Shares of Northern Trust (NTRS) jumped 7% on Wednesday, securing the top daily performance in the S&P 500, after the 澳洲幸运5官方开奖结果体彩网:wealth management firm exceeded sales and ✃profit estimates with its results for the third quarter of 2024.

Highlights of Q3 Earnings Report

Gains in fee income collected by Northern Trust in exchange for managing and servicing clients' assets contributed to the strong performance. Third-quarter trust, investment, and other servicing fees jumped to $1.2 billion, up 8% year-over-year. The company said favorable market conditions, currency translation effects, and new business underpinned the fee growth.

In addition to higher fees, Northern Trust benefitted from an increase in assets being managed by the firm. Total assets under custody or administration surged 23% year-over-year to reach $17.4 trillion as of Sept. 30.

Anticipation of lower interest rates and the Federal Reserve's first rate cut in September have boosted investor sentiment and contributed to a market rally, helping lift asset totals and fee generation for management firms.

Northern Trust also reported a strong uptick in 澳洲幸运5官方开奖结果体彩网:net interest income (NII), which measures the difference between revenue generated by interest-bearing assets and fees paid on interest-bearing liabilities. Quarterly NII of $569.4 million marked an increase of 21% from the year-ago period.

In a statement accompanying the earnings release, Northern Trust CEO Michael O'Grady touted the firm's success in growing fee income while continuing to invest in its businesses and infrastructure. Looking forward, O'Grady says the company will focus on accelerating growth and improving operational efficiency.

Stock Has Gained More Than 20% in 2024

Following Wednesday's solid gains, Northern Trust shares are trading more than 20% higher in 2024, putting the asset manager's growth similar to the S&P 500's year-to-date gains.