Income tax expense was $55.5 million in the current quarter, representing an effective tax rate of 24.9%, and $41.2 million in the prior year quarter, representing an effective tax rate of 24.1%. These compare to full-year effective tax rates of 30.7% and 31.7% for 2012 and 2011, respectively. The current quarter includes an $11.7 million tax benefit attributable to a refund from the IRS in connection with the resolution of certain leveraged lease related matters. The prior year quarter included adjustments to the Corporation’s intercompany service allocation methodology, the favorable resolution of certain federal and state tax matters, and reductions in state tax reserves.
FOURTH QUARTER 2012 PERFORMANCE VS. THIRD QUARTER 2012
Net income per common share was $0.69 in the current quarter, compared with $0.73 in the third quarter of 2012. Net income for the current quarter totaled $167.7 million, down $11.1 million, or 6% from $178.8 million in the prior quarter.
Consolidated revenue of $969.7 million for the current quarter was down slightly from $972.5 million in the prior quarter. Noninterest income increased $8.6 million, or 1%, to $735.5 million from the prior quarter’s $726.9 million, primarily reflecting higher trust, investment and other servicing fees, partially offset by lower other operating income and foreign exchange trading income. Net interest income for the current quarter on an FTE basis decreased $13.3 million, or 5%, to $243.6 million from $256.9 million in the prior quarter, primarily due to lower average earning assets and a continued decline in the net interest margin.Trust, investment and other servicing fees totaled $622.6 million in the current quarter, up $20.7 million, or 3%, from $601.9 million in the prior quarter. C&IS trust, investment and other servicing fees totaled $344.3 million in the current quarter, up from $334.4 million in the prior quarter.
Change Q4 2012
|($ In Millions)||2012||2012||
from Q3 2012
|C&IS Trust, Investment and Other Servicing Fees|
|Custody and Fund Administration||$||224.7||$||214.4||$||10.3||5||%|