Noninterest expense totaled $741.5 million in the current quarter, an increase of $45.1 million, or 6%, from $696.4 million in the prior quarter. The current quarter and prior quarter, respectively, include restructuring and integration related charges of $8.2 million and restructuring, acquisition and integration related charges of $2.9 million.
Compensation expense totaled $316.3 million for the current quarter, relatively unchanged from $315.7 million in the prior quarter, while employee benefit expense totaled $63.9 million for the current quarter, up 4% from $61.3 million in the prior quarter.
Expense for outside services totaled $140.7 million, an increase of $14.1 million, or 11%, compared to $126.6 million in the prior quarter. The current quarter increase primarily reflects higher expense for technical, sub-custodian, consulting, and legal services.
Equipment and software expense totaled $90.5 million in the current quarter, up 5% from $86.0 million in the prior quarter.Other operating expense totaled $83.9 million, an increase of $20.9 million, or 33%, from the prior quarter’s $63.0 million. The current quarter increase primarily reflects increased business promotion expense, higher charges related to account servicing activities, higher staff related expense, and the restructuring and integration related charges of $3.3 million. Total income tax expense was $55.5 million for the current quarter, representing an effective tax rate of 24.9%. Income tax expense was $87.3 million in the prior quarter, representing an effective tax rate of 32.8%. The current quarter includes the $11.7 million tax benefit attributable to a refund from the IRS in connection with the resolution of certain leveraged lease related matters. FULL YEAR 2012 PERFORMANCE VS. FULL YEAR 2011 Reported net income per common share for the full year was $2.81, compared to the prior full year’s $2.47 per common share. Net income for 2012 totaled $687.3 million compared to the prior year’s $603.6 million. The current and prior year include restructuring, acquisition and integration related charges of $18.6 million ($12.0 million after tax, or $0.05 per common share) and $91.6 million ($59.8 million after tax, or $0.25 per common share), respectively. Net income in 2011 benefited from reductions totaling $23.1 million ($14.4 million after tax, or $0.06 per common share) of a liability related to potential losses from indemnified litigation involving Visa.
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