According to these firms, Northern Trust offers investors ownership of a well-diversified, high-quality, large-cap financial institution with a relatively conservative balance sheet. They note the company operates in two highly attractive businesses: global custody and private banking (including wealth management). Among the custody banks, these firms believe Northern Trust is positioned to produce the strongest top-line growth, given its smaller relative size, attractive competitive positioning and personal wealth management leadership. Furthermore, these firms believe the company can leverage its financial strength to win more than its share of new business opportunities. Northern Trust’ ability to capitalize on attractive secular trends (cross-border investment patterns, modernization of pension schemes, and favorable wealth demographics) will drive attractive long-term EPS growth, resulting in superior stock price performance, according to the firms.

The firms consider Northern Trust as one of the best-positioned banks in terms of capital levels and competitive positioning. Though the interest rate environment remains difficult, they believe continued addition of new business points to the fact that the company is gaining market share, which is a positive catalyst in the current environment.