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Northern Trust Q1 Earnings Beat Estimates on Higher NII & AUM Growth
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Key Takeaways
Northern Trust reported Q1 EPS of $2.71, beating estimates and rising from $1.90 a year ago.
NTRS saw 14% revenue growth, driven by 15% higher NII and 11% increase in servicing fees.
Northern Trust's AUC reached $14.8T and AUM hit $1.8T, both up 11% year over year.
Northern Trust Corporation’s (NTRS - Free Report) first-quarter 2026 earnings per share (EPS) of $2.71 beat the Zacks Consensus Estimate of $2.37. In the prior-year quarter, the company reported an EPS of $1.90.
NTRS results benefited from a rise in net interest income (NII). Also, an increase in total assets under custody (AUC) and assets under management (AUM) balances supported the financials. However, elevated expenses were concerning.
Net income (GAAP basis) was $525.5 million, up 34% from the prior-year quarter.
NTRS’ Revenues & Expenses Rise
Quarterly total revenues (GAAP basis) of $2.21 billion increased 14% year over year. The top line beat the Zacks Consensus Estimate by 3.5%.
NII was $654 million in the quarter under review, up 15% year over year. The net interest margin was 1.73%, up 6 basis points from the prior-year quarter.
Trust, investment and other servicing fees totaled $1.34 billion, up 11% year over year.
Other non-interest income increased to $210.2 million from $158.1 million in the year-ago quarter.
Non-interest expenses rose 6% year over year to $1.51 billion in the reported quarter.
Northern Trust’s AUC & AUM Rise
As of March 31, 2026, Northern Trust’s total AUC increased 11% year over year to $14.8 trillion. Also, total AUM rose 11% year over year to $1.8 trillion.
NTRS’ Credit Quality Improves
Total allowance for credit losses was $195.2 million, down 6% year over year.
Total non-accrual assets were $55 million as of March 31, 2026, compared with $73.1 million in the year-ago period.
NTRS reported provision benefits of $3 million in the first quarter against provision for credit losses of $1 million in the year-ago quarter.
Northern Trust’s Capital & Profitability Ratios
Under the Standardized Approach, as of March 31, 2026, the Common Equity Tier 1 capital ratio was 12.0% compared with 12.9% in the prior-year quarter. The total capital ratio was 15.3% compared with 15.7% in the year-ago quarter. The Tier 1 leverage ratio was 7.3% compared with 8.0% in the prior-year quarter.
The return on average common equity was 17.4% compared with the year-earlier quarter’s 13%.
NTRS’ Capital Distribution Activities
In the reported quarter, Northern Trust returned $509.7 million to shareholders through share repurchases and dividends.
Our View on Northern Trust
A rise in NII and fee income drove the company’s performance. Its increasing AUC and AUM balances are likely to support financials. However, a rise in expenses will likely impede growth.
Northern Trust Corporation Price, Consensus and EPS Surprise
Regions Financial Corporation (RF - Free Report) reported first-quarter 2026 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 61 cents. Also, this compares favorably with earnings of 54 cents per share in the year-ago quarter.
Increases in non-interest income, net interest income (NII) and higher deposit balances, along with lower provisions, supported RF’s results. However, higher non-interest expenses played spoilsport.
U.S. Bancorp (USB - Free Report) has reported first-quarter 2026 earnings per share of $1.18, topping the Zacks Consensus Estimate by 3.4%. The bottom line increased 14.6% from $1.03 in the year-ago quarter.
USB’s results were supported by higher net interest income (NII) and solid fee revenue growth, while the company has posted positive operating leverage of 440 basis points. However, a rise in provision was concerning.
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Northern Trust Q1 Earnings Beat Estimates on Higher NII & AUM Growth
Key Takeaways
Northern Trust Corporation’s (NTRS - Free Report) first-quarter 2026 earnings per share (EPS) of $2.71 beat the Zacks Consensus Estimate of $2.37. In the prior-year quarter, the company reported an EPS of $1.90.
NTRS results benefited from a rise in net interest income (NII). Also, an increase in total assets under custody (AUC) and assets under management (AUM) balances supported the financials. However, elevated expenses were concerning.
Net income (GAAP basis) was $525.5 million, up 34% from the prior-year quarter.
NTRS’ Revenues & Expenses Rise
Quarterly total revenues (GAAP basis) of $2.21 billion increased 14% year over year. The top line beat the Zacks Consensus Estimate by 3.5%.
NII was $654 million in the quarter under review, up 15% year over year. The net interest margin was 1.73%, up 6 basis points from the prior-year quarter.
Trust, investment and other servicing fees totaled $1.34 billion, up 11% year over year.
Other non-interest income increased to $210.2 million from $158.1 million in the year-ago quarter.
Non-interest expenses rose 6% year over year to $1.51 billion in the reported quarter.
Northern Trust’s AUC & AUM Rise
As of March 31, 2026, Northern Trust’s total AUC increased 11% year over year to $14.8 trillion. Also, total AUM rose 11% year over year to $1.8 trillion.
NTRS’ Credit Quality Improves
Total allowance for credit losses was $195.2 million, down 6% year over year.
Total non-accrual assets were $55 million as of March 31, 2026, compared with $73.1 million in the year-ago period.
NTRS reported provision benefits of $3 million in the first quarter against provision for credit losses of $1 million in the year-ago quarter.
Northern Trust’s Capital & Profitability Ratios
Under the Standardized Approach, as of March 31, 2026, the Common Equity Tier 1 capital ratio was 12.0% compared with 12.9% in the prior-year quarter. The total capital ratio was 15.3% compared with 15.7% in the year-ago quarter. The Tier 1 leverage ratio was 7.3% compared with 8.0% in the prior-year quarter.
The return on average common equity was 17.4% compared with the year-earlier quarter’s 13%.
NTRS’ Capital Distribution Activities
In the reported quarter, Northern Trust returned $509.7 million to shareholders through share repurchases and dividends.
Our View on Northern Trust
A rise in NII and fee income drove the company’s performance. Its increasing AUC and AUM balances are likely to support financials. However, a rise in expenses will likely impede growth.
Northern Trust Corporation Price, Consensus and EPS Surprise
Northern Trust Corporation price-consensus-eps-surprise-chart | Northern Trust Corporation Quote
Currently, NTRS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Banks
Regions Financial Corporation (RF - Free Report) reported first-quarter 2026 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 61 cents. Also, this compares favorably with earnings of 54 cents per share in the year-ago quarter.
Increases in non-interest income, net interest income (NII) and higher deposit balances, along with lower provisions, supported RF’s results. However, higher non-interest expenses played spoilsport.
U.S. Bancorp (USB - Free Report) has reported first-quarter 2026 earnings per share of $1.18, topping the Zacks Consensus Estimate by 3.4%. The bottom line increased 14.6% from $1.03 in the year-ago quarter.
USB’s results were supported by higher net interest income (NII) and solid fee revenue growth, while the company has posted positive operating leverage of 440 basis points. However, a rise in provision was concerning.