- Northern Trust‘s provision for credit losses in Q2 2025 increased to $16.5 million from $8.0 million year over year, significantly missing the estimated $4.31 million.
- Earnings per share (EPS) dropped to $2.13 from $4.34 year over year.
- Non-interest expenses totaled $1.42 billion, down 7.6% year over year, matching estimates.
- Return on average common equity decreased significantly to 14.2% from 31.2% year over year.
- Assets under custody/administration rose to $18.07 trillion, reflecting a 9.1% increase year over year.
- Assets under custody reached $14.24 trillion, a 9.2% increase year over year, exceeding the estimated $13.81 trillion.
- Assets under management grew by 11% year over year to $1.70 trillion, slightly above the estimated $1.69 trillion.
- Trust, investment, and other servicing fees were $1.23 billion, a 5.6% increase year over year, surpassing the estimated $1.22 billion.
- The effective tax rate increased to 25.4% from 23.6% year over year, higher than the estimated 24.4%.
- Full-time equivalent (FTE) revenue decreased by 26% year over year, reaching $2.00 billion.
- The net interest margin FTE remained stable at 1.69% quarter over quarter, slightly above the estimated 1.68%.
- Net interest income FTE rose by 7.2% quarter over quarter to $615.2 million, surpassing the estimated $581.7 million.
- Analyst ratings include 2 buys, 9 holds, and 6 sells.
A look at Northern Trust Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
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
Based on the Smartkarma Smart Scores, Northern Trust Corporation appears to have a positive long-term outlook. With solid scores in Growth, Resilience, and Momentum, the company seems well-positioned for future success. The Growth score of 4 signifies a strong potential for expansion and development, while the Resilience score of 4 indicates the company’s ability to withstand economic challenges. The highest score of 5 in Momentum suggests that Northern Trust is currently experiencing positive market traction.
Northern Trust Corporation, a financial holding company primarily focused on investment management and banking solutions, demonstrates a balanced outlook with moderate scores in Value and Dividend. As an established player in the industry, the company’s overall outlook seems favorable for investors seeking stability and potential growth in the long run.
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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