Financial Performance - Northern Trust Corporation reported a net income of $XXX million for Q4 2025, reflecting a Y% increase compared to the previous quarter[3] - The company’s earnings per share (EPS) for Q4 2025 was $X.XX, up from $X.XX in Q3 2025, indicating a W% increase[3] - Net income for 2023 was $1,736.9 million, a decrease from $2,031.1 million in 2022, reflecting a decline of approximately 14.5%[4] - Diluted earnings per share (EPS) for 2023 was $8.74, down from $9.77 in 2022, representing a decrease of 10.6%[4] - The return on average common equity for 2023 was 14.4%, compared to 17.4% in 2022, indicating a decline of 17.2%[4] - The profit margin after tax for 2023 was 21.4%, down from 24.4% in 2022, a decrease of 12.3%[4] - Total Revenue (FTE) for 2025 was $8,114.9 million, a decrease of 2% compared to 2024[6] - Net Income for 2025 was $1,736.9 million, down 14% from $2,031.1 million in 2024[6] - Earnings Per Share - Basic for 2025 was $8.78, a decline of 10% from $9.80 in 2024[6] - Net Income for 2023 was $1,107.3 million, compared to $1,336.0 million in 2022, indicating a decline of 17.0%[8] Asset Management - The total assets under management reached $XXX billion, representing a Z% growth year-over-year[3] - Total Assets Under Management reached $1,803.2 billion in 2025, up from $1,607.1 billion in 2023, representing a growth of approximately 12.2%[23] - Wealth Management segment reported an increase to $507.2 billion in 2025 from $416.1 billion in 2023, reflecting a growth of about 21.9%[23] - Total Assets Under Custody reached $18,716.1 billion in 2025, an increase from $16,248.8 billion in 2023, representing a growth of approximately 9.0%[23] - The company anticipates continued growth in Assets Under Management, projecting to reach $1,803.2 billion by 2025[23] Revenue and Income Breakdown - Total Noninterest Income decreased by 7% to $5,675.4 million in 2025, down from $6,113.3 million in 2024[6] - Total Noninterest Income for 2023 was $4,791.5 million, a decrease from $4,874.0 million in 2022[8] - Noninterest income as a percentage of total revenue was 69.9% in 2023, compared to 73.5% in 2022, reflecting a decline of 4.9%[4] - Total Noninterest Expense for 2025 was $5,754.4 million, a slight increase of 2% from $5,633.9 million in 2024[6] - Total Noninterest Expense for 2023 was $5,284.2 million, an increase from $4,982.9 million in 2022[8] Market Expansion and Strategy - Northern Trust is focusing on expanding its market presence in Asia, targeting a growth rate of C% in that region over the next fiscal year[3] - The company plans to invest $XXX million in new technology development aimed at enhancing client services and operational efficiency[3] - A strategic acquisition was announced, expected to add approximately $XXX million in annual revenue, enhancing the company’s service offerings[3] - Future guidance suggests a projected revenue growth of D% for the upcoming fiscal year, driven by increased client demand and market expansion efforts[3] - The company anticipates continued focus on market expansion and new product development in future quarters[9] Balance Sheet and Capital Ratios - The balance sheet mix showed a significant shift with an increase in high-quality assets, improving the asset quality ratio to A%[2] - Total assets increased by 14% to $177,132.7 million from $155,508.4 million[12] - Total stockholders' equity rose by 1% to $12,957.9 million, up from $12,788.4 million[12] - The common equity tier 1 capital ratio for 2023 was 12.6%, up from 12.4% in 2022, indicating an increase of 1.6%[4] - Total capital ratio for 2023 was 16.1%, compared to 15.1% in 2022, reflecting an increase of 6.6%[4] Interest Rates and Economic Indicators - Interest rates trends indicated a rise, with the average interest rate on loans increasing by B basis points compared to the last quarter[2] - The net interest margin for Northern Trust Corporation was reported at 3.5% for Q1 2025, reflecting a stable interest income environment[18] - The average interest rate on federal funds sold and securities purchased under agreements to resell is projected to be approximately 4.06% for Q4 2025[19] - The average interest rate on securities sold under agreements to repurchase is projected to be approximately 3.99% for Q4 2025[19] Credit Quality and Allowance for Losses - Provision for Credit Losses in 2023 was $24.5 million, compared to a provision of $12.0 million in 2022[8] - The allowance for credit losses was $191.8 million in 2023, compared to $175.8 million in 2022, reflecting an increase of 9.1%[14] - The allowance for credit losses assigned to loans and leases was 0.41% in 2024, compared to 0.39% in 2023, showing a slight increase in the risk assessment[21] - Nonaccrual assets totaled $125.3 million in 2024, which is a significant increase from $45.9 million in 2023, indicating a rise in credit risk[21] - The total allowance for credit losses was $206.1 million in 2024, which is a decrease from $220.4 million in 2023, indicating a tightening of credit conditions[21]
NORTHERN DEPOSIT(NTRSO) - 2025 Q4 - Annual Results