Northern Trust Beats on Both Top and Bottom Lines
Northern Trust released better-than-expected first-quarter earnings report before the markets opened on Tuesday.
Northern Trust Corp. (NASDAQ: NTRS) released its first-quarter earnings report before the markets opened on Tuesday. The company said it had $1.01 in earnings per share (EPS) on $1.19 billion in revenue, compared to consensus estimates of $0.95 in EPS on revenue of $1.18 billion. In the same period of last year, the bank posted EPS of $0.94 and $1.14 billion in revenue.
Return on average common equity was 11.4%, compared to 11.3% in the prior-year quarter and 11.1% in the prior quarter. The Basel III capital ratio for common equity was 11.6% from an advanced approach and 10.6% from a standardized approach.
Assets under custody/administration (AUC/A) and assets under management were the primary drivers of this company’s trust, investment and other servicing fees. AUC/A totaled $7.93 trillion at the end of the first quarter.
During the current quarter, the corporation declared cash dividends totaling $5.9 million to preferred stockholders and cash dividends totaling $83.9 million to common stockholders.
[nativounit]
Frederick H. Waddell, chairman and CEO of Northern Trust, commented:
Northern Trust performed well in the first quarter of 2016, despite the volatile market environment and heightened global economic uncertainty. Total revenue grew 5%, 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%, as we continued to invest in people, technology and regulatory initiatives to support our growing business. Our return on equity was 11.4%, within our target range of 10-15%.
Shares of Northern Trust closed Monday up 1% at $68.29, with a consensus analyst price target of $69.76 and a 52-week trading range of $54.38 to $79.25.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
