Northern Trust Intrinsic Value Calculation – Northern Trust Forecasts ‘Roughly Flat’ Net Interest Income for Q4

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This is in contrast to the company’s previous guidance of a low-single-digit increase for the same period. Northern Trust ($NASDAQ:NTRS) provides asset servicing, fund administration, asset management, fiduciary services, banking solutions, and financial services to its clients around the world. The company is committed to serving its clients through the highest standards of service and expertise. It is also known for its commitment to corporate responsibility, with various initiatives aimed at creating long-term value for shareholders, clients and communities.

Share Price

On Wednesday, Northern Trust stock opened at $81.1 and closed at $80.7, down by 0.1% from last closing price of $80.8. The company’s chief financial officer, Pete Cherecwich, stated that the firm will be experiencing “roughly flat” net interest income for the fourth quarter. This was as a result of the Federal Reserve’s decision to keep the U.S. benchmark interest rate unchanged at its October meeting.

As a result, the bank’s net interest margin is expected to remain fairly flat in the upcoming months. Northern Trust is expected to continue to focus on its expense management, and to look for opportunities to increase fee income going forward. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Northern Trust. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Northern Trust. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Northern Trust. More…

Key Ratios Snapshot

Some of the financial key ratios for Northern Trust are shown below. More…

Analysis – Northern Trust Intrinsic Value Calculation

At GoodWhale, we have conducted an analysis of NORTHERN TRUST‘s wellbeing. Our proprietary Valuation Line has calculated the fair value of NORTHERN TRUST share to be around $98.6. However, the current market price of NORTHERN TRUST is $80.7, undervaluing the stock by 18.1%. This presents an attractive buying opportunity that investors should be aware of. We recommend doing further research and analysis before making a decision to invest in NORTHERN TRUST, as the right decision should be based on an informed opinion. More…

Peers

In the investment management industry, there is intense competition between Northern Trust Corp and its competitors DWS Group GmbH & Co KGaA, Schroders PLC, AGF Management Ltd. All four companies are vying for a larger share of the market and each has its own unique strengths and weaknesses. In order to succeed, each company must continually adapt and innovate in order to stay ahead of the competition.

– DWS Group GmbH & Co KGaA ($LTS:0SAY)

With a market cap of 5.14B as of 2022, DWS Group GmbH & Co KGaA is one of the largest asset managers in Germany. The company offers a wide range of products and services, including investment management, asset management, and advisory services. DWS Group GmbH & Co KGaA has a strong commitment to sustainable investing and has been a signatory of the United Nations Principles for Responsible Investment since 2006. The company’s return on equity was 9.36% as of 2022.

– Schroders PLC ($LSE:SDR)

Schroders PLC is a publicly traded company with a market capitalization of 5.03 billion as of 2022. The company has a return on equity of 9.34%. Schroders is a global asset management company with operations in Europe, the United States, and Asia. The company manages assets for both institutional and retail investors.

– AGF Management Ltd ($TSX:AGF.B)

AGF Management Ltd. is a Canadian diversified management and holding company for a group of companies focused on investment management. The company has operations in North America, Europe and Asia. It offers a range of investment solutions, including mutual funds, hedge funds, private equity, real estate and infrastructure. The company was founded in 1957 and is headquartered in Toronto, Canada.

Summary

The company now expects their net interest income to be “roughly flat” compared to the previous quarter. This is an improvement from their previous outlook, which called for a decline in net interest income. Strong loan growth and higher interest rates have helped to support their interest income, despite the impact of low-yielding investment securities. Northern Trust’s outlook is thus positive for the near term, and investors should watch out for further updates from the company as the quarter progresses.