What is Northern Trust Capital Adequacy Tier - Tier 1 Ratio %?
Capital Adequacy Tier - Tier 1 Ratio % is the ratio of a bank’s core tier 1 capital, which includes its equity capital and disclosed reserves, to its total risk-weighted assets. It is a key measure of a bank's financial strength and should not fall lower than 6% as per Basel III rules.
Northern Trust's Capital Adequacy Tier - Tier 1 Ratio % for the quarter that ended in Mar. 2024 was 12.40%
, which is higher than
12.30% for the pervious quarter ended in Dec. 2023.
Northern Trust's Capital Adequacy Tier - Tier 1 Ratio % for the annual that ended in Dec. 2023 was 12.30%
, which is higher than
11.80% for the pervious year ended in Dec. 2022.
The historical rank and industry rank for Northern Trust's Capital Adequacy Tier - Tier 1 Ratio % or its related term are showing as below:
NTRS's Capital Adequacy Tier - Tier 1 Ratio % is not ranked *
in the Asset Management industry.
Industry Median: * Ranked among companies with meaningful Capital Adequacy Tier - Tier 1 Ratio % only.
Northern Trust Capital Adequacy Tier - Tier 1 Ratio % Historical Data
The historical data trend for Northern Trust's Capital Adequacy Tier - Tier 1 Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Northern Trust Capital Adequacy Tier - Tier 1 Ratio % Chart
Competitive Comparison of Northern Trust's Capital Adequacy Tier - Tier 1 Ratio %
For the Asset Management subindustry, Northern Trust's Capital Adequacy Tier - Tier 1 Ratio %, along with its competitors' market caps and Capital Adequacy Tier - Tier 1 Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northern Trust (NAS:NTRS) Capital Adequacy Tier - Tier 1 Ratio % Calculation
Capital Adequacy Tier - Tier 1 Ratio % is calculated as
Capital Adequacy Tier - Tier 1 Ratio %
=
Tier 1 Capital
/
Total Risk Weighted Assets
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Northern Trust (NAS:NTRS) Capital Adequacy Tier - Tier 1 Ratio % Explanation
Tier 1 capital, or core capital, consists of a bank's common stock, retained earnings, accumulated other comprehensive income, noncumulative perpetual preferred stock and any regulatory adjustments to those accounts. The tier 1 capital ratio is the ratio of a bank’s core capital vs. its total risk-weighted assets (RWAs). The risk-weighted assets are calculated by multiplying the assets that the company holds by their corresponding weights for credit risk (the weight is usually developed by the central bank).
The tier 1 capital ratio is the basis for the Basel III international capital and liquidity standards. The standard is used to force banks to increase capital buffers and ensure they can withstand financial distress before they become insolvent. Basel III rules stipulate that the Tier 1 capital ratio has to be at least 6% and the equity component of Tier 1 capital has to have at least 4.5% of RWAs. A higher Tier 1 ratio suggests that the company has more capital to pay down deposits and is less likely to become insolvent.
Northern Trust Capital Adequacy Tier - Tier 1 Ratio % Related Terms
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Northern Trust (Northern Trust) Business Description
Northern Trust 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 offices in 20 states and Washington, D.C. as well as 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of Dec. 31, 2022, Northern Trust had assets under custody or administration of $13.6 trillion and assets under management of $1.2 trillion.
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