Northern Trust Corporation Reports Second Quarter Net Income of $269.2 Million, Earnings Per Common Share of $1.10
Increased Quarterly Cash Dividend 9% to $0.36 Per Common Share
Returned $182.0 Million in Capital to Common Stockholders
Northern Trust Corporation
July 22, 2015 7:30 AM
Northern Trust Corporation today reported second quarter net income per diluted common share of $1.10, compared to $0.75 in the second quarter of 2014 and $0.94 in the first quarter of 2015. Net income was $269.2 million, compared to $181.9 million in the prior-year quarter and $230.7 million in the prior quarter. Return on average common equity was 12.8%, compared to 9.2% in the prior-year quarter and 11.3% in the prior quarter.
The current quarter includes a pre-tax gain on the sale of 1.0 million Visa Inc. Class B common shares totaling $99.9 million ($62.1 million after tax, or $0.26 per diluted common share); voluntary cash contributions to certain constant dollar net-asset-value (NAV) funds of $45.8 million ($28.6 million after tax, or $0.12 per diluted common share); and the impairment of the residual value of certain aircraft under leveraged lease agreements of $17.8 million ($11.1 million after tax, or $0.05 per diluted common share). Excluding these items, net income per diluted common share, net income, and return on average common equity were $1.01, $246.7 million and 11.8%, respectively.
The prior-year quarter included pre-tax charges of $32.8 million for severance and related costs and for the realignment of the Corporation’s real estate portfolio and $9.5 million of software write-offs. Excluding these charges and write-offs, net income per diluted common share, net income, and return on average common equity were $0.87, $209.8 million, and 10.6%, respectively.
“Northern Trust continues to perform well. In the second quarter, net income and earnings per shar