Why Northern Trust Shares Are Diving Today

Northern Trust Corp NTRS shares are trading lower by over 6% after the company reported Q3 FY23 results. 

The company's sales declined 2% Y/Y to $1.73 billion, missing the analyst consensus of $1.75 billion.

EPS of $1.49 beat the consensus estimate of $1.47 with a return on average common equity of 11.6%.

Adjusted net interest margin for the quarter contracted 13 basis points Y/Y to 1.45%.

Total noninterest expenses rose 4% Y/Y to $1.28 billion. Common Equity Tier (CET) 1 capital was 11.4% versus 10.1% last year.

"Northern Trust's third quarter results showcased the resilience of our business model in the midst of a challenging stage of this unprecedented interest rate cycle. We grew trust fees, expanded our client base, made further progress on our productivity initiatives, and enhanced our regulatory capital metrics. Our foundation remains strong and clients continue to place their trust in us. We are successfully navigating the challenging operating environment while positioning the company to capitalize on growth opportunities that will deliver value for our shareholders over the long term." said Michael O'Grady, chairman and CEO.

Northern Trust returned $157.8 million to shareholders through dividends and share repurchases in Q3.

As of September 30, 2023, Northern Trust had assets under custody/administration of $14.2 trillion and assets under management of $1.3 trillion.

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Price Action: NTRS shares are down 6.17% at $66.25 on the last check Wednesday.