Northern Trust settles and enjoys higher spreads 21 July 2016New York Reporter: Mark Dugdale
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Northern Trust will have to pay $46.5 million to settle securities lending litigation, while the bank outperformed the previous quarter in fees earned, according to its Q2 results.
The $46.5 million sum will settle unspecified securities lending litigation, but it is still subject to court approval, according to Northern Trust. The figure falls to $28.9 million after tax.
Northern Trust’s corporate and institutional services business earned securities lending fees of $26.8 million during Q2 2016, thanks to higher spreads.
Q2’s fees were up 18 percent from Q1’s $22.6 million and remained the same year over year.
Commenting on Northern Trust’s overall performance, Frederick Waddell, chairman and CEO, said the bank continues to effectively navigate a volatile market amid heightened global economic uncertainty.
“Total revenue increased with strong growth in net interest income and steady growth in trust, investment and other servicing fees, partially offset by lower foreign exchange trading income. We continued to invest in people, technology and regulatory initiatives to support our growing business. Our results for the quarter demonstrated our ability to win new business in the current environment.”
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