Total assets under management at Northern Trust amounted to $884.5 billion at end-December 2013, up 17 per cent year-on-year from $758.9 billion and up 5 per cent from $846.2 billion in the third quarter of 2013.

Total assets under management at Northern Trust amounted to $884.5 billion at end-December 2013, up 17 per cent year-on-year from $758.9 billion and up 5 per cent from $846.2 billion in the third quarter of 2013.

Trust, investment and other servicing fees in wealth management at Northern Trust totaled $302.7 million at the end of last year’s fourth quarter, increasing $24.4 million, or 9 per cent, from $278.3 million a year earlier.

The increase in fees logged in Q4 2013 were primarily due to higher equity markets and new business, partially offset by higher waived fees in money market mutual funds, the Chicago, IL-based wealth management firm said.

Wealth management trust, investment and other servicing fees were up $14.5 million, or 5 per cent, from $288.2 million in the prior quarter. Northern Trust also attributed this increase to higher equity markets and new business.

Drop in net income from Q3

Northern Trust's net income inched up 1 per cent year-on-year to end the final quarter of 2013 at $169.7 million, but is down 18 per cent from $206.5 million in the previous quarter. Return on average common equity was 8.7 per cent in Q4, compared to 8.8 per cent in the prior-year quarter and 10.6 per cent in Q3.

The firm said the fourth quarter results included a $19.2 million pre-tax charge ($11.9 million after tax, or $0.05 per common share) in connection with an agreement to resolve certain long-standing class action litigation. Excluding that charge, fourth quarter results would have reflected net income per common share of $0.75, net income of $181.6 million and return on average common equity of 9.3 per cent.

“Despite 8 per cent growth in trust, investment and other servicing fees, overall revenue growth of 5 per cent in 2013 was dampened by the challenging interest rate environment,” Frederick Waddell, chairman and chief executive at Northern Trust.

“Expense growth of 4 per cent reflects the growth in our business and ongoing investment to support technology initiatives and regulatory and compliance requirements,” Waddell said.

Meanwhile, the firm also reported that compensation expense - which it highlighted is the largest component of non-interest expense - totaled $334.8 million for the quarter ended December 31, 2013, up 3 per cent from $324.6 million in the prior quarter and up 6 per cent year-on-year, primarily reflecting higher staff levels.