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Northern Trust Corp NTRS

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Northern Trust's Second Quarter Consistent With Consensus Expectations

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Northern Trust reported second-quarter financial results that generally matched consensus expectations. Revenue of $1.59 billion and earnings per share of $1.72 were close to the FactSet consensus of $1.58 billion and $1.71, respectively. During the quarter, the firm took a $17 million pretax pension charge (we calculate a $0.06 drag on EPS) but also released $27 million of credit loss reserves. Overall, there was little in the quarter that would alter our long-term view of the firm, and we will maintain our wide moat rating and our $90 fair value estimate.

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Company Profile

Business Description

Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. Founded in Chicago in 1889, Northern Trust has offices in 20 states and Washington, D.C., in the U.S. and 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of Dec. 30, 2020, Northern Trust had assets under custody or administration of $14.5 trillion and assets under management of $1.4 trillion.

Contact
50 South La Salle Street
Chicago, IL, 60603
T +1 312 630-6000
Sector Financial Services
Industry Asset Management
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 20,900

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