Northern Trust(US:NTRS)2025-10-30 20:03Financial 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 decreased by 2% to $457.6 million compared to $464.9 million in Q3 2024[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]. - Total Assets Under Custody/Administration as of September 30, 2025, increased to $18,247.6 billion, reflecting a 5% increase year-over-year[30]. - Total Assets Under Management as of September 30, 2025, increased to $1,772.7 billion, representing a 9% increase compared to the prior-year quarter[34]. 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]. - Net Interest Income for Q3 2025 increased to $590.8 million, a 5% increase from $562.3 million in Q3 2024[8]. - Average Interest-Earning Assets totaled $139.34 billion in Q3 2025, with a net interest margin of 1.70%, compared to 1.68% in Q3 2024[50]. - The net interest margin on an FTE basis increased to 1.69% for the nine months ended September 30, 2025, compared to 1.62% in the prior-year period[60]. Credit Losses and Provisions - 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 total provision for credit losses for the nine months ended September 30, 2025, was $0.5 million, significantly lower than the $7.5 million provision in the prior-year period[76]. - The company recorded a negative Provision for Credit Losses of $17.0 million in the current quarter, compared to a Provision for Credit Losses of $8.0 million in the prior-year quarter[18]. Taxation - The Provision for Income Taxes for the current quarter totaled $161.9 million, with an effective tax rate of 26.1%[18]. - The effective tax rate for the nine months ended September 30, 2025, was 25.5%, compared to 23.7% in the prior-year period[18]. Noninterest Expenses - Noninterest Expense for the current quarter increased to $1.4 billion, primarily due to higher Compensation and Equipment and Software expenses[18]. - Noninterest expense for the three months ended September 30, 2025, increased by 5% to $1,422.9 million, primarily due to a rise in compensation expenses by $41.7 million[79]. - The company reported a total noninterest expense of $4,257.1 million for the nine months ended September 30, 2025, which remained relatively stable compared to the prior-year period[79]. Market Performance and Shareholder Returns - 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]. - Cash dividends declared per common share increased by 7% to $0.80 for the three months ended September 30, 2025[8]. - The S&P 500 index increased by 16% year-over-year, impacting the corporation's results positively[26]. Capital and Liquidity - 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]. - The company’s Tier 1 Capital ratio was 13.4% as of September 30, 2025, compared to 13.3% as of December 31, 2024, indicating a slight improvement in capital adequacy[148]. - The company’s total assets at the end of the period were $170,263.3 million as of September 30, 2025, up from $155,508.4 million as of December 31, 2024, reflecting a growth of 9.4%[147]. Client Activity and Market Conditions - The company experienced increased client activity and higher liquidity due to market volatility, impacting deposit levels[55]. - The estimated impact on Net Interest Income (NII) for a 100 basis point increase in interest rates is $68 million for September 30, 2025, compared to $59 million for September 30, 2024[160].