Analyst Note| Rajiv Bhatia, CFA |
Wide-moat Northern Trust started 2021 with solid results. Revenue for the quarter was $1.58 billion, and diluted earnings per share were $1.70, beating the FactSet consensus of $1.54 billion and $1.49, respectively. We attribute the earnings beat to a $30 million provision release as well as revenue growth and expense control. We expect to modestly increase our fair value estimate due to market appreciation and transaction-based fee growth partially offset by money market fee waivers.