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]
NORTHERN DEPOSIT(NTRSO) - 2025 Q1 - Quarterly Report