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Money Management

Northern Trust’s AUM up 3% in quarter, 23% for year

Northern Trust Corp.'s assets under management totaled $1.161 trillion as of Dec. 31, up 3% from the three months ago and up 23% from Dec. 31, 2016, the company reported Wednesday in its earnings release.

Corporate and institutional assets under management of $871.2 billion were up 4% from Sept. 30 and up 26% from a year earlier.

Northern Trust reported $8.085 trillion in assets under custody as of Dec. 31, up 4% from three months earlier and up 20% from Dec. 31, 2016. Total assets under custody and administration were $10.723 trillion as of Dec. 31, up 11% from Sept. 30 and up 26% from Dec. 31, 2016. Northern Trust attributed the leap to the acquisition of UBS Asset Management's fund administration units in Luxembourg and Switzerland, which closed in the fourth quarter.

Northern Trust does not report net flows.

Investment management fees of $106.4 million in the quarter ended Dec. 31 were up 2% from the previous quarter and up 13% from the year-over-year quarter.

Custody and fund administration fees of $369 million in the fourth quarter were up 9% from the third quarter and up 22% from the quarter ended Dec. 31, 2016.

Northern Trust reported total revenue of $1.425 billion in the quarter, up 6% from the previous quarter and up 15% from the year-earlier quarter. Net income of $356.6 million in the latest quarter was up 19% from the third quarter and up 34% from the fourth quarter of 2016.

The impact of the tax cuts resulted in a one-time benefit of $53.1 million during the quarter, and a net loss of $12.9 million due to a special one-time employee cash bonus. The acquisition of UBS' fund administration units resulted in a net loss of $3.1 million, while severance-related and restructuring charges created a net loss of $17.6 million.