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Wednesday, October 21, 2009

Northern Trust Swings to 3Q Profit, Misses Estimates

By Matt Egan

FOXBusiness

Northern Trust (NTRS) may have returned to profitability in the third quarter but it failed to join the parade of financial services companies reporting better-than-expected results.

The Chicago-based bank holding company said Wednesday it earned $187.9 million, or 77 cents per share, last quarter. On an operating basis, Northern Trust earned 72 cents per share, well below the Street’s forecast for 84 cents per share.

Northern Trust’s revenue fell 1% to $927.6 million, missing analysts’ forecasts.

The company’s shares slid 5.5% to $54.32 on the disappointing results. Northern Trust’s shares have languished in recent weeks, falling 2.4% over the past month.

“The financial markets continue to send mixed signals. Although equity markets improved compared with the second quarter, they remain well below year-ago levels and interest rates have fallen dramatically year-over-year,” CEO Frederick Waddell said in a statement.

Amid continued economic weakness, Northern Trust upped its reserve for credit losses from $319.1 million to $333 million last quarter. The bank’s nonperforming loans jumped to $292.3 million from $58.8 million a year ago.

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