Your first guest today might agree with that. He's been saying on this show for a while to diversify beyond just big tech. So, let's see what he has to say about that.What to buy, what to own next year. Joe Tennuse is chief investment strategist at Northern Trust and he joins us now. I know that's not you.You're not Bank of America, but >> but I'm not surprised. >> Okay. Are you seeing similar types of data at Northern Trust.>> We are. I think there's genuinely a lot of excitement about the opportunity ahea ...

Investors looking for stocks in the Banks - Major Regional sector might want to consider either U.S. Bancorp (USB) or Northern Trust Corporation (NTRS) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emph ...

Chicago, Illinois-based Northern Trust Corporation (NTRS) operates as a holding company, providing wealth management, asset servicing, asset management, and banking solutions for organizations, families, and individuals worldwide. With a market cap of $26 billion, the company operates through Asset Servicing and Wealth Management segments. Companies worth $10 billion or more are generally described as “large-cap stocks.” Northern Trust fits right into that category, with its market cap exceeding this thr ...

PresentationAlexander BlosteinGoldman Sachs Group, Inc., Research Division Great. Well, I think we'll get started with our next session. Thank you, everybody, for joining us. Hope everyone is still having productive day here at Goldman Sachs. It's my pleasure to introduce Mike O’Grady, CEO of Northern Trust; and Dave Fox, the firm's CFO. With about $14.5 trillion in custody assets and $1.8 trillion in assets under management. Northern Trust is one of the largest global custodians with unique capabilities in ...

Summary of Northern Trust Conference Call (December 10, 2025) Company Overview - **Company**: Northern Trust (NasdaqGS: NTRS) - **Assets**: Approximately $14.5 trillion in custody assets and $1.8 trillion in assets under management - **Focus**: Transitioning towards more profitable areas of organic growth, particularly in wealth management and asset servicing Key Points Strategic Shifts and Priorities - **Strategic Pillars**: The company is executing a strategy centered on three pillars: optimizing growth, strengthening resiliency, and driving productivity [21][29][31] - **Growth Focus**: Aiming for higher organic growth in wealth and asset management, with a target to improve profitability in the Asset Servicing business from low 20s to high 20s margins [35][36] - **Revenue Growth**: Achieved an average revenue growth of about 7% over the past two years, with positive operating leverage of approximately 2 points and ROEs exceeding 13% [44][46] Asset Servicing Business - **Retention Rates**: High retention rates in the institutional client base, around the high 90s percentage, are crucial for maintaining revenue [51][54] - **Client Relationship Expansion**: Approximately half of new business comes from existing clients, emphasizing the importance of expanding relationships and offering additional services [74][75] - **New Client Acquisition**: Winning new clients is essential for long-term sustainability, with a focus on ensuring new business is profitable from the outset [85][96] Digital Asset Ecosystem - **Investment in Capabilities**: Northern Trust is investing in capabilities to support digital assets, including stablecoins and tokenized assets, to meet client needs in capital markets [121][130] - **Commercialization Opportunities**: Exploring new revenue streams through tokenization, particularly in asset management, with potential services for tokenized money market funds [132][134] Wealth Management Business - **Market Position**: Northern Trust has a strong position in the high net worth segment, particularly with global family offices, and is expanding services to ultra-high net worth families without dedicated family offices [151][155] - **Alternative Investments**: Currently, less than 5% of the $500 billion in assets under management is allocated to alternatives, indicating significant growth potential in this area [175][176] - **Product Offerings**: The company is enhancing its alternatives platform, doubling the number of funds offered in 2025, and focusing on providing differentiated opportunities for clients [189][191] Financial Performance and Guidance - **Net Interest Income (NII)**: Expected to finish the year up mid to high single digits year-over-year, with a strong deposit base contributing to this growth [212][213] - **Expense Management**: Committed to keeping expenses below 5% for the year, with a dynamic planning process to adjust as needed [213][250] - **2026 Outlook**: Anticipating flat to marginally up NII in 2026, with potential for growth driven by new business and effective deposit pricing strategies [232][234] Capital Return and Investment Strategy - **Capital Management**: Aiming to maintain a capital return strategy similar to 2025, with a focus on balancing loan activity, ROE, and potential M&A opportunities [276][277] - **Investment Flexibility**: The company has a detailed list of capital expenses and investments, allowing for flexibility in response to market conditions [252][256] Additional Insights - **Technology and Client Experience**: Emphasizing the importance of technology platforms and client education in enhancing the overall client experience in wealth management [200][201] - **Market Conditions**: The company is prepared to operate within a muted market environment while maintaining a focus on productivity and efficiency [250][256] This summary captures the essential insights and strategic directions discussed during the Northern Trust conference call, highlighting the company's focus on growth, profitability, and adaptability in a changing financial landscape.

CHICAGO, LONDON & MELBOURNE--(BUSINESS WIRE)-- #assetmanagement--Northern Trust announced more than 100 asset servicing mandates across key global markets in 2025, representing more than US$385 billion in assets. ...

Core Viewpoint - AJ Bell has selected Northern Trust and Carne Group to provide asset servicing and Authorised Corporate Director services for its in-house managed funds, which total £5 billion (approximately US$6.5 billion) in assets under management [1][2][3]. Company Summaries AJ Bell - AJ Bell is a UK-based asset manager and one of the leading investment platforms in the country, providing easy access to pensions, ISAs, and general investment accounts with platform assets under administration of £103.3 billion (approximately US$134.5 billion) [4]. - The in-house managed fund range consists of nine multi-asset funds designed to cater to various risk appetites, currently managing £5 billion (approximately US$6.5 billion) [2][3]. Northern Trust - Northern Trust has been appointed to provide custody, depositary, and fund administration services for AJ Bell's in-house managed funds, leveraging its scale, expertise, and technology to support AJ Bell's strategic and financial plans [4]. - As of September 30, 2025, Northern Trust had assets under custody/administration of US$18.2 trillion and assets under management of US$1.8 trillion, making it a leading provider in the industry [5]. Carne Group - Carne Group has been selected as the Authorised Corporate Director for AJ Bell's fund range, which will help support AJ Bell's growth and expand Carne's footprint in the UK [4]. - Carne is Europe's largest independent third-party management company, partnering with around 650 clients and overseeing more than US$2 trillion in assets under management [8][9].

Core Viewpoint - Northern Trust Corporation (NTRS) reported a positive earnings performance in Q3 2025, with earnings per share (EPS) of $2.29, surpassing estimates, but faced challenges with rising costs and declining non-interest income [2][4]. Financial Performance - Q3 2025 EPS of $2.29 exceeded the Zacks Consensus Estimate of $2.26 and was up from $2.22 in the prior-year quarter [2]. - Net income on a GAAP basis was $457.6 million, reflecting a 1.6% decrease from the previous year [3]. - Total revenues for the quarter were $2.02 billion, a 2.8% year-over-year increase, but fell short of the Zacks Consensus Estimate by nearly 1% [4]. - Net interest income (NII) rose to $596.3 million, a 4.7% increase year-over-year, with a net interest margin of 1.70%, up 2 basis points from the prior year [4]. - Trust, investment, and other servicing fees totaled $1.26 billion, marking a 5.7% increase year-over-year [4]. - Non-interest income decreased by 19.3% to $169.1 million, primarily due to a drop in other operating income [5]. - Non-interest expenses increased by 4.7% year-over-year to $1.42 billion, driven by higher costs across most components [5]. Asset Management - As of September 30, 2025, total assets under custody (AUC) rose by 4.7% year-over-year to $14.4 trillion, while total assets under management (AUM) increased by 9.3% to $1.8 trillion [6]. Credit Quality - The total allowance for credit losses was $206.7 million, down 6% year-over-year, while total non-accrual assets increased to $78.8 million from $73.1 million in the prior year [7]. Capital and Profitability - The Common Equity Tier 1 capital ratio was 12.4%, down from 12.6% in the prior-year quarter, and the total capital ratio decreased to 15.1% from 15.6% [8]. - The return on average common equity was 14.8%, compared to 15.4% in the previous year [8]. Shareholder Returns - In the reported quarter, Northern Trust returned $431.3 million to shareholders through share repurchases and dividends [10]. Market Outlook - Following the earnings release, there has been a downward trend in estimates for the stock, indicating a potential shift in market sentiment [11]. - Northern Trust holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [13].

Core Insights - The article compares State Street Corporation (STT) and Northern Trust Corporation (NTRS) to determine which stock offers better value for investors [1][3]. Valuation Metrics - STT has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to NTRS, which has a Zacks Rank of 3 (Hold) [3]. - STT's forward P/E ratio is 11.13, while NTRS's forward P/E ratio is 14.40, suggesting STT may be undervalued relative to NTRS [5]. - The PEG ratio for STT is 1.05, compared to NTRS's PEG ratio of 1.34, indicating STT's expected earnings growth is more favorable [5]. - STT's P/B ratio is 1.31, while NTRS's P/B ratio is 1.95, further supporting STT's valuation advantage [6]. - STT has a Value grade of B, while NTRS has a Value grade of C, reflecting STT's stronger valuation metrics [6]. Earnings Outlook - STT is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7].

Core Insights - The global economy is expected to continue growing in 2026, avoiding recession despite ongoing risks, supported by strong fundamentals in equities and a new inflation regime affecting fixed income investors [1][3][4] - Active management is emphasized due to structural divergence within asset classes, with a preference for equities over bonds [2][3] Global Economic Outlook - Resilience in the global economy is noted, with supportive policies and lower interest rates expected to enhance economic momentum [3] - Real GDP growth is projected to remain under 2% globally, with the U.S. and Canada leading at an estimated annual growth of 1.5% [4] Asset Class Highlights - **U.S. Equities**: Strong fundamentals support equities, but stretched valuations and narrow leadership indicate a need for selectivity [3] - **Treasury Inflation-Protected Securities (TIPS)**: Inflation is expected to remain above average at about 3%, making TIPS a compelling hedge [3] - **Global Bonds**: Diversification through global government bonds is recommended as reliance on U.S. Treasurys is outdated [3] - **Private Assets**: The private credit landscape is evolving, with a shift towards more complex strategies due to tight spreads [3] - **Real Assets**: Infrastructure investments are highlighted as beneficiaries of long-term trends in technology and energy transition, providing resilience against inflation [3]