- Northern Trust‘s provision for credit losses decreased by 43% year-over-year to $8.0 million, beating the estimate of $9.99 million.
- Earnings per Share (EPS) improved to $2.22 compared to $1.49 the previous year, surpassing the estimate of $1.97.
- Non-interest expenses rose by 6.4% year-over-year to $1.36 billion, slightly below the estimate of $1.37 billion.
- Return on average common equity increased to 15.4% from 11.6% last year.
- Return on average assets rose to 1.26%, improving from 0.93% year-over-year.
- Assets under custody/administration saw a 23% increase, reaching $17.42 trillion.
- Assets under custody grew by 25% to $13.79 trillion, exceeding the estimate of $13.57 trillion.
- Assets under management increased by 22% year-over-year to $1.62 trillion, matching estimates.
- Trust, investment, and other servicing fees were up by 7.6% to $1.20 billion, beating the estimate of $1.18 billion.
- The effective tax rate decreased to 22.7% compared to 24.5% the previous year, and was below the estimated 24.3%.
- Full-time equivalent (FTE) revenue rose by 14% year-over-year to $1.98 billion.
- Net interest margin FTE improved to 1.68% from 1.57% quarter-over-quarter, surpassing the estimate of 1.57%.
- Net interest income FTE increased by 7.5% quarter-over-quarter to $569.4 million, exceeding the estimate of $531.4 million.
“`
A look at Northern Trust Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.2 |
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
Northern Trust Corporation, a financial holding company known for its investment management and banking solutions, has garnered impressive Smart Scores across various key factors. With solid ratings in Value, Dividend, Growth, and Momentum, the company is positioned favorably for long-term growth and stability. Its top-notch Resilience score signifies the company’s ability to weather market fluctuations and economic challenges, further bolstering its outlook in the financial sector.
As a provider of investment management, asset administration, and fiduciary services, Northern Trust stands out for its strong performance across multiple fronts. With a reputation for value, dividend yield, growth potential, and market momentum, coupled with its robust resilience, Northern Trust appears well-equipped to navigate the evolving financial landscape and deliver sustained value to its clients and stakeholders in the foreseeable future.
Summary of the company:
### Northern Trust Corporation is a financial holding company that provides investment management, asset and fund administration, fiduciary, and banking solutions for corporations, institutions, and affluent individuals. Northern Trust‘s banking operations are its primary operations. ###
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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