Northern Trust Corp. today reported first quarter net income of $230.7 million, or 94 cents per share, up 27 percent from $181.4 million, or 75 cents per share, in the first quarter of 2014.
The Chicago-based bank, which has an office on Wisconsin Avenue in downtown Milwaukee, reported total revenue of $1.1 billion, up 9 percent from $1 billion in the same period a year ago. Noninterest income was up 10 percent year-over-year, while interest income was up 1 percent.
The company brought in $727.5 million in trust, investment and servicing fees, up 7 percent from the first quarter of 2014, but also experienced an unfavorable impact from foreign exchange rates during the quarter.
“We are pleased with our financial performance in the first quarter of 2015, which reflects continued growth in our business serving personal and institutional clients, said Frederick Waddell, chairman and chief executive officer. “Trust, investment and other servicing fees, which represent two-thirds of our revenue, increased 7 percent compared to last year. New business and higher equity markets contributed to growth in assets under custody and under management of 6 percent and 5 percent, respectively. Total revenue grew 9 percent (compared to the previous quarter) and we maintained a disciplined focus on expenses, which increased 3 percent, producing meaningful operating leverage. As a result, our pre-tax profit margin improved to 31.2 percent in the first quarter and our return on equity was within our target range of 10 to 15 percent. We also look forward to returning capital to our stockholders in the year ahead as the Federal Reserve did not object to the proposed capital actions in our 2015 capital plan. Our capital plan and proposed capital distributions demonstrate the strength of Northern Trust’s focused business model, financial position and commitment to stockholders.”
