Our capital ratios remained strong, with Common Equity Tier 1 ratio at 12.8 percent at year end. During 2020, we paid common dividends of $592 million, or $2.80 per share, compared to $2.60 per share during the prior year. And we returned 77 percent of our earnings to shareholders, 51 percent in dividends and 26 percent in stock repurchases. Even with these benefits to shareholders, total stockholders’ equity increased to $11.7 billion.

Our financial performance was impacted by the ongoing low interest-rate environment. The low-rate environment resulted in lower net income of $1.2 billion, down 19 percent from the prior year; and diluted earnings per common share of $5.46, down 18 percent year-over-year. While our return on average common equity was 11.2 percent (down from 14.9 percent in 2019) it remained within our targeted range of 10 to 15 percent.

Annual revenue remained consistent with the previous year. Noninterest income was 6 percent higher than 2019, offset by a 14 percent decline in our net interest income that resulted from the headwinds of low interest rates. Noninterest income grew in each category including 4 percent in trust, investment and other servicing fees; 33 percent in other operating income; 16 percent in foreign exchange trading income; and 29 percent in security commissions and trading income. Our fee-based revenue growth was driven by new business and favorable market levels, which were partially offset by money market fee waivers related to low interest rates.

Underlying this trust fee growth was a strong increase in our client assets. Assets under custody and administration ended the year at $14.5 trillion, up 21 percent. Assets under custody were $11.3 trillion at year end, up 22 percent, while our assets under management were $1.4 trillion, up 14 percent. The growth across these assets levels was driven by favorable market performance, as well as organic new business growth. Our expenses during 2020 grew 5 percent, largely as a result of investments in technology, future growth and efficiencies.

At year-end, our credit quality remained strong. This stability was shown by net charge-offs for the year of only $3.2 million, representing 0.01 percent of total loans; and our nonaccrual loans representing only 0.4 percent of total loans. Given the change in our macroeconomic outlook as a result of the pandemic, we recorded a $125 million provision for credit losses during 2020 to ensure we have proper reserves for credit issues that could arise from the current economic environment.

We are continuing to provide our clients with the exceptional service and solution expertise they have come to expect from us. Our competitive positioning in our three businesses of wealth management, asset management and asset servicing continues to resonate well in the marketplace.

Our asset servicing business continued to service and support our clients’ accounts through incredibly challenging global circumstances. Our asset management business added nearly $100 billion in new money market instruments and our wealth management business provided world-class advice to our clients throughout the crisis.

Despite the challenges of 2020, we returned 11.2 percent on our common equity. As we move forward in a persistent low-interest-rate environment, we have accelerated our focus on driving greater efficiencies as well as continuing to grow organically in a scalable and profitable manner.