Northern Trust Corporation reported significant financial growth for the third quarter and the first nine months of 2024, with net income reaching $464.9 million for Q3, a 42% increase from $327.8 million in the same period of 2023. For the nine months ended September 30, 2024, net income totaled $1,575.7 million, up 59% from $994.2 million in the prior year. This growth was driven by a 14% increase in total revenue for Q3, amounting to $1,968.5 million, and a 21% increase for the nine-month period, totaling $6,330.8 million.
The company's income before income taxes also saw substantial growth, with Q3 2024 figures at $601.1 million, up from $434.3 million in Q3 2023, and a nine-month total of $2,065.3 million compared to $1,319.0 million in the previous year. The increase in revenue was attributed to higher trust, investment, and other servicing fees, which rose to $1,196.6 million in Q3 2024, an 8% increase year-over-year.
Net interest income for Q3 2024 was $562.3 million, a 23% increase from $456.2 million in Q3 2023, while for the nine months, it reached $1,613.3 million, up from $1,498.9 million. The increase in net interest income was influenced by higher client demand and wider spreads, despite a decrease in the overall loan portfolio, which fell to $41.95 billion from $47.62 billion at the end of 2023.
Total assets as of September 30, 2024, were $155.8 billion, reflecting a 3% increase from $150.8 billion at the end of 2023. Deposits also rose by 4% to $121.2 billion. Stockholders' equity increased by 7% to $12.7 billion, and assets under custody grew significantly, reaching $13.8 trillion, a 16% increase from the previous year.
The company has also made strategic adjustments, including enhancements to its funds transfer pricing methodology, which resulted in a reallocation of net interest income between segments. Additionally, Northern Trust repurchased 3.46 million shares of common stock for $301.4 million in Q3 2024, compared to only 14,738 shares repurchased in the same quarter of 2023.
Overall, Northern Trust's strong performance in Q3 and the first nine months of 2024 reflects robust growth in revenue and profitability, alongside strategic initiatives aimed at enhancing operational efficiency and shareholder value.
About NORTHERN TRUST CORP
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