Seeking Alpha

Low rates hold back Northern Trust

  • For the year, Northern Trust (NTRS) ROE rose to 9.5% vs. 9.3% in 2012, and 8.6% in 2011. The quarterly dividend was boosted to $0.31 and 5.5M shares were repurchased. There were $609M in capital returns vs. $449.8M in 2012.
  • Assets under custody of $5.575T up 16% Y/Y; AUM of $884.5B up 17%.
  • C&IS trust, investment and other servicing fees of $371.1M up 8% Y/Y, but overall revenue growth was just 5% thanks to the low rate environment. Money market fund fee waivers of $14.7M vs. $5.7M a year ago.
  • Net interest income of $259.1M up 7% Y/Y, but NIM fell 5 bps to 1.12%. Noninterest expense of $794.,5M gained 7% from  year ago, with compensation expense of $334.8M up 6%. FTE staff of 14.8K up 4%.
  • CC at 11 ET
  • Press release, Q4 results
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