Financial Data and Key Metrics Changes - The company reported a net income of $421 million and earnings per share of $2.13, with a return on average common equity of 14.2% [29] - Revenue grew by 8% year-over-year, while expenses increased by 4.8%, resulting in a pretax margin improvement of 160 basis points [32] - Net interest income reached a record $615 million, up 7% sequentially and 16% year-over-year [30][39] Business Line Data and Key Metrics Changes - Asset Servicing fees totaled $692 million, reflecting a 6% increase year-over-year, with assets under custody and administration up 9% [34] - Wealth Management assets under management were $469 billion, up 12% year-over-year, with trust investment and other servicing fees increasing by 5% [36] - The Asset Servicing pretax profit nearly doubled year-over-year, with a pretax margin up more than 10 points to 23.2% [35] Market Data and Key Metrics Changes - The company’s assets under custody and administration were up 7% sequentially and 9% year-over-year [31] - Average deposits grew by 7% sequentially, contributing to the increase in net interest income [39] - The company reported strong transaction volumes in capital markets activities, which were up double digits over the prior year [33] Company Strategy and Development Direction - The "One Northern Trust" strategy focuses on optimizing growth, driving productivity, and strengthening resiliency while managing risk [10][11] - The company is expanding its alternatives investment platform and enhancing its wealth management offerings to meet evolving client needs [12][19] - Investments in AI tools are being accelerated to streamline processes and enhance decision-making [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit annual earnings per share growth and higher return on equity targets [26][27] - The company is committed to remaining independent and believes this strategy will provide the best returns for shareholders [27][70] - Management anticipates continued organic growth and improved margins, supported by a solid balance sheet [26][29] Other Important Information - The company returned $486 million to shareholders through dividends and share repurchases, reflecting a payout ratio of 117% [42] - The common equity Tier one ratio was reported at 12.2%, with capital levels remaining strong [41] - The company expects total operating expense growth to be below 5% for the full year [43] Q&A Session Summary Question: Inquiry about alternatives and fixed income ETFs - Management characterized the initiatives in alternatives as driven by client demand, with $2.5 billion raised in the first half of the year [51] - The upcoming fixed income ETFs are designed to meet specific client needs, including municipal securities and fixed income ladders [54] Question: Clarification on ROE target adjustment - The ROE target was adjusted to 13% to 15% due to consistent performance above the previous range and improved market conditions [61][62] Question: Discussion on mergers and acquisitions - Management emphasized a focus on organic growth but remains open to acquisitions that enhance the value proposition if they align strategically [70] Question: Considerations for buybacks - Buybacks are evaluated based on regulatory capital, earnings power, and overall financial health, not solely on stock price [74] Question: Scale and custody business - Management highlighted that scale does not necessarily equate to size, focusing on specific sectors and technology to achieve scale [83][84]

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]

Core Viewpoint - Northern Trust Corporation (NTRS) reported quarterly earnings of $2.13 per share, exceeding the Zacks Consensus Estimate of $2.08 per share, and showing an increase from $1.78 per share a year ago, indicating a positive earnings surprise of +2.40% [1] Financial Performance - The company achieved revenues of $2 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.19%, although this is a decrease from year-ago revenues of $2.72 billion [2] - Over the last four quarters, Northern Trust has consistently surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Northern Trust shares have increased approximately 23.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.3% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for continued outperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.15 on revenues of $2 billion, while the estimate for the current fiscal year is $8.26 on revenues of $7.91 billion [7] - The trend of estimate revisions for Northern Trust was favorable ahead of the earnings release, suggesting potential for positive stock movement [6] Industry Context - The Banks - Major Regional industry, to which Northern Trust belongs, is currently ranked in the top 11% of over 250 Zacks industries, indicating a strong industry outlook [8]

Financial Performance - Revenue reached $20026 million, a decrease of 26% compared to the second quarter of 2024[22] - Net income was $4213 million, down 53% from the same period last year[22] - Diluted earnings per share were $213, a decrease of 51% compared to the second quarter of 2024[22] - Assets under Custody/Administration (AUC/A) increased to $180683 trillion, a 9% increase year-over-year[22] - Assets Under Management (AUM) reached $16977 trillion, an 11% increase compared to the second quarter of 2024[22] - Expense to Trust Fee Ratio was 115%[22] Business Segment Highlights - Asset Servicing AUC/A reached $168649 trillion, a 9% increase year-over-year[29] - Wealth Management AUC/A was $12034 trillion, a 10% increase compared to the second quarter of 2024[33] - Asset Management AUM totaled $17 trillion[4, 11] Strategic Initiatives - The company aims for total expense growth of less than 5% in 2025[19] - Wealth Management saw international market revenue increase by over 20%, comprising approximately 15% of total Global Family Office revenue[9] - Asset Management reported fundraising up 60% compared to fiscal year 2024[11]

Exhibit 99.3 Financial Trends Second Quarter 2025 July 23, 2025 Please direct inquiries to: Jennifer Childe Senior Vice President, Director of Investor Relations (312) 444-3290 or jennifer.childe@ntrs.com Trace Stegeman Senior Financial Analyst, Investor Relations (312) 630-1428 or trace.stegeman@ntrs.com The historical financial results and trends reflected in this report are not indicative of future financial results and trends for Northern Trust Corporation. This report should be read in conjunction with ...

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NTRS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Nothing contained in this message is an offer or solicitation to buy or sell any security/investment, and is for informational purposes only. T ...

Wall Street analysts expect Northern Trust Corporation (NTRS) to post quarterly earnings of $2.08 per share in its upcoming report, which indicates a year-over-year increase of 16.9%. Revenues are expected to be $1.98 billion, down 27% from the year-ago quarter.Over the last 30 days, there has been an upward revision of 4.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course ...

Core Viewpoint - Northern Trust Corporation (NTRS) is expected to report a year-over-year increase in earnings for Q2 2025, with a projected earnings per share of $2.08, reflecting a 16.9% rise from the previous year, despite a decline in revenue anticipated at $1.98 billion, a decrease of 27% year-over-year [1][2][8]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for NTRS' second-quarter earnings has been revised upward to $2.08 per share, indicating a 16.9% increase from the year-ago reported number [2]. - The consensus estimate for revenues is pegged at $1.98 billion, indicating a year-over-year decline of 27% [2]. - NTRS is projected to experience a positive earnings surprise history, with an average positive surprise of 7.40% over the last four quarters [2]. Group 2: Net Interest Income and Loans - NTRS' net interest income (NII) is expected to be $576.5 million, reflecting a 1.5% sequential increase, supported by stable funding costs and loan growth [3][8]. - The lending scenario has shown solid demand for loans during the quarter, contributing to the growth in average interest-earning assets, estimated at $139.2 billion, a nearly 1% rise from the prior quarter [4][5]. Group 3: Non-Interest Income and Fees - The Zacks Consensus Estimate for total fee income is pegged at $1.4 billion, indicating a 2.3% increase from the prior quarter [9]. - Custody and fund administration fees are estimated at $464 million, indicating a 2.4% sequential rise, while investment management fees are expected to be $156 million, reflecting a 2.3% increase [6][7]. Group 4: Expenses and Asset Quality - Northern Trust's expenses are anticipated to be high due to increased compensation and investments in equipment and software development [9]. - The Zacks Consensus Estimate for non-performing assets is pegged at $74.6 million, indicating a 2.1% rise on a sequential basis, as the company prepares for potential bad loans amid economic uncertainties [10].

Core Insights - Three stocks with strong momentum and buy rankings are highlighted: Northern Trust, State Street, and Cadence Bank [1][2][3][4] Company Summaries - **Northern Trust (NTRS)**: A leading provider of wealth management and banking solutions, it has a Zacks Rank of 1 (Strong Buy) and a 3.1% increase in the current year earnings estimate over the last 60 days. Its shares gained 45.4% in the last three months, outperforming the S&P 500's 19% gain, and it holds a Momentum Score of A [1][2]. - **State Street (STT)**: This financial holding company serves institutional investors globally and also has a Zacks Rank of 1. The current year earnings estimate increased by 3.1% over the last 60 days. State Street's shares rose by 39.5% in the last three months, again surpassing the S&P 500's 19% gain, with a Momentum Score of A [2][3]. - **Cadence Bank (CADE)**: Providing banking and financial solutions to various clients, Cadence Bank has a Zacks Rank of 1 and a 3.2% increase in the current year earnings estimate over the last 60 days. Its shares increased by 31.7% in the last three months, exceeding the S&P 500's 19% gain, and it also has a Momentum Score of A [3][4].

Core Insights - Northern Trust Corporation (NTRS) successfully passed the Federal Reserve's 2025 stress test, maintaining a 2.5% Stress Capital Buffer, indicating a strong capital position and resilience against severe economic downturns [1][3] - Analysts have revised earnings growth estimates for NTRS upward for 2024 and 2025, reflecting optimism about the company's financial performance [2] Financial Performance - The Zacks Consensus Estimate for NTRS's earnings per share (EPS) for 2025 is projected at $8.18, with a year-over-year growth estimate of 6.23% [12] - Over the past three to five years, NTRS's EPS has increased by 3.1%, with a projected growth rate of 6.2% in the near term [8][11] - The company reported a return on equity (ROE) of 13% in the first quarter of 2025, indicating consistent profitability and operational efficiency [16] Dividend and Share Repurchase - Following the stress test, NTRS plans to increase its quarterly dividend by 7% to $0.80 per share starting in Q3 2025, subject to board approval, with a current dividend yield of 2.34% [4] - NTRS has an active share repurchase program, having repurchased $287 million worth of shares in Q1 2025, with $25 million authorized for buybacks [6] Growth Drivers - The company has experienced a compound annual growth rate (CAGR) of 7.8% in total revenues from 2020 to 2024, supported by increases in net interest income (NII) and non-interest income [12][14] - Loan and lease balances grew at a CAGR of 6.7% during the same period, with expectations for a rebound in loan activity as the client base expands [13][14] - The launch of Family Office Solutions in April 2025 aims to attract ultra-high-net-worth clients, enhancing revenue potential [14] Cost Management - Northern Trust is implementing cost optimization measures, including disciplined headcount management and process automation, to enhance productivity and achieve financial objectives [15] - The company has maintained a solid liquidity position, with deposits totaling $52 billion compared to total debt of $12 billion, supporting its financial flexibility [7] Market Performance - Over the past year, NTRS shares have increased by 53.1%, outperforming the industry growth of 28.6% [17] - NTRS currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [20]