Northern Trust Corp. announced before the opening bell of the stock market today that it is taking a one-time charge that is resulting in the company incurring a third-quarter loss of $129.4 million, or 58 cents per share, compared with net income of $208 million, or 93 cents per share, in the same period a year ago.
The Chicago-based company said the results included an after-tax charge of $353.2 million, or $1.59 a share, related to steps to support investors during the upheaval in credit markets.
Northern Trust's total quarterly revenue rose 5 percent to $938.5 million,
Money market funds at banks throughout the nation have been pressured by the turmoil in commercial paper and other short-term lending markets after Lehman Brothers filed for bankruptcy.
The Federal Reserve Bank took action this week to create a new facility designed to ease fears over U.S. money market funds.
"The third quarter of 2008 represented an extraordinarily challenging period for the financial services industry and world economy. The financial strength of Northern Trust, however, continues to be exemplified by our well-capitalized balance sheet ratios, the high quality of our loan and investment portfolios, and our sound credit ratings, hallmarks of Northern Trust which have positioned us well to support our clients in these difficult times. In support of our clients, we incurred $561.5 million of previously announced charges, which resulted in a net loss of $129 million in the quarter," said Frederick Waddell, president and chief executive officer of the company. "Northern Trust's position of strength and stability has also fueled growth in our deposit base, which increased over 30 percent as clients sought a safe haven for their funds. While this quarter's results dampen our very strong performance through the first half of the year, our strategy remains unchanged. We believe our focused business model, conservative financial policies, and commitment to our clients will allow us to manage through this challenging environment."
Northern Trust takes hit on money market funds
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