Northern Trust(US:NTRS) ZACKS·2025-10-15 19:10Core Viewpoint - Northern Trust Corporation (NTRS) is expected to report year-over-year growth in both earnings and revenues for the third quarter of 2025, with results scheduled for release on October 22, before market open [1][8]. Earnings and Revenue Expectations - The Zacks Consensus Estimate for NTRS' third-quarter earnings is $2.26 per share, reflecting a 15.3% increase from the same period last year [3]. - The consensus estimate for revenues stands at $2.04 billion, indicating a year-over-year rise of 3.7% [3]. Key Factors Influencing Results - Net Interest Income (NII) is projected to grow, with an estimate of $588.3 million for the quarter, representing a 4.6% increase year-over-year [3]. - Average earning assets are expected to reach $143.5 billion, marking a 6.5% rise from the prior-year quarter [4]. - Non-interest income is anticipated to see growth in custody and fund administration revenues, as well as investment management fees, with estimates of $493.2 million and $167.3 million respectively, indicating increases of 8.8% and 9.6% year-over-year [6]. Expense and Asset Quality Insights - Total fee income is estimated at $1.45 billion, reflecting a 3.2% increase from the previous year [9]. - Elevated expenses are expected due to higher compensation costs and ongoing investments in technology [9]. - Non-performing assets are projected to decline to $81.7 million, a 12% decrease on a sequential basis, indicating improved asset quality [10]. Earnings Prediction Model - The current model does not predict an earnings beat for Northern Trust, as the Earnings ESP is 0.00% and the company holds a Zacks Rank of 3 [11][12].