[Financial Summary](index=3&type=section&id=Financial%20Summary) This section provides an overview of Northern Trust Corporation's profitability, capital adequacy, and per-share performance for Q3 2025 [Profitability Overview](index=3&type=section&id=Profitability) Northern Trust Corporation's profitability metrics for Q3 2025 showed a slight decrease in Net Income and Earnings Allocated to Common Shares compared to Q3 2024, but diluted EPS increased by 3%. Return on Average Common Equity remained strong at 14.8% | Metric | Q3 2025 | Q3 2024 | YoY Change (%) | | :-------------------------------- | :------ | :------ | :------------- | | Net Income ($M) | $457.6 | $464.9 | (2)% | | Earnings Allocated to Common ($M) | $437.2 | $445.0 | (2)% | | Diluted EPS | $2.29 | $2.22 | 3% | | Return on Average Common Equity | 14.8% | 15.4% | (0.6) pp | | Profit Margin (pre-tax) (FTE) | 30.8% | 30.8% | 0.0 pp | | Profit Margin (after-tax) (FTE) | 22.5% | 23.5% | (1.0) pp | - Diluted EPS growth over the previous year for Q3 2025 was **3%**, a significant improvement from the **(51%) growth in Q2 2025**[4](index=4&type=chunk) [Capital Ratios](index=3&type=section&id=Capital%20Ratios) The company maintained strong capital ratios in Q3 2025, with Common Equity Tier 1 (CET1) at 12.4% under the Standardized Approach and 15.1% under the Advanced Approach, indicating robust capital adequacy | Capital Ratio (Standardized Approach) | Q3 2025 | Q3 2024 | | :------------------------------------ | :------ | :------ | | Common Equity Tier 1 Capital | 12.4% | 12.6% | | Tier 1 Capital | 13.4% | 13.6% | | Total Capital | 15.1% | 15.6% | | Tier 1 Leverage | 8.0% | 8.1% | | Capital Ratio (Advanced Approach) | Q3 2025 | Q3 2024 | | :------------------------------------ | :------ | :------ | | Common Equity Tier 1 Capital | 15.1% | 14.0% | | Tier 1 Capital | 16.2% | 15.1% | | Total Capital | 18.0% | 17.0% | | Tier 1 Leverage | 8.0% | 8.1% | | Supplementary Leverage | Q3 2025 | Q3 2024 | | :------------------------------------ | :------ | :------ | | Supplementary Leverage | 8.9% | 9.2% | - Regulatory Capital, Risk-Weighted Assets and resulting ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission[4](index=4&type=chunk) [Per Share Information and Ratios](index=3&type=section&id=Per%20Share%20Information%20and%20Ratios) Cash dividends declared per common share increased to $0.80 in Q3 2025, up from $0.75 in Q3 2024. The dividend payout ratio remained stable at 35%. Market value per share and book value per common share both increased significantly year-over-year | Metric | Q3 2025 | Q3 2024 | YoY Change ($) | YoY Change (%) | | :------------------------------ | :-------- | :-------- | :------------- | :------------- | | Cash Dividends Declared Per Share | $0.80 | $0.75 | $0.05 | 6.7% | | Dividend Payout Ratio | 35% | 34% | 1 pp | | | Market Value Per Share (EOP) | $134.60 | $90.03 | $44.57 | 49.5% | | Book Value Per Common Share (EOP)| $63.83 | $59.85 | $3.98 | 6.6% | [Income Statement](index=4&type=section&id=Income%20Statement) This section details Northern Trust Corporation's revenue, expense, and net income performance for Q3 2025 and the nine months ended 2025 [Total Revenue (FTE)](index=4&type=section&id=Total%20Revenue%20(FTE)) Total Revenue (FTE) for Q3 2025 increased by 3% year-over-year to $2,030.9 million, driven by a 6% increase in Total Fees and a 5% increase in Net Interest Income (FTE). However, Other Operating Income saw a significant decrease | Metric | 9 Months 2025 ($M) | 9 Months 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :-------------------------- | :----------------- | :----------------- | :-------------- | :------------- | | Total Noninterest Income | $4,193.9 | $4,717.5 | $(523.6) | (11)% | | Interest Income (FTE) | $6,513.8 | $7,503.6 | $(989.8) | (13)% | | Interest Expense | $4,728.6 | $5,869.0 | $(1,140.4) | (19)% | | Net Interest Income (FTE) | $1,785.2 | $1,634.6 | $150.6 | 9% | | Total Revenue (FTE) | $5,979.1 | $6,352.1 | $(373.0) | (6)% | | Metric | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :-------------------------- | :----------------- | :----------------- | :-------------- | :------------- | | Total Noninterest Income | $1,434.6 | $1,406.2 | $28.4 | 2% | | Interest Income (FTE) | $2,149.8 | $2,537.3 | $(387.5) | (15)% | | Interest Expense | $1,553.5 | $1,967.9 | $(414.4) | (21)% | | Net Interest Income (FTE) | $596.3 | $569.4 | $26.9 | 5% | | Total Revenue (FTE) | $2,030.9 | $1,975.6 | $55.3 | 3% | - Investment Security Gains (Losses), net, were **zero** for both Q3 2025 and Q3 2024, but were a significant negative contributor in the nine months ended 2024[6](index=6&type=chunk) [Noninterest Income Breakdown](index=4&type=section&id=Noninterest%20Income%20Breakdown) Total Fees increased by 6% year-over-year in Q3 2025, driven by growth in both Asset Servicing and Wealth Management Trust, Investment and Other Servicing Fees. Foreign Exchange Trading Income and Security Commissions also grew, while Other Operating Income declined significantly | Noninterest Income Category | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :------------------------------------ | :----------- | :----------- | :-------------- | :------------- | | Asset Servicing Trust, Investment and Other Servicing Fees | $706.9 | $667.1 | $39.8 | 6% | | WM Trust, Investment and Other Servicing Fees | $558.6 | $529.5 | $29.1 | 5% | | Total Fees | $1,265.5 | $1,196.6 | $68.9 | 6% | | Foreign Exchange Trading Income | $57.2 | $54.1 | $3.1 | 6% | | Treasury Management Fees | $9.5 | $8.2 | $1.3 | 16% | | Security Commissions and Trading Income | $41.8 | $35.5 | $6.3 | 18% | | Other Operating Income | $60.6 | $111.8 | $(51.2) | (46)% | [Noninterest Expense and Net Income](index=4&type=section&id=Noninterest%20Expense%20and%20Net%20Income) Total Noninterest Expense increased by 5% in Q3 2025, primarily due to higher compensation and equipment & software costs. Despite this, Net Income saw a slight decrease of 2% year-over-year, while diluted EPS increased by 3% due to a reduction in average diluted shares | Expense Category | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :-------------- | :------------- | | Compensation | $625.3 | $583.6 | $41.7 | 7% | | Employee Benefits | $115.2 | $109.2 | $6.0 | 6% | | Outside Services | $248.2 | $256.3 | $(8.1) | (3)% | | Equipment and Software | $294.2 | $270.4 | $23.8 | 9% | | Occupancy | $55.0 | $53.8 | $1.2 | 2% | | Other Operating Expense | $85.0 | $86.1 | $(1.1) | (1)% | | Total Noninterest Expense | $1,422.9 | $1,359.4 | $63.5 | 5% | | Income/EPS | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :-------------- | :------------- | | Net Income | $457.6 | $464.9 | $(7.3) | (2)% | | Earnings Per Share - Diluted| $2.29 | $2.22 | $0.07 | 3% | | Average Diluted Shares (000s)| 191,001 | 200,549 | (9,548) | (5)% | - Provision for Credit Losses shifted from an **$8.0 million expense in Q3 2024** to a **$(17.0) million release in Q3 2025**, indicating an improvement in credit quality outlook[6](index=6&type=chunk) [Net Income Trends](index=5&type=section&id=Net%20Income%20Trends) This section analyzes the historical trends in Northern Trust Corporation's revenue, expenses, net income, and earnings per share from 2020 to Q3 2025 [Revenue and Expense Trends](index=5&type=section&id=Revenue%20and%20Expense%20Trends) Total Revenue (FTE) has shown a general upward trend from 2020 to 2024, with Q3 2025 continuing this growth. Total Noninterest Income has been volatile, notably impacted by Investment Security Gains (Losses). Total Noninterest Expense has steadily increased over the years | Metric | 2020 ($M) | 2021 ($M) | 2022 ($M) | 2023 ($M) | 2024 ($M) | Q3 2024 ($M) | Q3 2025 ($M) | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :----------- | :----------- | | Total Fees | $3,995.0 | $4,361.1 | $4,432.6 | $4,361.8 | $4,727.8 | $1,196.6 | $1,265.5 | | Total Noninterest Income | $4,657.6 | $5,081.8 | $4,874.0 | $4,791.5 | $6,113.3 | $1,406.2 | $1,434.6 | | Net Interest Income (FTE) | $1,477.6 | $1,418.3 | $1,932.8 | $2,039.5 | $2,208.9 | $569.4 | $596.3 | | Total Revenue (FTE) | $6,135.2 | $6,500.1 | $6,806.8 | $6,831.0 | $8,322.2 | $1,975.6 | $2,030.9 | | Total Noninterest Expense | $4,348.2 | $4,535.9 | $4,982.9 | $5,284.2 | $5,633.9 | $1,359.4 | $1,422.9 | - Investment Security Gains (Losses), net, significantly impacted Total Noninterest Income in 2024, showing a **loss of $(189.3) million** for the full year, but were **zero in Q3 2024 and Q3 2025**[8](index=8&type=chunk) [Net Income and EPS Trends](index=5&type=section&id=Net%20Income%20and%20EPS%20Trends) Net Income and Earnings Per Share (Diluted) have shown fluctuations over the past few years, with a notable increase in 2024. Q3 2025 saw a slight dip in Net Income compared to Q3 2024, but diluted EPS improved due to fewer average diluted shares | Metric | 2020 ($M) | 2021 ($M) | 2022 ($M) | 2023 ($M) | 2024 ($M) | Q3 2024 ($M) | Q3 2025 ($M) | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :----------- | :----------- | | Net Income | $1,209.3 | $1,545.3 | $1,336.0 | $1,107.3 | $2,031.1 | $464.9 | $457.6 | | Earnings Per Share - Diluted| $5.46 | $7.14 | $6.14 | $5.08 | $9.77 | $2.22 | $2.29 | | Average Diluted Shares (000s)| 209,008 | 208,899 | 208,867 | 207,564 | 201,870 | 200,549 | 191,001 | - The average diluted shares outstanding have consistently decreased from **209,008 thousand in 2020** to **191,001 thousand in Q3 2025**, contributing to higher EPS despite fluctuations in net income[8](index=8&type=chunk) [Reporting Segment Results](index=6&type=section&id=Reporting%20Segment%20Results) This section presents the financial performance of Northern Trust Corporation's key operating segments: Asset Servicing, Wealth Management, and Other [Asset Servicing Segment](index=6&type=section&id=Asset%20Servicing) The Asset Servicing segment reported a 6% increase in Trust, Investment and Other Servicing Fees for Q3 2025 compared to Q3 2024, reaching $706.9 million. Income before Income Taxes (FTE) also grew by 14% to $294.1 million, with a profit margin of 24.7% | Metric | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :-------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Custody & Fund Administration Fees | $482.7 | $453.1 | $29.6 | 6.5% | | Investment Management Fees | $159.6 | $152.6 | $7.0 | 4.6% | | Securities Lending | $21.2 | $17.5 | $3.7 | 21.1% | | Other | $43.4 | $43.9 | $(0.5) | (1.1)% | | Total Asset Servicing Trust, Investment and Other Servicing Fees | $706.9 | $667.1 | $39.8 | 6% | | Income before Income Taxes (FTE) | $294.1 | $258.4 | $35.7 | 14% | | Profit Margin (pre-tax) (FTE) | 24.7% | 23.2% | 1.5 pp | | - Average Loans in Asset Servicing decreased by **3.8%** year-over-year in Q3 2025, while Average Deposits increased by **4.1%**[10](index=10&type=chunk) [Wealth Management Segment](index=6&type=section&id=Wealth%20Management) The Wealth Management segment's Trust, Investment and Other Servicing Fees increased by 5% in Q3 2025 to $558.6 million. Income before Income Taxes (FTE) rose by 11% to $342.4 million, with a strong profit margin of 40.5% | Metric | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :-------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Central Fees | $200.6 | $186.6 | $14.0 | 7.5% | | East Fees | $146.0 | $136.4 | $9.6 | 7.0% | | West Fees | $110.5 | $105.7 | $4.8 | 4.5% | | Global Family Office Fees | $101.5 | $100.8 | $0.7 | 0.7% | | Total Wealth Management Trust, Investment and Other Servicing Fees | $558.6 | $529.5 | $29.1 | 5% | | Income before Income Taxes (FTE) | $342.4 | $307.1 | $35.3 | 11% | | Profit Margin (pre-tax) (FTE) | 40.5% | 38.0% | 2.5 pp | | - Average Loans in Wealth Management increased by **5.3%** year-over-year in Q3 2025, while Average Deposits remained relatively stable with a slight increase of **0.8%**[10](index=10&type=chunk) [Other Segment](index=6&type=section&id=Other%20Segment) The 'Other' segment reported a negative Income before Income Taxes (FTE) of $(11.5) million in Q3 2025, a significant improvement from $(42.7) million in Q3 2024. Average Deposits in this segment decreased by 39.3% year-over-year | Metric | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :-------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Other Income before Income Taxes (FTE) | $(11.5) | $42.7 | $(54.2) | N/M | | Average Deposits | $1,134.9 | $745.7 | $389.2 | 52.2% | - The 'Other' segment's income before taxes can be volatile, showing a **large positive value in Q2 2024 ($782.2M)** and a **negative value in Q3 2025**[10](index=10&type=chunk) [Balance Sheet (End of Period)](index=7&type=section&id=Balance%20Sheet%20(EOP)) This section provides an end-of-period snapshot of Northern Trust Corporation's assets, liabilities, and stockholders' equity as of September 30, 2025 [Assets](index=7&type=section&id=Assets) Total Assets increased by 9% year-over-year to $170,263.3 million as of September 30, 2025. This growth was primarily driven by increases in Federal Reserve and Other Central Bank Deposits, Federal Funds Sold, and Debt Securities. Cash and Due From Banks saw a significant decrease | Asset Category | 9/30/2025 ($M) | 9/30/2024 ($M) | YoY Change ($M) | YoY Change (%) | | :---------------------------------------------- | :------------- | :------------- | :-------------- | :------------- | | Federal Reserve and Other Central Bank Deposits | $49,328.9 | $40,848.3 | $8,480.6 | 21% | | Interest-Bearing Due from and Deposits with Banks | $6,404.5 | $5,464.7 | $939.8 | 17% | | Federal Funds Sold and Securities Purchased under Agreements to Resell | $1,856.3 | $981.6 | $874.7 | 89% | | Total Debt Securities | $55,864.1 | $51,020.5 | $4,843.6 | 9% | | Loans | $42,949.4 | $41,950.3 | $999.1 | 2% | | Total Earning Assets | $159,079.4 | $142,731.1 | $16,348.3 | 11% | | Cash and Due From Banks and Other Central Bank Deposits | $976.8 | $3,014.3 | $(2,037.5) | (68)% | | Total Assets | $170,263.3 | $155,753.8 | $14,509.5 | 9% | - The Allowance for Credit Losses decreased by **10%** year-over-year, from **$(193.3) million** to **$(174.6) million**, suggesting an improved credit outlook or lower perceived risk[12](index=12&type=chunk) [Liabilities and Stockholders' Equity](index=7&type=section&id=Liabilities%20and%20Stockholders'%20Equity) Total Liabilities increased by 10% year-over-year to $157,307.3 million, primarily driven by growth in interest-bearing deposits, especially Savings, Money Market and Other Deposits. Total Stockholders' Equity also increased by 2% to $12,956.0 million | Liability/Equity Category | 9/30/2025 ($M) | 9/30/2024 ($M) | YoY Change ($M) | YoY Change (%) | | :---------------------------------------------- | :------------- | :------------- | :-------------- | :------------- | | Savings, Money Market and Other Deposits | $29,040.1 | $23,069.0 | $5,971.1 | 26% | | Savings Certificates and Other Time Deposits | $7,358.7 | $6,255.2 | $1,103.5 | 18% | | Non-U.S. Offices - Interest-Bearing Deposits | $73,509.9 | $69,684.3 | $3,825.6 | 5% | | Total Interest-Bearing Deposits | $109,908.7 | $99,008.5 | $10,900.2 | 11% | | Federal Funds Purchased | $1,751.9 | $2,761.9 | $(1,010.0) | (37)% | | Securities Sold under Agreements to Repurchase | $371.5 | $170.8 | $200.7 | 117% | | Total Liabilities | $157,307.3 | $143,004.8 | $14,302.5 | 10% | | Total Stockholders' Equity | $12,956.0 | $12,749.0 | $207.0 | 2% | - Accumulated Other Comprehensive Income (Loss) improved significantly, reducing the loss from **$(779.5) million in Q3 2024** to **$(635.1) million in Q3 2025**, a **19% improvement**[12](index=12&type=chunk) [Balance Sheet Trends (Period Averages)](index=8&type=section&id=Balance%20Sheet%20Trends) This section examines the average balance sheet composition of Northern Trust Corporation's assets, liabilities, and equity for Q3 2025 compared to Q3 2024 [Average Assets](index=8&type=section&id=Average%20Assets) Average Total Assets for Q3 2025 were $151,041.5 million, showing a slight decrease from Q3 2024. Federal Reserve and Other Central Bank Deposits, and Debt Securities (Available For Sale) were key components, with Loans and Leases remaining relatively stable | Asset Category | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :---------------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Federal Reserve and Other Central Bank Deposits | $33,754.2 | $36,067.3 | $(2,313.1) | (6)% | | Total Debt Securities | $55,152.4 | $50,296.6 | $4,855.8 | 9.7% | | Loans and Leases | $41,500.6 | $39,884.0 | $1,616.6 | 4.1% | | Total Earning Assets | $139,338.9 | $134,767.8 | $4,571.1 | 3.4% | | Total Assets | $151,041.5 | $146,842.9 | $4,198.6 | 2.9% | - Average Federal Funds Sold and Securities Purchased under Agreements to Resell significantly increased by **33.1%** from Q3 2024 to Q3 2025, indicating increased short-term lending activities[14](index=14&type=chunk) [Average Liabilities and Stockholders' Equity](index=8&type=section&id=Average%20Liabilities%20and%20Stockholders'%20Equity) Average Total Liabilities for Q3 2025 were $138,334.5 million, an increase from Q3 2024. This was primarily driven by growth in Total Interest-Bearing Deposits, particularly Non-U.S. Offices - Interest-Bearing Deposits. Average Total Stockholders' Equity also saw a modest increase | Liability/Equity Category | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :---------------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Total Interest-Bearing Deposits | $100,403.3 | $96,219.8 | $4,183.5 | 4.3% | | Non-U.S. Offices - Interest-Bearing Deposits | $65,354.5 | $64,347.2 | $1,007.3 | 1.6% | | Federal Funds Purchased | $2,467.7 | $2,320.9 | $146.8 | 6.3% | | Other Borrowings | $6,938.4 | $7,085.9 | $(147.5) | (2.1)% | | Total Liabilities | $138,334.5 | $134,368.8 | $3,965.7 | 2.9% | | Total Stockholders' Equity | $12,707.0 | $12,474.1 | $232.9 | 1.9% | - Average Demand and Other Noninterest-Bearing Deposits decreased by **0.3%** from Q3 2024 to Q3 2025, indicating a shift towards interest-bearing accounts or other funding sources[14](index=14&type=chunk) [Balance Sheet Mix Trends (Period Averages)](index=9&type=section&id=Balance%20Sheet%20Mix%20Trends) This section analyzes the proportional composition of Northern Trust Corporation's average assets, liabilities, and equity for Q3 2025 compared to Q3 2024 [Asset Mix](index=9&type=section&id=Asset%20Mix) The composition of average assets in Q3 2025 showed Federal Reserve and Other Central Bank Deposits at 22.3% of total assets, a decrease from 24.6% in Q3 2024. Total Debt Securities increased their share to 36.5%, while Loans and Leases remained stable at 27.5% | Asset Category | Q3 2025 (%) | Q3 2024 (%) | | :---------------------------------------------- | :---------- | :---------- | | Federal Reserve and Other Central Bank Deposits | 22.3% | 24.6% | | Interest-Bearing Due from and Deposits with Banks | 3.5% | 3.3% | | Federal Funds Sold and Securities Purchased under Agreements to Resell | 0.9% | 0.7% | | Total Debt Securities | 36.5% | 34.3% | | Loans and Leases | 27.5% | 27.2% | | Total Earning Assets | 92.3% | 91.8% | | Cash and Due From Banks and Other Central Bank Deposits | 0.8% | 1.2% | | Total Assets | 100.0% | 100.0% | - The proportion of Available For Sale Debt Securities increased from **18.7% in Q3 2024** to **21.9% in Q3 2025**, while Held To Maturity Debt Securities decreased from **15.5% to 14.7%**[16](index=16&type=chunk) [Liabilities and Equity Mix](index=9&type=section&id=Liabilities%20and%20Equity%20Mix) The average liability mix in Q3 2025 showed Total Interest-Bearing Deposits at 66.5% of total liabilities and equity, a slight increase from 65.5% in Q3 2024. Demand and Other Noninterest-Bearing Deposits decreased their share to 10.8%. Total Stockholders' Equity remained stable at 8.4% | Liability/Equity Category | Q3 2025 (%) | Q3 2024 (%) | | :---------------------------------------------- | :---------- | :---------- | | Savings, Money Market and Other Deposits | 18.8% | 17.2% | | Savings Certificates and Other Time Deposits | 4.4% | 4.5% | | Non-U.S. Offices - Interest-Bearing Deposits | 43.3% | 43.8% | | Total Interest-Bearing Deposits | 66.5% | 65.5% | | Federal Funds Purchased | 1.6% | 1.6% | | Other Borrowings | 4.6% | 4.8% | | Total Interest-Bearing Liabilities | 77.6% | 77.0% | | Demand and Other Noninterest-Bearing Deposits | 10.8% | 11.1% | | Total Liabilities | 91.6% | 91.5% | | Total Stockholders' Equity | 8.4% | 8.5% | - The share of Other Borrowings decreased slightly from **4.8% in Q3 2024** to **4.6% in Q3 2025**, while Securities Sold under Agreements to Repurchase remained stable at **0.3%**[16](index=16&type=chunk) [Interest Rate Trends (FTE Basis)](index=10&type=section&id=Interest%20Rate%20Trends) This section analyzes the fully taxable equivalent (FTE) interest rates on Northern Trust Corporation's earning assets and interest-bearing liabilities, along with net interest spread and margin [Earning Assets Rates](index=10&type=section&id=Earning%20Assets%20Rates) Interest rates on earning assets generally decreased in Q3 2025 compared to Q3 2024. The rate on Federal Reserve and Other Central Bank Deposits fell to 3.84%, and Loans and Leases also saw a decline to 5.59%. However, Federal Funds Sold and Securities Purchased under Agreements to Resell showed significant volatility | Earning Asset Category | Q3 2025 Rate (%) | Q3 2024 Rate (%) | YoY Change (pp) | | :------------------------------------------------------ | :--------------- | :--------------- | :-------------- | | Federal Reserve and Other Central Bank Deposits | 3.84% | 4.98% | (1.14) | | Interest-Bearing Due from and Deposits with Banks | 1.57% | 2.35% | (0.78) | | Federal Funds Sold and Securities Purchased under Agreements to Resell | 217.12% | 362.57% | (145.45) | | Total Debt Securities | 3.47% | 3.86% | (0.39) | | Loans and Leases | 5.59% | 6.45% | (0.86) | | Total Earning Assets | 6.12% | 7.49% | (1.37) | - The average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell, excluding the impact of balance sheet netting, would be approximately **4.41% for Q3 2025**[19](index=19&type=chunk) [Interest-Bearing Funds Rates](index=10&type=section&id=Interest-Bearing%20Funds%20Rates) Interest rates on interest-bearing funds generally decreased in Q3 2025 compared to Q3 2024. The rate on Total Interest-Bearing Deposits fell to 2.60%, and Other Borrowings also saw a decline to 4.55%. Federal Funds Purchased and Securities Sold under Agreements to Repurchase also showed decreases | Interest-Bearing Fund Category | Q3 2025 Rate (%) | Q3 2024 Rate (%) | YoY Change (pp) | | :------------------------------------------------------ | :--------------- | :--------------- | :-------------- | | Savings, Money Market and Other | 3.16% | 3.76% | (0.60) | | Savings Certificates and Other Time | 4.25% | 5.19% | (0.94) | | Non-U.S. Offices - Interest-Bearing | 2.19% | 3.39% | (1.20) | | Total Interest-Bearing Deposits | 2.60% | 3.61% | (1.01) | | Federal Funds Purchased | 3.99% | 5.07% | (1.08) | | Securities Sold under Agreements to Repurchase | 551.02% | 686.17% | (135.15) | | Other Borrowings | 4.55% | 5.32% | (0.77) | | Total Interest Bearing Liabilities | 5.26% | 6.93% | (1.67) | - The average interest rate on Securities Sold under Agreements to Repurchase, excluding the impact of balance sheet netting, would be approximately **4.37% for Q3 2025**[19](index=19&type=chunk) [Net Interest Spread and Margin](index=10&type=section&id=Net%20Interest%20Spread%20and%20Margin) Net Interest Spread (FTE) increased to 0.86% in Q3 2025 from 0.56% in Q3 2024, while Net Interest Margin (FTE) also improved to 1.70% from 1.68%. This indicates an expansion in the profitability of interest-earning activities | Metric | Q3 2025 Rate (%) | Q3 2024 Rate (%) | YoY Change (pp) | | :------------------ | :--------------- | :--------------- | :-------------- | | Net Interest Spread | 0.86% | 0.56% | 0.30 | | Net Interest Margin | 1.70% | 1.68% | 0.02 | - Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest spread is calculated as the difference between the interest rate earned and the interest rate incurred[18](index=18&type=chunk) [Asset Quality](index=11&type=section&id=Asset%20Quality) This section evaluates Northern Trust Corporation's asset quality, focusing on the allowance for credit losses and key loan quality ratios [Allowance for Credit Losses](index=11&type=section&id=Allowance%20for%20Credit%20Losses) The Ending Allowance for Credit Losses decreased to $206.7 million in Q3 2025 from $220.0 million in Q3 2024. This was primarily due to a significant provision for credit losses release of $(17.0) million in Q3 2025, compared to an $8.0 million provision in Q3 2024 | Metric | Q3 2025 ($M) | Q3 2024 ($M) | YoY Change ($M) | YoY Change (%) | | :-------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Beginning Allowance for Credit Losses | $224.1 | $209.6 | $14.5 | 6.9% | | Provision for (Release of) Credit Losses| $(17.0) | $8.0 | $(25.0) | N/M | | Net (Charge-offs) Recoveries | $(0.4) | $2.4 | $(2.8) | N/M | | Ending Allowance for Credit Losses | $206.7 | $220.0 | $(13.3) | (6.0)% | - The Allowance for Credit Losses Assigned to Loans and Leases decreased by **11%** year-over-year, from **$184.8 million in Q3 2024** to **$164.4 million in Q3 2025**[21](index=21&type=chunk) [Loan Quality Ratios](index=11&type=section&id=Loan%20Quality%20Ratios) Nonaccrual Loans and Leases increased to $78.8 million in Q3 2025 from $39.3 million in Q3 2024. Consequently, the ratio of Nonaccrual Assets to Loans and Leases and OREO increased to 0.18% from 0.09%. The Allowance for Credit Losses to Total Loans and Leases decreased slightly to 0.38% | Metric | Q3 2025 | Q3 2024 | YoY Change | | :-------------------------------------- | :----------- | :----------- | :----------- | | Average Loans and Leases Outstanding ($M)| $41,501 | $39,884 | $1,617 | | Annualized Loan Related Net (Charge-offs) Recoveries to Average Loans and Leases | — % | 0.02 % | (0.02) pp | | Allowance for Credit Losses Assigned to Loans and Leases to Total Loans and Leases | 0.38 % | 0.44 % | (0.06) pp | | Nonaccrual Loans and Leases ($M) | $78.8 | $39.3 | $39.5 | | Nonaccrual Assets to Loans and Leases and OREO | 0.18 % | 0.09 % | 0.09 pp | | Allowance to Nonaccrual Loans and Leases| 2.1x | 4.7x | (2.6)x | - The Allowance to Nonaccrual Loans and Leases ratio significantly decreased from **4.7x in Q3 2024** to **2.1x in Q3 2025**, indicating a lower coverage of nonaccrual loans by the allowance[21](index=21&type=chunk) [Assets Under Management and Custody](index=12&type=section&id=Trust%20Assets) This section provides an overview of Northern Trust Corporation's Assets Under Management (AUM) and Assets Under Custody/Administration (AUC/A) for Q3 2025 [Assets Under Management (AUM)](index=12&type=section&id=Assets%20Under%20Management%20(AUM)) Total Assets Under Management (AUM) increased by 9.3% year-over-year to $1,772.7 billion in Q3 2025. This growth was seen across both Asset Servicing and Wealth Management segments, with Equities being the largest asset allocation | Metric | Q3 2025 ($B) | Q3 2024 ($B) | YoY Change ($B) | YoY Change (%) | | :-------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Asset Servicing AUM | $1,280.1 | $1,177.9 | $102.2 | 8.7% | | Wealth Management AUM | $492.6 | $443.9 | $48.7 | 11.0% | | Total Assets Under Management | $1,772.7 | $1,621.8 | $150.9 | 9.3% | | AUM Asset Allocation: Equities | $1,001.5 | $908.8 | $92.7 | 10.2% | | AUM Asset Allocation: Fixed Income Securities | $230.0 | $219.7 | $10.3 | 4.7% | | AUM Asset Allocation: Cash and Other Assets | $334.6 | $317.2 | $17.4 | 5.5% | | AUM Asset Allocation: Securities Lending Collateral | $206.6 | $176.1 | $30.5 | 17.3% | - Wealth Management Global Family Office AUM increased by **15%** year-over-year, from **$161.8 billion in Q3 2024** to **$186.1 billion in Q3 2025**[23](index=23&type=chunk) [Assets Under Custody / Administration (AUC/A)](index=12&type=section&id=Assets%20Under%20Custody%20%2F%20Administration%20(AUC%2FA)) Total Assets Under Custody / Administration (AUC/A) grew by 4.7% year-over-year to $18,247.6 billion in Q3 2025. Both Asset Servicing and Wealth Management segments contributed to this growth | Metric | Q3 2025 ($B) | Q3 2024 ($B) | YoY Change ($B) | YoY Change (%) | | :-------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Asset Servicing AUC/A | $16,990.4 | $16,278.0 | $712.4 | 4.4% | | Wealth Management AUC/A | $1,257.2 | $1,145.0 | $112.2 | 9.8% | | Total Assets Under Custody / Administration | $18,247.6 | $17,423.0 | $824.6 | 4.7% | [Assets Under Custody (AUC)](index=12&type=section&id=Assets%20Under%20Custody%20(AUC)) Total Assets Under Custody (AUC) increased by 4.7% year-over-year to $14,439.1 billion in Q3 2025. Equities remained the largest asset class, showing a 5.4% increase | Metric | Q3 2025 ($B) | Q3 2024 ($B) | YoY Change ($B) | YoY Change (%) | | :-------------------------------------- | :----------- | :----------- | :-------------- | :------------- | | Asset Servicing AUC | $13,195.0 | $12,662.1 | $532.9 | 4.2% | | Wealth Management AUC | $1,244.1 | $1,132.7 | $111.4 | 9.8% | | Total Assets Under Custody | $14,439.1 | $13,794.8 | $644.3 | 4.7% | | AUC Asset Allocation: Equities | $7,166.5 | $6,799.5 | $367.0 | 5.4% | | AUC Asset Allocation: Fixed Income Securities | $4,297.9 | $4,031.7 | $266.2 | 6.6% | | AUC Asset Allocation: Cash and Other Assets | $2,768.1 | $2,787.5 | $(19.4) | (0.7)% | | AUC Asset Allocation: Securities Lending Collateral | $206.6 | $176.1 | $30.5 | 17.3% | - Wealth Management Global Family Office AUC increased by **9.7%** year-over-year, from **$798.0 billion in Q3 2024** to **$875.8 billion in Q3 2025**[23](index=23&type=chunk) [Reconciliation to Fully Taxable Equivalent](index=14&type=section&id=Reconciliation%20to%20FTE) This section explains the reconciliation of Northern Trust Corporation's financial measures and ratios to a fully taxable equivalent (FTE) basis, a non-GAAP adjustment [FTE Financial Measures](index=14&type=section&id=FTE%20Financial%20Measures) Northern Trust presents certain financial measures on a fully taxable equivalent (FTE) basis, which is a non-GAAP measure. This adjustment makes yields on taxable, nontaxable, and partially taxable assets comparable, though it has no impact on net income. For Q3 2025, the FTE adjustment for Net Interest Income was $5.5 million | Metric | GAAP Q3 2025 ($M) | FTE Adjustment Q3 2025 ($M) | FTE Non-GAAP Q3 2025 ($M) | | :-------------------------------------- | :---------------- | :-------------------------- | :------------------------ | | Interest Income | $2,144.3 | $5.5 | $2,149.8 | | Net Interest Income | $590.8 | $5.5 | $596.3 | | Total Revenue | $2,025.4 | $5.5 | $2,030.9 | | Income before Income Taxes | $619.5 | $5.5 | $625.0 | | Provision for Income Taxes | $161.9 | $5.5 | $167.4 | - The FTE adjustment is based on the federal income tax rate, adjusted for applicable state income taxes, net of related federal tax benefit[27](index=27&type=chunk) [FTE Financial Ratios](index=15&type=section&id=FTE%20Financial%20Ratios) The FTE presentation also impacts various financial ratios, providing a clearer comparative view. For Q3 2025, the FTE adjustment resulted in a slightly higher Profit Margin (pre-tax) and Net Interest Margin compared to their GAAP counterparts | Ratio | GAAP Q3 2025 (%) | FTE Non-GAAP Q3 2025 (%) | | :-------------------------------------- | :--------------- | :----------------------- | | Profit Margin (pre-tax) | 30.6% | 30.8% | | Profit Margin (after-tax) | 22.6% | 22.5% | | Effective Tax Rate | 26.1% | 26.8% | | Noninterest Income to Total Revenue | 70.8% | 70.6% | | Trust Fees to Total Revenue | 62.5% | 62.3% | | Net Interest Spread | 0.85% | 0.86% | | Net Interest Margin | 1.68% | 1.70% | - Management believes an FTE presentation provides a clearer indication of these financial measures for comparative purposes[30](index=30&type=chunk)

CHICAGO--(BUSINESS WIRE)--Northern Trust Corporation (Nasdaq: NTRS), holding company of The Northern Trust Company, has declared a quarterly cash dividend of $0.80 per share on its common stock ($1.66-2/3 par value), payable on January 1, 2026, to holders of record at 5:00 p.m., Chicago time, on December 5, 2025.Northern Trust Corporation also declared a cash dividend of $293.75 per share of its Series E non-cumulative perpetual preferred stock (resulting in a distribution of $0.29375 per depository share), ...

Core Viewpoint - Northern Trust Corporation (NTRS) is expected to report quarterly earnings of $2.26 per share, a 15.3% increase year-over-year, with revenues projected at $2.04 billion, reflecting a 3.7% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 3.1% over the past 30 days, indicating analysts have reassessed their projections [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue and Key Metrics - Analysts estimate 'Wealth Management Trust, Investment and Other Servicing Fees- Global Family Office' at $109.98 million, a 9.1% increase year-over-year [5]. - 'Wealth Management Trust, Investment and Other Servicing Fees- Total' is projected to reach $569.70 million, up 7.6% from the prior year [5]. - 'Asset Servicing Trust, Investment and Other Servicing Fees- Custody and Fund Administration' is expected to be $493.16 million, reflecting an 8.8% year-over-year increase [6]. - Total 'Asset Servicing Trust, Investment and Other Servicing Fees' is forecasted at $726.04 million, also an 8.8% increase [6]. - 'Asset Servicing Trust, Investment and Other Servicing Fees- Securities Lending' is estimated at $20.96 million, a significant 19.8% increase [7]. - 'Asset Servicing Trust, Investment and Other Servicing Fees- Investment Management' is projected to be $167.27 million, a 9.6% increase from the previous year [8]. - The average balance of total earning assets is estimated at $143.48 billion, compared to $134.77 billion in the same quarter last year [9]. - 'Net Interest Income - FTE Adjusted' is expected to be $599.04 million, up from $569.40 million year-over-year [10]. - 'Total Noninterest Income' is projected at $1.45 billion, compared to $1.41 billion in the previous year [10]. Stock Performance - Over the past month, Northern Trust shares have declined by 5.8%, while the Zacks S&P 500 composite has increased by 0.7% [11].

Key Takeaways Northern Trust will release Q3 2025 results on Oct. 22, with earnings and revenues rising year over year.Higher NII and improved fee income from custody and investment management are expected to support growth.Continued high costs tied to compensation and tech investments could pressure quarterly performance. Northern Trust Corporation (NTRS) is scheduled to release its third-quarter 2025 results on Oct. 22, before market open. The company’s quarterly earnings and revenues are expected to grow ...

Core Insights - The report from FactSet emphasizes that robust reporting can provide a competitive advantage for asset managers and asset owners, moving beyond conventional reporting efforts [3][5][6] Group 1: Current State of Reporting - Asset management firms face increasing pressure to deliver high-quality, detailed, and timely data, with clients and regulators demanding comprehensive insights into investment exposure, risk management, and performance attribution [5][6] - The research indicates that only 12% of respondents believe their current reporting meets all client needs, while 36% rate their capabilities as average or poor, highlighting significant dissatisfaction [8][6] Group 2: Challenges in Reporting - Outdated legacy systems hinder progress towards robust reporting, as many firms still rely on antiquated processes designed for printed reports, making adaptation to digital demands difficult [5][8] - Primary hurdles in data integration stem from disparate data sources and ongoing issues with data quality and consistency, which organizations must address to improve reporting capabilities [9][10] Group 3: Strategies for Improvement - The report outlines five strategies for asset managers and owners to enhance their reporting capabilities: 1. Understand client needs and deliver value [11] 2. Ensure data consistency, accuracy, and management [11] 3. Leverage digital tools for personalized client experiences [11] 4. Streamline workflows and adopt automation [11] 5. Develop a clear vendor strategy for scalable technology [11]

Core Insights - The primary focus for income investors is generating consistent cash flow through dividends, which are a significant portion of long-term returns [2][4]. Company Overview - Northern Trust Corporation (NTRS), based in Chicago, has experienced a share price increase of 23.93% this year [3]. - The company currently pays a dividend of $0.80 per share, resulting in a dividend yield of 2.52%, which is lower than the Banks - Major Regional industry's yield of 3.53% and the S&P 500's yield of 1.51% [3]. Dividend Performance - Northern Trust's annualized dividend of $3.20 has increased by 6.7% from the previous year [4]. - Over the past five years, the company has raised its dividend once, with an average annual increase of 2.01% [4]. - The current payout ratio is 36%, indicating that the company pays out 36% of its trailing 12-month earnings per share as dividends [4]. Earnings Expectations - The Zacks Consensus Estimate for Northern Trust's earnings in 2025 is $8.63 per share, reflecting a 12.08% increase from the previous year [5]. - The company is expected to see earnings expansion this fiscal year [5]. Investment Considerations - Northern Trust is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6].

Core Insights - Northern Trust has been appointed by the International Finance Facility for Education (IFFEd) to provide global custody services [1] Group 1: Company Overview - Northern Trust is a financial services company listed on Nasdaq under the ticker NTRS [1] - The company will support IFFEd, which is focused on innovative financing for global education [1] Group 2: IFFEd Details - IFFEd is based in Switzerland and has been endorsed by the G20 in 2023 [1] - The organization holds a triple A credit rating and operates with a zero percent administration fee [1] - IFFEd aims to accelerate public-private partnerships in the education sector [1]

Core Viewpoint - Morgan Stanley has adjusted its model for North American large banks' Q3 2025 performance forecasts, indicating a mild impact on EPS growth of 0-1% and a median EPS estimate 3% higher than market consensus [1][2] Group 1: Earnings Forecasts - The median EPS forecast for North American banks in Q3 2025 is 3% above market consensus, with the largest increases expected for money center banks and State Street Bank (STT.US) [1] - Citigroup (C.US) is projected to have an EPS of $1.99, exceeding the market consensus of $1.83 by 9% [1] - Bank of America (BAC.US) is expected to report an EPS of $1.01, which is 7% higher than the consensus of $0.94 [1] - State Street Bank's EPS is forecasted to be 6% above consensus, while Northern Trust (NTRS.US) is expected to be 3% higher [1] - Most super-regional banks are projected to be 1-3% above consensus, with Truist Financial (TFC.US) and Wells Fargo (WFC.US) both expected to be 3% higher [1] Group 2: Key Financial Metrics - The model incorporates a macro assumption of an additional 125 basis points rate cut by the end of 2026, with a focus on Citigroup, Bank of America, Goldman Sachs, and JPMorgan Chase (JPM.US) due to expected outperformance in investment banking fees and trading income [2] - Money center banks are expected to lead in asset growth, with JPMorgan Chase's average total assets projected to reach $4.43 trillion, an 8.4% year-over-year increase, and Bank of America expected to reach $3.47 trillion, a 5.5% increase [2] - The deposit structure shows a gradual decline in non-interest-bearing deposits, with Bank of America projected to have 26.0% in 2025, down from 26.7% in 2024 [2] - The net interest margin (NIM) is expected to remain stable, with a median estimate of 2.50% for 2025, while super-regional banks are projected to have higher NIMs [2] Group 3: Revenue Growth Drivers - Fee income is a core growth driver, with M&A fees expected to grow 30% year-over-year, significantly above the consensus growth of 11% [3] - Equity Capital Markets (ECM) fees are projected to increase by 41%, compared to a consensus of 30%, while Debt Capital Markets (DCM) fees are expected to grow by 4% against a consensus of 3% [3] - Money center banks like JPMorgan and Goldman Sachs are expected to see over 9% year-over-year growth in fee income for 2025 [3] Group 4: Capital Returns - The median dividend payout ratio for banks in 2025 is expected to be around 30%, with money center banks showing a slight decrease from 27% to 29% [3] - JPMorgan is projected to pay $5.80 per share in dividends, while Citigroup is expected to pay $2.32 per share [3] - Stock buybacks are anticipated to increase significantly, with JPMorgan expected to repurchase $38.01 billion in 2025, up from $18.84 billion in 2024, and Citigroup expected to repurchase $13.47 billion, a substantial increase from $2.5 billion in 2024 [3] Group 5: Overall Outlook - The report maintains a cautiously optimistic view on North American large banks, suggesting that money center banks will outperform due to investment banking and trading income, while super-regional banks show stable asset quality [4] - Trust banks are expected to face pressure on net interest margins but still demonstrate resilience supported by fee income [4]

Core Viewpoint - Northern Trust Asset Management has appointed Slava Malkin as senior portfolio manager to enhance its long/short investment offerings, reflecting its commitment to expanding its investment capabilities in the market [1]. Company Overview - Northern Trust Asset Management is a leading global investment management firm with $1.3 trillion in assets under management as of June 30, 2025 [1]. - The firm has over three decades of experience in tax-advantaged and quantitative equity portfolios, positioning itself as a pioneer in these areas [1]. Strategic Development - The appointment of Slava Malkin aims to develop and manage Northern Trust Asset Management's long/short offerings, indicating a strategic move to diversify its portfolio options [1].

Market Overview - The current market is experiencing record highs despite uncertainties surrounding the government shutdown and economic conditions [3][4] - Historical patterns indicate that markets have generally shrugged off past government shutdowns, suggesting a potential for resilience [4] Economic Cycle and Monetary Policy - The economic cycle's current phase, along with the Federal Reserve's monetary policy, introduces uncertainty, particularly as the Fed shifts towards more accommodative measures [5] - The labor market is showing signs of softening, which is acknowledged by the Fed, contributing to investor anxiety [6] Interest Rate Outlook - There is a paradox where increased uncertainty may lead to a higher likelihood of future Fed interest rate cuts [7] - The expectation is for continued Fed rate cuts, potentially lowering the Fed funds rate by about 100 basis points over the next 12 months [8][9] Investment Strategy - A balanced portfolio should include both risk assets (stocks) and defensive assets (bonds), with a current preference for risk assets [10] - Confidence in a soft landing for the U.S. economy has led to increased exposure to U.S. markets, with a reduced likelihood of an outright recession [10] - Positive earnings estimates are anticipated, with companies having doubled their earnings estimates last quarter, indicating strong trends moving forward [11] Fiscal Stimulus and Technological Impact - There is a significant amount of fiscal stimulus in the U.S., which is expected to support economic growth [12] - The impact of artificial intelligence (AI) on the market is a critical factor that cannot be overlooked [12]