- Provision for credit losses was $1.0 million, significantly beating the estimate of $5.03 million, though lower than the $8.5 million recovery from the previous year.
- Earnings per share (EPS) increased to $1.90, compared to 96 cents the previous year, surpassing the expected $1.83.
- Non-interest expenses were reported at $1.42 billion, reflecting a 3.9% year-over-year increase, and slightly below the estimated $1.44 billion.
- Return on average common equity improved to 13%, up from 7.3% year-over-year.
- Trust, investment, and other servicing fees grew by 6.2% to $1.21 billion, aligning with expectations.
- Full-time equivalent (FTE) revenue rose by 18% year-over-year to reach $1.95 billion.
- Net interest income on an FTE basis was slightly down by 0.1% quarter-over-quarter, at $573.7 million, but exceeded the estimate of $563.1 million.
- Market analysts have given Northern Trust stock 4 buy ratings, 9 hold ratings, and 4 sell ratings.
A look at Northern Trust Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores have indicated a positive long-term outlook for Northern Trust Corporation. With solid scores across key factors such as Value, Dividend, Growth, Resilience, and Momentum, the company seems well-positioned for future growth. Northern Trust, a financial holding company offering a range of financial services, including investment management and banking solutions, has garnered favorable ratings in these critical areas, reflecting confidence in its overall performance and stability.
As a leading provider of investment and banking services, Northern Trust Corporation’s strong performance across key metrics bodes well for its future prospects. With notable scores across Value, Dividend, Growth, Resilience, and Momentum, the company showcases resilience and growth potential in the competitive financial sector. Investors may find Northern Trust an attractive choice given its solid Smart Scores and diversified portfolio of services catering to corporations, institutions, and affluent individuals.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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