Northern Trust reports Q3 EPS $1.08, consensus $1.09
Reports Q3 total revenue FTE $1.22B, consensus $1.25B. Return on average common equity was 11.7%. Northern Trust performed well in the third quarter of 2016, producing 1.3 points of positive operating leverage and driving our expense-to-fee ratio lower to 107%. Total revenue grew 5% versus one year ago, with strong growth in net interest income and steady growth in trust, investment and other servicing fees, partially offset by lower foreign exchange trading income. Expenses were well managed, growing 4% versus one year ago. Earnings per share of $1.08 increased a strong 13% compared to one year ago, and we increased our quarterly cash dividend by 6% to $0.38 per common share," said Frederick H. Waddell, Chairman and CEO. Assets under custody/administration and assets under management are the primary drivers of the Corporation's trust, investment and other servicing fees, the largest component of noninterest income. Assets under custody/administration totaled $8.50 trillion at September 30, 2016, up $379.9 billion, or 5%, from $8.12 trillion at June 30, 2016.