What occurred

Shares of the funding administration and custodian financial institution Northern Belief (NTRS -8.93%) traded roughly 8.5% decrease as of 10:36 a.m. ET at the moment after the financial institution reported earnings outcomes for the primary quarter of the 12 months.

So what

Northern Belief reported diluted earnings per frequent share of $1.51 on complete income of almost $1.76 billion within the quarter. Earnings had been in step with analyst estimates, whereas income missed barely.

Within the quarter, the financial institution noticed its largest income supply — belief, funding, and different servicing charges — fall 9% 12 months over 12 months, though this line merchandise was up 2% from the sequential quarter. Whole property beneath custody and administration rose 4% from the sequential quarter however had been nonetheless down 9% 12 months over 12 months.

“Our outcomes for the quarter mirror year-over-year income progress of two% and a return on frequent fairness of 12.4%. Expense progress moderated in comparison with the earlier quarter as we balanced spending self-discipline towards investments to drive future progress,” CEO Michael O’Grady stated in an earnings assertion.

Now what

Northern Belief is definitely coping with business headwinds proper now comparable to larger funding prices and a harder setting for wealth administration.

Nonetheless, the financial institution has a really liquid stability sheet and web curiosity earnings held up fairly effectively given the troublesome funding setting. Moreover, Northern Belief now has an annual dividend yield of three.74%, so whereas near-term strain might stay I’m not overly involved by this earnings report.