Q1 2024 Net Income Soars 90% QoQ for Northern Trust

Northern Trust, a leading financial services company, released its financial results for the first quarter of 2024 (Q1 2024), recording a net income of $214.7 million, jumping 90% compared to $113.1 million in the prior quarter and decreasing 36% compared to $334.6 million in the year-ago quarter.

In Q1 2024, net income applicable to common stock amounted to $198.5 million, surging 83% compared to $108.4 million in Q4 2023 and dropping 38% compared to $318.4 million in Q1 2023. Diluted earnings per common share stood at $0.96, increasing 85% compared to $0.52 in the prior quarter and decreasing 37% compared to $1.51 in last year's Q1.

Total revenue for the period came in at $1,646.8 million, an increase of 7% on a quarter-on-quarter basis (QoQ) (Q4 2023: $1,545.3 million) and a decrease of 6% on a year-on-year basis (YoY) (Q1 2023: $1,744.6 million).

Net interest income amounted to $528.1 million for the quarter, 9% higher than $$483.1 million in the previous quarter and 1% lower than $531.2 million in the same period of last year. Net interest income on an FTE (Fully Taxable Equivalent) basis amounted to $535.4 million, rising 7% compared to $501.1 million in Q4 2023 and dropping 2% compared to $544.4 million in Q1 2023. The net interest margin on an FTE basis was 1.61%, 2 bps higher on a quarterly basis and 1 bp lower on a yearly basis. The average earning assets reached $133.8 billion, up 7% QoQ (Q4 2023: $125.0 billion) and down 2% YoY (Q1 2023: $136.0 billion).

Non-interest income totaled $1,118.7 million for the quarter, 5% higher than $1,062.2 million in Q4 2023 and 8% lower than $1,213.4 million in Q1 2023. More specifically, income from trust, investment and other servicing fees was $1,142.9 million, up 5% QoQ and up 7% YoY. Other operating income was $61.0 million, up 4% QoQ and up 30% YoY. Foreign exchange trading income was $57.0 million, up 16% QoQ and up 8% YoY. Security commissions and trading income was $37.9 million, up 14% QoQ and up 9% YoY. Treasury management fees income was $9.3 million, up 21% QoQ and up 11% YoY.

As of March 31, 2024, Northern Trust reported a total liabilities and stockholders' equity of $156.11 billion, an increase of 4% compared to $150.78 billion in the prior quarter and an increase of 3% compared to $151.11 billion in the same quarter of 2023.

Michael O'Grady, Chairman and Chief Executive Officer at Northern Trust, commented: "Northern Trust delivered solid first quarter results. Trust fees grew sequentially and year over year, supported by underlying equity markets and improving momentum across our businesses. Net interest income also grew sequentially as a result of higher deposit levels. As we start the second quarter, we remain focused on further optimizing our growth, strengthening our resiliency and driving greater productivity."