Northern Trust Corporation reported its third-quarter financial results today, revealing a net income of $327.8 million, equivalent to $1.49 per diluted common share. These figures represent a decrease from the second quarter of 2023, where net income per share was $1.56, and a decrease compared to the third quarter of 2022, when net income per share reached $1.80.
“Northern Trust's third quarter results showcased the resilience of our business model in the midst of a challenging stage of this unprecedented interest rate cycle,” Northern Trust Corporation Chairman and CEO Michael G. O'Grady said in the report. “We grew trust fees, expanded our client base, made further progress on our productivity initiatives, and enhanced our regulatory capital metrics. Our foundation remains strong and clients continue to place their trust in us. We are successfully navigating the challenging operating environment while positioning the company to capitalize on growth opportunities that will deliver value for our shareholders over the long term.”
According to the report, in the company's Total Asset Servicing division, trust, investment, and servicing fees increased due to favorable market conditions and new business, while investment management fees rose sequentially primarily because of favorable market trends. In the Total Wealth Management division, trust, investment, and other servicing fees also benefited from favorable market conditions and saw sequential and year-over-year growth, with fees in various regions experiencing an uptick.
Foreign exchange trading income decreased due to an unfavorable impact from foreign exchange swap activity and lower client volumes, according to the report. Security commissions and trading income had a sequential decline, primarily because of lower interest rate swap activity. On the positive side, other operating income increased sequentially, driven by higher income from existing swap agreements and market value increases, but it was offset by lower non-trading foreign exchange income.