Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Innovation Investing Conference
    • 2022 Defined Contribution East Conference
    • 2022 ESG Investing Conference
    • 2022 DC Investment Lineup Conference
    • 2022 Alternatives Investing Conference
Breadcrumb
  1. Home
  2. ASSET SERVICING
May 12, 2014 01:00 AM

Assets, revenue continue to increase at custody banks

Rick Baert
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg
    Bank of New York Mellon Corp. is the largest custodian

    Large publicly traded banks' assets under custody and administration continued their slow but steady climb through 2013 into the first quarter of this year, and their asset servicing revenue saw similar percentage gains.

    Bank of New York Mellon Corp. remained the largest custodian in the quarter ended March 31, with total assets under custody and administration of $27.9 trillion, up 1% from Dec. 31 and 6% higher than the first quarter 2013.

    State Street Corp. came in a close second, at $27.5 trillion, a 0.2% gain from the previous quarter and 8.1% higher than a year earlier.

    J.P. Morgan Chase & Co. reported $21.1 trillion in AUC, up 3% from three months earlier and 10% higher than March 31, 2013, and Citigroup Inc. had AUC of $14.7 trillion, up 1.4% from the previous quarter and 8.8% above the first quarter of last year.

    Northern Trust Corp., with $5.25 trillion in assets under custody, had the highest percentage gains for the quarter and year, at 3.2% and 14.5%, respectively. That 12-month growth reflected “both sizable new business wins and a strong client retention rate,” Steven Fradkin, president of Northern Trust's Corporate & Institutional Services, said in an e-mail response to questions

    All five banks in their first-quarter earnings statements attributed the quarterly AUC gains to new business, while the 12-month increases were also the result of favorable equity markets.

    Revenues for the banks' asset-servicing businesses also saw steady increases for both the quarter and year. State Street reported revenue of $1.24 billion as of March 31, up 0.5% for the first three months of 2013 and 5.4% higher than a year earlier. BNY Mellon, meanwhile, had $1.01 billion in asset servicing revenue, up 2.5% and 4.1%, respectively.

    J.P. Morgan Chase had first-quarter securities services revenue of $1 billion, the same as the fourth quarter but up 4% from the first quarter 2013. Citigroup no longer breaks out asset servicing revenue.

    Northern Trust's asset servicing revenue was $252 million in the latest quarter, 0.4% higher than the start of the year and 12.5% above the first quarter 2013.

    Among the banks that broke out securities lending revenue in their statements, State Street reported $85 million, up 11.8% from Dec. 31 and 9% higher than the first quarter last year; BNY Mellon reported $38 million, up 23% for the quarter but down 2.6% from March 31, 2013; and Northern Trust had $23 million, up 4.5% for both the quarter and the year.

    The first-quarter increases reversed securities lending revenue declines of 19% at BNY Mellon and 4% at Northern Trust in the fourth quarter. State Street had a 2.7% gain in securities lending revenue in the last three months of 2013.

    Related Articles
    Markets, new business boost banks' asset-servicing revenue
    J.P. Morgan promotes new head of global custody
    Custody banks report gains from year-earlier figures; State Street tops in size
    Recommended for You
    Krishna Prasad
    Apex Group appoints its first head of U.S.
    Jesse Cole
    State Street names global head of private markets in asset-servicing unit
    State Street's BBH acquisition puts it at top
    State Street's BBH acquisition puts it at top
    OCIO, Anchor in Rough Seas
    Sponsored Content: OCIO, Anchor in Rough Seas

    Reader Poll

    May 23, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Crossroads: Politics, Inflation, & Bonds
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Q2 2022 Credit Outlook: Carry On
    Leverage does not equal risk
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    May 23, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Innovation Investing Conference
      • 2022 Defined Contribution East Conference
      • 2022 ESG Investing Conference
      • 2022 DC Investment Lineup Conference
      • 2022 Alternatives Investing Conference