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Northern Trust (Northern Trust) Net Interest Margin (Bank Only) %

: 2.03% (As of Dec. 2023)
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Net Interest Margin (Bank Only) % is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their interest-earning assets. It is usually calculated as a percentage of what the financial institution earns on loans in a time period and other assets minus the interest paid on borrowed funds divided by the average amount of the assets on which it earned income in that time period (the average earning assets).

GuruFocus calculates Net Interest Margin (Bank Only) % as Net Interest Income (for Banks) divided by its average earning assets. Northern Trust's annualized Net Interest Income (for Banks) for the quarter that ended in Dec. 2023 was $1,932 Mil. Northern Trust's average earning assets for the quarter that ended in Dec. 2023 was $95,281 Mil. Therefore, Northern Trust's annualized Net Interest Margin (Bank Only) % for the quarter that ended in Dec. 2023 was 2.03%.


Northern Trust Net Interest Margin (Bank Only) % Historical Data

The historical data trend for Northern Trust's Net Interest Margin (Bank Only) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Northern Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net Interest Margin (Bank Only) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.00 1.62 1.40 1.90 2.05

Northern Trust Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Net Interest Margin (Bank Only) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.26 2.18 1.94 2.03 2.15

Competitive Comparison

For the Asset Management subindustry, Northern Trust's Net Interest Margin (Bank Only) %, along with its competitors' market caps and Net Interest Margin (Bank Only) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Northern Trust Net Interest Margin (Bank Only) % Distribution

For the Asset Management industry and Financial Services sector, Northern Trust's Net Interest Margin (Bank Only) % distribution charts can be found below:

* The bar in red indicates where Northern Trust's Net Interest Margin (Bank Only) % falls into.



Northern Trust Net Interest Margin (Bank Only) % Calculation

Net Interest Margin (Bank Only) % (NIM) is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their interest-earning assets. It is usually calculated as a percentage of what the financial institution earns on loans in a time period and other assets minus the interest paid on borrowed funds divided by the average amount of the assets on which it earned income in that time period (the average earning assets).

Northern Trust's annualized Net Interest Margin (Bank Only) % for the fiscal year that ended in Dec. 2023 is calculated as

Net Interest Margin (Bank Only) %(A: Dec. 2023 )
=(Interest Income + Interest Expense)/Average Earning Assets
=Net Interest Income (for Banks)/( (Earning Assets (A: Dec. 2022 ) + Earning Assets (A: Dec. 2023 ))/ count )
=1982/( (95665.7 + 97520.9)/ 2 )
=1982/96593.3
=2.05 %

where

Earning Assets(A: Dec. 2022 )
=Money Market Investments + Net Loan + Securities & Investments
=1102.3 + 42732.2 + 51831.2
=95665.7

Earning Assets(A: Dec. 2023 )
=Money Market Investments + Net Loan + Securities & Investments
=784.7 + 47424.7 + 49311.5
=97520.9

Northern Trust's annualized Net Interest Margin (Bank Only) % for the quarter that ended in Dec. 2023 is calculated as

Net Interest Margin (Bank Only) %(Q: Dec. 2023 )
=(Interest Income + Interest Expense)/Average Earning Assets
=Net Interest Income (for Banks)/( (Earning Assets (Q: Sep. 2023 ) + Earning Assets (Q: Dec. 2023 ))/ count )
=1932.4/( (93041.2 + 97520.9)/ 2 )
=1932.4/95281.05
=2.03 %

where

Earning Assets(Q: Sep. 2023 )
=Money Market Investments + Net Loan + Securities & Investments
=384.3 + 43394.3 + 49262.6
=93041.2

Earning Assets(Q: Dec. 2023 )
=Money Market Investments + Net Loan + Securities & Investments
=784.7 + 47424.7 + 49311.5
=97520.9

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: Interest Expense is the negative value.

In the calculation of annual Net Interest Margin (Bank Only) %, the Net Interest Income (for Banks) of the last fiscal year and the average earning assets over the fiscal year are used. In calculating the quarterly data, the Net Interest Income (for Banks) data used here is four times the quarterly (Dec. 2023) net interest income data. Net Interest Margin (Bank Only) % is displayed in the 30-year financial page for Banks.


Northern Trust  (NAS:NTRS) Net Interest Margin (Bank Only) % Explanation

The negative value of Net Interest Margin (Bank Only) % mean the firm pays more interest for its debt than the interest revenue generated from its investment.


Northern Trust Net Interest Margin (Bank Only) % Related Terms

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Northern Trust (Northern Trust) Business Description

Address
50 South La Salle Street, Chicago, IL, USA, 60603
Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. Founded in Chicago in 1889, Northern Trust has offices in 20 states and Washington, D.C. as well as 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of Dec. 31, 2022, Northern Trust had assets under custody or administration of $13.6 trillion and assets under management of $1.2 trillion.
Executives
Jason J. Tyler officer: EVP & Chief Financial Officer C/O MULTI PACKAGING SOLUTIONS, 150 E 52ND ST, 28TH FLOOR, NEW YORK NY 10022
Levy Susan Cohen officer: Executive VP & General Counsel 50 S LASALLE ST, M9, CHICAGO IL 60603
Michael O'grady officer: President / C&IS 50 S LASALLE STREET, CHICAGO IL 60603
Peter Cherecwich officer: EVP, Global Fund Services 50 SOUTH LASALLE ST, M9, CHICAGO IL 60603
Prado Becerra Jose Luis director 50 S. LASALLE STREET, CHICAGO IL 60603
Daniel Gamba officer: President / Asset Management 50 SOUTH LA SALLE ST, CHICAGO IL 60603
Lauren E Allnutt officer: SVP & Controller 50 S LA SALLE ST, CHICAGO IL 60603
Alexandria Taylor officer: Chief Human Resources Officer 50 SOUTH LA SALLE STREET, CHICAGO IL 60603
Thomas A South officer: Executive Vice President 50 S LA SALLE ST, CHICAGO IL 60603
Clair Joyce St officer: Executive Vice President 50 S LA SALLE ST, CHICAGO IL 60603
Teresa Parker officer: Executive Vice President 50 S LA SALLE ST, CHICAGO IL 60603
Shundrawn A Thomas officer: President / Asset Management 16600 SWINGLEY RIDGE RD, CHESTERFIELD MO 63017
Robert P Browne officer: EVP & Chief Investment Officer 800 SCUDDERS MILL ROAD, PLAINSBORO NJ 08536
Steven L Fradkin officer: Executive Vice President & CFO 50 S LASALLE ST, CHICAGO IL 60603
Mark C Gossett officer: Executive Vice President 50 SOUTH LA SALLE STREET, CHICAGO IL 60603