NASDAQ$NTRS

Northern Trust Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Northern Trust reported second quarter net income, reflecting growth across all businesses and progress on productivity initiatives.

Northern Trust Corporation reported a net income of $331.8 million for the second quarter of 2023, with earnings per diluted common share at $1.56. The results include pre-tax severance-related charges of $38.7 million and a $25.6 million pre-tax charge related to the write-off of an investment in a client capability.

  • Second quarter net income was $331.8 million, compared to $334.6 million in the prior quarter and $396.2 million in the prior-year quarter.
  • Earnings per diluted common share were $1.56, compared to $1.51 in the first quarter of 2023 and $1.86 in the second quarter of 2022.
  • Trust fees and revenue grew compared to the prior quarter.
  • Expenses, excluding notable items, were well-controlled.

Headline financials

Total Revenue

$1.76B

Previous: $1.77B-0.7%
EPS (adj)

$1.56

Previous: $1.86-16.1%
Net Interest Margin (FTE*)

1.6%

No prior period
Capital Expenditures

-$31.6M

Previous: -$47.2M+33.1%
Free Cash Flow

$300M

Previous: $349M-14.0%
Net Income

$332M

Previous: $396M-16.3%
Operating Income

$299M

Previous: $1.46B-79.5%
Gross Profit

$1.76B

Previous: $1.77B-0.7%
Cash & Equivalents

$6.38B

Previous: $7.65B-16.6%
Total Assets

$157B

Previous: $158B-0.7%

Revenue & EPS history

Northern Trust · Revenue · Quarterly

$1.76B

Q2 2023-0.7%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Northern Trust · $1.1B total across 2 segments · Q2 2023

  • Asset Servicing
    $621M-3.3%
  • Wealth Management
    $475M-5.1%

Forward guidance

This release may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+1.7%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+11.0%

Q2 2023

Best reaction

-11.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+4.0%+3.2%+5.1%
Q1 2026+0.6%+3.2%+5.1%
Q3 2025-2.4%-1.8%-1.1%
Q2 2025+2.0%+1.1%+2.7%
Q1 2025+3.0%+5.5%+22.6%
Q4 2024+2.0%+4.7%+5.2%
Q3 2024+7.3%+6.4%+14.3%
Q2 2024-5.0%-4.0%-3.9%
Q1 2024-3.0%-2.7%+2.3%
Q4 2023-2.2%-2.0%-3.6%
Q3 2023-7.2%-9.1%+6.8%
Q2 2023+11.0%+11.0%+7.0%
Q1 2023-11.2%-9.3%-16.7%
Q4 2022-5.7%-4.2%-2.3%
Q3 2022-11.9%-8.7%+5.4%
Q2 2022-3.7%-3.6%-0.7%
Q1 2022+1.9%-2.6%+3.8%
Q4 2021-9.5%-8.3%-5.8%
Q3 2021+3.1%+1.6%-0.7%
Q2 2021-0.9%+0.6%+2.5%
Q1 2021+0.5%+3.1%+11.2%
Q4 2020-0.2%-1.3%+1.6%
Q3 2020+0.0%-4.1%+6.6%
Q2 2020-2.9%-4.0%+2.4%
Q1 2020-4.0%-2.4%-6.8%
Q4 2019-4.1%-9.3%-6.1%
Q3 2019+2.9%+5.1%+9.9%
Q2 2019+4.2%+4.2%-10.8%
Q1 2019+6.4%+6.4%-1.9%
Q4 2018-1.3%+0.4%+2.3%
Q3 2018-6.3%-7.5%-1.8%
Q2 2018+2.6%+4.9%+1.9%
Q1 2018+1.4%+2.6%+3.6%
Q4 2017-1.8%+0.0%-0.3%
Q3 2017+4.3%+4.7%+3.3%
Q2 2017-10.1%-9.7%-9.7%
Q1 2017+2.6%+0.7%-1.2%
Q4 2016-5.3%-6.2%-1.1%
Q3 2016+0.0%+0.0%+14.9%
Q2 2016-0.6%+0.0%+2.2%
Q1 2016+5.8%
Q4 2015-7.7%
Q3 2015-2.1%
Q2 2015-0.1%
Q1 2015+5.2%
Q4 2014+8.9%
Q3 2014-4.0%
Q2 2014-0.2%
Q1 2014-3.6%
Q4 2013+3.3%
Q3 2013+3.7%
Q2 2013-2.7%
Q1 2013-2.0%
Q4 2012-5.2%
Q3 2012+1.7%
Q2 2012-2.3%
Q1 2012+2.4%
Q4 2011+1.3%
Q3 2011-4.6%
Q2 2011+0.3%
Q1 2011+1.1%
Q4 2010-1.1%
Q3 2010-1.1%
Q2 2010+1.2%
Q1 2009-1.3%
Q1 2010+3.6%
Q4 2009+0.6%
Q4 2007+0.6%
Q4 2008+0.6%
Q3 2008-1.2%
Q3 2009-1.2%
Q2 2008+2.3%
Q2 2009+2.3%

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