Northern Trust(US:NTRS)2025-04-22 11:13Financial Performance - Northern Trust Corporation reported a net income of $392.0 million for Q1 2025, a decrease of 17% compared to the previous year[4]. - Basic earnings per share (EPS) for Q1 2025 was $1.91, down from $2.27 in Q1 2024, reflecting a decline of 16%[4]. - The return on average common equity for Q1 2025 was 13.0%, compared to 17.4% in Q1 2024, indicating a significant drop in profitability[4]. - Total revenue for Q1 2025 reached $1,945.6 million, an increase of 18% compared to $1,654.1 million in Q1 2024[5]. - Net income surged to $392.0 million, reflecting an 83% increase from $214.7 million in the same quarter last year[5]. - Earnings per share (EPS) increased significantly to $1.91, up 99% from $0.96 in Q1 2024[5]. - Total revenue (GAAP) for 2023 was $6,773.5 million, compared to $6,761.2 million in 2022, indicating a slight increase[28]. - Income before income taxes (GAAP) for 2023 was $1,464.8 million, down from $1,766.3 million in 2022, representing a decrease of about 17.1%[28]. Revenue Composition - Noninterest income as a percentage of total revenue was 70.5% in Q1 2025, down from 73.5% in Q1 2024[4]. - Trust fees accounted for 62.4% of total revenue in Q1 2025, a decrease from 65.1% in Q1 2024[4]. - Total Noninterest Income for 2023 was $4,791.5 million, compared to $4,874.0 million in 2022, indicating a decline of approximately 1.7%[7]. - Noninterest income to total revenue is expected to be 73.7% GAAP in 2024, up from 70.7% in 2023[32]. Tax and Expenses - The effective tax rate for Q1 2025 was 24.8%, slightly up from 24.5% in the previous quarter[4]. - Total taxes (FTE) increased by 62% to $135.0 million, compared to $83.2 million in Q1 2024[5]. - Provision for income taxes (FTE) for 2023 was $415.0 million, compared to $475.9 million in 2022, showing a decrease of approximately 12.8%[28]. - Total Noninterest Expense for 2023 was $5,284.2 million, an increase from $4,982.9 million in 2022, indicating a rise of approximately 6.1%[7]. Capital and Equity - The total capital ratio for Q1 2025 was 15.7%, up from 15.1% in Q4 2024, indicating improved capital strength[4]. - Cash dividends declared per common share remained steady at $0.75 for Q1 2025, with a dividend payout ratio of 39%[4]. - Common equity increased by 7% to $11,993.6 million compared to $11,216.9 million last year[11]. - Total stockholders' equity grew by 6% to $12,878.5 million from $12,101.8 million[11]. Asset and Liability Management - Total assets increased by 6% to $165,071.2 million from $156,111.0 million year-over-year[11]. - Total liabilities rose by 6% to $152,192.7 million from $144,009.2 million[11]. - Loans decreased by 14% to $40,833.3 million, down from $47,342.6 million[11]. - Total interest-bearing deposits increased by 11% to $109,120.3 million from $98,614.8 million[11]. Future Outlook - The company expects Total Revenue to increase to $8,322.2 million by 2024, representing a projected growth of about 21.8%[7]. - The company anticipates an increase in Net Interest Income to $2,208.9 million in 2024, up from $2,039.5 million in 2023, reflecting a growth of about 8.3%[7]. - The company expects continued growth in Assets Under Management, projecting an increase to $16,472.5 billion in 2025[23]. - Future outlook includes continued focus on market expansion and potential new product developments[16]. Credit Quality - Provision for credit losses was $1.0 million, a significant improvement from a provision of $(8.5) million in Q1 2024[5]. - The allowance for credit losses was $(175.6) million in Q4 2024, slightly improved from $(192.9) million in Q4 2023[13]. - The total allowance for credit losses at the end of the first quarter of 2024 was $206.1 million, slightly down from $220.4 million at the end of 2023[21]. - The ratio of nonaccrual assets to loans and leases was 0.39% in the first quarter of 2024, compared to 0.31% in the previous quarter[21].