Northern Trust tops Q2 revenue estimates, raises dividend
NTRS•What drove the quarter
- Visa exchange offer: Q2 results included a $525.4 million pre-tax gain from participation in the second Visa, Inc. exchange offer.
- Fee and net interest income growth: Revenue growth was supported by robust fee growth and double-digit net interest income growth, according to CEO Michael O’Grady.
- Portfolio repositioning loss: Q2 included a $73.9 million pre-tax loss on the sale of available-for-sale debt securities during portfolio repositioning.
Key figures and outlook
Northern Trust did not provide specific financial guidance for the upcoming quarter or full year.
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q2 Revenue | $2.71 billion | $2.42 billion |
| Q2 EPS | $4.23 | $2.71 |
| Q2 Net Income | $792.20 million | — |
| Q2 Net Interest Income | $683.10 million | $658.54 million |
| Q2 Assets Under Management | $1.97 trillion | — |
The current average analyst rating on the shares is "hold," with 3 strong buy or buy ratings, 11 hold ratings and 2 sell or strong sell ratings.
The average consensus recommendation for the investment management and fund operators peer group is "buy."
Wall Street's median 12-month price target for Northern Trust Corp is , about its July 21 closing price of .
