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Northern Trust Corporation announces 2025 Stress Capital Buffer and Intent to Increase Quarterly Common Stock Dividend by 7 percent

1. Northern Trust proposes a $0.05/share increase in quarterly cash dividend. 2. Federal Reserve's CCAR results confirm strength in capital position and business model. 3. Stress capital buffer remains at 2.5%, equating to a CET1 of 7%. 4. Northern Trust plans to evaluate capital actions at quarterly board meetings. 5. Company to continue opportunistic approach to stock repurchases.

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FAQ

Why Bullish?

Proposed dividend increase indicates strong cash flow and financial health, similar to past trends where dividend hikes positively influenced stock prices.

How important is it?

Dividend increases signal financial robustness and can enhance investor attraction, making it highly relevant for NTRS.

Why Short Term?

Dividends typically impact investor sentiment quickly; historical examples show immediate stock price effects after dividend announcements.

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CHICAGO--(BUSINESS WIRE)--Northern Trust Corporation today commented on the results of the Federal Reserve’s 2025 Comprehensive Capital Analysis and Review (CCAR).Northern Trust will propose an increase of $0.05/share to its quarterly cash dividend on common stock, subject to approval by its board of directors.Share “The results of the Federal Reserve’s annual CCAR stress tests have again confirmed the strength of our capital position and business model,” Chairman and Chief Executive Officer Michael O’Grady said. “We continue to maintain robust capital levels and look forward to investing in our franchise and returning excess capital to shareholders, in line with our strategic priorities.” Based on the 2025 CCAR results, Northern Trust will be subject to a preliminary stress capital buffer (SCB) of 2.5 percent, which is the minimum SCB requirement under the applicable regulation and unchanged from the current level. The SCB will be effective from October 1, 2025, to September 30, 2026, and will equate to a minimum common equity tier 1 (CET1) ratio of 7 percent. Northern Trust evaluates its planned capital actions, inclusive of its quarterly cash dividend on common stock, at each quarterly board of directors meeting. At the July 2025 meeting, Northern Trust will propose an increase of $0.05/share to its quarterly cash dividend on common stock, subject to approval by its board of directors. Northern Trust will continue to take an opportunistic, considerate approach to common stock repurchases. About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2025, Northern Trust had assets under custody/administration of US$16.9 trillion, and assets under management of US$1.6 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn. Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

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