US – Northern Trust’s third-quarter net income rose 18% to 113.8 million dollars (97.4 million euros), up from 96.4 million dollars in the 2002 quarter.
Revenues from continuing operations rose four percent to 538.8 million dollars.
"These results reflect strong execution of our core business strategies coupled with improved economic and equity market conditions,” said chairman and chief executive William Osborn.
“Trust fees for the quarter grew eight percent while assets under administration reached a record high of 1.9 trillion dollars, up 33% from a year ago.”
He added that assets under management reached a record 435.7 billion, a 49% rise over a year ago.
“During this quarter we began to see the benefit of actions announced in the second quarter aimed at reducing operating costs and strategically positioning Northern Trust for improved profitability.”
“We are also pleased to experience revenue growth in several areas that our strategic review identified for increased focus."
Chicago-based Northern Trust said that fees from corporate and institutional services were up 13% to 151.5 million dollars – which included around 7.1 million in fees resulting from the acquisition of Deutsche Bank’s passive asset management business.
Securities lending fees were up to 25.3 million dollars on the year-ago 17 million dollars. Asset management fees totalled 54.5 million dollars, up from 47 million dollars a year ago. Custody fees edged up to 58.2 million dollars from 56.8 million dollars.
The bank has cut 13% of its staff in the past year, with its payroll now down to 8,094 from 9,328.