01—Abstract
Summary
Summary of the 10-K filed February 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Northern Trust Corporation's 2025 Annual Report on Form 10-K reports net income of $1.74 billiona for 2025, down from $2.03 billion in 2024, on total revenue of $8.09 billion versus $8.29 billion a year earlier.
Noninterest income fell to $5.68 billionb from $6.11 billion, largely because 2024 included a $878.4 million net gain from a Visa Exchange Offer. Trust, Investment and Other Servicing Fees rose to $5.02 billion, driven by favorable markets, net new business and currency movements. Net interest income increased to $2.41 billion from $2.18 billion, primarily from higher deposits and lower funding costs.
Noninterest expense rose to $5.75 billionc from $5.63 billion. Diluted EPS was $8.74 versus $9.77. The balance sheet grew to $177.1 billion in total assets at December 31, 2025, from $155.5 billion, with total deposits of $142.8 billion.
Stockholders' equity reached $13.0 billiond. Common Equity Tier 1 ratio was 12.6% on the standardized approach and 15.0% on the advanced approach. Assets under custody/administration were $18.7 trillion and assets under management were $1.8 trillion.
The Corporation returned $1.9 billion to common stockholders through dividends and repurchases in 2025, and raised the quarterly common dividend to $0.80 per share from $0.75. The filing also flags ongoing regulatory items, including the Federal Reserve's Basel III re-proposal expected in early 2026, a proposed Long-Term Debt requirement, and a Category II classification that the Corporation discloses as subject to enhanced prudential standards. The Corporation also holds Visa Class B-2 shares with a carryover basis of zero, which it estimates at approximately $1.1 billion in value, though the filing notes this does not represent fair value.
02—Key points
Key Highlights
- Net income of $1,736.9 million in 2025, down 14% from $2,031.1 million in 2024; diluted EPS of $8.74 versus $9.77.
- Total revenue of $8,086.4 million, down 2% from $8,290.4 million, as 2024 included an $878.4 million net Visa Exchange Offer gain.
- Net interest income rose 11% to $2,411.0 million, driven by higher deposits and lower funding costs; net interest margin of 1.70% on a GAAP basis versus 1.62%.
- Trust, Investment and Other Servicing Fees increased 6% to $5,017.8 million on favorable markets, net new business and currency movements.
- Total assets of $177.1 billion at year-end 2025 versus $155.5 billion; deposits rose to $142.8 billion.
- Common Equity Tier 1 ratio of 12.6% (standardized) and 15.0% (advanced); the Corporation exceeds well-capitalized requirements.
- Returned $1.9 billion to common stockholders in 2025 and raised the quarterly dividend to $0.80 from $0.75; $1.9 billion of repurchase authority remained under the $2.5 billion program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 24, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $8.09B$8.29B | −2.5% |
| Net Income | $1.74B$2.03B | −14.5% |
| EPS (Basic) | $8.78$9.80 | −10.4% |
| EPS (Diluted) | $8.74$9.77 | −10.5% |
| Shares Outstanding (Basic) | 191.36M201.26M | −4.9% |
| Shares Outstanding (Diluted) | 192.25M201.87M | −4.8% |
05—Questions
Frequently Asked Questions
Why did net income decline in 2025 despite higher fee and interest income?
The 2024 results included an $878.4 million net gain from the Visa Exchange Offer and a $68.1 million gain on sale of an equity investment, which did not recur in 2025. Other Operating Income fell to $207.7 million from $1,157.4 million. Noninterest expense also rose 2% to $5,754.4 million, partly on higher compensation and equipment and software costs.
What drove growth in fee revenue?
Trust, Investment and Other Servicing Fees rose $290.0 million to $5,017.8 million, primarily due to favorable markets, net new business and favorable currency movements. Custody and Fund Administration fees increased 6%, and Wealth Management fees increased 6%.
How strong is the Corporation's capital position?
At December 31, 2025, the Corporation reported a Common Equity Tier 1 ratio of 12.6% under the standardized approach and 15.0% under the advanced approach, with a Tier 1 leverage ratio of 7.8%. The filing states that the Corporation's capital ratios far exceeded the requirements for classification as well-capitalized.
What regulatory developments could affect the Corporation?
The filing notes that the Federal Reserve's Basel III re-proposal is expected in early 2026, and that the potential impacts of a final rule remain uncertain. It also describes a proposed rule that would require Long-Term Debt and clean holding company requirements for banking organizations with $100 billion or more in total assets. The Federal Reserve notified the Corporation on February 4, 2026, that its stress capital buffer will remain at 2.5% until September 30, 2027.
What is the Visa Class B-2 exposure?
The Corporation received Visa Class B-2 common shares in a May 2024 exchange offer, which it carries at a zero basis. Based on the December 31, 2025 Visa Class A closing price of $350.71, the filing estimates the value at approximately $1.1 billion, but states this does not represent fair value given limited transferability. The Corporation has also recorded no liability under a related Makewhole Agreement, which it considers remote.
06—Continue