the financial results were positive, the group's AuM took a hit – as have other firms – from falling markets in recent months.

Northern Trust yesterday reported that its net income rose 2 per cent year-on-year to $396.2 million in the second quarter of 2022, while total revenues rose 3 per cent, standing at $1.779 billion. 

Non-interest costs rose 1 per cent to $1.224 billion, the Chicago-based group said in a statement.

Total assets under management within the wealth management segment fell 11 per cent year-on-year to $352.8 billion; total AuM – including asset servicing work – fell 13 per cent to $950 billion. Weaker market levels took their toll on the results, the firm said. 

As far as assets under custody are concerned, the wealth management segment fell 11 per cent to $913 billion.

“The elimination of fee waivers and our continued new business generation contributed to a 6 per cent increase in trust, investment and other servicing fees, while rising interest rates drove a 37 per cent increase in net interest income,” Michael O’Grady, chairman and chief executive, said. “Expenses grew 9 per cent [from Q1, 2022], reflecting growth and investment in our business, coupled with continued inflationary pressures. This combination resulted in three points of positive operating leverage compared to the prior year.”

The group’s board of directors have boosted Northern Trust’s dividend by 7 per cent to $0.75 per share for the third quarter. 

At the end of June, the group had a Common Equity Tier 1 Capital ratio – a standard global capital buffer of 10.5 per cent, narrowing from 12 per cent a year earlier.