Question · Q4 2025
Manjot inquired about Northern Trust's strategy for growing its Wealth Management and Asset Management businesses to improve the pre-tax margin (PTM), specifically asking if the company still targets high 20s for Asset Servicing margins while Wealth Management grows at its current PTM. He also asked about the organic growth rates for each business in the current quarter and their expected trajectory over the next few years.
Answer
Chairman and CEO Michael O'Grady stated that while Asset Servicing had a good quarter, more work is needed to consistently achieve high 20s margins. For Wealth Management, which already has attractive margins, the focus is on faster growth, and some margin dilution would be acceptable if it drives value. He reported Wealth Management's organic growth rate for the year and quarter was 1%-2%, with GFO and ultra-high net worth segments growing faster, and advisory components showing higher growth. Asset Servicing had a strong Q4 organic growth rate of 2%-3%, with a focus on scalable, profitable growth.
Ask follow-up questions
Fintool can predict
NTRS's earnings beat/miss a week before the call