Securities lending revenue falls for Northern Trust
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Securities lending revenue falls for Northern Trust 23 July 2010Chicago Reporter: Justin Lawson
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The second quarter of 2010 has seen a drop in income for Northern Trust in the securities lending sector.
Trust, investment and other servicing fees fell by USD57.9 million to 543.5 million, a 10 per cent fall. This, said the company, was mainly down to reduced securities lending revenue. This drop was caused by "a lower level of asset valuation loss recoveries and a higher level of waived fees in money market mutual funds."
In total, the company posted second quarter net income per share of USD0.82, compared with $0.64 in the first quarter and $0.95 for the same period last year. Net income was USD199.6 million.
"We are pleased to report USD200 million in net income in the second quarter despite the low interest rate environment and prolonged economic recovery," said Frederick Waddell, chairman and chief executive officer. "Our client-focused businesses continue to serve both new and existing clients with distinction and with a broad range of financial solutions."
"As one of the best capitalised large banks in the US with Tier 1 capital and Tier 1 common ratios of 13.7 per cent and 13.2 per cent respectively, we continue to invest in our businesses in order to serve our clients now and into the future. We are confident that ongoing economic challenges will ultimately give way to a recovery, benefitting our clients, our people and our shareholders."
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