BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Northern Trust Corporation Announces First Quarter 2024 Earnings
CHICAGO, April 16, 2024 — Northern Trust Corporation, a leading provider of wealth management, asset servicing, and banking solutions, has released its financial results for the first quarter of 2024. The report details a notable increase in earnings from the previous quarter, although there is a decline when compared year-over-year.
Net Income and EPS:
- Net Income: Stood at $214.7 million for the quarter, showing a robust increase of 90% from the fourth quarter of 2023, which reported $113.1 million. However, this represents a 36% decline from $334.6 million in the first quarter of 2023.
- Earnings Per Share (EPS): Earnings per diluted common share were $0.96, marking an 85% increase from $0.52 in Q4 2023, but a 37% decrease from $1.51 in Q1 2023.
Financial Highlights and Key Metrics:
- Trust, Investment, and Other Servicing Fees: These fees rose to $1,142.9 million from $1,090.0 million in the previous quarter and $1,063.6 million in the first quarter of 2023, showing growth of 5% and 7% respectively.
- Net Interest Income: Reported at $535.4 million, this was up 7% from $501.1 million in Q4 2023 but down 2% from $544.4 million in Q1 2023.
- Total Revenue: The company's total revenue for the quarter was $1,654.1 million, which is a 6% increase from Q4 2023 but a decrease of 6% from Q1 2023.
Significant Financial Items:
- Pre-Tax Losses on Investments: The first quarter included a significant pre-tax loss of $189.4 million on available-for-sale debt securities, which was recognized under investment security gains (losses), net. This loss impacts the overall profitability for the quarter.
- FDIC Special Assessment: There was a $12.5 million pre-tax increase in the Federal Deposit Insurance Corporation special assessment, which was recorded as an other operating expense.
Leadership Commentary: Michael O’Grady, Chairman and CEO of Northern Trust, reflected on the company's performance, stating, “Northern Trust delivered solid first quarter results. Trust fees grew sequentially and year over year, supported by underlying equity markets and improving momentum across our businesses. Net interest income also grew sequentially as a result of higher deposit levels. As we start the second quarter, we remain focused on further optimizing our growth, strengthening our resiliency and driving greater productivity.”
Client Asset Growth:
- Assets Under Custody/Administration: Grew to $16,472.5 billion, an increase of 7% from the end of 2023.
- Assets Under Management: Increased to $1,500.7 billion, up 5% from the previous quarter, reflecting positive market conditions and successful asset accumulation strategies.
Outlook:
Northern Trust is positioned for continued growth in trust fees and net interest income, bolstered by strong market performance and strategic business initiatives aimed at enhancing operational efficiency and financial stability.
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