Northern Trust(US:NTRS)2025-04-30 20:04Financial Performance - Total revenue for Q1 2025 increased to $1.94 billion, an 18% increase from $1.65 billion in Q1 2024[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 rose to $1.37 billion, a 23% increase from $1.12 billion in the previous year[8] - Net interest income increased to $568.1 million, an 8% rise from $528.1 million in Q1 2024[14] - Noninterest expense for Q1 2025 was $1.42 billion, a 4% increase from $1.36 billion in Q1 2024[14] - Return on average common equity improved to 13.0% in Q1 2025, up from 7.3% in Q1 2024[9] Asset Management - Total Assets Under Custody/Administration reached $16,924.0 billion, a 1% increase from the prior quarter and a 3% increase year-over-year[27] - Total Assets Under Management stood at $1,607.8 billion, unchanged from the prior quarter but up 7% from the prior-year quarter[32] - Wealth Management fee income rose due to favorable markets, with Global Family Office fee income increasing from asset inflows[22] - Total Asset Servicing Trust, Investment and Other Servicing Fees increased to $1,213.8 million in Q1 2025, up 6% from $1,142.9 million in Q1 2024[19] Credit and Provisioning - Provision for credit losses was $1.0 million, compared to a negative provision of $8.5 million in the prior-year quarter[16] - The negative Provision for Credit Losses was $0.9 million for the quarter ended March 31, 2025, compared to a negative $1.7 million in the prior-year quarter[81] - Net recoveries in the current quarter were $0.2 million, compared to $10.4 million net charge-offs in the prior-year quarter[58] Liquidity and Capital - The 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[127] - Northern Trust's liquidity position remained strong, with 66% of total assets consisting of highly liquid assets as of March 31, 2025, compared to 62% at December 31, 2024[131] Interest Income and Rates - Net Interest Income (NII) for Q1 2025 was $568.1 million, an increase from $528.1 million in Q1 2024, reflecting a year-over-year growth of 7.5%[152] - The average interest rate on Loans decreased to 5.68% from 6.34% in the prior-year quarter[46] - Average Interest-Bearing Deposits rose by $3.3 billion, or 4%, to $99.0 billion compared to the prior-year quarter[55] Market Performance - The S&P 500 index increased by 18% year-over-year, contributing positively to the Corporation's results[24] - Other Noninterest Income totaled $158.1 million, a significant increase from a loss of $24.2 million in the prior year[38] Cash Flow - Net cash provided by operating activities for the three months ended March 31, 2025, was $2,749.8 million, a significant improvement from a net cash used of $1,452.6 million in the same period of 2024[116][117] - Net cash used in investing activities rose to $10,285.4 million for the three months ended March 31, 2025, compared to $4,793.4 million in the same period of 2024, indicating increased investment activity[119][120] Securities and Investments - Total Debt Securities amounted to $51.3 billion as of March 31, 2025, with 87% rated AAA and 8% rated AA[95] - The total available for sale debt securities amounted to $29,001.5 million as of December 31, 2024, with U.S. Government securities comprising 96% of the total[96] Other Income - Total Other Noninterest Income for Q1 2025 was $158.1 million, a significant increase of $182.3 million compared to a loss of $24.2 million in Q1 2024[38] - Foreign Exchange Trading Income rose to $58.7 million, reflecting a 3% increase from $57.0 million in the prior year[38]