Northern Trust reports mixed bag for Q3 lending revenue
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Northern Trust reports mixed bag for Q3 lending revenue 26 October 2017Chicago Reporter: Jenna Lomax
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Northern Trust's securities lending earnings remained steady in Q3, with only a 1 percent decrease from the same period in 2016.
Lending revenue hit $22.8 million last quarter, compared to $23.1 million in Q3 2016.
In its quarterly revenue report, Northern Trust blamed the slight drop on lower spreads and fee splits, although these were partially offset by increased loan volumes in the current quarter.
The bank also saw a 7 percent drop off in revenue from Q2 to Q3, with revenue down from $24.6 million to $22.8 million, due to lower spreads.
Northern Trust's securities lending activities sit under the umbrella of the bank's custody and investment services (C&IS) desk.
The bank's custody and administration earnings increased by 13 percent, from $299.4 million in Q3 2016 to $338.1 million last quarter.
This was mainly thanks to new business wins, as well as the favourable impact of movements in foreign exchange rates, and favourable equity markets.
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