Following Northern Trust’s stronger-than-expected fourth quarter report, a consensus of five Wall Street analysts raised their full-year 2026 earnings estimates by an average of 8%. The upgrade reflects a 12% year-over-year gain in net interest income, which climbed to $1.15 billion, and expanded asset servicing revenues driven by a 6% increase in assets under custody (AUC) to $11.8 trillion. Analysts now project adjusted EPS of $10.20 for 2026, up from prior estimates of $9.45, citing improved deposit margins and growing fee income from wealth management.

Northern Trust reported total fourth-quarter revenue of $1.75 billion, up 9% year-over-year, as wealth management fees rose 7% to $520 million and investment management fees jumped 15% to $310 million. However, operating expenses climbed 11% to $1.1 billion, driven by a 13% increase in technology and personnel costs. The efficiency ratio narrowed slightly to 62.9% from 63.5% in the prior year, reflecting disciplined expense management despite investments in digital platforms and compliance infrastructure.

Northern Trust’s board approved a quarterly dividend of $0.80 per share, marking a 5% increase from last year and translating to a forward dividend yield of approximately 3.4%. With a payout ratio of 42% on adjusted earnings, the dividend is sustainable within the bank’s capital return framework. Management reiterated plans to deploy $1.2 billion in share repurchases over the next twelve months, further bolstering returns for long-term shareholders and supporting multiple expansion.