Core Insights - Northern Trust Corporation (NTRS) reported third-quarter 2025 earnings per share (EPS) of $2.29, exceeding the Zacks Consensus Estimate of $2.26 and up from $2.22 in the prior-year quarter [1][9] - The results were supported by an increase in net interest income (NII), total assets under custody (AUC), and assets under management (AUM), although elevated expenses and a decline in other fee income raised concerns [1][11] Financial Performance - Net income on a GAAP basis was $457.6 million, reflecting a 1.6% decrease from the prior-year quarter [2] - Total revenues on a GAAP basis reached $2.02 billion, marking a 2.8% year-over-year increase, but fell short of the Zacks Consensus Estimate by nearly 1% [3] - NII on a fully taxable equivalent basis was $596.3 million, up 4.7% year over year, with a net interest margin of 1.70%, an increase of 2 basis points from the prior-year quarter [3] - Trust, investment, and other servicing fees totaled $1.26 billion, up 5.7% year over year [3] Expenses and Income - Other non-interest income decreased by 19.3% to $169.1 million compared to the year-ago quarter, primarily due to a drop in other operating income [4] - Non-interest expenses rose 4.7% year over year to $1.42 billion, driven by increases across all components except for outside services and other operating expenses [4] AUC and AUM - As of September 30, 2025, total AUC increased by 4.7% year over year to $14.4 trillion, while total AUM rose by 9.3% year over year to $1.8 trillion [5] Credit Quality - The total allowance for credit losses was $206.7 million, down 6% year over year [6] - Total non-accrual assets increased to $78.8 million from $73.1 million in the year-ago period [6] - NTRS reported provision benefits of $17 million in the third quarter, compared to a provision for credit losses of $8 million in the year-ago quarter [6] Capital and Profitability Ratios - As of September 30, 2025, the Common Equity Tier 1 capital ratio was 12.4%, down from 12.6% in the prior-year quarter [7] - The total capital ratio decreased to 15.1% from 15.6% in the year-ago quarter, and the Tier 1 leverage ratio was 8.0%, down from 8.1% [7] - The return on average common equity was 14.8%, compared to 15.4% in the prior-year quarter [7] Capital Distribution - In the reported quarter, Northern Trust returned $431.3 million to shareholders through share repurchases and dividends [10]