Higher investment and asset servicing fees helped Northern Trust's profit rise by 10% in the third quarter.

The US bank posted a net income figure of $257.6m for the July - September period, up from $234.6m in 2015’s Q3.

New business and favorable equity markets were cited as the main drivers behind the performance, with total revenue growing 5% versus a year ago.

The firm now has over $8.5trn of assets under custody/administration.

Custody and fund administration fees increased year-on-year, partially offset by unfavorable FX movements.  

Third quarter fees from securities lending totalled $23.1m - higher in annual terms but weaker on a quarterly basis.

Securities lending settlement reaches $50m

Northern Trust has now paid out $50m to settle claims it negligently breached securities lending contracts.

On Wednesday the bank detailed a further $3.5m in settlement fees after paying a $46.5m penalty in the previous quarter.

The case dated back to 2009 and involved two Michigan-based pension funds.

The extra $3.5m settles the “remaining securities lending litigation” Northern Trust's statement said, suggesting the custody bank can put the matter to rest.