Net Income, Wealth Assets Rise At Northern Trust

Editorial Staff, October 21, 2021


Net income, revenues and wealth management AuM rose at the Chicago-based financial services group in the third quarter.

Northern Trust yesterday reported $395.7 million in net income for the third quarter of 2021, rising from $294.5 million a year ago, aided by rising revenues and a reversal of some of last year’s credit loss provisions.

The Chicago-based group became the latest in a run of large US financial groups to report Q3 financial figures. It said that trust, investment and other servicing fees stood at $1.111 billion in the latest quarter, up from $1.003 billion in the same period of 2020. Non-interest costs rose to $1.128 billion, from $1.094 billion. 

Assets under management in the wealth business covered by the group stood at $372.9 billion, against $318.5 billion at September 30 last year, Northern Trust said in a statement. Total AuM was $1.532 trillion (with the other assets coming from corporate and institutional services). The group is a major global custodian: total assets under custody/administration were $15.775 trillion, rising 21 per cent year-on-year.

Northern Trust reported a 13.7 per cent return on average common equity, and a common equity Tier 1 capital ratio – a standard measure of a bank’s financial “buffer” against shocks – of 11.9 per cent.

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