Northern Trust Corp.
NTRS
Market Cap$25.11B
Close$
Earnings Call Q2 2025
July 23, 2025 - AI Summary
Strong Financial Performance: Northern Trust reported a net income of $421 million and earnings per share of $2.13 for Q2 2025, marking a 20% increase in EPS year-over-year (YOY) when excluding notable items. Revenue grew by 8% overall, with trust, investment, and other servicing fees totaling $1.2 billion (+6% YOY).
Positive Organic Growth and Operating Leverage: For the fourth consecutive quarter, the company achieved positive organic growth and operating leverage, with expense growth limited to 4.8% YOY compared to revenue growth. This indicates that initiatives under its One Northern Trust strategy are translating into improved profitability.
Elevated ROE Target: Northern Trust raised its return on equity (ROE) target from a range of 10-15% to 13-15%. This adjustment reflects the company¡¯s improved financial performance and confidence in sustaining higher profit margins. The company also aims to maintain an expense-to-trust-fee ratio between 105%-110%.
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$286.64
121.4% upside
Current Fair Value
121.4% upsideUndervalued by 121.4% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $25.11 Billion |
|---|---|
| Enterprise Value | $-19,308,631,760.00 |
| Dividend Yield | $3.00 (2.29%) |
| Earnings per Share | $9.8 |
| Beta | 1.3 |
| Outstanding Shares | 192,751,910 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 14.6 |
|---|---|
| PEG | -27.74 |
| Price to Sales | 2.64 |
| Price to Book Ratio | 1.96 |
| Enterprise Value to Revenue | -2.03 |
| Enterprise Value to EBIT | -12.83 |
| Enterprise Value to Net Income | -15 |
| Total Debt to Enterprise | -0.86 |
| Debt to Equity | 1.3 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Northern Trust Corp.
20,900 employees
CEO: Michael O'Grady Northern Trust Corporation 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 a globa...