Northern Trust's assets under management totaled $1.25 trillion at the end of the fourth quarter, up 3% from the previous quarter but down 22.3% compared to the year-earlier quarter, the firm's earnings report Thursday showed.
Assets under custody and administration totaled $13.6 trillion in the fourth quarter, up 6.1% from the third quarter but down 16.3% compared to the quarter ended Dec. 31, 2021.
Michael O'Grady, Northern Trust's chairman, president and chief executive officer, told analysts in a webinar Thursday that the firm plans layoffs this year as part of a cost-cutting measure.
"The severance charge of $32 million is part of an ongoing effort to operationalize efficiency and ensure that we have partners in optimal locations aligned to the most critical work. Three to 400 roles will be impacted in locations across all business functions," said Doug Holt, a Northern Trust spokesman, in an email.
By other financial measures, Northern Trust's total revenue was $1.53 billion at the end of the fourth quarter, down 13.2% vs. the prior quarter and down approximately 8.5% year over year.
The firm's net income fell in the fourth quarter to $155.7 million, down 60.6% from the third quarter and down 61.7% compared to the fourth quarter of 2021.
