Northern Trust: 2Q26 EPS REVIEW: Capitalizes on a constructive market and rate environment

研报英文原文证据摘录

Northern Trust: 2Q26 EPS REVIEW: Capitalizes on a constructive market and rate environment

Equity Research

U.S. Large-Cap Banks

22 July 2026

Northern Trust

2Q26 EPS REVIEW: Capitalizes on a

constructive market and rate Earnings Review

NTRS EQUAL WEIGHTenvironment

Unchanged

Core EPS beat, led by NII (lower funding costs). Fees (FX, U.S. Large-Cap Banks POSITIVE

Servicing ahead, Wealth Mgmt light) and expenses were in- Unchanged

line and it posted a provision benefit (though NPAs +$16mn). Price Target raised 7% fromUSDUSD189.00176.00

It used V gain to restructure securities book, dispose of Price (22-Jul-26) USD 178.66

software, lay off employees and grant stock to remaining Potential Upside/Downside +5.8% Source: Bloomberg, Barclays Research

staff.

Market Cap (USD mn) 32686

Shares Outstanding (mn) 182.96

Free Float (%) 94.98

Executive Summary 52 Wk Avg Daily Volume (mn) 1.1

Bottom line: Core EPS beat, led by net interest income (driven by lower funding costs). Fee Dividend Yield (%) 1.97

income (FX and Asset Servicing ahead of expectations while, Wealth Mgmt was light) and Return on Equity TTM (%) 17.19

expenses were in-line and it posted a provision benefit (though NPAs +$16mn). NTRS used a Current BVPS (USD) 68.41

$525mn pre-tax gain from participating in the second tranche of Visa exchange to repositioning Source: Bloomberg

its AFS securities portfolio, dispose of software, book severance and grant employees equity.

Looking out, NTRS raised its 2026 guidance, now expecting revenue, net interest income and fee Price Performance Exchange-Nasdaq

income to all increase 9-10% with 400bps of positive operating leverage. These figures were 52 Week range USD 191.60-118.99

MSD, MHSD and ~MSD and 100bps-plus, respectively, prior (this translates to 5-6% expense