Northern Trust (NASDAQ:NTRS) slides 3.5% in premarket trading after reporting Q3 GAAP EPS of $1.58, which includes $10.8M of charges related to impairment of a community development investment and severance-related charges partly offset by a $5.5M benefit from U.S. tax reform.
Consensus was for EPS of $1.61.
Total revenue on fully taxable equivalent basis of $1.48B missed consensus by $40M and fell from $1.52B in Q2, but was up 9% from $1.36B in Q3 2017.
Q3 net interest income on fully taxable equivalent basis fell 1% to $418.5M from $422.6M in Q2 and up 14% from $366.2M in the year-ago quarter; net interest margin FTE 1.47% vs. 1.48% in Q2 and 1.29% a year ago.
Net interest margin on an FTE basis declined slightly from the prior quarter, primarily from a balance sheet mix shift and partly offset by higher short-term interest rates.
Q3 trust, investment and other service fees also slipped to $939.2M from $942.9M; up 8% on Y/Y basis from $867.9M.
Assets under custody/administration $10.8T at Sept. 30, 2018 vs. $10.7T at June 30, 2018 and $9.7T at Sept. 30, 2017.
Return on average common equity 15.1% vs. 16.5% in Q2 and 12.2% in Q3 2017.
Book value per common share $42.83 compared with $42.44 in Q2 and $40.82 a year ago.
Conference call 9:00 AM CT.
Previously: Northern Trust misses by $0.03, misses on revenue (Oct. 17)
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