Northern Trust sees 6.4% asset gain in Q3

Northern Trust had third-quarter assets under management of $749.7 billion, up 6.4% from the prior quarter and up 16.4% from the year-earlier quarter.

Corporate and institutional assets under management rose 7% during the quarter ended Sept. 30 and 17.6% from a year earlier to $565.6 billion, according to an earnings statement.

Year-over-year increases are largely attributed to market gains. From the end of the third quarter of 2011 — when equity markets bottomed — through the third quarter of this year, U.S. equities rose more than 30% as measured by the Russell 3000 index. The Barclays Capital U.S. Aggregate Bond index was up 5.2% over that period, and the MSCI ACWI Investible Market index rose 14.9%.

Assets under custody were $4.76 trillion for the latest quarter, up 4.3% during the third quarter and an increase of 14.1% from a year earlier.

Northern Trust reported consolidated revenue of $972.5 million during the quarter, down 1.6% from the second quarter and essentially flat from the year-earlier quarter.

However, investment management revenue of $73.2 million was up 2% during the quarter and 13% higher than a year earlier, driven by new business, according to the company's earnings presentation Wednesday.

In an e-mail, a company spokesman declined to provide information pertaining to net asset flows during the quarter.

Consolidated net income of $179 million was down 0.4% for the quarter but 4.9% higher than a year earlier.