Northern Trust has posted a strong set of financial results for the first quarter of 2016.

Northern Trust has logged first quarter 2016 net income of $241.8 million, up from $230.7 million a year ago and $239.3 million in the prior quarter.

Revenue of $1.19 billion increased $55.5 million, or 5 per cent, from $1.13 billion in Q1 2015. This primarily reflects higher net interest income and trust, investment and other servicing fees, partially offset by lower foreign exchange trading income, the Chicago-headquartered firm said.

Trust, investment and other servicing fees stood at $748.2 million, up $20.7 million – or 3 per cent – from $727.5 million in Q1 2015. This was mainly thanks to net new business and lower money market fee waivers, partially offset by the unfavorable impact of equity markets and movements in foreign exchange rates.

The firm said assets under custody/administration and assets under management are the primary drivers of its trust, investment and other servicing fees, and that AuC/A totaled $7.93 trillion at end-March.

Wealth management trust, investment and other servicing fees totaled $314.8 million, dropping 2 per cent from $320.2 million in the same period a year ago. Global family office fees rose, however, from $40.2 million to $45.5 million during the year, which Northern Trust said was primarily attributable to new business and lower money market mutual fund fee waivers.

As highlighted by the Wall Street Journal, the firm beat expectations as it benefited from the Federal Reserve’s interest rate increase as well as a bump in AuC and a lower reserve for potential credit losses.

“Northern Trust performed well in the first quarter of 2016, despite the volatile market environment and heightened global economic uncertainty. Total revenue grew 5 per cent, with strong growth in net interest income and steady growth in trust, investment and other servicing fees, partially offset by lower foreign exchange trading income. Expenses increased 5 per cent, as we continued to invest in people, technology and regulatory initiatives to support our growing business. Our return on equity was 11.4 per cent, within our target range of 10-15 per cent,” said Frederick Waddell, chairman and chief executive.