Northern Trust quarterly profit jumps on Visa gain, strong fee income
NTRS•Assets and fee income climb
- Northern Trust's assets under custody and administration climbed 11% to $20 trillion in the quarter ended June 30 from a year ago, while assets under management grew 16% to $1.97 trillion.
- Trust, investment and other servicing fee income rose 10% to $1.35 billion. Fees from managing client assets are the company's main source of revenue.
- Chicago, Illinois-based Northern Trust offers wealth management, asset management and banking services to institutions and wealthy individuals.
- The results mirror those of peer BNY and State Street.
- Northern's second-quarter results included a $525.4 million (pre-tax) gain linked to its participation in the second Visa exchange offer.
- Northern's net income rose to $792.2 million, or $4.23 per share, in the second quarter, from $421.3 million, or $2.13 per share, a year earlier.
- However, excluding notable items, earnings per share increased 40%, supported by robust fee growth and healthy capital markets activity.
Quarterly profit rises on Visa gain and fee income
July 22 (Reuters) - Northern Trust reported an 88% jump in second-quarter profit on Wednesday, helped by a one-time gain tied to the Visa share exchange offer, along with strong fee income from asset management and robust capital markets activity.
U.S. stock markets rallied sharply during the April-June quarter as optimism grew over corporate earnings and AI-linked stocks as investors looked beyond the volatility sparked by the conflict in the Middle East.
