:max_bytes(150000):strip_icc()/GettyImages-818024020-9e25a62b484a4ef581d5a670791ccff1.jpg "Northern Trust Stock Slumps on Q1 Profit Miss")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-818024020-9e25a62b484a4ef581d5a670791ccff1.jpg)
Key Takeaways
- Northern Trust took a $189.4 million first-quarter loss on the sale of some debt, sending its profit tumbling well below estimates.
- The asset and wealth management company also took a $12.5 million charge for a special assessment related to the federal takeover of some failed banks.
- Northern Trust’s net interest income slipped 2% to $535.4 million.
Northern Trust (NTRS) shares slumped Tuesday after the asset and wealth management firm significantly missed profit estimates as it took a loss on debt and paid a special assessment related to the failure of some banks.
The company reported first-quarter earnings per share (EPS) dropped to $0.96, a third less than forecasts. Revenue fell 6% year-over-year to $1.65 billion, also short of expectations.
Northern Trust noted that it had a $189.4 million loss “on available for sale debt securities sold in conjunction with a repositioning of the portfolio.” It also had paid $12.5 million in a Federal Deposit Insurance Corporation (FDIC) special assessment needed to cover expenses for the federal takeover of failed banks.
Trust, investment, and other servicing fees increased 7% to $1.14 billion. Chief Executive Officer (CEO) Michael O’Grady said the gain was “supported by underlying equity markets and improving momentum across our businesses.” However, net interest income slipped 2% to $535.4 million.
Shares of Northern Trust fell 4.4% to $80.07 as of about 1:30 p.m. ET.