Northern Trust(US:NTRS)2024-10-29 20:02Financial Performance - Net income for the third quarter of 2024 increased by 42% to $464.9 million, compared to $327.8 million in the same quarter of 2023[10] - Total revenue for the third quarter of 2024 rose by 14% to $1.97 billion, up from $1.73 billion in the prior-year quarter[10] - Net Income increased by $581.5 million, or 59%, to $1.58 billion for the nine months ended September 30, 2024, compared to $994.2 million in the prior-year period[46] - Total Revenue for the nine months ended September 30, 2024, was $6,330.8 million, an increase from $5,228.2 million in the prior-year period[64] Net Interest Income - Net interest income increased by 23% to $562.3 million, driven by higher deposits and securities repositioning[11] - Net Interest Income for the nine months ended September 30, 2024, was $1,634.6 million, with a margin of 1.62%[51] - Net Interest Income for the quarter ended September 30, 2024, increased by $40.2 million, or 14%, compared to the prior-year quarter, primarily due to higher deposit balances and spreads[68] - Net Interest Income (FTE) increased to $2,338.7 million, up from $2,280.5 million, reflecting a net increase of $58.2 million or 2.5% year-over-year[53] Expenses - Noninterest expense rose by 6% to $1.36 billion, attributed to higher compensation and software-related expenses[11] - Total Noninterest Expense increased to $4,258.0 million, up $362.3 million or 9% from the prior-year period, driven by higher compensation and outside services[56] - Noninterest Expense for the three months ended September 30, 2024, increased by $51.4 million, or 6%, from the prior-year quarter, mainly due to higher expense allocations[71] Credit Quality - Provision for credit losses decreased by 43% to $8.0 million, compared to $14.0 million in the prior-year quarter[11] - Provision for Credit Losses was $7.5 million, down from $13.5 million in the prior-year period, indicating improved credit quality[55] - The allowance for credit losses as of September 30, 2024, was $211.3 million, compared to $205.6 million as of December 31, 2023, with the allowance assigned to loans to total loans at 0.44%[99] Assets and Management - Total Assets Under Management (AUM) rose to $1,621.8 billion, reflecting a 6% increase from the prior quarter and a 22% increase year-over-year[25] - Total Assets Under Custody/Administration reached $17,423.0 billion, a 5% increase from the previous quarter and a 23% increase year-over-year[21] - Average Assets for the nine months ended September 30, 2024, were $146,654.8 million, compared to $144,691.6 million in the prior-year period[64] Fees and Income - Trust, investment, and other servicing fees grew by 8% to $1.20 billion, primarily due to favorable market conditions[10] - Other Noninterest Income rose to $209.6 million, a 32% increase compared to $158.4 million in the same quarter last year, driven by a significant gain on the sale of an equity investment[32] - Total Noninterest Income for the nine months ended September 30, 2024, was $4,717.5 million, an increase from $3,729.3 million in the prior-year period[64] Tax and Dividends - The effective tax rate decreased to 22.7% from 24.5% in the prior-year quarter[11] - The Corporation declared cash dividends totaling $459.3 million to common stockholders for the nine months ended September 30, 2024[87] Market Conditions and Future Outlook - The company plans to continue expanding its market presence and product offerings, focusing on new technologies and strategic acquisitions to drive future growth[30] - The company anticipates continued growth in AUM and net interest income, supported by favorable market conditions and strategic initiatives[30] - Northern Trust's management emphasizes the importance of maintaining a robust risk management framework to address potential market disruptions and regulatory changes[130]