Northern Trust Corp (NTRS) Reports Q3 Net Income of $327.8 Million
Net income for Q3 2023 stands at $327.8 million, down from $331.8 million in Q2 2023 and $394.8 million in Q3 2022.
Earnings per diluted common share for Q3 2023 are $1.49, compared to $1.56 in Q2 2023 and $1.80 in Q3 2022.
Trust, Investment and Other Servicing Fees increased by 1% from Q2 2023 and 3% from Q3 2022.
Assets Under Custody/Administration (AUC/A) decreased by 2% from Q2 2023 but increased by 10% from Q3 2022.
On October 18, 2023, Northern Trust Corp (NASDAQ:NTRS) released its earnings report for the third quarter of 2023. The company reported a net income of $327.8 million, down from $331.8 million in the previous quarter and $394.8 million in the same quarter last year. Earnings per diluted common share were $1.49, compared to $1.56 in Q2 2023 and $1.80 in Q3 2022.
Financial Performance and Challenges
Despite the challenging stage of the current interest rate cycle, Northern Trust Corp (NASDAQ:NTRS) showcased the resilience of its business model. The company reported growth in trust fees and an expansion of its client base. Furthermore, the company made progress on its productivity initiatives and enhanced its regulatory capital metrics.
Northern Trust's third quarter results showcased the resilience of our business model in the midst of a challenging stage of this unprecedented interest rate cycle. We grew trust fees, expanded our client base, made further progress on our productivity initiatives, and enhanced our regulatory capital metrics. Our foundation remains strong and clients continue to place their trust in us. We are successfully navigating the challenging operating environment while positioning the company to capitalize on growth opportunities that will deliver value for our shareholders over the long term. - Michael O'Grady, Chairman and Chief Executive Officer
Key Financial Details
Trust, Investment and Other Servicing Fees for Q3 2023 were $1,111.9 million, a 1% increase from Q2 2023 and a 3% increase from Q3 2022. Net Interest Income was $469.4 million, a decrease of 10% from Q2 2023 and 11% from Q3 2022. Total Revenue was $1,739.7 million, a decrease of 2% from both Q2 2023 and Q3 2022.
Assets Under Custody/Administration (AUC/A) for Q3 2023 were $14,164.7 billion, a decrease of 2% from Q2 2023 but an increase of 10% from Q3 2022. Assets Under Management for Q3 2023 were $1,333.3 billion, a decrease of 2% from Q2 2023 but an increase of 10% from Q3 2022.
Analysis and Outlook
Despite the decrease in net income and earnings per share, Northern Trust Corp (NASDAQ:NTRS) demonstrated resilience in a challenging operating environment. The increase in Trust, Investment and Other Servicing Fees and the expansion of the client base are positive indicators for the company's performance. The company's strong foundation and successful navigation of the challenging operating environment position it well to capitalize on growth opportunities and deliver value for shareholders in the long term.
This article first appeared on GuruFocus.
