Shares of New York TrustCo Bank Corp NY (BK.US) rose by 6% in pre-market trading as talks of a potential merger with Northern Trust Corporation (NTRS.US) took place.

In pre-market trading on Monday, shares of Northern Trust Corporation (NTRS.US) rose by 6%. The Wall Street Journal reported that New York TrustCo Bank Corp NY (BK.US) has recently been in contact with this asset and wealth management company, expressing an intention to merge with this smaller competitor. As the world's largest custody bank, if a potential deal is reached between New York Mellon Bank and Northern Trust Corporation, it will consolidate two industry giants and reshape the landscape of the asset servicing and wealth management industry. The Wall Street Journal, citing sources familiar with the matter, reported last Sunday that the CEO of New York Mellon Bank has had at least one conversation with the CEO of Northern Trust Corporation, but no specific acquisition offer has been discussed. The report added that New York Mellon Bank may formally make an acquisition offer to Northern Trust Corporation in the future, but the deal may not necessarily be finalized. Morningstar analyst Rajiv Batia stated, "Any deal will need to overcome antitrust barriers." He also mentioned that State Street Corporation (STT.US), JPMorgan Chase (JPM.US), and Citigroup (C.US) are still the main competitors in the custody business. "The Trump administration appears to have a relatively lenient regulatory attitude towards the banking industry, and the $35 billion acquisition of Discover by Capital One has been approved." With regulatory uncertainties easing and interest rates stabilizing, board interest in industry consolidation is rekindled, and the market generally expects an increase in bank M&A transactions in the second half of 2025. According to London Stock Exchange Group (LSEG) data, as of the previous close, New York Mellon Bank had a market value of $65.5 billion, while the market value of Northern Trust Corporation was $21.6 billion. Both New York Mellon Bank and Northern Trust Corporation provide a wide range of services, including fund holding, management and transfer for corporations, investment companies, and financial advisors. New York Mellon Bank's stock price remained flat in pre-market trading. So far this year, the stock has accumulated a rise of about 19%. As of writing, Northern Trust Corporation's stock price has risen by 6.4%, to $119 per share, continuing to climb on top of the 9% rise before the previous close this year.