Investment Thesis
Northern Trust Corporation (NTRS) delivered an unimpressive Q2 2019 with flat top line and bottom line growth. The bank’s focus on ultra-wealthy clients should yield good results in the long term as these clients are less likely to switch to other management firms. It also has a cost control initiative to constrain its operating expense growth. However, net interest margin may decline due to declining interest rates. Northern Trust currently pays a growing 2.7%-yielding dividend. However, given the current global economic uncertainty, we think investors may want to stay on the