Northern Trust Stock Rises After Q4 Profit Quadruples, Retail’s Ecstatic

Northern Trust’s (NTRS) shares rose 2.4% on Thursday after its fourth-quarter earnings quadrupled.

The wealth manager reported fourth-quarter earnings of $2.26 per share, compared to $0.52 per share last year.

Its fourth-quarter revenue of $1.97 billion topped Wall Street's estimate of $1.93 billion.

The Chicago-based company said its net interest income (NII) rose 15% to $574.3 million compared to the same period last year, aided by higher deposits and securities repositionings.

Total assets under management jumped 12% to $1.61 trillion compared to last year but declined 1% sequentially.

Its total trust, investment, and other servicing fees rose 12% to $1.22 billion during the fourth quarter, driven by favorable markets and net new business.

Last week, rivals State Street and BNY also posted upbeat quarterly earnings on fee revenue growth.

It also posted a negative $10.5 million provision for credit losses due to improved credit quality in the commercial and institutional loans portfolio.

Northern Trust said its noninterest expenses declined 1% compared to last year when it booked $84.6 million for a Federal Deposit Insurance Corporation special assessment.

Following the earnings, retail sentiment on Stocktwits jumped to ‘extremely bullish’ (94/100) zone from ‘neutral’(48/100) a day ago, while retail chatter surged to ‘extremely high.’

The stock has gained 27% over the last six months and 34% over the past 12 months.

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