Northern Trust: Not Cheap And Reliant On Rates Rising
Wed, Jul. 20, 9:03 AM
Wed, Jul. 20, 8:09 AM
- Q2 net income excluding items of $252.7M or $1.06 per share. ROE of 11.7%. In Q2 one year ago, net income excluding items was $246.7M or $1.01 per share, with ROE of 11.8%.
- Assets under custody of $6.35T up 3% Y/Y. AUM of $906.2B down 4%.
- Noninterest income of $1.017B up 1% Y/Y. Trust investment and other servicing fees of $777.2M up 3%. Forex trading income of $64.4M down 14%.
- Net interest income of $306.6M up 19% Y/Y, with NIM of 1.16% up 16 basis points.
- Compensation expense of $389.5M up 8% Y/Y.
- CET1 ratio of 11.5% down 50 bps Y/Y.
- CC at noon ET
- Previously: Northern Trust EPS in-line, beats on revenue (July 20)
- NTRS flat premarket
Wed, Jul. 20, 7:32 AM
Tue, Jul. 19, 5:30 PM
Thu, Jul. 7, 8:02 AM
Tue, Jun. 28, 12:12 PM
Thu, Jun. 23, 4:51 PM
- Ally Financial (NYSE:ALLY): Actual end of 2015 CET1 ratio of 9.2%, Q1 2018 CET1 ratio under severely adverse scenario of 6.1%, minimum 6.1%.
- American Express (NYSE:AXP): Actual 12.4%, Q1 2018 12.3%, minimum 11.4%.
- Bank of America (NYSE:BAC): Actual 11.6%, Q1 2018 8.1%, minimum 8.1%.
- BNY Mellon (NYSE:BK): Actual 11.5%, Q1 2018 11.2%; minimum 10.5%.
- BB&T (NYSE:BBT): 10.3%, 6.9%, 6.9%
- BBVA Compass (NYSE:BBVA): 10.7%, 6.5%, 6.5%.
- BMO Financial (NYSE:BMO): 11.9%, 5.9%, 5.9%.
- Capital One (NYSE:COF): 11.1%, 8.2%, 8.2%.
- Citigroup (NYSE:C): 15.3%, 9.2%, 9.2%.
- Citizens Financial (NYSE:CFG): 11.7%, 8.8%, 8.8%.
- Comerica (NYSE:CMA): 10.5%, 8.3%, 8.3%.
- Discover (NYSE:DFS): 13.9%, 12.4%, 11.9%.
- Fifth Third (NASDAQ:FITB): 9.8%, 6.8%, 6.8%.
- Goldman Sachs (NYSE:GS): 13.6%, 10.2%, 8.4%.
- HSBC N.A. (NYSE:HSBC): 15.7%, 9.1%, 9.1%.
- Huntington Bancshares (NASDAQ:HBAN): 9.8%, 5%, 5%.
- JPMorgan (NYSE:JPM): 12%, 8.3%, 8.3%.
- KeyCorp (NYSE:KEY): 10.9%, 6.4%, 6.4%.
- M&T (NYSE:MTB): 11.1%, 6.9%, 6.9%.
- Morgan Stanley (NYSE:MS): 16.4%, 10%, 9.1%.
- Northern Trust (NASDAQ:NTRS): 10.8%, 9.6%, 9.6%.
- PNC Financial (NYSE:PNC): 10.6%, 7.6%, 7.6%.
- Regions (NYSE:RF): 10.9%, 7.3%, 7.3%.
- Santander Holdings (NYSE:SAN): 12%, 11.8%, 11.8%
- State Street (NYSE:STT): 13%, 9.6%, 9.6%
- SunTrust (NYSE:STI): 10%, 7.5%, 7.5%.
- TD Group (NYSE:TD): 13.1%, 8.4%, 8.4%.
- U.S. Bancorp (NYSE:USB): 9.6%, 7.5%, 7.5%.
- Wells Fargo (NYSE:WFC): 11.1%, 7.2%, 7.2%.
- Zions (NASDAQ:ZION): 12.2%, 6.6%, 6.6%.
- Previously: All 33 banks pass this year's stress tests (June 23)
Thu, Jun. 16, 12:23 PM
- Increasing costs and weaker capital markets activity are a bad combination, but they're coming should the U.K. vote to exit the EU, says KBW's Brian Kleinhanzl, expecting a two-year transition period with those headwinds.
- Longer-term, though, Brexit should be a wash for the U.S. universal banks.
- As for the shorter-term, banks would need to have presence in both the U.K. and EU - the transition should be a manageable expense, but the run-rate costs would remain.
- Kleinhanzl sees JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS) as most exposed to the fallout thanks to the relatively large amount of income each generates from U.K. units. Citigroup and the custodial banks - BNY Mellon (NYSE:BK), State Street (NYSE:STT), Northern Trust (NASDAQ:NTRS) - should be less impacted since operations in the U.K. are smaller relative to the overall companies.
Fri, Jun. 3, 9:47 AM
- At the moment, it's looking like "wait till next year," for the higher interest rates much of the yield-starved financial sector has been waiting for. This morning's disappointing jobs numbers has traders quickly reversing bets on a rate hike this summer.
- Meanwhile, the 10-year Treasury yield has crumbled to a two-month low of 1.70%.
- The XLF is down 1.9%, leading the S&P 500's 0.5% decline. The SPDR KBW Bank ETF (KBE -3.5%), the SPDR Regional Banking ETF (KRE -3.4%).
- Among the Too Big To Fail names, Bank of America (BAC -4.7%) and Citigroup (C -4.8%) are hardest hit. In regionals, Regions Financial (RF -4.4%), KeyCorp (KEY -4%), BB&T (BBT -3.3%), Fifth Third (FITB -4.4%).
- State Street (STT -3.5%), Northern Trust (NTRS -3.8%), Schwab (SCHW -5.4%), E*Trade (ETFC -5.8%), Ameritrade (AMTD -5.5%), MetLife (MET -3.6%), Prudential (PRU -3.2%), Lincoln Financial (LNC -4.1%)
- ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, JHMF, WDRW, FAZZ, DPST, FNCF
Wed, May 18, 1:08 PM
- The meme of rates lower for longer has been stood on its head in the last 24 hours thanks to some decent economic data, but also surprisingly hawkish Fedspeak yesterday.
- The fixed-income world now believes remarks from the Fed's Williams and Lockhart yesterday may have been a preview of what we'll get when the real power speaks tomorrow - Fischer and Dudley - and then on May 27, when Janet Yellen gives a speech.
- Up at 2 ET are the minutes from the FOMC's April meeting.
- The 10-year yield is higher by five basis points to 1.82% and short-term rate markets have upped expectations for a Fed move this year.
- XLF +1.85%, KBE +3.15%, KRE +3.3%
- Bank of America (BAC +3.7%), Citigroup (C +4.2%), JPMorgan (JPM +3.2%), Wells Fargo (WFC +2.1%), U.S. Bancorp (USB +2.1%), Regions (RF +3.3%), KeyCorp (KEY +3.7%), PNC Financial (PNC +2.7%), Fifth Third (FITB +3.7%), Capital One (COF +1.9%), E*Trade (ETFC +4.4%), Schwab (SCHW +4.8%), MetLife (MET +2.9%), Prudential (PRU +3.4%), Lincoln National (LNC +4.2%), BNY Mellon (BK +2.3%), Northern Trust (NTRS +2.9%)
Wed, Apr. 20, 9:16 AM
- Analyst Brian Bedell views core EPS power at something closer to $0.98 vs. Northern Trust's (NASDAQ:NTRS) headline Q1 of $1.01 (consensus was $0.95).
- Higher than expected net interest revenue drove the beat, combined with slightly lower operating expenses, and slightly higher buybacks.
- Overall, it was a good Q1, says Bedell, but the stock's current premium valuation reflects that. His price target range of $71-$73 stands against the current level of $71.84.
- Bedell ranks #1,275 out of 3,895 analysts on TipRanks.
- Now read: Northern Trust (NTRS) On Q1 2016 Results - Earnings Call Transcript (April 19)
Tue, Apr. 19, 7:39 AM
Mon, Apr. 18, 5:30 PM
Wed, Mar. 30, 2:50 PM
- “Why do I need you," asked Marc Levine, chairman of the $16B Illinois State Board of Investment, during a meeting about hedge funds. Two days after that meeting, the board agreed to pull $1B from hedge funds in favor of P-E and low-cost stock funds.
- Source: WSJ
- Pension funds, insurers, and endowments helped drive hedge fund AUM to $3T over the last decade, but results have been lame for most of that time, and some - particularly those who are politically accountable - are wondering why they should be paying such high fees.
- The fourth quarter of 2015 saw hedge funds suffer net outflows for the first time in four years, and another $15.3B was pulled in 2016's first two months.
- Not only do hedge funds have to answer for poor performance combined with high fees, but their strategies can now be run for a fraction of the cost, with some competitors charging as little as 1% of AUM and no cut of profits vs. the industry's typical "2 and 20."
- Northern Trust (NASDAQ:NTRS), for example, charges a management fee of less than 1% for a new "engineered equity" product it says is similar to a hedge fund.
- Watching with interest: Och-Ziff Capital (NYSE:OZM)
Wed, Jan. 20, 7:42 AM
- Northern Trust (NASDAQ:NTRS): Q4 EPS of $0.99 beats by $0.08.
- Revenue of $1.16B (+2.7% Y/Y) in-line.
Tue, Jan. 19, 10:43 PM
- Northern Trust (NASDAQ:NTRS) declares $0.36/share quarterly dividend, in line with previous.
- Forward yield 2.25%
- Payable April 1; for shareholders of record March 4; ex-div March 2.
Northern Trust Corp. operates as a financial holding company, which provides asset servicing, fund administration, asset management, fiduciary and banking solutions for corporations, institutions, families and individuals worldwide. It operates through the Corporate and Institutional Services... More
Industry: Money Center Banks
Country: United States