Northern Trust Corporation (NASDAQ:NTRS) reported second-quarter earnings per share of $2.13, surpassing analyst expectations of $2.05. The financial services firm benefited from record net interest income and growth in trust fees.
Revenue for the quarter reached $2 billion, exceeding the consensus estimate of $1.96 billion. Net income was $421.3 million, up 7% from $392 million in the previous quarter, though down from $896.1 million in the same quarter last year, which included significant one-time gains.
Trust, investment, and other servicing fees—the company’s largest revenue segment—increased 6% year-over-year to $1.23 billion. Net interest income reached a record $615.2 million on a fully taxable equivalent basis, up 16% from a year earlier, driven by higher deposits and lower funding costs.
“Northern Trust reported another quarter of strengthening results, featuring mid-single-digit trust fee growth, record net interest income, and meaningful expansion in our pretax margin, all of which drove a 20% increase in our earnings per share, excluding notables in the prior period,” said Michael O’Grady, Chairman and CEO.
Assets under custody and administration rose 9% year-over-year to $18.1 trillion, while assets under management grew 11% to $1.7 trillion, both supported by favorable market conditions.
The board approved a 7% increase in the quarterly dividend, raising it by $0.05 per share. The company also repurchased 3.37 million shares during the quarter at an average price of $100.57 per share, totaling $339.4 million.
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