Growth of Northern Trust's assets under management in the second quarter were boosted by macro factors including strong equity markets, as well as by new business wins, offset by lower securities-lending revenue, said Stephen "Biff" Bowman, Northern Trust executive vice president and chief financial officer, during a conference call with analysts.
Northern Trust does not report net flows.
Second-quarter investment management fees totaled $111 million in the quarter, an increase of 6.7% from the previous quarter and a decrease of 2% from the year-earlier quarter.
The company's assets under custody as of June 30 totaled $8.52 trillion, up 3.9% from March 31 and up 5.1% from June 30, 2018. Northern Trust had $11.32 trillion in assets under custody and administration as of the end of the second quarter, up 3.6% from three months earlier and up 5.7% from a year earlier.
Custody and fund administration fees of $385 million in the second quarter were up 2.7% compared to the previous quarter and up 2.1% vs. the quarter ended June 30, 2018.
Northern Trust's overall revenue for the second quarter totaled $1.5 billion, up 1.7% from the previous quarter and down 0.1% from the year-earlier quarter. Net income in the second quarter was $389 million compared to $347 million in the prior quarter and $390 million in the second quarter of 2018.