NASDAQ$NTRS

Northern Trust Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Northern Trust's performance reflected strong momentum across all businesses, with revenue and net income growing, driven by new business and favorable markets.

Northern Trust Corporation reported a net income of $368.1 million for the second quarter of 2021, with earnings per diluted common share of $1.72. Revenue and net income grew by 5% and 18%, respectively, compared to the prior year. The results were driven by new business and favorable markets, offsetting the impact of low interest rates.

  • Revenue and net income increased by 5% and 18%, respectively, compared to the prior year.
  • Trust, investment and other servicing fees grew 12% year-over-year.
  • Return on average common equity was 13.7%.
  • The current quarter included a $17.6 million pre-tax pension settlement charge.

Headline financials

Total Revenue

$1.58B

Previous: $1.51B+4.9%
EPS (adj)

$1.79

Previous: $1.46+22.6%
Return on Average Common Equity

13.7%

Previous: 12.2%+12.3%
Capital Expenditures

-$39.1M

Previous: -$76.6M+49.0%
Free Cash Flow

$329M

Previous: $237M+39.0%
Net Income

$368M

Previous: $313M+17.5%
Operating Income

$1.31B

Previous: $1.17B+11.8%
Gross Profit

$1.56B

Previous: $1.45B+7.9%
Cash & Equivalents

$8.65B

Previous: $7.26B+19.2%
Total Assets

$172B

Previous: $151B+13.8%

Revenue & EPS history

Northern Trust · Revenue · Quarterly

$1.58B

Q2 2021+4.9%vs Q2 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Northern Trust · $1.08B total across 2 segments · Q2 2021

  • Asset Servicing
    $612M
  • Wealth Management
    $464M+17.4%

Forward guidance

This release may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+1.7%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+11.0%

Q2 2023

Best reaction

-11.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+4.0%+3.2%+5.1%
Q1 2026+0.6%+3.2%+5.1%
Q3 2025-2.4%-1.8%-1.1%
Q2 2025+2.0%+1.1%+2.7%
Q1 2025+3.0%+5.5%+22.6%
Q4 2024+2.0%+4.7%+5.2%
Q3 2024+7.3%+6.4%+14.3%
Q2 2024-5.0%-4.0%-3.9%
Q1 2024-3.0%-2.7%+2.3%
Q4 2023-2.2%-2.0%-3.6%
Q3 2023-7.2%-9.1%+6.8%
Q2 2023+11.0%+11.0%+7.0%
Q1 2023-11.2%-9.3%-16.7%
Q4 2022-5.7%-4.2%-2.3%
Q3 2022-11.9%-8.7%+5.4%
Q2 2022-3.7%-3.6%-0.7%
Q1 2022+1.9%-2.6%+3.8%
Q4 2021-9.5%-8.3%-5.8%
Q3 2021+3.1%+1.6%-0.7%
Q2 2021-0.9%+0.6%+2.5%
Q1 2021+0.5%+3.1%+11.2%
Q4 2020-0.2%-1.3%+1.6%
Q3 2020+0.0%-4.1%+6.6%
Q2 2020-2.9%-4.0%+2.4%
Q1 2020-4.0%-2.4%-6.8%
Q4 2019-4.1%-9.3%-6.1%
Q3 2019+2.9%+5.1%+9.9%
Q2 2019+4.2%+4.2%-10.8%
Q1 2019+6.4%+6.4%-1.9%
Q4 2018-1.3%+0.4%+2.3%
Q3 2018-6.3%-7.5%-1.8%
Q2 2018+2.6%+4.9%+1.9%
Q1 2018+1.4%+2.6%+3.6%
Q4 2017-1.8%+0.0%-0.3%
Q3 2017+4.3%+4.7%+3.3%
Q2 2017-10.1%-9.7%-9.7%
Q1 2017+2.6%+0.7%-1.2%
Q4 2016-5.3%-6.2%-1.1%
Q3 2016+0.0%+0.0%+14.9%
Q2 2016-0.6%+0.0%+2.2%
Q1 2016+5.8%
Q4 2015-7.7%
Q3 2015-2.1%
Q2 2015-0.1%
Q1 2015+5.2%
Q4 2014+8.9%
Q3 2014-4.0%
Q2 2014-0.2%
Q1 2014-3.6%
Q4 2013+3.3%
Q3 2013+3.7%
Q2 2013-2.7%
Q1 2013-2.0%
Q4 2012-5.2%
Q3 2012+1.7%
Q2 2012-2.3%
Q1 2012+2.4%
Q4 2011+1.3%
Q3 2011-4.6%
Q2 2011+0.3%
Q1 2011+1.1%
Q4 2010-1.1%
Q3 2010-1.1%
Q2 2010+1.2%
Q1 2009-1.3%
Q1 2010+3.6%
Q4 2009+0.6%
Q4 2007+0.6%
Q4 2008+0.6%
Q3 2008-1.2%
Q3 2009-1.2%
Q2 2008+2.3%
Q2 2009+2.3%

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