Financial Performance - For the three months ended September 30, 2025, net income was $457.6 million, a decrease of 2% compared to $464.9 million in the same period of 2024[8]. - Total revenue for the nine months ended September 30, 2025, was $5,963.3 million, down 6% from $6,330.8 million in 2024[8]. - Net Income for Q3 2025 was $457.6 million, a 2% decrease from $464.9 million in Q3 2024, and a 19% decrease year-to-date[8]. - Net Income for the nine months ended September 30, 2025, was $1,270.9 million, down 19% from $1,575.7 million in the same period of 2024[95]. Revenue Breakdown - Noninterest income for the three months ended September 30, 2025, increased by 2% to $1,434.6 million, while for the nine months it decreased by 11% to $4,193.9 million[8]. - Revenue for the three months ended September 30, 2025, increased to $2.0 billion, with Trust, Investment and Other Servicing Fees rising to $1.3 billion due to favorable markets[18]. - Revenue for the nine months ended September 30, 2025, decreased to $6.0 billion, with Trust, Investment and Other Servicing Fees increasing to $3.7 billion driven by favorable markets and net new business[18]. - Total Noninterest Income for Q3 2025 was $1,434.6 million, an increase of 2% from $1,406.2 million in Q3 2024[94]. Assets and Deposits - Total assets as of September 30, 2025, were $170,263.3 million, reflecting a 9% increase from $155,508.4 million at the end of 2024[8]. - Deposits increased by 11% to $135,801.1 million as of September 30, 2025, compared to $122,482.7 million at the end of 2024[8]. - Average Total Assets for Q3 2025 were $151,041.5 million, a 3% increase from $146,842.9 million in Q3 2024[8]. - Total Assets Under Custody/Administration as of September 30, 2025, reached $18,247.6 billion, a 5% increase from the prior-year period[30]. Interest Income and Expenses - Net interest income rose by 5% to $590.8 million for the three months ended September 30, 2025, and increased by 10% to $1,769.4 million for the nine months[8]. - Noninterest Expense for the current quarter increased to $1.4 billion, primarily due to higher Compensation and Equipment and Software expenses[18]. - The provision for credit losses for the three months ended September 30, 2025, was $(17.0) million, compared to $8.0 million in the same period of 2024[8]. - The effective tax rate for the three months ended September 30, 2025, was 26.1%, up from 22.7% in the prior-year quarter, due to higher net tax impacts from international operations[83]. Market Performance - The S&P 500 index increased by 16% year-over-year as of September 30, 2025, positively impacting the company's results[26]. - The market value per share at the end of the period was $134.60, a significant increase of 50% from $90.03 at the end of 2024[8]. Credit Quality - The provision for credit losses for the three months ended September 30, 2025, was a negative $17.0 million, compared to a provision of $8.0 million in the prior-year quarter, indicating improved macroeconomic conditions[74]. - Nonaccrual loans represented 0.18% of total loans as of September 30, 2025, compared to 0.13% as of December 31, 2024[120]. - The total allowance for credit losses as of September 30, 2025, was $196.5 million, a decrease from $198.4 million as of December 31, 2024[128]. Cash Flow - Net cash provided by operating activities increased significantly to $5,145.1 million for the nine months ended September 30, 2025, compared to $2,148.8 million for the same period in 2024, marking an increase of 139.5%[135][136]. - Net cash used in investing activities rose sharply to $13,098.9 million for the nine months ended September 30, 2025, compared to $355.9 million in 2024, indicating a substantial increase in investment outflows[135][138]. - Net cash provided by financing activities was $8,038.7 million for the nine months ended September 30, 2025, a significant increase from $287.7 million in 2024, reflecting a rise in total deposits[135][140]. Capital Ratios - Common Equity Tier 1 Capital ratio remained stable at 12.4% as of September 30, 2025, consistent with the ratio from December 31, 2024[148]. - Total risk-based capital increased to $13,581.9 million as of September 30, 2025, compared to $13,423.2 million as of September 30, 2024, showing a growth of 1.2%[147].

Financial Performance - Net income for Q3 2025 was $457.6 million, representing a 3% increase compared to Q2 2025[4] - Basic earnings per share (EPS) for Q3 2025 were $2.30, up from $2.14 in Q2 2025, reflecting a growth of 7.5%[4] - Return on average common equity for Q3 2025 was 14.8%, an increase from 14.2% in Q2 2025[4] - The company reported a profit margin (after tax) of 22.5% for Q3 2025, an increase from 21.0% in Q2 2025[4] - Net Income fell by 19% to $1,270.9 million from $1,575.7 million year-over-year[6] - Earnings Per Share - Basic decreased by 16% to $6.34, down from $7.53 in the prior year[6] - Net Income for 2023 was $1,107.3 million, compared to $1,336.0 million in 2022, showing a decrease of about 17.1%[8] - Earnings Per Share (EPS) - Basic for 2023 was $5.09, down from $6.16 in 2022, reflecting a decline of approximately 17.4%[8] Revenue and Income Sources - Noninterest income as a percentage of total revenue was 70.6% for Q3 2025, compared to 70.5% in Q2 2025[4] - Trust fees accounted for 62.3% of total revenue in Q3 2025, slightly up from 62.0% in Q2 2025[4] - Total Revenue (FTE) decreased by 6% to $5,979.1 million compared to $6,352.1 million in the previous year[6] - Total Noninterest Income declined by 11% to $4,193.9 million, compared to $4,717.5 million in the previous year[6] - Total Noninterest Income for 2023 was $4,791.5 million, a decrease from $4,874.0 million in 2022, representing a decline of approximately 1.7%[8] Expenses and Costs - Total Noninterest Expense remained relatively stable at $4,257.1 million, a slight decrease of 0.02% from $4,258.0 million[6] - Total Noninterest Expense for 2023 was $5,284.2 million, an increase from $4,982.9 million in 2022, indicating a rise of about 6.1%[8] - Compensation expenses increased by 0.5% to $1,884.5 million compared to $1,875.9 million in the previous year[6] - Compensation expenses for 2023 were $2,321.8 million, up from $2,248.0 million in 2022, reflecting an increase of about 3.3%[8] Assets and Liabilities - Total assets increased by 9% from $155,753.8 million in 2024 to $170,263.3 million in 2025[12] - Total liabilities increased by 10% from $143,004.8 million in 2024 to $157,307.3 million in 2025[12] - Total assets for Northern Trust Corporation increased to $146,633.5 million in 2024, up from $142,649.2 million in 2023, representing a growth of approximately 2.7%[14] - Total liabilities reached $134,333.7 million in 2024, up from $131,152.4 million in 2023, indicating a growth of approximately 2.1%[14] Capital and Equity - Total capital ratio for Q3 2025 was 15.1%, stable compared to the previous quarter[4] - Common equity, excluding accumulated other comprehensive income, was $12,706.2 million in 2025, a slight increase from $12,643.6 million in 2024[12] - Stockholders' equity increased to $12,604.0 million in 2024, compared to $12,577.5 million in 2023, reflecting a slight growth of 0.2%[14] Tax and Profitability Metrics - The effective tax rate for Q3 2025 was 26.1%, consistent with the previous quarter[4] - The effective tax rate (GAAP) for 2023 was 24.4%, projected to be 23.6% in 2024, showing a slight improvement[32] - Profit margin (pre-tax) (GAAP) for 2023 was 21.6%, expected to increase to 32.1% in 2024, indicating a substantial improvement of about 48.6%[32] Future Projections - Total revenue for 2023 was $6,773.5 million, with a projected increase to $8,290.4 million in 2024, representing a growth of approximately 22.3%[28] - Net interest income (FTE) for 2023 was $2,039.5 million, expected to rise to $2,208.9 million in 2024, indicating a growth of about 8.3%[28] - Income before income taxes (GAAP) for 2023 was $1,464.8 million, with a forecast of $2,659.5 million for 2024, reflecting a significant increase of approximately 81.8%[28]

Appointments and Leadership Changes - Nomura has appointed Filippo Zorzoli as head of global markets sales for Europe, the Middle East and Africa, previously serving at Barclays and BofA Merrill Lynch [1] - Gary Hyman has been named vice-chair of Emea global markets, moving from his role as head of public side sales for Emea [2] - Deutsche Bank appointed Lisa McGeough as CEO of DBUSA for the Americas region, pending regulatory approval, with Paul Maley serving in an interim capacity [3] - JP Morgan's Denis Gardrat has left to lead the UK arm of Rivage Investment, with Mohit Bhargava succeeding him as head of credit structuring [5] - Bank of America has named Dean Athanasia and Jim DeMare as co-presidents, with Alastair Borthwick expanding his role as CFO [6] - Mizuho appointed Vikram Dadlani as head of credit trading in Emea, joining after 15 years at Deutsche Bank [9] - Ian Hale has joined RBC Capital Markets as head of European inflation trading, previously at UBS [10] - Goldman Sachs appointed Ben Snider as chief US equity strategist, succeeding David Kostin [12] - Northern Trust named Jessica Donohue as global head of product management for asset servicing [13] - Royal London Asset Management appointed Will Nicoll as chief investment officer [16] - BlackRock expanded its global executive committee by adding 20 senior leaders [17] - SMBC appointed Stephen Creese as head of non-financial risk management for Emea [18] - Citi hired Shobhit Varshney as head of artificial intelligence to enhance enterprise AI capabilities [19] - Cboe Global Markets appointed Prashant Bhatia as executive vice-president and head of enterprise strategy and corporate development [20] - Nasdaq Clearing AB named Christian Sjöberg as president, pending Swedish FSA approval [21] Regulatory and Governance Changes - The European Banking Authority's chair José Manuel Campa will step down in January 2026, initiating the search for a successor [23] - Stephen Miran was sworn in as a member of the Federal Reserve Board of Governors [24] - The Office of the Comptroller of the Currency appointed Stephen Lybarger as senior deputy comptroller [25] - The SEC named Judge Margaret 'Meg' Ryan as director of the Division of Enforcement [26] - Caroline Pham of the CFTC appointed Scott Lucas as co-chair of the Global Markets Advisory Committee's digital asset markets subcommittee [27] - The US Treasury announced senior appointments, including Hunter McMaster as assistant secretary for financial markets [28] - Kristalina Georgieva of the IMF proposed Dan Katz for the fund's number two role [29]

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 Indicate by check mark whether the registrant has submitted electroni ...

[Financial Summary](index=3&type=section&id=Financial%20Summary) This section provides an overview of Northern Trust Corporation's key financial performance indicators, capital adequacy, and per-share metrics [Profitability](index=3&type=section&id=Profitability) Northern Trust Corporation's profitability metrics for Q2 2025 show a significant decline in net income and diluted EPS compared to Q2 2024, alongside a decrease in return on average common equity and profit margins Profitability Highlights (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 | 2nd Qtr 2024 | Change (%) | | :-------------------------------- | :----------- | :----------- | :--------- | | Net Income ($M) | $421.3 | $896.1 | (53)% | | Diluted Earnings Per Share ($) | $2.13 | $4.34 | (51)% | | Return on Average Common Equity (%) | 14.2% | 31.2% | (54.5)% | | Profit Margin (after tax) (FTE) (%) | 21.0% | 32.9% | (36.2)% | | Noninterest Income to Total Revenue (FTE) (%) | 69.3% | 80.5% | (13.9)% | | Trust Fees to Total Revenue (FTE) (%) | 61.5% | 42.8% | 43.7% | [Capital Ratios](index=3&type=section&id=Capital%20Ratios) The company's capital ratios show a mixed trend, with Standardized Common Equity Tier 1 slightly decreasing, while Advanced Common Equity Tier 1 increased Capital Ratios (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 | 2nd Qtr 2024 | Change (bps) | | :-------------------------------- | :----------- | :----------- | :----------- | | Common Equity Tier 1 (Standardized) (%) | 12.2% | 12.6% | (40) | | Tier 1 Capital (Standardized) (%) | 13.1% | 13.6% | (50) | | Total Capital (Standardized) (%) | 14.8% | 15.5% | (70) | | Tier 1 Leverage (Standardized) (%) | 7.6% | 8.0% | (40) | | Common Equity Tier 1 (Advanced) (%) | 15.0% | 13.9% | 110 | | Tier 1 Capital (Advanced) (%) | 16.1% | 15.0% | 110 | | Total Capital (Advanced) (%) | 17.9% | 16.9% | 100 | | Supplementary Leverage (%) | 9.1% | 9.1% | 0 | [Per Share Information / Ratios](index=3&type=section&id=Per%20Share%20Information%20%2F%20Ratios) Cash dividends declared per common share remained stable, while the dividend payout ratio increased significantly, with market and book values per share showing positive growth Per Share Information (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 | 2nd Qtr 2024 | Change (%) | | :-------------------------------- | :----------- | :----------- | :--------- | | Cash Dividends Declared Per Common Share ($) | $0.75 | $0.75 | 0% | | Dividend Payout Ratio (%) | 35% | 17% | 105.9% | | Market Value Per Share (End of Period) ($) | $126.79 | $83.98 | 51.0% | | Book Value Per Common Share (End of Period) ($) | $62.65 | $58.38 | 7.3% | [Income Statement](index=4&type=section&id=Income%20Statement) Northern Trust Corporation reported a significant decrease in net income for Q2 2025, down **53%** year-over-year to **$421.3 million**, primarily driven by a substantial decline in "Other Operating Income" and "Investment Security Gains (Losses), net" Income Statement Highlights (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($M) | 2nd Qtr 2024 ($M) | Change ($M) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :---------- | :--------- | | Total Fees | $1,231.1 | $1,166.1 | $65.0 | 6% | | Foreign Exchange Trading Income | $50.6 | $58.4 | ($7.8) | (13)% | | Other Operating Income | $56.4 | $924.7 | ($868.3) | (94)% | | Investment Security Gains (Losses), net | $0.0 | $0.1 | ($0.1) | N/M | | Total Noninterest Income | $1,387.4 | $2,192.6 | ($805.2) | (37)% | | Net Interest Income (FTE) | $615.2 | $529.8 | $85.4 | 16% | | Total Revenue (FTE) | $2,002.6 | $2,722.4 | ($719.8) | (26)% | | Total Noninterest Expense | $1,416.6 | $1,533.9 | ($117.3) | (8)% | | Net Income | $421.3 | $896.1 | ($474.8) | (53)% | | Diluted Earnings Per Share ($) | $2.13 | $4.34 | ($2.21) | (51)% | [Net Income Trends](index=5&type=section&id=Net%20Income%20Trends) This section provides a historical view of net income and its components, highlighting a significant increase in total noninterest income in 2024, largely due to "Other Operating Income," which subsequently declined in Q2 2025 Net Income Trends (Annual & Quarterly) | Metric | 2024 (Annual) ($M) | 2nd Qtr 2024 ($M) | 1st Qtr 2025 ($M) | 2nd Qtr 2025 ($M) | | :-------------------------------- | :----------------- | :---------------- | :---------------- | :---------------- | | Total Fees | $4,727.8 | $1,166.1 | $1,213.8 | $1,231.1 | | Foreign Exchange Trading Income | $231.2 | $58.4 | $58.7 | $50.6 | | Other Operating Income | $1,157.4 | $924.7 | $50.7 | $56.4 | | Total Noninterest Income | $6,113.3 | $2,192.6 | $1,371.9 | $1,387.4 | | Net Interest Income (FTE) | $2,208.9 | $529.8 | $573.7 | $615.2 | | Total Revenue (FTE) | $8,322.2 | $2,722.4 | $1,945.6 | $2,002.6 | | Total Noninterest Expense | $5,633.9 | $1,533.9 | $1,417.6 | $1,416.6 | | Net Income | $2,031.1 | $896.1 | $392.0 | $421.3 | | Diluted Earnings Per Share ($) | $9.77 | $4.34 | $1.90 | $2.13 | [Reporting Segment Results](index=6&type=section&id=Reporting%20Segment%20Results) This section details the financial performance of Northern Trust Corporation's key operating segments, including Asset Servicing, Wealth Management, and Other [Asset Servicing](index=6&type=section&id=Asset%20Servicing) The Asset Servicing segment reported an increase in Trust, Investment and Other Servicing Fees for Q2 2025 to **$691.8 million**, with income before income taxes (FTE) rising to **$271.1 million** and the pre-tax profit margin improving to **23.2%** Asset Servicing Segment Highlights (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($M) | 2nd Qtr 2024 ($M) | | :-------------------------------- | :---------------- | :---------------- | | Trust, Investment and Other Servicing Fees | $691.8 | $650.6 | | Income before Income Taxes (FTE) | $271.1 | $135.6 | | Profit Margin (pre-tax) (FTE) (%) | 23.2% | 12.9% | | Average Loans | $5,812.8 | $6,472.3 | | Average Deposits | $95,506.7 | $86,223.0 | [Wealth Management](index=6&type=section&id=Wealth%20Management) The Wealth Management segment saw a slight decrease in Trust, Investment and Other Servicing Fees in Q2 2025 to **$539.3 million**, while income before income taxes (FTE) increased to **$309.6 million**, maintaining a stable pre-tax profit margin of **37.2%** Wealth Management Segment Highlights (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($M) | 2nd Qtr 2024 ($M) | | :-------------------------------- | :---------------- | :---------------- | | Trust, Investment and Other Servicing Fees | $539.3 | $515.5 | | Income before Income Taxes (FTE) | $309.6 | $262.7 | | Profit Margin (pre-tax) (FTE) (%) | 37.2% | 33.4% | | Average Loans | $35,345.2 | $34,562.3 | | Average Deposits | $25,291.0 | $26,236.4 | [Other](index=6&type=section&id=Other) The "Other" segment reported a negative income before income taxes (FTE) of **$(11.2) million** in Q2 2025, a significant improvement from Q2 2024, with average deposits increasing to **$1,580.1 million** Other Segment Highlights (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($M) | 2nd Qtr 2024 ($M) | | :-------------------------------- | :---------------- | :---------------- | | Income before Income Taxes (FTE) | ($11.2) | $782.2 | | Average Deposits | $1,580.1 | $882.2 | [Balance Sheet (End of Period)](index=7&type=section&id=Balance%20Sheet%20(EOP)) As of June 30, 2025, Northern Trust Corporation's total assets increased by **10%** year-over-year to **$171,883.6 million**, driven primarily by a **21%** increase in Federal Reserve and Other Central Bank Deposits and a **20%** rise in Available For Sale Debt Securities Balance Sheet Highlights (End of Period: 6/30/2025 vs. 6/30/2024) | Metric | 6/30/2025 ($M) | 6/30/2024 ($M) | Change ($M) | Change (%) | | :-------------------------------- | :------------- | :------------- | :---------- | :--------- | | Federal Reserve and Other Central Bank Deposits | $52,265.5 | $43,206.1 | $9,059.4 | 21% | | Available For Sale Debt Securities | $32,250.4 | $26,861.7 | $5,388.7 | 20% | | Loans | $43,323.4 | $42,135.2 | $1,188.2 | 3% | | Total Assets | $171,883.6 | $156,797.1 | $15,086.5 | 10% | | Total Interest-Bearing Deposits | $111,914.5 | $102,064.7 | $9,849.8 | 10% | | Demand and Other Noninterest-Bearing Deposits | $25,139.2 | $20,926.2 | $4,213.0 | 20% | | Total Liabilities | $159,017.1 | $144,141.3 | $14,875.8 | 10% | | Total Stockholders' Equity | $12,866.5 | $12,655.8 | $210.7 | 2% | [Balance Sheet Trends (Period Averages)](index=8&type=section&id=Balance%20Sheet%20Trends%20(Period%20Averages)) Average total assets for Q2 2025 increased to **$157,719.2 million**, up from **$148,001.2 million** in Q2 2024, driven by a significant rise in Federal Reserve and Other Central Bank Deposits and Debt Securities Average Balance Sheet Highlights (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($M) | 2nd Qtr 2024 ($M) | | :-------------------------------- | :---------------- | :---------------- | | Federal Reserve and Other Central Bank Deposits | $43,655.3 | $35,924.1 | | Total Debt Securities | $52,310.9 | $49,965.2 | | Loans and Leases | $41,158.0 | $41,034.6 | | Total Earning Assets | $145,822.0 | $135,401.1 | | Total Assets | $157,719.2 | $148,001.2 | | Total Interest Bearing Deposits | $105,607.4 | $96,798.6 | | Total Interest Bearing Liabilities | $122,575.2 | $114,237.2 | | Total Liabilities | $145,107.1 | $135,642.4 | | Total Stockholders' Equity | $12,612.1 | $12,358.8 | [Balance Sheet Mix Trends (Period Averages)](index=10&type=section&id=Balance%20Sheet%20Mix%20Trends%20(Period%20Averages)) The balance sheet mix for Q2 2025 shows Federal Reserve and Other Central Bank Deposits increasing their share of total assets to **27.7%**, while Total Interest-Bearing Deposits remained the largest liability component at **67.0%** Average Balance Sheet Mix (Q2 2025 vs. Q2 2024) | Metric (% of Total Assets/Liabilities) | 2nd Qtr 2025 | 2nd Qtr 2024 | | :------------------------------------- | :----------- | :----------- | | Federal Reserve and Other Central Bank Deposits | 27.7% | 24.3% | | Total Debt Securities | 33.2% | 33.8% | | Loans and Leases | 26.1% | 27.7% | | Total Earning Assets | 92.5% | 91.5% | | Total Interest-Bearing Deposits | 67.0% | 65.4% | | Demand and Other Noninterest-Bearing Deposits | 10.6% | 11.2% | | Total Liabilities | 92.0% | 91.6% | | Total Stockholders' Equity | 8.0% | 8.4% | [Interest Rate Trends (FTE Basis)](index=11&type=section&id=Interest%20Rate%20Trends%20(FTE%20Basis)) For Q2 2025, the total earning assets yield decreased to **6.10%**, while the total interest-bearing liabilities rate decreased to **5.24%**, resulting in an improved net interest spread of **0.86%** and a stable net interest margin of **1.69%** Interest Rate Trends (FTE Basis) (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 | 2nd Qtr 2024 | | :-------------------------------- | :----------- | :----------- | | Federal Reserve and Other Central Bank Deposits Rate (%) | 4.01% | 5.12% | | Loans and Leases Rate (%) | 5.62% | 6.38% | | Total Earning Assets Yield (%) | 6.10% | 7.47% | | Savings, Money Market and Other Rate (%) | 3.10% | 3.75% | | Non-U.S. Offices - Interest-Bearing Rate (%) | 2.45% | 3.58% | | Total Interest Bearing Liabilities Rate (%) | 5.24% | 6.98% | | Net Interest Spread (%) | 0.86% | 0.49% | | Net Interest Margin (%) | 1.69% | 1.57% | [Asset Quality](index=12&type=section&id=Asset%20Quality) The Allowance for Credit Losses increased to **$224.1 million** at the end of Q2 2025, with Provision for Credit Losses at **$16.5 million**, while Nonaccrual Loans and Leases significantly increased to **$92.8 million**, leading to a decrease in the Allowance for Credit Losses Assigned to Loans and Leases to Nonaccrual Loans and Leases ratio from **4.4x** to **1.9x** Asset Quality Highlights (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($M) | 2nd Qtr 2024 ($M) | | :-------------------------------- | :---------------- | :---------------- | | Ending Allowance for Credit Losses | $224.1 | $209.6 | | Provision for Credit Losses | $16.5 | $8.0 | | Net (Charge-offs) Recoveries | $0.3 | $0.1 | | Nonaccrual Loans and Leases | $92.8 | $38.5 | | Allowance for Credit Losses Assigned to Loans and Leases to Total Loans and Leases (%) | 0.42% | 0.40% | | Allowance for Credit Losses Assigned to Loans and Leases to Nonaccrual Loans and Leases (x) | 1.9x | 4.4x | [Assets Under Management and Custody](index=13&type=section&id=Assets%20Under%20Management%20and%20Custody) This section provides an overview of the company's total assets under management, custody, and administration, highlighting growth across key segments and asset classes [Assets Under Management](index=13&type=section&id=Assets%20Under%20Management) Total Assets Under Management (AUM) increased to **$1,697.7 billion** at the end of Q2 2025, up from **$1,526.7 billion** in Q2 2024, driven by growth in both Asset Servicing and Wealth Management AUM Assets Under Management (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($B) | 2nd Qtr 2024 ($B) | | :-------------------------------- | :---------------- | :---------------- | | Asset Servicing AUM | $1,229.2 | $1,107.3 | | Wealth Management AUM | $468.5 | $419.4 | | Total Assets Under Management | $1,697.7 | $1,526.7 | | Equities (Total AUM) | $943.6 | $856.9 | | Fixed Income Securities (Total AUM) | $223.5 | $211.6 | | Cash and Other Assets (Total AUM) | $324.6 | $297.5 | | Securities Lending Collateral (Total AUM) | $206.0 | $160.7 | [Assets Under Custody / Administration](index=13&type=section&id=Assets%20Under%20Custody%20%2F%20Administration) Total Assets Under Custody/Administration (AUC/A) reached **$18,068.3 billion** at the end of Q2 2025, an increase from **$16,567.4 billion** in Q2 2024, with contributions from both Asset Servicing and Wealth Management segments Assets Under Custody / Administration (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($B) | 2nd Qtr 2024 ($B) | | :-------------------------------- | :---------------- | :---------------- | | Asset Servicing AUC/A | $16,864.9 | $15,470.8 | | Wealth Management AUC/A | $1,203.4 | $1,096.6 | | Total Assets Under Custody / Administration | $18,068.3 | $16,567.4 | [Assets Under Custody](index=13&type=section&id=Assets%20Under%20Custody) Total Assets Under Custody (AUC) increased to **$14,243.7 billion** at the end of Q2 2025, up from **$13,041.4 billion** in Q2 2024, with equities remaining the largest asset class and showing significant growth Assets Under Custody (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($B) | 2nd Qtr 2024 ($B) | | :-------------------------------- | :---------------- | :---------------- | | Asset Servicing AUC | $13,056.5 | $11,955.5 | | Wealth Management AUC | $1,187.2 | $1,085.9 | | Total Assets Under Custody | $14,243.7 | $13,041.4 | | Equities (Total AUC) | $7,156.8 | $6,381.0 | | Fixed Income Securities (Total AUC) | $4,203.0 | $3,801.2 | | Cash and Other Assets (Total AUC) | $2,677.9 | $2,698.5 | | Securities Lending Collateral (Total AUC) | $206.0 | $160.7 | [Reconciliation to Fully Taxable Equivalent](index=15&type=section&id=Reconciliation%20to%20Fully%20Taxable%20Equivalent) This section provides a reconciliation of GAAP financial measures and ratios to their Fully Taxable Equivalent (FTE) counterparts, offering a clearer comparative view for management analysis [Reconciliation to Fully Taxable Equivalent (Financial Measures)](index=15&type=section&id=Reconciliation%20to%20Fully%20Taxable%20Equivalent%20(Financial%20Measures)) This section provides a reconciliation of GAAP financial measures to their Fully Taxable Equivalent (FTE) counterparts, which management uses for comparative purposes, primarily impacting interest income and total revenue without affecting net income FTE Reconciliation (Financial Measures) (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($M) | 2nd Qtr 2024 ($M) | | :-------------------------------- | :---------------- | :---------------- | | Interest Income - GAAP | $2,212.8 | $2,506.5 | | Add: FTE Adjustment | $4.7 | $6.9 | | Interest Income (FTE) - Non GAAP | $2,217.5 | $2,513.4 | | Net Interest Income - GAAP | $610.5 | $522.9 | | Net Interest Income (FTE) - Non-GAAP | $615.2 | $529.8 | | Total Revenue - GAAP | $1,997.9 | $2,715.5 | | Total Revenue (FTE) - Non GAAP | $2,002.6 | $2,722.4 | | Income before Income Taxes - GAAP | $564.8 | $1,173.6 | | Income before Income Taxes (FTE) - Non-GAAP | $569.5 | $1,180.5 | | Provision for Income Taxes - GAAP | $143.5 | $277.5 | | Provision for Income Taxes (FTE) - Non-GAAP | $148.2 | $284.4 | [Reconciliation to Fully Taxable Equivalent (Ratios)](index=16&type=section&id=Reconciliation%20to%20Fully%20Taxable%20Equivalent%20(Ratios)) This section reconciles key financial ratios from a GAAP basis to a Fully Taxable Equivalent (FTE) basis, providing a clearer comparative view, with Q2 2025 Profit Margin (pre-tax) (FTE) at **28.4%** and Effective Tax Rate (FTE) at **26.0%** FTE Reconciliation (Ratios) (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 (GAAP) | 2nd Qtr 2025 (FTE) | 2nd Qtr 2024 (GAAP) | 2nd Qtr 2024 (FTE) | | :-------------------------------- | :------------------ | :----------------- | :------------------ | :----------------- | | Profit Margin (pre-tax) (%) | 28.3% | 28.4% | 43.2% | 43.4% | | Profit Margin (after-tax) (%) | 21.1% | 21.0% | 33.0% | 32.9% | | Effective Tax Rate (%) | 25.4% | 26.0% | 23.6% | 24.1% | | Noninterest Income to Total Revenue (%) | 69.4% | 69.3% | 80.7% | 80.5% | | Trust Fees to Total Revenue (%) | 61.6% | 61.5% | 42.9% | 42.8% | | Net Interest Spread (%) | 0.85% | 0.86% | 0.47% | 0.49% | | Net Interest Margin (%) | 1.68% | 1.69% | 1.55% | 1.57% |

Group 1 - Bank of New York Mellon Corp. expressed interest in merging with Northern Trust, with discussions between their chief executives taking place [1][3] - No formal offer was discussed during the conversations, but a future formal bid from BNY is possible [3][6] - BNY has a market capitalization of $65.55 billion, while Northern Trust's market cap stands at $21.76 billion [3] Group 2 - In May, BNY received a license to establish a regional headquarters in Saudi Arabia, indicating its strategy to enhance its presence in the financial hub [4] - Both BNY and Northern Trust have not provided comments regarding the merger discussions [5]

Financial Performance - Total revenue for Q1 2025 increased to $1.94 billion, up 18% from $1.65 billion in Q1 2024, driven by higher net interest income and servicing fees[14] - Net income for Q1 2025 was $392.0 million, representing an 83% increase compared to $214.7 million in Q1 2024[14] - Noninterest income increased to $1.37 billion, a 23% rise from $1.12 billion in Q1 2024, reflecting favorable market conditions[8] - Net interest income rose to $568.1 million, an 8% increase from $528.1 million in the prior year, primarily due to higher deposits and lower funding costs[15] - Noninterest expenses increased to $1.42 billion, a 4% rise from $1.36 billion in the prior year, mainly due to higher compensation and equipment expenses[17] - Return on average common equity improved to 13.0% in Q1 2025, up from 7.3% in Q1 2024, reflecting enhanced profitability[9] Assets and Liabilities - Total assets at the end of Q1 2025 were $165.07 billion, a 6% increase from $155.51 billion at the end of 2024[8] - Total Assets Under Custody/Administration increased to $16,924.0 billion, reflecting a 1% increase quarter-over-quarter and a 3% increase year-over-year[27] - Total Assets Under Management reached $1,607.8 billion, remaining stable quarter-over-quarter and increasing by 7% year-over-year[32] - Total Interest-Bearing Deposits increased by $11.0 billion, or 11%, to $109.1 billion compared to the prior-year quarter[85] - Average Interest-Bearing Deposits increased by $3.3 billion, or 4%, to $99.0 billion compared to the prior-year quarter[55] Credit Quality - The provision for credit losses was $1.0 million, compared to a negative provision of $8.5 million in Q1 2024, indicating improved credit quality[16] - Nonaccrual loans to total loans ratio increased to 0.18% as of March 31, 2025, from 0.13% as of December 31, 2024[102] - The total allowance for credit losses as of March 31, 2025, was $199.9 million, compared to $198.4 million as of December 31, 2024, with the allowance assigned to loans at $167.1 million[109] Market Conditions - The S&P 500 index increased by 18% year-over-year, contributing positively to the company's performance[24] - Total inflows for the three months ended March 31, 2025, amounted to $807.5 billion, while total outflows were $795.9 billion, resulting in net inflows of $11.6 billion[37] - Securities Lending Collateral increased by 8% year-over-year to $191.1 billion, reflecting strong demand[35] Tax and Dividends - The effective tax rate for Q1 2025 was 24.8%, down from 26.1% in the prior year, with the provision for income taxes totaling $129.4 million[17] - The Corporation declared cash dividends totaling $148.2 million to common stockholders during the three months ended March 31, 2025, compared to $153.4 million in the prior-year quarter[90] Capital and Liquidity - Common Equity Tier 1 capital ratio for Northern Trust Corporation was 12.9% as of March 31, 2025, up from 12.4% at December 31, 2024, indicating strong capital adequacy[127] - 66% of total assets were highly liquid as of March 31, 2025, compared to 62% at December 31, 2024, demonstrating an increase in liquidity[131] Interest Income and Expenses - Total Interest Income decreased by $306.4 million, primarily due to changes in average balance and average rate[47] - Total Interest Expense decreased to $1.57 billion in Q1 2025 from $1.92 billion in Q1 2024, a reduction of 18%[47] - The interest rate spread was reported at 0.80% for the current quarter compared to 0.51% in the prior-year quarter[46] Other Income - Other Noninterest Income totaled $158.1 million, a significant increase from a loss of $24.2 million in the prior year[38] - Foreign Exchange Trading Income rose to $58.7 million, reflecting a 3% increase from $57.0 million in the prior year[38]

Financial Performance - Northern Trust Corporation reported a net income of $392.0 million for Q1 2025, reflecting a 92% increase compared to the previous year[4]. - Basic earnings per share (EPS) for Q1 2025 was $2.27, up from $1.91 in Q1 2024, indicating a growth of 19%[4]. - The return on average common equity for Q1 2025 was 13.0%, compared to 7.3% in Q1 2024, showing a significant improvement[4]. - The profit margin (after tax) for Q1 2025 was 20.1%, up from 13.0% in Q1 2024, indicating enhanced profitability[4]. - Total revenue for Q1 2025 was $1,945.6 million, an increase of 18% compared to $1,654.1 million in Q1 2024[5]. - Net income rose to $392.0 million, reflecting an 83% increase from $214.7 million in the same quarter last year[5]. - Earnings per share (EPS) increased to $1.91, up 99% from $0.96 in Q1 2024[5]. - Total revenue (GAAP) for 2023 was $6,773.5 million, compared to $6,761.2 million in 2022, indicating a slight increase[28]. - The company anticipates total revenue (FTE) to reach $8,322.2 million in 2024, indicating a positive outlook for growth[28]. Income and Expenses - Total noninterest income grew by 23% to $1,371.9 million, compared to $1,118.7 million in Q1 2024[5]. - Net interest income (FTE) increased by 7% to $573.7 million, up from $535.4 million in the previous year[5]. - Compensation expenses rose by 3% to $644.4 million, compared to $627.1 million in Q1 2024[5]. - Total noninterest expense increased by 4% to $1,417.6 million, up from $1,364.7 million in the same quarter last year[5]. - The company reported a provision for (release of) credit losses of $24.5 million in 2023, compared to a release of $12.0 million in 2022[7]. Capital and Equity - The total capital ratio for Q1 2025 was 15.7%, an increase from 14.2% in Q1 2024, indicating stronger capital position[4]. - Cash dividends declared per common share for Q1 2025 remained at $0.75, consistent with the previous quarter[4]. - Common equity increased by 7% to $11,993.6 million compared to $11,216.9 million last year[11]. - Total stockholders' equity grew by 6% to $12,878.5 million from $12,101.8 million[11]. - The company reported a total stockholders' equity of $8.4 billion in 2024, maintaining a consistent level over the previous years[16]. Assets and Liabilities - Total assets increased by 6% to $165,071.2 million from $156,111.0 million year-over-year[11]. - Total liabilities rose by 6% to $152,192.7 million from $144,009.2 million[11]. - Total assets increased to $146,633.5 million in 2024 from $142,649.2 million in 2023, reflecting a growth of 2.7%[13]. - Total earning assets grew by 6% to $153,202.0 million compared to $144,495.9 million in the previous year[11]. - Loans decreased by 14% to $40,833.3 million, down from $47,342.6 million[11]. Market and Growth Outlook - The company expects Total Revenue to increase to $8,322.2 million in 2024, representing a projected growth of approximately 21.8%[7]. - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[16]. - The company expects continued growth in Assets Under Management, projecting a target of $1,700 billion by the end of 2025[23]. - New product developments are focused on enhancing digital asset management capabilities to attract younger investors[23]. - The company plans to expand its market presence in Asia, targeting a 15% increase in client acquisition in the region by 2025[23]. Profitability Metrics - The net interest margin (FTE) for 2023 was reported at 57.5%, reflecting a stable performance compared to previous years[29]. - Profit margin (pre-tax) for 2023 was 21.6% GAAP, with a forecast of 32.1% for 2024[32]. - Profit margin (after-tax) for 2023 was 16.3% GAAP, projected to increase to 24.5% in 2024[32]. - The company reported a significant increase in profit margins across both pre-tax and after-tax categories compared to previous years[32]. - Future outlook indicates a positive trend in noninterest income and trust fees, suggesting potential revenue growth[32].