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Why Is Northern Trust (NTRS) Up 0.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for Northern Trust Corporation (NTRS - Free Report) . Shares have added about 0.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Northern Trust due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
NTRS Q3 Earnings Beat on Higher NII & AUM Growth Despite Rising Costs
Northern Trust's third-quarter 2025 earnings per share (EPS) of $2.29 beat the Zacks Consensus Estimate of $2.26. In the prior-year quarter, the company reported an EPS of $2.22.
NTRS results benefited from a rise in net interest income. Also, an increase in total assets under custody and assets under management balances supported the financials. However, elevated expenses and reduced other fee income were concerning.
Net income (GAAP basis) was $457.6 million, down 1.6% from the prior-year quarter.
Revenues & Expenses Rise
Quarterly total revenues (GAAP basis) of $2.02 billion increased 2.8% year over year. However, the top line missed the Zacks Consensus Estimate by nearly 1%.
NII on a fully taxable equivalent basis was $596.3 million in the quarter under review, up 4.7% year over year. The net interest margin was 1.70%, up 2 basis points from the prior-year quarter.
Trust, investment and other servicing fees totaled $1.26 billion, up 5.7% year over year.
Other non-interest income decreased 19.3% to $169.1 million from the year-ago quarter. The decline was driven by a decrease in other operating income.
Non-interest expenses rose 4.7% year over year to $1.42 billion in the reported quarter. The rise primarily stemmed from an elevation in all components except for outside services and other operating expenses.
AUC & AUM Rise
As of Sept. 30, 2025, Northern Trust’s total AUC increased 4.7% year over year to $14.4 trillion. Also, total AUM rose 9.3% year over year to $1.8 trillion.
Credit Quality: Mixed Bag
Total allowance for credit losses was $206.7 million, down 6% year over year.
Total non-accrual assets increased to $78.8 million as of Sept. 30, 2025, from $73.1 million in the year-ago period. NTRS reported provision benefits of $17 million in the third quarter compared with a provision for credit losses of $8 million in the year-ago quarter.
Capital & Profitability Ratios Decline
Under the Standardized Approach, as of Sept. 30, 2025, the Common Equity Tier 1 capital ratio was 12.4%, down from 12.6% in the prior-year quarter. The total capital ratio was 15.1%, down from 15.6% in the year-ago quarter. The Tier 1 leverage ratio was 8.0%, down from 8.1% in the prior-year quarter.
The return on average common equity was 14.8% compared with the year-earlier quarter’s 15.4%.
Capital Distribution Activities
In the reported quarter, Northern Trust returned $431.3 million to shareholders through share repurchases and dividends.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Northern Trust has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Northern Trust has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Northern Trust belongs to the Zacks Banks - Major Regional industry. Another stock from the same industry, M&T Bank Corporation (MTB - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
M&T Bank reported revenues of $2.51 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $4.87 for the same period compares with $4.08 a year ago.
M&T Bank is expected to post earnings of $4.48 per share for the current quarter, representing a year-over-year change of +14.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
M&T Bank has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Why Is Northern Trust (NTRS) Up 0.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Northern Trust Corporation (NTRS - Free Report) . Shares have added about 0.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Northern Trust due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
NTRS Q3 Earnings Beat on Higher NII & AUM Growth Despite Rising Costs
Northern Trust's third-quarter 2025 earnings per share (EPS) of $2.29 beat the Zacks Consensus Estimate of $2.26. In the prior-year quarter, the company reported an EPS of $2.22.
NTRS results benefited from a rise in net interest income. Also, an increase in total assets under custody and assets under management balances supported the financials. However, elevated expenses and reduced other fee income were concerning.
Net income (GAAP basis) was $457.6 million, down 1.6% from the prior-year quarter.
Revenues & Expenses Rise
Quarterly total revenues (GAAP basis) of $2.02 billion increased 2.8% year over year. However, the top line missed the Zacks Consensus Estimate by nearly 1%.
NII on a fully taxable equivalent basis was $596.3 million in the quarter under review, up 4.7% year over year. The net interest margin was 1.70%, up 2 basis points from the prior-year quarter.
Trust, investment and other servicing fees totaled $1.26 billion, up 5.7% year over year.
Other non-interest income decreased 19.3% to $169.1 million from the year-ago quarter. The decline was driven by a decrease in other operating income.
Non-interest expenses rose 4.7% year over year to $1.42 billion in the reported quarter. The rise primarily stemmed from an elevation in all components except for outside services and other operating expenses.
AUC & AUM Rise
As of Sept. 30, 2025, Northern Trust’s total AUC increased 4.7% year over year to $14.4 trillion. Also, total AUM rose 9.3% year over year to $1.8 trillion.
Credit Quality: Mixed Bag
Total allowance for credit losses was $206.7 million, down 6% year over year.
Total non-accrual assets increased to $78.8 million as of Sept. 30, 2025, from $73.1 million in the year-ago period. NTRS reported provision benefits of $17 million in the third quarter compared with a provision for credit losses of $8 million in the year-ago quarter.
Capital & Profitability Ratios Decline
Under the Standardized Approach, as of Sept. 30, 2025, the Common Equity Tier 1 capital ratio was 12.4%, down from 12.6% in the prior-year quarter. The total capital ratio was 15.1%, down from 15.6% in the year-ago quarter. The Tier 1 leverage ratio was 8.0%, down from 8.1% in the prior-year quarter.
The return on average common equity was 14.8% compared with the year-earlier quarter’s 15.4%.
Capital Distribution Activities
In the reported quarter, Northern Trust returned $431.3 million to shareholders through share repurchases and dividends.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Northern Trust has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Northern Trust has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Northern Trust belongs to the Zacks Banks - Major Regional industry. Another stock from the same industry, M&T Bank Corporation (MTB - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
M&T Bank reported revenues of $2.51 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $4.87 for the same period compares with $4.08 a year ago.
M&T Bank is expected to post earnings of $4.48 per share for the current quarter, representing a year-over-year change of +14.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
M&T Bank has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.