UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36609 NORTHERN TRUST CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-27 ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Northern Trust Corporation (NTRS) - NTRS currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, NTRS shares increased by 1.6%, while the Zacks Banks - Major Regional industry saw a slight decline of 0.02% [5] - In a longer timeframe, NTRS shares rose by 4.71% over the past month, compared to the industry's performance of 6.12% [5] - Over the last quarter, NTRS shares surged by 35.62%, and over the past year, they increased by 46.35%, significantly outperforming the S&P 500, which rose by 16.43% and 18.63% respectively [6] Trading Volume - The average 20-day trading volume for NTRS is 1,868,366 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, five earnings estimates for NTRS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $7.94 to $8.36 [9] - For the next fiscal year, six estimates have also moved higher, indicating a positive earnings outlook [9] Conclusion - Considering the positive momentum indicators and earnings revisions, NTRS is positioned as a strong buy candidate with a Momentum Score of B, making it a noteworthy option for investors seeking short-term gains [11]

Group 1 - Northern Trust Corporation reported quarterly earnings of $2.13 per share, exceeding the analyst consensus estimate of $2.01 per share [1] - The company achieved quarterly sales of $1.998 billion, surpassing the analyst consensus estimate of $1.955 billion [1] - Following the earnings announcement, Northern Trust shares increased by 3.7% to trade at $128.77 [1] Group 2 - Keefe, Bruyette & Woods analyst David Konrad reiterated an Underperform rating and lowered the price target from $120 to $118 [3] - Wells Fargo analyst Mike Mayo maintained an Equal-Weight rating and raised the price target from $111 to $120 [3] - Barclays analyst Jason Goldberg maintained an Equal-Weight rating and raised the price target from $128 to $136 [3] - Wolfe Research analyst Erik Suppiger upgraded Northern Trust from Underperform to Peer Perform [3]

Core Viewpoint - Northern Trust Corporation (NTRS) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.13, surpassing the Zacks Consensus Estimate of $2.08, but down from $4.34 in the prior-year quarter. The results were supported by an increase in net interest income (NII) and growth in total assets under custody (AUC) and assets under management (AUM), although elevated expenses, reduced other fee income, and weak asset quality raised concerns [1][9]. Financial Performance - Net income on a GAAP basis was $421.3 million, reflecting a 53% decline from the prior-year quarter [2]. - Quarterly total revenues on a GAAP basis were $1.99 billion, down 26.4% year over year, but exceeded the Zacks Consensus Estimate by 1% [3]. - NII on a fully taxable equivalent basis was $615.2 million, marking a 16.1% increase year over year, with a net interest margin of 1.69%, up 12 basis points from the prior-year quarter [3]. - Trust, investment, and other servicing fees totaled $1.23 billion, up 5.6% year over year [3]. Income and Expenses - Other non-interest income decreased by 84.7% to $156.3 million compared to the year-ago quarter, primarily due to a decline in foreign exchange trading income and other operating income [4]. - Non-interest expenses fell 7.6% year over year to $1.42 billion, driven by reductions in compensation, outside services, occupancy, and other operating expenses [4]. Asset Management - As of June 30, 2025, Northern Trust's total AUC increased by 9.2% year over year to $14.2 trillion, while total AUM rose by 11.2% year over year to $1.7 trillion [5]. Credit Quality - The total allowance for credit losses was $224.1 million, up 6.9% year over year. Total non-accrual assets increased to $92.8 million from $38.5 million in the year-ago period, with provisions for credit losses reported at $16.5 million compared to $8 million in the prior-year quarter [6]. Capital and Profitability - As of June 30, 2025, the Common Equity Tier 1 capital ratio was 12.2%, down from 12.6% in the prior-year quarter. The total capital ratio was 14.8%, down from 15.5% in the year-ago quarter, and the Tier 1 leverage ratio was 7.6%, down from 8% [7]. - The return on average common equity was 14.2%, compared to 31.2% in the year-earlier quarter [7]. Capital Distribution - In the reported quarter, Northern Trust returned $485.6 million to shareholders through share repurchases and dividends [10].

Northern Trust shares fell as much as 6% after the bank’s management dismissed recent reports of takeover talks and said it doesn’t intend to sell the company https://t.co/lBj8lNaetI ...

Image source: The Motley Fool.Wednesday, July 23, 2025 at 9 a.m. ETCALL PARTICIPANTSChairman and Chief Executive Officer — Michael G. O’GradyChief Financial Officer — David W. FoxHead of Investor Relations — Jennifer ChildeNeed a quote from one of our analysts? Email [email protected] RISKSChief Financial Officer Fox stated, The provision for credit losses increased to $16.5 million in Q2 2025, primarily due to higher reserves associated with a small number of nonperforming loans, and noted that more than t ...

Core Insights - Northern Trust Corporation (NTRS) reported $2 billion in revenue for Q2 2025, a year-over-year decline of 26.4%, while EPS increased to $2.13 from $1.78 a year ago, exceeding consensus estimates [1] - The revenue surpassed the Zacks Consensus Estimate of $1.97 billion, resulting in a surprise of +1.19%, and the EPS also showed a surprise of +2.4% against the consensus estimate of $2.08 [1] Financial Performance Metrics - Tier 1 Leverage Ratio was reported at 7.6%, slightly below the estimated 7.8% [4] - Net interest margin (FTE) remained stable at 1.7%, matching the average estimate [4] - Average Balance of Total earning assets was $145.82 billion, exceeding the estimated $139.18 billion [4] - Nonaccrual Loans and Leases amounted to $92.8 million, higher than the average estimate of $59.16 million [4] - Wealth Management Trust, Investment and Other Servicing Fees for Global Family Office reached $104.5 million, a +5.8% change year-over-year, slightly above the estimate of $104.02 million [4] - Total Wealth Management Trust, Investment and Other Servicing Fees were $539.3 million, reflecting a +4.6% year-over-year change, below the estimate of $548.23 million [4] - Asset Servicing Trust, Investment and Other Servicing Fees for Custody and Fund Administration were $469.2 million, a +5.2% change year-over-year, above the estimate of $464.2 million [4] - Total Asset Servicing Trust, Investment and Other Servicing Fees were reported at $691.8 million, a +6.3% year-over-year change, slightly above the estimate of $687.8 million [4] - Securities Lending fees were $20.2 million, a +22.4% year-over-year change, below the estimate of $21.34 million [4] - Other Asset Servicing Trust fees were $45.1 million, a +6.1% change year-over-year, below the estimate of $46.28 million [4] - Investment Management fees were $157.3 million, a +8% year-over-year change, slightly above the estimate of $156 million [4] - Net Interest Income (FTE Adjusted) was $615.2 million, exceeding the average estimate of $580.77 million [4] Stock Performance - Northern Trust shares returned +7.1% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Northern Trust (NTRS) Q2 2025 Earnings Call July 23, 2025 09:00 AM ET Company ParticipantsJennifer Childe - SVP & Director - IRMichael O'Grady - Chairman & CEODavid Fox - EVP & CFOBetsy Graseck - Global Head - Banks & Diversified Finance ResearchEbrahim Poonawala - MD & Head - North American Banks ResearchMike Mayo - MD & Head - US Large-Cap Bank ResearchAlex Blostein - Managing DirectorDavid Smith - Head - Consumer LendingBrian Bedell - DirectorThomas Leddy - AVP - Equity ResearchConference Call Participan ...

Financial Data and Key Metrics Changes - The company reported second quarter net income of $421 million and earnings per share of $2.13, with a return on average common equity of 14.2% [28] - Revenue grew by 8% year over year, while expenses increased by 4.8%, resulting in a pretax margin improvement of 160 basis points [31] - Net interest income reached a record $615 million, up 7% sequentially and 16% year over year [29][37] Business Line Data and Key Metrics Changes - The Asset Servicing business saw assets under custody and administration increase to $16.9 trillion, reflecting a 9% year-over-year increase [32] - Wealth Management assets under management rose to $469 billion, up 12% year over year, with trust investment and other servicing fees increasing by 5% [35] - The Asset Servicing pretax profit nearly doubled year over year, with a pretax margin up more than 10 points to 23.2% [34] Market Data and Key Metrics Changes - The company noted strong transaction volumes in capital markets activities, which were up double digits over the prior year [32] - Average deposits grew by 7% sequentially, contributing to the overall increase in net interest income [33][37] - The company experienced a favorable impact from currency movements on revenue growth, contributing approximately 90 basis points [29] Company Strategy and Development Direction - The "One Northern Trust" strategy focuses on optimizing growth, driving productivity, and strengthening resiliency while managing risk [6][8] - The company is leveraging AI tools to streamline processes and enhance decision-making, aiming for higher margins and better client experiences [9] - The firm is expanding its alternatives investment platform and has seen a record fundraising year, indicating a strong focus on private markets [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, adjusting the return on equity target from 10-15% to 13-15% [25][26] - The company is committed to maintaining independence and believes this strategy will yield the best returns for shareholders [26][66] - Management highlighted the importance of executing their strategy effectively to continue delivering positive organic growth and operating leverage [28][31] Other Important Information - The company returned $486 million to shareholders through dividends and stock repurchases, reflecting a payout ratio of 117% [40] - The average earning assets increased by 6% on a linked quarter basis, driven by higher deposit levels [37] - The company is focused on maintaining a disciplined approach to cost management while investing in growth initiatives [21][24] Q&A Session Summary Question: Can you provide numbers on the alternatives initiatives and the new fixed income ETFs? - Management indicated that the alternatives initiatives raised approximately $2.5 billion in the first half, with an additional $1 billion from advisory services, highlighting strong client demand for private markets [49] Question: What is driving the decision to tighten the ROE range? - The tightening of the ROE range reflects the company's consistent performance above the previous target and confidence in the current capital framework [57][59] Question: Is there any scenario where M&A would make sense for the company? - Management emphasized a focus on organic growth but remains open to acquisitions that enhance their value proposition if they align with strategic goals [66][68] Question: How does the company plan to manage NII in a declining interest rate environment? - The company plans to reinvest securities rolling off its balance sheet and is focused on deposit pricing across various currencies to mitigate the impact of lower interest rates [97]

Northern Trust Corporation (NTRS) came out with quarterly earnings of $2.13 per share, beating the Zacks Consensus Estimate of $2.08 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.40%. A quarter ago, it was expected that this company would post earnings of $1.85 per share when it actually produced earnings of $1.9, delivering a surprise of +2.7%.Over the last four quarters, the ...