On July 18, Northern Trust (NASDAQ:NTRS) released second-quarter earnings for the period ended June 30.

  • The earnings growth of 21% was driven primarily by revenue growth in both private client and corporate and institutional businesses.
  • Growth in short-term money market assets, loans, leases, and securities increased the average earning assets by 15%. In response, net interest income rose nearly 5%.
  • The impact of FSP 13-2, which narrowed the interest rate spread, caused a decline in the company's overall net interest margin.

(Figures in millions, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Total Revenue

$878.4

$789.3

11.3%

Net Interest Income

$208.6

$199.0

4.8%

Net Profit

$206.9

$167.9

23.2%

EPS

$0.92

$0.76

21.1%

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

Ratio Checkup

Q2 2007

Q2 2006

Change*

Net Interest Margin

1.58%

1.73%

(0.15%)

Nonperforming Assets / Assets

0.05%

0.07%

(0.02%)

Return on Average Assets

1.40%

1.28%

0.12%

Return on Average Equity

20.23%

18.05%

2.18%

*Expressed in percentage points.

Find out more about bank performance ratios.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Investments

$12,605

$10,523

19.8%

Loans

$24,045

$21,297

12.9%

Liabilities

Q2 2007

Q2 2006

Change

Deposits

$37,636

$31,638

19%

Total Liabilities

$55,383

$49,518

11.8%

Learn about bank assets and bank liabilities.

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