The following excerpt is from the company's
MILLION, EARNINGS PER COMMON SHARE OF
TOTAL REVENUE INCREASED
OVER THE PRIOR-YEAR QUARTER
MILLION IN CAPITAL TO COMMON STOCKHOLDERS
October 21, 2015
) Northern Trust Corporation today reported
quarter net income per diluted common share of
, compared to
. Net income was
in the prior-year quarter and
in the prior quarter. Return on ave rage common equity was
The prior quarter included a pre-tax gain on the sale of
Visa Inc. Class B common shares totaling
voluntary cash contributions to certain constant dollar net-asset-value (NAV) funds of
and the impairment of the residual value of certain aircraft under leveraged lease agreements of
Excluding these items, net income per diluted common share, net income and return on average common equity for the prior quarter were
THIRD QUARTER 2015 PERFORMANCE (continued)
“We continue to perform well in a challenging environment, with net income and earnings per share exhibiting strong growth of
, respectively. Noninterest income and net interest income grew
, respectively. Expense growth of
reflects continued investments in our business as well as ongoing support of regulatory requirements and technology initiatives.
In the third quarter, we returned
to common stockholders through dividends and stock repurchases, demonstrating our continuing commitment to returning capital to our common stockholders,” said Frederick H. Waddell, Chairman and Chief Executive Officer.
Net income per diluted common share was
, up from
in the prior-year quarter.
in the prior-year quarter, primarily reflecting higher trust, investment and other servicing fees, foreign exchange trading income and security commissions and trading income.
Trust, investment and other servicing fees were
in the prior-year quarter, primarily reflecting new business.
Assets under custody and assets under management are the primary drivers of the Corporation’s trust, investment and other servicing fees. The following table presents the Corporation’s assets under custody and assets under management by reporting segment.
($ In Billions)
% Change Q3-15/Q2-15
% Change Q3-15/Q3-14
Assets Under Custody
Corporate & Institutional Services
Total Assets Under Custody
Assets Under Management
Total Assets Under Management
THIRD QUARTER 2015 PERFORMANCE VS. THIRD QUARTER 2014 (continued)
Corporate & Institutional Services (C&IS) trust, investment and other servicing fees increased
, to $
from the prior-year quarter’s
($ In Millions)
Change Q3 2015 from Q3 2014
C&IS Trust, Investment and Other Servicing Fees
Custody and Fund Administration
Custody and fund administration fees, the largest component of C&IS fees, increased
, driven by new business and higher equity markets, partially offset by the unfavorable impact of movements in foreign exchange rates. Investment management fees increased
due to new business and lower money market mutual fund fee waivers. Money market mutual fund fee waivers in C&IS totaled
in the current quarter compared to
in the prior-year quarter. Securities lending decreased
due to changes in fee arrangements.
Wealth Management trust, investment and other servicing fees totaled
Wealth Management Trust, Investment and Other Servicing Fees
Global Family Office
Global Family Office fees increased 15%, primarily attributable to new business, while fees across the regions decreased 1% to 2%. Money market mutual fund fee waivers in Wealth Management totaled
Foreign exchange trading income totaled
, compared with
in the prior-year quarter. The increase was primarily due to higher currency volatility as compared to the prior-year quarter.
Security commissions and trading income totaled
in the prior-year quarter. The increase was primarily attributable to higher income from interest rate protection products sold to clients.
Other operating income totaled
, reflecting increases in various categories.
Net interest income on an FTE basis totaled
in the prior-year quarter. The increase was primarily the result of growth in earning assets and a higher net interest margin. Earning assets for the quarter averaged
in the prior-year quarter, resulting from higher levels of securities and loans. Earning asset growth was funded by a higher level of demand deposits. The net interest margin increased to
in the prior-year quarter, primarily reflecting a lower cost of interest-related funds, partially offset by lower yields on certain categories of earning assets.
The provision for credit losses was a credit of
in the current quarter, reflecting improved credit quality. There was no provision for credit losses recorded in the prior-year quarter. Net charge-offs in the current quarter were
, resulting from charge-offs of
and recoveries of
. The prior-year quarter included
of net charge-offs, resulting from
of charge-offs and
of recoveries. Nonperforming assets of
The table below provides information regarding nonperforming assets, the allowance for credit losses and associated ratios.
Nonperforming Loans and Leases
Other Real Estate Owned
Total Nonperforming Assets
Allowance for Credit Losses
Allowance for Credit Losses Assigned to:
Undrawn Loan Commitments and Standby Letters of credit
Total Allowance for Credit Losses
Nonperforming Loans and Leases to Total Loans and Leases
Allowance for Credit Losses Assigned to Loans and Leases to Total Loans and Leases
Allowance for Credit Losses Assigned to Loans and Leases to Nonperforming Loans and Leases
Noninterest expense totaled
in the current quarter, up
in the prior-year quarter, attributable to higher outside services, compensation and equipment and software expenses.
Compensation expense, the largest component of noninterest expense
. The increase primarily reflects higher staff levels, base pay adjustments and performance-based compensation, partially offset by the favorable impact of movements in foreign exchange rates.
Staff on a full-time equivalent basis at
September 30, 2015