Northern Trust’s Q4 Net Income Declines, Revenue Edges Up

Northern Trust, a prominent financial holding company, reported a decline in net income but a slight increase in revenue for its fourth quarter. The company’s net income for the quarter was $113.1 million, or 52 cents per share, compared to $155.7 million, or 71 cents per share, in the same period last year.

During the fourth quarter, net interest income decreased by almost 10% to $483.1 million from $534.5 million the previous year. This decline was attributed to lower average earning assets and partially offset by higher average interest rates. On a fully taxable equivalent basis, which is a non-GAAP accounting principle, net interest income fell to $501.1 million from $550 million.

However, there was a positive note as revenue rose to $1.55 billion from $1.52 billion. Despite this increase, analysts surveyed by FactSet had projected revenue to reach $1.71 billion.

Northern Trust’s ending allowance for credit losses reached $220.4 million, compared to $200.9 million in the same period last year. The company attributed the $11 million provision in the quarter to an increase in the reserve evaluated collectively and an increase in the reserve evaluated individually, driven by a small number of borrowers.