• Northern Trust reports credit loss recovery of $8.5 million compared to last year’s provision of $15.0 million, beating the estimated provision of $8.51 million.
• Earning per share (EPS) stood at 96c, a drop from $1.51 y/y yet surpassing an estimated $1.42.
• Non-interest expenses hit the $1.36 billion mark, up 6.2% from last year, slightly surpassing the estimated $1.35 billion.
• The return on average common equity is 7.3%, a considerable decline from 12.4% y/y.
• Return on average assets recorded at 0.6% compared to 0.92% y/y.
• The Assets under custody/administration reached $16.47 trillion, up from $14.17 billion y/y.
• Assets under custody were reported at $12.80 trillion, up 16% y/y, exceeding the estimated $12.31 trillion.
• Northern Trust managed assets valued at $1.50 trillion, a 13% rise since last year, though slightly below the estimate $1.53 trillion.
• Trust, investment & other servicing fees summed up to $1.14 billion, a 7.5% increase from last year, although below the estimated $1.15 billion.
• The company had an effective tax rate of 26.1%, up from 24.6% y/y, surpassing the estimated 24.1%.
• Revenue on average (FTE) was $1.65 billion, down 5.9% from last year, falling short of the estimated $1.76 billion.
• FTE net interest margin recorded at 1.61% versus 1.59% q/q, thereby beating the estimated 1.58%.
• The company reported FTE net interest income of $535.4 million, up 6.8% q/q, surpassing the expected $498.9 million.
• Analyst opinions on Northern Trust are mixed with 3 advises to buy, 12 to hold and 3 to sell.
A look at Northern Trust Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| 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’s Smart Scores predict a positive long-term outlook for Northern Trust Corporation. With impressive scores in Value and Dividend at 4, along with strong showings in Momentum and Resilience at 4 and 5 respectively, the company appears well-positioned for sustained growth and stability in the financial sector.
Despite a slightly lower score in Growth at 3, Northern Trust‘s overall robust performance in key areas bodes well for its future prospects. As a financial holding company offering a range of investment and banking services, including asset and fund administration, Northern Trust seems poised to maintain its strong position in the market and continue delivering value to its diverse client base.
**Summary:** Northern Trust Corporation offers investment management, asset and fund administration, fiduciary, and banking solutions primarily through its banking operations. With strong Smart Scores in Value, Dividend, Momentum, and Resilience, the company is positioned for long-term growth and stability in the financial sector.
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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