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Northern Trust Corp. in Chicago is laying off about 700 workers worldwide and eliminating more jobs through attrition as part of a broad initiative to trim annual overhead by $250 million.
January 18 -
The bank announced yesterday that it's laying off 530 IT employees and outsourcing another 320 jobs, the same day it reported an 18% increase in earnings. What gives?
July 20
Northern Trust (NTRS) said Tuesday that its first-quarter profit climbed 7% over the same period in 2011 due largely to strong growth in custody and fees and improved asset quality, while rival custody bank State Street (STT) said its net income fell 10.5% as restructuring costs, litigation expenses and higher operating costs ate into profits.
Northern Trust, of Chicago, earned $161 million, or 66 cents per share, in line with estimates polled by Thomson Reuters. A 5% increase in assets under custody, aided in part by acquisitions, led to a 12% jump in trust, investment and servicing fees, to $575 million. Meanwhile, Northern Trust's provision for loan losses declined 67% year over year, to $5 million, as its levels of chargeoffs, nonperforming loans and other real estate owned all declined sharply.
Boston-based State Street earned $417 million in the quarter, or 85 cents per share, a penny below consensus analysts' estimates. Though the company reported a sharp improvement in credit quality and a slight growth in overall revenue, net income was tamped down by $15 million in expenses related to litigation, a 7% jump in operating expenses and an 11% increase in costs related to a companywide restructuring that is aimed at reducing expenses long-term.
Both companies' shares were up slightly in early trading Tuesday.
