Northern Trust Corporation Reports Fourth Quarter Net Income Of $167.7 Million, Earnings Per Common Share Of $0.69. Full Year Net Income Of $687.3 Million, Earnings Per Common Share Of $2.81.
The performance in 2012 produced an annualized return on equity of 9.3% compared to 8.6% in 2011. The annualized return on average assets was 0.7% in both 2012 and in 2011.
Consolidated revenue totaled $3.90 billion in 2012, an increase of $126.2 million, or 3%, from $3.77 billion in the prior year. Noninterest income increased $145.0 million, or 5%, to $2.91 billion from 2011’s $2.76 billion, primarily reflecting higher trust, investment and other servicing fees, partially offset by lower foreign exchange trading income. Trust, investment and other servicing fees in 2012 reflect the full year impact of acquisitions completed in June and July of 2011.
Net interest income on an FTE basis in 2012 totaled $1.03 billion, a decrease of $18.2 million, or 2%, compared to $1.05 billion in 2012, primarily due to a decline in the net interest margin.
Noninterest expense totaled $2.88 billion in 2012, up $47.6 million, or 2%, from $2.83 billion in the prior year. Excluding the current and prior year restructuring, acquisition and integration related charges of $18.6 million and $91.6 million, respectively, and the prior year Visa benefits, noninterest expense increased $97.5 million, or 4%, primarily reflecting higher equipment and software expense and the full period impact of operating costs attributable to the acquisitions completed in 2011.STOCKHOLDERS’ EQUITY Total stockholders’ equity averaged $7.6 billion, up 5% from the prior year quarter’s average of $7.2 billion. The increase primarily reflects earnings, partially offset by dividend declarations and the repurchase of common stock pursuant to the Corporation’s share buyback program. During the quarter ended December 31, 2012, the Corporation repurchased 1,319,927 shares at a cost of $62.9 million ($47.62 average price per share). Under our capital plan, which was reviewed without objection by the Federal Reserve in March of 2012, the Corporation may repurchase up to $77.1 million of common stock after December 31, 2012 through March of 2013. The Corporation is authorized to purchase up to 6.8 million additional shares after December 31, 2012 under its current common stock repurchase authorization.
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