GLOBAL - Northern Trust continued the trend of downward quarterly figures by reporting a $21.3m dip in net income for Q4 2001, compared to the corresponding period in 2000.
The firm which also includes institutional investment management, custody and fund administration in its remit reported a figure of $104.2m in Q4 2001 against $125.5.m in Q4 2000.
But net income for the year was a up marginally at $487.5m, from $485.1m in 2000. And the firm recorded a 17% rise in its global custody business over the same period.
William Osborn, chairman and chief executive officer, said: “Although this quarter’s large credit loss provision - down 17% - caused a decline in quarterly earnings, even in this difficult environment, full year performance was at a record level. We took this provision to address aggressively our credit exposure to Enron which filed for bankruptcy on December 2, as well as other credit risks stemming from the economic recession.”
Figures from the firm’s Corporate & Institutional Services (C&IS) division included trust assets under administration which totalled $1.52trn at the end of 2001, against $1.51trn at December 31, 2000.
The firm said that it expected equity markets to improve, signalling a possible economic recovery.
By Madhu Kalia
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