- Non-interest expenses for Northern Trust in Q3 2025 were $1.42 billion, marking a 4.7% increase year-over-year and precisely matching the company’s estimate.
- There was a recovery of credit losses amounting to $17.0 million, a positive shift from the $8.0 million provision recorded a year ago. The estimated provision was $6.87 million.
- Earnings per share (EPS) increased to $2.29 compared to $2.22 in the same quarter last year.
- The return on average common equity was slightly down at 14.8% from 15.4% a year ago; however, it was still above the estimated 14.7%.
- The firm managed $18.25 trillion in assets under custody/administration, rising 4.7% year-over-year, though falling short of the $18.86 trillion estimate.
- Assets under custody experienced the same 4.7% growth year-over-year, reaching $14.44 trillion, below the anticipated $14.78 trillion.
- Assets under management saw a significant increase of 9.3% year-over-year, totaling $1.77 trillion, slightly above the $1.76 trillion forecast.
- Trust, investment, and other servicing fees climbed 5.8% year-over-year to $1.27 billion, though the company had projected $1.29 billion.
- The effective tax rate rose to 26.1% from 22.7% in the previous year, exceeding the 24.8% estimate.
- Full-time equivalent (FTE) revenue increased by 2.8% year-over-year, reaching $2.03 billion.
- Net interest margin FTE slightly increased to 1.7% from the previous quarter’s 1.69%, surpassing the estimated 1.66%.
- Net interest income FTE dipped by 3.1% quarter-over-quarter, totaling $596.3 million, which was still above the estimate of $588.2 million.
Northern Trust on Smartkarma
Analysts on Smartkarma are bullish on Northern Trust, a global financial institution known for its asset servicing, wealth management, and asset management services. The company’s model, focusing on affluent and institutional clients, generates stable, fee-based revenue. Despite a history of consistent revenue growth and dividends, Northern Trust faces challenges like fee compression and competition from larger custodians. Analysts see future growth potential in leveraging technology for operational efficiency, expanding wealth management services for high-net-worth clients, and capitalizing on emerging market opportunities.
The research report titled “Primer: Northern Trust (NTRS US) – Sep 2025″ on Smartkarma highlights these insights. While the content serves as general information and is AI-generated, it emphasizes the company’s financial strength and strategic focus. Investors interested in Northern Trust can explore more detailed analysis from independent analysts on Smartkarma for a comprehensive understanding of the company’s performance and potential investment opportunities.
A look at Northern Trust Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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 looks to have a promising long-term outlook. With a strong Resilience score of 4, the company is seen as well-equipped to weather market fluctuations and economic challenges. This factor suggests that Northern Trust is capable of maintaining stability and overcoming obstacles, which bodes well for its future sustainability.
Additionally, Northern Trust‘s Value, Dividend, Growth, and Momentum scores all sit at a solid 3, indicating a balanced performance across key factors. This suggests that the company may offer steady returns to investors while also showing potential for growth and value appreciation. Overall, Northern Trust‘s diverse range of services, including investment management and banking solutions, positions it well for long-term success in the financial industry.
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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