Northern Trust Corporation today reported first quarter net income per diluted common share of $0.75, up from $0.67 in the first quarter of 2013 and $0.70 in the fourth quarter of 2013. Net income was $181.4 million in the current quarter, up 11% from $164.0 million in the prior year first quarter, and up 7% from $169.7 million in the prior quarter. Return on average common equity was 9.3% in the current quarter, compared to 8.8% in the prior year quarter and 8.7% in the prior quarter.
Frederick H. Waddell, Chairman and Chief Executive Officer, said, “Our first quarter 2014 results improved compared to a year ago with trust, investment and other servicing fees increasing 8%, total revenue increasing 7% and net income and earnings per share increasing 11 and 12%, respectively. We also experienced strong growth in client assets under custody and under management of 15% and 13%, respectively.
We continue to focus on enhancing productivity and efficiency, while investing in people and technology to serve our growing businesses, expand our capabilities and continue to satisfy evolving regulatory requirements.
Northern Trust’s financial strength is evidenced in our capital ratios, and we are pleased that the Federal Reserve did not object to the proposed capital actions contained in our 2014 Capital Plan, which provides us with the flexibility to return more capital to our stockholders in the year ahead.”FIRST QUARTER 2014 PERFORMANCE VS. FIRST QUARTER 2013 Net income per common share was $0.75 in the first quarter of 2014 compared to $0.67 in the first quarter of 2013. Net income for the current quarter was $181.4 million, up $17.4 million, or 11%, from $164.0 million in the prior year quarter. The prior year quarter included a $12.4 million pre-tax write-off of certain fee receivables resulting from the correction of an accrual methodology followed in prior years, as well as restructuring and integration related charges of $1.8 million. These prior year quarter items totaled $14.2 million ($8.9 million after tax, or $0.04 per common share).
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