Chicago-based Northern Trust Corp. today reported second quarter net income of $260.7 million, or $1.09 per diluted share, down from $269.2 million, or $1.10 per share, in the second quarter of 2015.
The bank’s total revenue was $1.3 billion in the quarter, up from $1.2 billion in the same period last year.
The earnings were in line with analyst predictions, while revenue was $100 million higher than expected.
Noninterest income was $1 billion, flat from the second quarter of 2015, while net interest income was $306.6 million, up 19 percent from $257.6 million in the same period last year. Net interest income increased on a bump in earning assets driven by an uptick in securities and loans, and a higher net interest margin.
“Northern Trust continued to navigate effectively in the second quarter of 2016, amidst the volatile market environment and heightened global economic uncertainty,” said Frederick Waddell, chairman and chief executive officer of Northern Trust. “Total revenue increased with strong growth in net interest income and steady growth in trust, investment and other servicing fees, partially offset by lower foreign exchange trading income. We continued to invest in people, technology and regulatory initiatives to support our growing business. Our results for the quarter demonstrated our ability to win new business in the current environment.
“We are pleased the Federal Reserve did not object to the proposed capital actions in our 2016 Capital Plan, which demonstrate our financial strength and commitment to grow the franchise profitably.”
The bank on Tuesday announced Waddell would also take on the role of president this fall, with current president William Morrison transitioning to vice chairman as of Oct. 1.
Chicago-based Northern Trust Corp. has a Northern Trust Bank office on Wisconsin Avenue in downtown Milwaukee. The company has $6.4 trillion in assets under custody and about 40 global offices.