Northern: MMF Fee Waivers Down
Northern Trust reported Q1'17 earnings, saying, "Northern Trust Corporation today reported first quarter net income per diluted common share of $1.09, compared to $1.03 in the first quarter of 2016 and $1.11 in the fourth quarter of 2016. Net income was $276.1 million, compared to $245.4 million in the prior-year quarter and $266.5 million in the prior quarter. Return on average common equity was 11.6%." Frederick Waddell, Chairman & CEO, comments, "Northern Trust's first quarter revenue increased 8% compared to one year ago, reflecting strong growth in trust, investment and other servicing fees and net interest income. Assets under custody/administration and assets under management ended the quarter up 13% and 11%, respectively, compared to a year ago, primarily driven by higher markets and our continued success in winning new business." The release says of "Q1 2017 vs. Q1 2016," "Trust, investment and other servicing fees increased primarily due to favorable equity markets, new business, and lower money market mutual fund fee waivers, partially offset by the unfavorable impact of movements in foreign exchange rates." Fee waivers here decreased from $1.7 million a year ago to nothing in Q1'17. The release adds about "Q1 2017 vs. Q1 2016," "C&IS custody and fund administration fees increased primarily due to new business and favorable equity markets, partially offset by the unfavorable impact of movements in foreign exchange rates. C&IS investment management fees increased primarily due to the favorable impact of equity markets and lower money market mutual fund fee waivers. C&IS other fees increased primarily due to new business related to investment risk and analytical services." Fee waivers here decreased by 97%, dropping from $6.0 million a year ago to $0.2 million in Q1'17.
