Northern Trust Decreases Prime Rate

Rhea-AI Summary

Northern Trust announced a reduction in its prime rate from 8.00% to 7.75%, which will take effect on Friday, November 8, 2024. This 25 basis point decrease represents an adjustment in the bank's benchmark lending rate.

Positive

• Prime rate reduction could stimulate borrowing and lending activity
• Lower interest rates may increase loan demand and business volume

Negative

• Decreased prime rate may reduce interest income and net interest margin
• Lower rates could compress lending profitability

Insights

Financial Analyst

This prime rate reduction by Northern Trust aligns with market expectations following the Federal Reserve's dovish signals. The 0.25% decrease will directly impact the bank's lending revenue streams, as variable-rate loans tied to the prime rate will see lower interest charges. This could potentially squeeze net interest margins in the short term.

For Northern Trust's wealth management and institutional clients, this rate cut translates to reduced borrowing costs. However, the impact on the bank's overall profitability should be moderate, given its diversified revenue model that relies heavily on fees from asset servicing and wealth management rather than traditional lending.

The timing suggests Northern Trust anticipates continued monetary policy easing, positioning itself competitively in the high-net-worth and institutional banking space.

CHICAGO--(BUSINESS WIRE)-- Northern Trust has decreased its prime rate from 8.00% to 7.75%, effective Friday, November 8, 2024.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) 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 a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2024, Northern Trust had assets under custody/administration of US$17.4 trillion, and assets under management of US$1.6 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on X (formerly Twitter) @NorthernTrust or Northern Trust Corporation on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107991976/en/

Media Contact:

Doug Holt

Northern Trust

(312) 557-1571

Doug.Holt@ntrs.com

Source: Northern Trust Corporation

FAQ

What is Northern Trust's (NTRS) new prime rate as of November 8, 2024?

Northern Trust's new prime rate will be 7.75%, effective November 8, 2024.

How much did Northern Trust (NTRS) decrease its prime rate in November 2024?

Northern Trust decreased its prime rate by 25 basis points, from 8.00% to 7.75%.

When will Northern Trust's (NTRS) prime rate decrease take effect?

The prime rate decrease will take effect on Friday, November 8, 2024.

What was Northern Trust's (NTRS) prime rate before the November 2024 decrease?

Northern Trust's prime rate before the decrease was 8.00%.