Northern Trust's quarterly profit rose to $792m, lifted by a one-time Visa gain

The headline number is not the business. Northern Trust reported second-quarter net income of $792.2m and diluted earnings per share of $4.23, up from $2.13 a year earlier, in results dated July 22. Most of that increase came from a single line. A $525.4m pre-tax gain on the company's participation in Visa's second exchange offer added $396.4m after tax, and without the quarter's notable items earnings per share rose 40 percent rather than nearly doubling.

Underneath, the business grew. Trust, investment and other servicing fees reached $1,349.5m, up 10 percent from a year earlier, and net interest income on a fully taxable equivalent basis was $683.1m, up 11 percent. Assets under custody and administration crossed $20tn for the first time, at $20,000.2bn. The board raised the quarterly dividend by 10 percent, or $0.08, at its July 21 meeting, and the company returned more than $1bn to shareholders over the first half of the year.

The quarter also carried costs. It booked $145.6m in pre-tax charges, including $61.5m on software dispositions, $51.0m of severance, and $33.1m for a one-time equity grant to eligible employees, alongside a $73.9m loss on securities it sold to reposition its portfolio.