Earnings Review and Free Research Report: Interest Income Lifted Northern Trust’s Q3 Results; Topped Expectations
Research Desk Line-up: The Bank of New York Mellon Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 23, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Northern Trust Corp. (NASDAQ: NTRS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NTRS, following the Company's disclosure of its financial results on October 18, 2017, for the third quarter fiscal 2017 (Q3 FY17). The Chicago-based Company's quarterly total revenues (FTE) and diluted earnings per share (EPS) both registered a 11% y-o-y growth; beating market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
Get more of our free earnings reports coverage from other constituents of the Asset Management industry. Pro-TD has currently selected The Bank of New York Mellon Corporation (NYSE: BK) for due-diligence and potential coverage as the Company reported on October 19, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on The Bank of New York Mellon when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NTRS; also brushing on BK. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=NTRS
http://protraderdaily.com/optin/?symbol=BK
Earnings Reviewed
In Q3 FY17, Northern Trust reported total revenues of $1.35 billion versus $1.21 billion recorded in Q3 FY16. The Company's quarterly revenues benefited from robust growth in its interest income on a fully tax equivalent (FTE) basis. Meanwhile, the Company's total revenues (FTE) for Q3 FY17 stood at $1.36 billion, which came in above the $1.22 billion recorded in Q3 FY16 and beating market expectations of $1.35 billion.
During Q3 FY17, Northern Trust's net interest income increased to $354.2 million from $303.1 million in the year-ago same period. The Company's net interest income on a FTE basis grew 18% y-o-y to $366.2 million in Q3 FY17. Meanwhile, net interest margin (FTE) improved from 1.14% in Q3 FY16 to 1.29% in Q3 FY17. Driven by favorable equity markets and new business, non-interest income increased 9% to $991.0 million y-o-y for Q3 FY17 from $910.6 million in Q3 FY16. Furthermore, the Company reported non-interest expense of $935.6 million in Q3 FY17, rising 11% from $843.0 million in Q3 FY16.
The asset management Company reported net income of $298.4 million, or $1.20 per diluted share, for Q3 FY17, up from $257.6 million, or $1.08 per diluted share, recorded in Q3 FY16. Meanwhile, Wall Street had expected the Company to report net income of $1.12 per diluted share.
Performance Metrics
During the three months ended on September 30, 2017, Northern Trust reported return on average assets of 0.98% versus 0.88% in the year-ago comparable quarter. The return on average common equity stood at 12.2% for Q3 FY17 compared to 11.7% reported in last year's same period.
As on September 30, 2017, the Company's common equity Tier 1 capital ratio under advanced approach stood at 13.3% compared to 11.8% on the year-ago same date. The Tier 1 capital ratio under advanced approach was 14.6% at the end of Q3 FY17 compared to 13.1% at the close of Q3 FY16. Additionally, on September 30, 2017, Tier 1 Leverage ratio and Supplementary Leverage ratio came in at 8.0% and 6.9%, respectively.
In the reported quarter, the Company had $7.75 trillion of Assets under Custody (AUC), which was 16% more than $6.71 trillion recorded in the year-ago corresponding quarter. Additionally, total Assets under Management (AUM) was $1.13 trillion during Q3 FY17 compared to $945.8 billion in Q3 FY16.
Northern Trust's Segment Performance
In Q3 FY17, the Company's Corporate & Institutional Services revenues grew 11% to $501.1 million from $450.8 million in the prior year's same quarter. During the reported period, the segment's Custody & Fund Administration fee posted a 13% y-o-y year-over-year growth, primarily driven by new business and favorable foreign exchange rates and equity markets. Moreover, the 10% y-o-y rise in Investment Management fees was also attributed to new business and favorable equity markets. Meanwhile, Securities Lending fees fell 1% y-o-y in Q3 FY17 due to lower spreads, partially offset by increased loan volumes. The division reported a 16% rise in AUC to $7.13 trillion in Q3 FY17; moreover, AUM grew 19% y-o-y to $840.7 billion in the reported period.
The Wealth Management division reported total revenues of $366.8 million in Q3 FY17, up 9% y-o-y, primarily driven by new business and favorable equity markets. In Q3 FY17, both AUC and AUM grew 17% y-o-y to $622.9 billion and $284.4 billion, respectively.
Dividend and Share Repurchase
In a separate press release on October 17, 2017, the Company's Board of Directors declared a quarterly dividend of $0.42 per share on its common stock, which is payable on January 01, 2018, to stockholders of record at the close of business on December 01, 2017.
During Q3 FY17, the company repurchased 1.41 million shares of its common stock for $124.8 million at an average price of $88.43 per share.
Stock Performance
Northern Trust's share price finished last Friday's trading session at $95.27, slightly up 0.31%. A total volume of 1.58 million shares have exchanged hands, which was higher than the 3-month average volume of 1.31 million shares. The Company's stock price soared 8.38% in the last three months, 6.59% in the past six months, and 34.22% in the previous twelve months. Additionally, the stock gained 6.98% since the start of the year. Shares of the Company have a PE ratio of 21.05 and have a dividend yield of 1.76%. The stock currently has a market cap of $21.84 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
