Northern Trust Q3 Profit Rises - Quick Facts

(RTTNews) - Northern Trust Corp. (NTRS) reported that its third quarter of 2013 earnings allocated to common and potential common shares grew to $203.0 million from the previous year's $176.0 million, with net income per share improving to $0.84 from $0.73 per share in the third quarter of 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.

Net income for the quarter was $206.5 million, up 15%, from $178.8 million in the prior year quarter.

Net interest income for the quarter on an FTE basis totaled $244.8 million, down $12.1 million, or 5%, compared to $256.9 million in the prior year quarter. The decrease was primarily the result of a decline in the net interest margin to 1.14% from 1.21% in the prior year quarter, partially offset by higher levels of average earning assets. The decline in the net interest margin primarily reflects lower yields on earning assets, partially offset by a lower cost of interest-related funds due to lower short-term interest rates.

The provision for credit losses was $5.0 million in the quarter compared to $10.0 million in the prior year quarter.

Noninterest income increased $83.3 million, or 11%, to $810.2 million from the prior year quarter's $726.9 million, primarily reflecting higher trust, investment and other servicing fees; other operating income; and foreign exchange trading income.

Net Interest Income for the quarter slipped to $237.0 million from last year's $245.6 million.

Consolidated revenue of $1.05 billion in the quarter was up $74.7 million, or 8%, from $972.5 million in the prior year quarter. Fifteen analysts had consensus revenue estimate of $1.03 billion for the quarter.

Trust, investment and other servicing fees were $648.0 million in the latest-quarter, up $46.1 million, or 8%, from $601.9 million in the prior year quarter. The increase primarily reflects new business and the favorable impact of equity markets on fees, partially offset by higher waived fees on money market mutual funds.