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The first female COO in Northern Trust's history has worked there for her entire 35-year career, rising through the management ranks by taking roles outside of her comfort zone. Now she's on the short list of potential successors to CEO Rick Waddell.
September 22 - Illinois
Northern Trust in Chicago reported a jump in second-quarter profit due to growth in assets under management and the sale of Visa common stock.
July 22
Driven by solid gains in both interest and noninterest income, Northern Trust Corp. in Chicago reported a profit of $234.6 million in the third quarter, up 15% from the same period in 2014. Earnings per share climbed 14%, to 96 cents, in line with the estimates of analysts polled by Bloomberg.
The results, though, masked an overall decline in assets under custody and management.
Net interest income at the $120 billion-asset company increased 8% year over year, to $269 million, due to a combination of higher balances in its securities and loan portfolios and sharply lower interest expenses. Noninterest income rose 7%, driven by a 4% gain in trust, investment and servicing fees, to $749.1 million, a 36% jump in foreign exchange income, to $62.9 million, and a 44% increase in securities commissions and trading income, to $20.4 million.
Overall revenues climbed 7%, to $1.15 billion.
The company's noninterest expenses rose 5% year over year, to $812 million, as a result of modestly higher employee compensation, increased regulatory costs and continued investments in new technology.
Assets under custody were up 1% year over year, to $6 trillion, but down 4% from just three months earlier. Assets under management were down 4% year over year and 6% from the prior quarter, to $887 billion.
In early trading Wednesday, Northern Trust's shares were down 3%, to $67.48.
