News by sections
ESG

News by region
Issue archives
Archive section
Multimedia
Videos
Podcasts
Search site
Features
Interviews
Country profiles
Generic business image for news article Image: Drone_Dood/adobe.stock.com

21 April 2021
US
Reporter Drew Nicol

Share this article





Spread squeeze hampers Northern Trust’s Q1 securities lending earnings

Northern Trust’s securities lending revenue decreased in Q1, compared to the same period last year, due to lower spreads.

The Chicago-headquartered bank saw fees from its agency lending business reach $18.2 million in the first quarter of this year, up 4 per cent from the prior quarter but down 22 per cent from Q1 2020, when it earned $23.4 million.

The Q1 figures mark the third consecutive quarter Northern Trust has failed to achieve earnings north of $20 million, a threshold it has cleared in all prior quarters since 2016.

Northern Trust was among the agent lenders to make gains in full-year revenue from their securities lending business in 2020, compared to 2019, primarily thanks to above-average returns in Q2 last year.

The bank brought in $88 million in 2020, up from $87.2 million the prior year.

Northern Trust’s securities lending business sits under its corporate and institutional services division which overall reported revenue of $620.5 million for Q1, up from $596.1 million in the previous quarter and $574.4 million in Q1 2020, a 4 per cent and 8 per cent increase, respectively.

Subscribe advert
Advertisement
Video image
Video:
Securities Finance Technology Symposium

A heartfelt thank you to everyone who made the 6th Securities Finance Technology Symposium in London a resounding success! It was a fantastic day filled with insightful panel sessions covering crucial topics such as repo, regulation, collateral and future tech. Here are some of the highlights

Watch online
View all Videos
Get in touch
News
More sections
Black Knight Media