- Northern Trust Corp NTRS shares are falling nearly 10% after its first-quarter 2023 results missed Street view.
- NTRS reported Q1 revenues of $1.74 billion missing the consensus of $1.78 billion.
- Net interest income (fully-taxable equivalent) rose 40% Y/Y to $544.4 million, led by higher net interest margin (+57 basis points, 1.62%).
- Non-interest expense rose 7% Y/Y to $1.29 billion, mainly on higher compensation and equipment & software expenses.
- Loans and leases rose 8% Y/Y to $42.4 billion and interest-bearing deposits declined 12% Y/Y to $90.3 billion.
- EPS of $1.51 missed the consensus of $1.52.
- Provision of credit losses stood at $15 million in Q1 vs $2 million a year ago, due to an increase in the reserve (evaluated on a collective basis).
- Asset under management came in at $1.33 billion, down 11% Y/Y, at the end of Q1.
- Common equity Tier 1 capital stood at 11.3% vs 11.4% a year ago.
- NTRS repurchased shares worth $100.9 million and declared dividend worth $158.6 million in Q1.
- "Our results for the quarter reflect year-over-year revenue growth of 2% and a return on common equity of 12.4%. Expense growth moderated compared to the previous quarter as we balanced spending discipline against investments to drive future growth. As we look ahead, we remain well-positioned to support our clients’ needs while successfully navigating the ever-shifting macroeconomic environment,” stated Michael O’Grady, chairman and CEO.
- Price Action: NTRS are trading lower by 9.79% at $77.70 on the last check Tuesday.
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