Northern Trust Corporation
10/22/2025 | Press release | Distributed by Public on 10/22/2025 05:05
NORTHERN TRUST CORPORATION REPORTS THIRD QUARTERNET INCOME OF $457.6 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $2.29 (Form 8-K)
NORTHERN TRUST CORPORATION REPORTS THIRD QUARTER
NET INCOME OF $457.6 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $2.29
NET INCOME OF $457.6 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $2.29
CHICAGO, OCTOBER 22, 2025 - Northern Trust Corporation today reported third quarter net income per diluted common share of $2.29, compared to $2.13 in the second quarter of 2025 and $2.22 in the third quarter of 2024. Net income was $457.6 million, compared to $421.3 million in the prior quarter and $464.9 million in the prior-year quarter.
| MICHAEL O'GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER: | ||
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"Northern Trust delivered strong third quarter results with solid revenue growth across trust fees, capital markets and net interest income. ROE was at the high end of our target range, while lending and balance sheet measures remained sound. Continued expense discipline contributed to meaningful pre-tax margin expansion, double digit EPS growth and our fifth consecutive quarter of positive operating leverage and year-over-year improvement in our expense-to-trust fee ratio, excluding notables. As we prepare to close out the year, we remain focused on executing on our One Northern Trust strategy, serving our clients with distinction, and generating value for our shareholders." |
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| FINANCIAL SUMMARY & KEY METRICS | ||||||||||||||||||||
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% Change Q3 2025 vs.
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| ($ In Millions except per share data) | Q3 2025 | Q2 2025 | Q3 2024 | Q2 2025 | Q3 2024 | |||||||||||||||
| Trust, Investment and Other Servicing Fees | $ | 1,265.5 | $ | 1,231.1 | $ | 1,196.6 | 3 | % | 6 | % | ||||||||||
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Other Noninterest Income (1)
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169.1 | 156.3 | 209.6 | 8 | (19) | |||||||||||||||
| Net Interest Income (FTE*) | 596.3 | 615.2 | 569.4 | (3) | 5 | |||||||||||||||
| Total Revenue (FTE*) | $ | 2,030.9 | $ | 2,002.6 | $ | 1,975.6 | 1 | % | 3 | % | ||||||||||
| Noninterest Expense | $ | 1,422.9 | $ | 1,416.6 | $ | 1,359.4 | - | % | 5 | % | ||||||||||
| Provision for Credit Losses | (17.0) | 16.5 | 8.0 | N/M | N/M | |||||||||||||||
| Provision for Income Taxes | 161.9 | 143.5 | 136.2 | 13 | 19 | |||||||||||||||
| FTE Adjustment* | 5.5 | 4.7 | 7.1 | 14 | (23) | |||||||||||||||
| Net Income | $ | 457.6 | $ | 421.3 | $ | 464.9 | 9 | % | (2) | % | ||||||||||
| Earnings Allocated to Common and Potential Common Shares | $ | 437.2 | $ | 412.8 | $ | 445.0 | 6 | % | (2) | % | ||||||||||
| Diluted Earnings per Common Share | $ | 2.29 | $ | 2.13 | $ | 2.22 | 7 | 3 | ||||||||||||
| Return on Average Common Equity | 14.8 | % | 14.2 | % | 15.4 | % | ||||||||||||||
| Average Assets | $ | 151,041.5 | $ | 157,719.2 | $ | 146,842.9 | (4) | % | 3 | % | ||||||||||
(1) Other Noninterest Income in Q3 2024 includes a $68.1 million pre-tax gain related to the sale of an equity investment.
(*) Net interest income and total revenue presented on a fully taxable equivalent (FTE) basis are non-generally accepted accounting principles (non-GAAP) financial measures. Refer to the Reconciliation to Fully Taxable Equivalent section for further detail.
N/M - Not meaningful
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NORTHERN TRUST CORPORATION THIRD QUARTER 2025 RESULTS
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| CLIENT ASSETS | ||||||||||||||||||||
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Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation's trust, investment and other servicing fees, the largest component of noninterest income.
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| As of |
% Change September 30, 2025 vs.
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| ($ In Billions) | September 30, 2025* | June 30, 2025 | September 30, 2024 | June 30, 2025 | September 30, 2024 | |||||||||||||||
| Assets Under Custody/Administration | ||||||||||||||||||||
| Asset Servicing | $ | 16,990.4 | $ | 16,864.9 | $ | 16,278.0 | 1 | % | 4 | % | ||||||||||
| Wealth Management | 1,257.2 | 1,203.4 | 1,145.0 | 4 | 10 | |||||||||||||||
| Total Assets Under Custody/Administration | $ | 18,247.6 | $ | 18,068.3 | $ | 17,423.0 | 1 | % | 5 | % | ||||||||||
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Assets Under Custody(1)
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| Asset Servicing | $ | 13,195.0 | $ | 13,056.5 | $ | 12,662.1 | 1 | % | 4 | % | ||||||||||
| Wealth Management | 1,244.1 | 1,187.2 | 1,132.7 | 5 | 10 | |||||||||||||||
| Total Assets Under Custody | $ | 14,439.1 | $ | 14,243.7 | $ | 13,794.8 | 1 | % | 5 | % | ||||||||||
| Assets Under Management | ||||||||||||||||||||
| Asset Servicing | $ | 1,280.1 | $ | 1,229.2 | $ | 1,177.9 | 4 | % | 9 | % | ||||||||||
| Wealth Management | 492.6 | 468.5 | 443.9 | 5 | 11 | |||||||||||||||
| Total Assets Under Management | $ | 1,772.7 | $ | 1,697.7 | $ | 1,621.8 | 4 | % | 9 | % | ||||||||||
(1) Assets Under Custody are a component of Assets Under Custody/Administration.
(*) Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
Total assets under custody/administration and assets under custody increased from the prior-year quarter primarily driven by favorable markets and favorable currency translation, partially offset by asset outflows.
Total assets under management increased compared to the prior-year quarter primarily reflecting favorable markets and net new business.
| TRUST, INVESTMENT AND OTHER SERVICING FEES | ||||||||||||||||||||
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% Change Q3 2025 vs.
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| ($ In Millions) | Q3 2025 | Q2 2025 | Q3 2024 | Q2 2025 | Q3 2024 | |||||||||||||||
| Asset Servicing | ||||||||||||||||||||
| Custody and Fund Administration | $ | 482.7 | $ | 469.2 | $ | 453.1 | 3 | % | 7 | % | ||||||||||
| Investment Management | 159.6 | 157.3 | 152.6 | 2 | 5 | |||||||||||||||
| Securities Lending | 21.2 | 20.2 | 17.5 | 5 | 21 | |||||||||||||||
| Other | 43.4 | 45.1 | 43.9 | (3) | (1) | |||||||||||||||
| Total Asset Servicing Trust, Investment and Other Servicing Fees | $ | 706.9 | $ | 691.8 | $ | 667.1 | 2 | % | 6 | % | ||||||||||
| Wealth Management | ||||||||||||||||||||
| Central | $ | 200.6 | $ | 189.2 | $ | 186.6 | 6 | % | 8 | % | ||||||||||
| East | 146.0 | 139.3 | 136.4 | 5 | 7 | |||||||||||||||
| West | 110.5 | 106.3 | 105.7 | 4 | 4 | |||||||||||||||
| Global Family Office (GFO) | 101.5 | 104.5 | 100.8 | (3) | 1 | |||||||||||||||
| Total Wealth Management Trust, Investment and Other Servicing Fees | $ | 558.6 | $ | 539.3 | $ | 529.5 | 4 | % | 5 | % | ||||||||||
| Total Consolidated Trust, Investment and Other Servicing Fees | $ | 1,265.5 | $ | 1,231.1 | $ | 1,196.6 | 3 | % | 6 | % | ||||||||||
Asset Servicing and Wealth Management Trust, Investment and Other Servicing Fees are impacted by both one-month and one-quarter lagged asset values.
Total Asset Servicing Trust, Investment and Other Servicing Fees increased both sequentially and from the prior-year quarter.
▪Custody and Fund Administration fees increased from the prior-year quarter primarily due to favorable markets, net new business, and favorable currency movements.
▪Investment Management fees increased from the prior-year quarter primarily due to favorable markets.
Total Wealth Management Trust, Investment and Other Servicing Fees increased both sequentially and from the prior-year quarter.
▪Fees in the regions increased both sequentially and from the prior-year quarter primarily due to favorable markets.
2
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NORTHERN TRUST CORPORATION THIRD QUARTER 2025 RESULTS
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| REPORTING SEGMENT RESULTS | ||||||||||||||||||||
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% Change Q3 2025 vs.
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| ($ In Millions) | Q3 2025 | Q2 2025 | Q3 2024 | Q2 2025 | Q3 2024 | |||||||||||||||
| Income (Loss) before Income Taxes (FTE*) | ||||||||||||||||||||
| Asset Servicing | $ | 294.1 | $ | 271.1 | $ | 258.4 | 8 | % | 14 | % | ||||||||||
| Wealth Management | 342.4 | 309.6 | 307.1 | 11 | 11 | |||||||||||||||
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Other(1)
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(11.5) | (11.2) | 42.7 | 3 | (127) | |||||||||||||||
| Total Income before Income Taxes (FTE*) | $ | 625.0 | $ | 569.5 | $ | 608.2 | 10 | % | 3 | % | ||||||||||
| Profit Margin (pre-tax) (FTE*) | ||||||||||||||||||||
| Asset Servicing | 24.7 | % | 23.2 | % | 23.2 | % | 1.5 | pts | 1.5 | pts | ||||||||||
| Wealth Management | 40.5 | 37.2 | 38.0 | 3.3 | 2.5 | |||||||||||||||
| Total Profit Margin (pre-tax) (FTE*) | 30.8 | 28.4 | 30.8 | 2.4 | - | |||||||||||||||
| Average Loans | ||||||||||||||||||||
| Asset Servicing | $ | 5,399.9 | $ | 5,812.8 | $ | 5,615.8 | (7) | % | (4) | % | ||||||||||
| Wealth Management | 36,100.7 | 35,345.2 | 34,268.2 | 2 | 5 | |||||||||||||||
| Total Average Loans | $ | 41,500.6 | $ | 41,158.0 | $ | 39,884.0 | 1 | % | 4 | % | ||||||||||
| Average Deposits | ||||||||||||||||||||
| Asset Servicing | $ | 90,195.3 | $ | 95,506.7 | $ | 86,635.7 | (6) | % | 4 | % | ||||||||||
| Wealth Management | 25,370.4 | 25,291.0 | 25,179.3 | - | 1 | |||||||||||||||
| Other | 1,134.9 | 1,580.1 | 745.7 | (28) | 52 | |||||||||||||||
| Total Average Deposits | $ | 116,700.6 | $ | 122,377.8 | $ | 112,560.7 | (5) | % | 4 | % | ||||||||||
(*) Income (Loss) before Income Taxes and Profit Margin (pre-tax) presented on a fully taxable equivalent (FTE) basis are non-generally accepted accounting principles (non-GAAP) financial measures. Refer to the Reconciliation to Fully Taxable Equivalent section for further detail.
(1) Other includes a $68.1 million pre-tax gain related to the sale of an equity investment in the prior-year quarter.
Note: Reporting segment results are subject to reclassification when organizational changes are made. The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a retrospective basis unless it is impractical to do so.
| OTHER NONINTEREST INCOME | ||||||||||||||||||||
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% Change Q3 2025 vs.
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| ($ In Millions) | Q3 2025 | Q2 2025 | Q3 2024 | Q2 2025 | Q3 2024 | |||||||||||||||
| Other Noninterest Income | ||||||||||||||||||||
| Foreign Exchange Trading Income | $ | 57.2 | $ | 50.6 | $ | 54.1 | 13 | % | 6 | % | ||||||||||
| Treasury Management Fees | 9.5 | 9.7 | 8.2 | (2) | 16 | |||||||||||||||
| Security Commissions and Trading Income | 41.8 | 39.6 | 35.5 | 5 | 18 | |||||||||||||||
| Other Operating Income | 60.6 | 56.4 | 111.8 | 8 | (46) | |||||||||||||||
| Total Other Noninterest Income | $ | 169.1 | $ | 156.3 | $ | 209.6 | 8 | % | (19) | % | ||||||||||
Other Operating Income decreased compared to the prior-year quarter primarily driven by the $68.1 million gain on the sale of an equity investment in the prior-year quarter, partially offset by lower expenses in the current quarter associated with existing Visa Class B swap agreements.
3
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NORTHERN TRUST CORPORATION THIRD QUARTER 2025 RESULTS
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| NET INTEREST INCOME | ||||||||||||||||||||
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% Change Q3 2025 vs.
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| ($ In Millions) | Q3 2025 | Q2 2025 | Q3 2024 | Q2 2025 | Q3 2024 | |||||||||||||||
| Net Interest Income | ||||||||||||||||||||
| Interest Income (FTE*) | $ | 2,149.8 | $ | 2,217.5 | $ | 2,537.3 | (3) | % | (15) | % | ||||||||||
| Interest Expense | 1,553.5 | 1,602.3 | 1,967.9 | (3) | (21) | |||||||||||||||
| Net Interest Income (FTE*) | $ | 596.3 | $ | 615.2 | $ | 569.4 | (3) | % | 5 | % | ||||||||||
| Average Earning Assets | $ | 139,338.9 | $ | 145,822.0 | $ | 134,767.8 | (4) | % | 3 | % | ||||||||||
| Net Interest Margin (FTE*) | 1.70 | % | 1.69 | % | 1.68 | % | 1 | bps | 2 | bps | ||||||||||
(*) Interest income, net interest income and net interest margin presented on an FTE basis are non-GAAP financial measures. Refer to the Reconciliation to Fully Taxable Equivalent section for further detail.
bps - basis points
Net Interest Income on an FTE basis decreased sequentially primarily due to lower deposit balances, partially offset by lower funding costs. Net Interest Income on an FTE basis increased compared to the prior-year quarter primarily driven by lower funding costs.
The Net Interest Margin on an FTE basis increased sequentially and compared to the prior-year quarter primarily driven by lower funding costs.
Average Earning Assets decreased sequentially primarily due to a decrease in placements with the Federal Reserve and other central banks driven by lower deposit balances. Average Earning Assets increased compared to the prior-year quarter primarily driven by an increase in the investment securities portfolio resulting from an increase in deposits.
| PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||
| As of and for the three-months ended, |
% Change September 30, 2025 vs.
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| ($ In Millions) | September 30, 2025 | June 30, 2025 | September 30, 2024 | June 30, 2025 | September 30, 2024 | |||||||||||||||
| Allowance for Credit Losses | ||||||||||||||||||||
| Beginning Allowance for Credit Losses | $ | 224.1 | $ | 207.3 | $ | 209.6 | 8 | % | 7 | % | ||||||||||
| Provision for Credit Losses | (17.0) | 16.5 | 8.0 | N/M | N/M | |||||||||||||||
| Net Recoveries (Charge-offs) | (0.4) | 0.3 | 2.4 | N/M | N/M | |||||||||||||||
| Ending Allowance for Credit Losses | $ | 206.7 | $ | 224.1 | $ | 220.0 | (8) | % | (6) | % | ||||||||||
| Allowance assigned to: | ||||||||||||||||||||
| Loans | $ | 164.4 | $ | 180.5 | $ | 184.8 | (9) | % | (11) | % | ||||||||||
| Undrawn Loan Commitments and Standby Letters of Credit | 32.1 | 34.7 | 26.5 | (7) | 21 | |||||||||||||||
| Debt Securities and Other Financial Assets | 10.2 | 8.9 | 8.7 | 15 | 18 | |||||||||||||||
| Ending Allowance for Credit Losses | $ | 206.7 | $ | 224.1 | $ | 220.0 | (8) | % | (6) | % | ||||||||||
N/M - Not meaningful
Q3 2025
The negative provision in the current quarter resulted from a decrease in collective reserves driven by improved macroeconomic factors primarily impacting the Commercial and Institutional (C&I) portfolio and improved projections for Residential Real Estate.
Q2 2025
The provision in the prior quarter resulted from an increase in specific reserves related to a small number of non-performing loans and an increase in the collective reserve resulting primarily from a worsening macroeconomic outlook, partially offset by sector and portfolio-specific improvements within the Commercial Real Estate portfolio.
Q3 2024
The provision in the prior-year quarter resulted from an increase in collective reserves driven by a small number of downgrades and extensions in the C&I portfolio, as well as, an increase in individual reserves driven by the default of one C&I loan.
4
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NORTHERN TRUST CORPORATION THIRD QUARTER 2025 RESULTS
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| NONINTEREST EXPENSE | ||||||||||||||||||||
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% Change Q3 2025 vs.
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| ($ In Millions) | Q3 2025 | Q2 2025 | Q3 2024 | Q2 2025 | Q3 2024 | |||||||||||||||
| Noninterest Expense | ||||||||||||||||||||
| Compensation | $ | 625.3 | $ | 614.8 | $ | 583.6 | 2 | % | 7 | % | ||||||||||
| Employee Benefits | 115.2 | 117.7 | 109.2 | (2) | 6 | |||||||||||||||
| Outside Services | 248.2 | 247.0 | 256.3 | - | (3) | |||||||||||||||
| Equipment and Software | 294.2 | 293.7 | 270.4 | - | 9 | |||||||||||||||
| Occupancy | 55.0 | 52.5 | 53.8 | 5 | 2 | |||||||||||||||
| Other Operating Expense | 85.0 | 90.9 | 86.1 | (6) | (1) | |||||||||||||||
| Total Noninterest Expense | $ | 1,422.9 | $ | 1,416.6 | $ | 1,359.4 | - | % | 5 | % | ||||||||||
| End of Period Full-Time Equivalent Employees | 23,600 | 23,400 | 23,300 | 1 | % | 1 | % | |||||||||||||
Compensation expense increased compared to the prior-year quarter primarily due to base pay adjustments, increased headcount, and higher incentives.
Equipment and Software expense increased compared to the prior-year quarter primarily due to higher software amortization and higher software support and rental expense.
| PROVISION FOR INCOME TAXES | ||||||||||||||||||||
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% Change Q3 2025 vs.
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| ($ In Millions) | Q3 2025 | Q2 2025 | Q3 2024 | Q2 2025 | Q3 2024 | |||||||||||||||
| Net Income | ||||||||||||||||||||
| Income before Income Taxes | $ | 619.5 | $ | 564.8 | $ | 601.1 | 10% | 3% | ||||||||||||
| Provision for Income Taxes | 161.9 | 143.5 | 136.2 | 13 | 19 | |||||||||||||||
| Net Income | $ | 457.6 | $ | 421.3 | $ | 464.9 | 9% | (2)% | ||||||||||||
| Effective Tax Rate | 26.1 | % | 25.4 | % | 22.7 | % | 70 | bps | 340 | bps | ||||||||||
bps - basis points
The effective tax rate increased sequentially primarily due to a higher net tax impact from international operations. The effective tax rate increased compared to the prior-year quarter primarily due to favorable discrete tax benefits recognized in the prior year and a higher net tax impact from international operations.
| CAPITAL ACTIONS | ||
The Corporation returned $431.3 million to common shareholders in the current quarter through dividends and the repurchase of shares. During the current quarter, the Corporation declared cash dividends totaling $154.3 million to common stockholders and increased its quarterly cash dividend to $0.80 per share on common stock from the previous $0.75 per share. The Corporation repurchased 2,164,198 shares of common stock, including 16,233 withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $277.0 million ($128.00 average price per share). The Corporation also declared cash dividends totaling $16.2 million to preferred stockholders during the current quarter.
5
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NORTHERN TRUST CORPORATION THIRD QUARTER 2025 RESULTS
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| REGULATORY CAPITAL | ||
The capital ratios of Northern Trust Corporation and its principal subsidiary, The Northern Trust Company, remained strong at September 30, 2025, exceeding the minimum requirements for classification as "well-capitalized" under applicable U.S. regulatory requirements.
| ($ In Millions) | Standardized Approach | Advanced Approach | ||||||||||||||||||||||||||||||
| Northern Trust Corporation | September 30, 2025* | June 30, 2025 | September 30, 2024 | September 30, 2025* | June 30, 2025 | September 30, 2024 | Well-Capitalized Ratios | Minimum Capital Ratios | ||||||||||||||||||||||||
| Regulatory Capital | ||||||||||||||||||||||||||||||||
| Common Equity Tier 1 Capital | $ | 11,199.3 | $ | 11,108.2 | $ | 10,992.7 | $ | 11,199.3 | $ | 11,108.2 | $ | 10,992.7 | ||||||||||||||||||||
| Tier 1 Capital | 12,028.1 | 11,938.5 | 11,826.8 | 12,028.1 | 11,938.5 | 11,826.8 | ||||||||||||||||||||||||||
| Total Capital | 13,581.9 | 13,508.9 | 13,542.9 | 13,375.2 | 13,285.6 | 13,323.0 | ||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Risk-Weighted Assets | $ | 90,033.8 | $ | 91,385.4 | $ | 86,953.6 | $ | 74,329.4 | $ | 74,176.8 | $ | 78,242.5 | ||||||||||||||||||||
| Average Adjusted Total Assets | 150,208.9 | 156,854.5 | 146,018.0 | 150,208.9 | 156,854.5 | 146,018.0 | ||||||||||||||||||||||||||
| Supplementary Leverage Exposure | N/A | N/A | N/A | 135,908.6 | 131,379.4 | 128,906.2 | ||||||||||||||||||||||||||
| Capital Ratios | ||||||||||||||||||||||||||||||||
| Common Equity Tier 1 Capital | 12.4 | % | 12.2 | % | 12.6 | % | 15.1 | % | 15.0 | % | 14.0 | % | N/A | 4.5 | % | |||||||||||||||||
| Tier 1 Capital | 13.4 | 13.1 | 13.6 | 16.2 | 16.1 | 15.1 | 6.0 | 6.0 | ||||||||||||||||||||||||
| Total Capital | 15.1 | 14.8 | 15.6 | 18.0 | 17.9 | 17.0 | 10.0 | 8.0 | ||||||||||||||||||||||||
| Tier 1 Leverage | 8.0 | 7.6 | 8.1 | 8.0 | 7.6 | 8.1 | N/A | 4.0 | ||||||||||||||||||||||||
| Supplementary Leverage | N/A | N/A | N/A | 8.9 | 9.1 | 9.2 | N/A | 3.0 | ||||||||||||||||||||||||
| ($ In Millions) | Standardized Approach | Advanced Approach | ||||||||||||||||||||||||||||||
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The Northern Trust Company |
September 30, 2025* | June 30, 2025 | September 30, 2024 | September 30, 2025* | June 30, 2025 | September 30, 2024 | Well-Capitalized Ratios | Minimum Capital Ratios | ||||||||||||||||||||||||
| Regulatory Capital | ||||||||||||||||||||||||||||||||
| Common Equity Tier 1 Capital | $ | 10,437.7 | $ | 10,278.6 | $ | 10,570.4 | $ | 10,437.7 | $ | 10,278.6 | $ | 10,570.4 | ||||||||||||||||||||
| Tier 1 Capital | 10,437.7 | 10,278.6 | 10,570.4 | 10,437.7 | 10,278.6 | 10,570.4 | ||||||||||||||||||||||||||
| Total Capital | 11,644.4 | 11,501.8 | 11,992.2 | 11,437.7 | 11,278.6 | 11,772.4 | ||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Risk-Weighted Assets | $ | 88,698.9 | $ | 90,205.6 | $ | 85,808.8 | $ | 72,031.5 | $ | 72,017.5 | $ | 75,898.7 | ||||||||||||||||||||
| Average Adjusted Total Assets | 149,705.5 | 156,405.8 | 145,591.6 | 149,705.5 | 156,405.8 | 145,591.6 | ||||||||||||||||||||||||||
| Supplementary Leverage Exposure | N/A | N/A | N/A | 135,403.3 | 130,930.4 | 128,248.8 | ||||||||||||||||||||||||||
| Capital Ratios | ||||||||||||||||||||||||||||||||
| Common Equity Tier 1 Capital | 11.8 | % | 11.4 | % | 12.3 | % | 14.5 | % | 14.3 | % | 13.9 | % | 6.5 | % | 4.5 | % | ||||||||||||||||
| Tier 1 Capital | 11.8 | 11.4 | 12.3 | 14.5 | 14.3 | 13.9 | 8.0 | 6.0 | ||||||||||||||||||||||||
| Total Capital | 13.1 | 12.8 | 14.0 | 15.9 | 15.7 | 15.5 | 10.0 | 8.0 | ||||||||||||||||||||||||
| Tier 1 Leverage | 7.0 | 6.6 | 7.3 | 7.0 | 6.6 | 7.3 | 5.0 | 4.0 | ||||||||||||||||||||||||
| Supplementary Leverage | N/A | N/A | N/A | 7.7 | 7.9 | 8.2 | 3.0 | 3.0 | ||||||||||||||||||||||||
(*) Regulatory Capital, Risk-Weighted Assets and resulting ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
6
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NORTHERN TRUST CORPORATION THIRD QUARTER 2025 RESULTS
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| RECONCILIATION TO FULLY TAXABLE EQUIVALENT | ||
The following table presents a reconciliation of interest income, net interest income, net interest margin, total revenue, income before taxes, and profit margin (pre-tax) prepared in accordance with GAAP to such measures on an FTE non-GAAP basis. Management believes this presentation facilitates the analysis of asset yields and provides a clearer indication of these financial measures for comparative purposes. When adjusted to an FTE basis, yields on taxable, nontaxable and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income.
| QUARTERS | ||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| ($ in Millions) | THIRD | SECOND | FIRST | FOURTH | THIRD | |||||||||||||||
| Net Interest Income | ||||||||||||||||||||
| Interest Income - GAAP | $ | 2,144.3 | $ | 2,212.8 | $ | 2,140.9 | $ | 2,280.0 | $ | 2,530.2 | ||||||||||
| Add: FTE Adjustment | 5.5 | 4.7 | 5.6 | 10.5 | 7.1 | |||||||||||||||
| Interest Income (FTE) - Non-GAAP | $ | 2,149.8 | $ | 2,217.5 | $ | 2,146.5 | $ | 2,290.5 | $ | 2,537.3 | ||||||||||
| Net Interest Income - GAAP | $ | 590.8 | $ | 610.5 | $ | 568.1 | $ | 563.8 | $ | 562.3 | ||||||||||
| Add: FTE Adjustment | 5.5 | 4.7 | 5.6 | 10.5 | 7.1 | |||||||||||||||
| Net Interest Income (FTE) - Non-GAAP | $ | 596.3 | $ | 615.2 | $ | 573.7 | $ | 574.3 | $ | 569.4 | ||||||||||
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Net Interest Margin - GAAP(1)
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1.68 | % | 1.68 | % | 1.67 | % | 1.68 | % | 1.66 | % | ||||||||||
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Net Interest Margin (FTE) - Non-GAAP(1)
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1.70 | % | 1.69 | % | 1.69 | % | 1.71 | % | 1.68 | % | ||||||||||
| Total Revenue | ||||||||||||||||||||
| Total Revenue - GAAP | $ | 2,025.4 | $ | 1,997.9 | $ | 1,940.0 | $ | 1,959.6 | $ | 1,968.5 | ||||||||||
| Add: FTE Adjustment | 5.5 | 4.7 | 5.6 | 10.5 | 7.1 | |||||||||||||||
| Total Revenue (FTE) - Non-GAAP | $ | 2,030.9 | $ | 2,002.6 | $ | 1,945.6 | $ | 1,970.1 | $ | 1,975.6 | ||||||||||
| Income before Income Taxes | ||||||||||||||||||||
| Income before Income Taxes - GAAP | $ | 619.5 | $ | 564.8 | $ | 521.4 | $ | 594.2 | $ | 601.1 | ||||||||||
| Add: FTE Adjustment | $ | 5.5 | $ | 4.7 | $ | 5.6 | $ | 10.5 | $ | 7.1 | ||||||||||
| Income before Income Taxes (FTE) - Non-GAAP | $ | 625.0 | $ | 569.5 | $ | 527.0 | $ | 604.7 | $ | 608.2 | ||||||||||
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Profit Margin (pre-tax) - GAAP(2)
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30.6 | % | 28.3 | % | 26.9 | % | 30.3 | % | 30.5 | % | ||||||||||
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Profit Margin (pre-tax) (FTE) - Non-GAAP(2)
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30.8 | % | 28.4 | % | 27.1 | % | 30.7 | % | 30.8 | % | ||||||||||
(1) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(2) Profit margin (pre-tax) is calculated by dividing income before income taxes by total revenue.
7
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NORTHERN TRUST CORPORATION THIRD QUARTER 2025 RESULTS
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Northern Trust Corporation published this content on October 22, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on October 22, 2025 at 11:06 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]