Northern Trust (NTRS) Announces Capital Actions Post-CCAR Results; Includes Dividend Hike, Increased Stock Buyback

Northern Trust Corporation (Nasdaq: NTRS) announced that the Federal Reserve did not object to the company’s 2016 Capital Plan, reviewed by the Federal Reserve as part of its Comprehensive Capital Analysis and Review.

Northern Trust’s 2016 Capital Plan, which was approved by its Board of Directors prior to submission to the Federal Reserve, requested authority to increase its quarterly common stock dividend to $0.38 per share from $0.36 per share, effective in the third quarter of 2016. At its July 19, 2016, meeting, Northern Trust’s Board of Directors will consider formal approval of the planned dividend increase, which is expected to be payable October 1, 2016.

In addition, Northern Trust’s 2016 Capital Plan provides for the repurchase of up to $275 million of its common stock through the open market or in privately negotiated transactions between July 2016 and June 2017. The timing of the common stock repurchases and the exact number of shares repurchased will depend on various factors, including Northern Trust’s capital position, internal capital generation, share price, other investment opportunities, and market conditions.

“We are pleased to continue delivering positive returns to shareholders while maintaining Northern Trust’s strong capital position and conservative risk profile,” Northern Trust Chairman and Chief Executive Officer Frederick H. Waddell said. “We believe our 2016 Capital Plan and proposed capital distributions demonstrate the strength of Northern Trust’s focused business model, financial position and commitment to shareholders.”

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