Northern Trust says cost of deposits ‘very, very high’ due to competition

Asked at the Morgan Stanley U.S. Financials, Payments and CRE Conference if the company is seeing anything in the quarter specifically that it wants to update the market on, Northern Trust CFO Jason Tyler said in part, according to a transcript of the event: “Yes, I’ll be short. There are 2 things that, as I think about the income statement and look at the forecast, jump out. One is — and it was ironic to hear Eric talk about it an hour ago, but capital markets activity is light, foreign exchange trading is light… So trending to be less than what it was in first quarter… And — but then I’ll say also cost of deposits, very, very high, just the competition level for deposits, a lot of phone calls from clients saying, ‘I want to leave my deposits there, but this is what I’m hearing from 3 other institutions.’ In some instances, we’re saying sounds great. But in some instances, we’re saying we want to keep that in the house. And so that’s — there’s going to be a pressure on NIM there. And — but overall, volumes good, costs high.”