Northern Trust Corporation Shows Strong Growth in Wealth Management Sector
Company Overview and Financial Performance
Northern Trust Corporation (NTRS), based in Chicago, Illinois, provides a range of financial services including wealth management, asset servicing, asset management, and banking solutions. The company has a market capitalization of $22.5 billion and manages around $1 trillion in assets. NTRS offers a variety of investment strategies such as mutual funds, ETFs, multi-asset solutions, retirement plans, and outsourced investments.
Stock Performance Outpaces Market Benchmarks
Over the past year, NTRS shares have significantly outperformed the broader market. Specifically, NTRS has increased by 42.6%, whereas the S&P 500 Index ($SPX) has grown nearly 23%. Year-to-date in 2025, NTRS is up 10.8%, outperforming SPX’s 4% increase.
Comparison with Financial ETFs
When comparing NTRS to the iShares U.S. Financials ETF (IYF), the outperformance is clear. IYF has gained about 31.5% in the last year. Furthermore, NTRS’s year-to-date returns far exceed the ETF’s 6.1% growth.
Growth Drivers for Northern Trust
NTRS’s strong performance stems from robust organic growth and increasing revenues. Factors such as expanding non-interest income, rising net interest income (NII), and an expanding client base anticipating a rebound in loans contribute to this growth. The firm’s commitment to wealth management is likely to further enhance its lending portfolio. Positive trends within the asset servicing segment are expected to improve revenue, alongside efficient cost management strategies that elevate operational productivity. Anticipated interest rate cuts and general economic expansion are poised to improve NTRS’s profit margins.
Recent Earnings Report
On January 23, NTRS shares rose by 2% following the release of its fourth-quarter earnings. The company reported an earnings per share (EPS) of $2.26, marking a significant 334.6% increase compared to the same quarter last year. Revenue also surged to $2 billion, reflecting a 26% year-over-year rise.
Analyst Expectations for 2025
Looking forward, analysts project NTRS’s EPS for fiscal 2025, which ends in December, to rise by 7.4% to $8.27 on a diluted basis. The company has a solid history of exceeding earnings expectations, having surpassed the consensus estimate in each of the last four quarters.
Current Analyst Sentiment
The consensus among 15 analysts covering NTRS is a “Hold,” reflecting one “Strong Buy,” one “Moderate Buy,” 11 “Holds,” and two “Strong Sells.” This outlook has improved slightly over the past three months, with fewer analysts recommending a sell approach.
Price Target Insights
On February 20, Morgan Stanley (MS) analyst Betsy Graseck reaffirmed a “Hold” rating on NTRS, with a price target of $138, indicating a possible upside of 21.6% from current levels. The average price target stands at $118.57, offering a 4.4% premium to NTRS’s present price, while the highest target of $136 implies an upside of 19.8%.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information is provided for informational purposes. For further details, please view the Barchart Disclosure Policy here.
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The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
