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Northern Trust (NASDAQ:NTRS) posted second-quarter earnings that fell short of the average analyst estimate as lower average earning assets drove down net interest income.
Q2 EPS of $1.56, missing the $1.61 consensus, advanced from $1.51 in the prior quarter fell from $1.86 a year ago.
Still, shares rose 1.8% in premarket trading as “we grew trust fees and revenue as compared to the prior quarter; kept expenses, excluding notable items, well-controlled; generated return on common equity in the middle of our target range; and returned $257 million to shareholders,” said Chairman and CEO Michael O’Grady.
Revenue of $1.77B, vs. $1.76B expected, increased 1% sequentially and slipped 1% from a year ago.
Net interest income (fully taxable equivalent) was $524.6M in Q2, down from $544.4M in Q1 and up from $469.8M in the year-earlier quarter. Fully taxable equivalent net interest margin of 1.57% vs. 1.62% in the prior quarter and 1.35% in Q1 2022.
Assets under management stood at $1.37T as of June 30, 2023, compared with $1.33T as of March 31, 2023, and $1.30T as of June 30, 2022.
Trust, investment and other servicing fees of $1.10B perked up 3% from Q1 and slid 4% from a year before.
Allowance for credit losses was $197.5M vs. $213.0M in Q1 and $199.9M in Q2 of last year.
