Nice Turn at Northern Trust: Fool by Numbers

On Oct. 17, Northern Trust (NYSE: NTRS  ) released earnings for the third quarter ended Sept. 30.

  • The 19% rise in revenue mainly came from investment and other servicing fees -- which accounted for 57% of sales -- rising 16%.
  • Net interest income reached record levels, increasing 15% mainly because of higher levels of average earning assets. However, the figure was partially offset by a decline in the net interest margin.
  • Compensation and employee benefit expenses rose 18%, driven by higher staff levels and higher performance-based compensation.
  • The outlook on the financial industry is that it's still unstable, and that's reflected in the Motley Fool CAPS community ratings. Northern Trust earns just two out of five stars. Peers JPMorgan Chase (NYSE: JPM  ) and Wachovia Bank (NYSE: WB  ) also get two stars.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Total Revenue

 $886.5

 $743.6

19.2%

Net Interest Income

 $228.4

 $198.5

15.1%

Net Profit

 $208.3

 $163.7

27.2%

EPS*

 $0.93

 $ 0.74

25.7%

*Non-GAAP EPS as reported by the company.

Get back to basics with a look at the income statement.

Ratio Checkup

Q3 2007

Q3 2006

Change*

Net Interest Margin

1.69%

1.73%

(0.04%)

Nonperforming Assets / Assets

0.05%

0.06%

(0.01%)

Return on Average Assets

1.35%

1.23%

0.12%

Return on Average Equity

19.51%

16.96%

2.55%

*Expressed in percentage points.

Find out more about bank performance ratios.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Investments

 $30,068

 $26,776

12.3%

Loans

 $24,908

 $21,269

17.1%

Liabilities

Q3 2007

Q3 2006

Change

Deposits

 $38,494

 $31,587

21.9%

Total Liabilities

 $58,740

 $51,265

14.6%

Learn about bank assets and bank liabilities.

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