Why Northern Trust Shares Are Diving Today

Northern Trust Corporation NTRS shares are trading lower following first-quarter FY24 financial results.

Sales declined 6% Y/Y to $1.65 billion, missing the analyst consensus of $1.75 billion. Adjusted net interest margin for the quarter contracted one basis points Y/Y to 1.61%.

Total noninterest expenses rose 6% Y/Y to $1.36 billion. Common Equity Tier (CET) 1 capital was 11.4% versus 11.3% last year.

EPS declined sharply to $0.96 from $1.51 in the year-ago quarter. Adjusted EPS of $1.70 beat the consensus estimate of $1.44 with a return on average common equity of 7.3%.

Northern Trust returned $285.4 million to shareholders through dividends and share repurchases in the quarter.

As of March 31, 2024, Northern Trust had assets under custody/administration of $16.5 trillion and assets under management of $1.5 trillion.

Michael O’Grady, Chairman And Chief Executive Officer, said, "Northern Trust delivered solid first quarter results. Trust fees grew sequentially and year over year, supported by underlying equity markets and improving momentum across our businesses. Net interest income also grew sequentially as a result of higher deposit levels. As we start the second quarter, we remain focused on further optimizing our growth, strengthening our resiliency and driving greater productivity."

Investors can gain exposure to the stock via Invesco KBW Bank ETF KBWB and Schwab Strategic Trust Schwab Ariel ESG ETF SAEF.

Price Action: NTRS shares are down 4.4% at $79.96 on the last check Tuesday.