Northern Trust Corporation Reports Third Quarter Net Income Of $178.8 Million, Earnings Per Common Share Of $0.73

Northern Trust Corporation today reported third quarter net income per common share of $0.73, up from $0.70 in the third quarter of 2011 and consistent with $0.73 in the second quarter of 2012. Net income was $178.8 million in the current quarter, up 5% from $170.4 million in the prior year third quarter, and down slightly from $179.6 million in the prior quarter. Return on average common equity was 9.6% in the current quarter, compared to 9.5% in the prior year quarter and 9.9% in the prior quarter.

Frederick H. Waddell, Chairman and Chief Executive Officer, commented, “Third quarter performance featured growth in client assets under custody and management of 14% and 16%, respectively, versus last year. Trust, investment and other servicing fees, the largest component of our revenues, grew 8%. The continued headwinds posed by lower interest rates, market activity and volatility moderated these achievements. However, we continued to adapt to these macroeconomic challenges with effective expense management as exemplified by the decline in expenses both year-over-year and sequentially.”

THIRD QUARTER 2012 PERFORMANCE VS. THIRD QUARTER 2011

Net income per common share in the third quarter of 2012 was $0.73 compared to $0.70 per common share in the third quarter of 2011. Net income for the current quarter was $178.8 million compared to $170.4 million in the prior year quarter.

Consolidated revenue of $972.5 million in the current quarter was up slightly from $971.5 million in the prior year quarter. Noninterest income, which represented 75% of revenue, increased $12.2 million, or 2%, to $726.9 million from the prior year quarter’s $714.7 million, primarily reflecting higher trust, investment and other servicing fees, partially offset by lower foreign exchange trading income. Net interest income for the quarter on a fully taxable equivalent (FTE) basis decreased $9.7 million, or 4%, to $256.9 million compared to $266.6 million in the prior year quarter, due to a decline in the net interest margin.

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