Northern Trust(US:NTRS)2025-07-23 11:11Financial Performance - Net income for Q2 2025 was $421.3 million, showing a 7.4% increase from Q1 2025[4] - Basic earnings per share (EPS) for Q2 2025 was $2.14, compared to $2.27 in Q1 2025, reflecting a decrease of 5.7%[4] - Return on average common equity for Q2 2025 was 14.2%, up from 13.0% in Q1 2025[4] - Total revenue for the first half of 2025 was $2,759.3 million, a decrease of 17% compared to $3,311.3 million in 2024[6] - Net income for the second quarter of 2025 was $813.3 million, down 27% from $1,110.8 million in the same period of 2024[6] - Earnings per share (EPS) for the second quarter of 2025 were $4.05, a decline of 24% compared to $5.30 in 2024[6] - Total noninterest income decreased by 37% to $1,387.4 million in the second quarter of 2025 from $2,192.6 million in 2024[6] - Total revenue (FTE) for 2023 was $6,831.0 million, an increase from $6,806.8 million in 2022, with a projected growth to $8,322.2 million in 2024[8] - Net Income for 2023 was $1,107.3 million, compared to $1,336.0 million in 2022, with an expected increase to $2,031.1 million in 2024[8] - Earnings Per Share - Basic for 2023 was $5.09, with a forecasted rise to $9.80 in 2024[8] Revenue and Income Composition - Noninterest income as a percentage of total revenue was 70.5% in Q2 2025, compared to 70.8% in Q1 2025[4] - Trust fees as a percentage of total revenue were 61.5% in Q2 2025, down from 62.4% in Q1 2025[4] - The profit margin (pre-tax) for 2023 was 21.1%, down from 26.7% in 2022[10] - Income before income taxes for 2023 was $871.0 million, compared to $1,083.2 million in 2022, reflecting a decrease of approximately 19.6%[10] - The average profit margin for wealth management in 2023 was 37.8%, down from 39.7% in 2022[10] Expenses and Costs - Total noninterest expense for the second quarter of 2025 was $1,416.6 million, an 8% decrease from $1,533.9 million in 2024[6] - Compensation expenses for the first half of 2025 were $1,259.2 million, a 3% decrease from $1,292.3 million in 2024[6] - Total Noninterest Expense for 2023 was $5,284.2 million, an increase from $4,982.9 million in 2022, with a forecast of $5,633.9 million in 2024[8] Assets and Liabilities - Total assets for 2023 were reported at $2,461.9 million, a slight decrease from $2,496.3 million in 2022[10] - Total liabilities increased to $137,658.1 million in 2023 from $131,152.4 million in 2022, reflecting a growth of approximately 4.3%[15] - Total stockholders' equity reached $12,604.0 million in 2023, up from $11,496.8 million in 2022, indicating a growth of about 9.7%[15] - Total earning assets for 2023 were $145,822.0 million, an increase from $138,007.9 million in 2022, representing a growth of about 5.5%[15] Credit and Loans - Provision for credit losses was $17.5 million in the second quarter of 2025, compared to a negative provision of $(0.5) million in 2024[6] - Average loans for 2023 were $6,272.6 million, a decrease from $7,208.0 million in 2022[10] - The allowance for credit losses was reported at $(174.9) million for 2023, compared to $(172.8) million in 2022, indicating a slight increase in provisions[15] Market and Growth Strategies - The company plans to expand its market presence by entering new geographic regions, targeting a growth rate of AA% in the upcoming fiscal year[16] - Northern Trust Corporation has invested in new technology initiatives, allocating $BB million towards digital transformation projects aimed at enhancing customer experience[16] - The firm anticipates a revenue increase of CC% for the next quarter, driven by strong demand in its wealth management segment[16] - The company expects continued growth in total assets under management, projecting an increase to $1,697.7 billion by Q4 2024[25] Interest Income and Rates - Net Interest Income (FTE Adjusted) is a non-GAAP financial measure, with a net interest margin of 7.29% for 2024, up from 5.64% in 2023[20] - The average interest rate on Loans and Leases was 6.34% in Q1 2024, compared to 5.97% in Q4 2023[21] - The net interest margin for Q4 2023 was 1.71%, an increase from 1.68% in Q3 2023[21] Digital Engagement and User Metrics - Northern Trust Corporation reported an increase in user data engagement, with a YY% rise in active users on its digital platforms[16]