Northern Trust (NTRS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Northern Trust Corporation (NTRS) reported $2 billion in revenue for Q2 2025, a year-over-year decline of 26.4%, while EPS increased to $2.13 from $1.78 a year ago, exceeding consensus estimates [1] - The revenue surpassed the Zacks Consensus Estimate of $1.97 billion, resulting in a surprise of +1.19%, and the EPS also showed a surprise of +2.4% against the consensus estimate of $2.08 [1] Financial Performance Metrics - Tier 1 Leverage Ratio was reported at 7.6%, slightly below the estimated 7.8% [4] - Net interest margin (FTE) remained stable at 1.7%, matching the average estimate [4] - Average Balance of Total earning assets was $145.82 billion, exceeding the estimated $139.18 billion [4] - Nonaccrual Loans and Leases amounted to $92.8 million, higher than the average estimate of $59.16 million [4] - Wealth Management Trust, Investment and Other Servicing Fees for Global Family Office reached $104.5 million, a +5.8% change year-over-year, slightly above the estimate of $104.02 million [4] - Total Wealth Management Trust, Investment and Other Servicing Fees were $539.3 million, reflecting a +4.6% year-over-year change, below the estimate of $548.23 million [4] - Asset Servicing Trust, Investment and Other Servicing Fees for Custody and Fund Administration were $469.2 million, a +5.2% change year-over-year, above the estimate of $464.2 million [4] - Total Asset Servicing Trust, Investment and Other Servicing Fees were reported at $691.8 million, a +6.3% year-over-year change, slightly above the estimate of $687.8 million [4] - Securities Lending fees were $20.2 million, a +22.4% year-over-year change, below the estimate of $21.34 million [4] - Other Asset Servicing Trust fees were $45.1 million, a +6.1% change year-over-year, below the estimate of $46.28 million [4] - Investment Management fees were $157.3 million, a +8% year-over-year change, slightly above the estimate of $156 million [4] - Net Interest Income (FTE Adjusted) was $615.2 million, exceeding the average estimate of $580.77 million [4] Stock Performance - Northern Trust shares returned +7.1% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]