Financial Summary This section provides an overview of Northern Trust Corporation's key financial performance indicators, capital adequacy, and per-share metrics 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 | $4.34 | (51)% | | Return on Average Common Equity (%) | 14.2% | 31.2% | (54.5)% | | Profit Margin (after tax) (FTE) (%) | 21.0% | 32.9% | (36.2)% | | Noninterest Income to Total Revenue (FTE) (%) | 69.3% | 80.5% | (13.9)% | | Trust Fees to Total Revenue (FTE) (%) | 61.5% | 42.8% | 43.7% | Capital Ratios The company's capital ratios show a mixed trend, with Standardized Common Equity Tier 1 slightly decreasing, while Advanced Common Equity Tier 1 increased Capital Ratios (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 | 2nd Qtr 2024 | Change (bps) | | :-------------------------------- | :----------- | :----------- | :----------- | | Common Equity Tier 1 (Standardized) (%) | 12.2% | 12.6% | (40) | | Tier 1 Capital (Standardized) (%) | 13.1% | 13.6% | (50) | | Total Capital (Standardized) (%) | 14.8% | 15.5% | (70) | | Tier 1 Leverage (Standardized) (%) | 7.6% | 8.0% | (40) | | Common Equity Tier 1 (Advanced) (%) | 15.0% | 13.9% | 110 | | Tier 1 Capital (Advanced) (%) | 16.1% | 15.0% | 110 | | Total Capital (Advanced) (%) | 17.9% | 16.9% | 100 | | Supplementary Leverage (%) | 9.1% | 9.1% | 0 | Per Share Information / Ratios Cash dividends declared per common share remained stable, while the dividend payout ratio increased significantly, with market and book values per share showing positive growth Per Share Information (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 | 2nd Qtr 2024 | Change (%) | | :-------------------------------- | :----------- | :----------- | :--------- | | Cash Dividends Declared Per Common Share ($) | $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 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 | ($2.21) | (51)% | Net Income Trends This section provides a historical view of net income and its components, highlighting a significant increase in total noninterest income in 2024, largely due to "Other Operating Income," which subsequently declined in Q2 2025 Net Income Trends (Annual & Quarterly) | Metric | 2024 (Annual) ($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 This section details the financial performance of Northern Trust Corporation's key operating segments, including Asset Servicing, Wealth Management, and Other Asset Servicing 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 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 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) 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) 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) 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) 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 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 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 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 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 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 | $160.7 | Reconciliation to Fully Taxable Equivalent This section provides a reconciliation of GAAP financial measures and ratios to their Fully Taxable Equivalent (FTE) counterparts, offering a clearer comparative view for management analysis Reconciliation to Fully Taxable Equivalent (Financial Measures) This section provides a reconciliation of GAAP financial measures to their Fully Taxable Equivalent (FTE) counterparts, which management uses for comparative purposes, primarily impacting interest income and total revenue without affecting net income FTE Reconciliation (Financial Measures) (Q2 2025 vs. Q2 2024) | Metric | 2nd Qtr 2025 ($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) 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% |
NORTHERN DEPOSIT(NTRSO) - 2025 Q2 - Quarterly Results