01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Northern Trust Corporation reported first-quarter 2025 net income of $392.0 milliona, or $1.90 diluted earnings per share, compared with $214.7 million, or $0.96 per diluted share, in the prior-year quarter.
Total revenue rose to $1.94 billionb from $1.65 billion, driven by Noninterest Income of $1,371.9 million (up 23%) and Net Interest Income of $568.1 million (up 8%). The prior-year quarter included a $189.4 million available-for-sale debt security loss from a portfolio repositioning, which did not recur. Trust, Investment and Other Servicing Fees increased 6% to $1.21 billion, primarily on favorable markets.
Return on average common equity was 13.0%, versus 7.3% a year earlier. Noninterest expense rose 4% to $1.42 billionc, led by higher Equipment and Software and Compensation expense. The provision for credit losses was $1.0 million, compared with a negative provision of $8.5 million a year earlier, reflecting increased collective reserves tied to macroeconomic uncertainty.
Nonaccrual loans increased to $73.1 milliond from $56.0 million at year-end 2024, primarily from downgrades in residential real estate and commercial and institutional loans. Client assets remained large: assets under custody/administration reached $16.92 trillion at March 31, 2025, up 1% from year-end, while assets under management were $1.61 trillion, flat versus December 31, 2024. Total assets grew to $165.1 billion and deposits to $131.0 billion.
Capital ratios remained above well-capitalized thresholds, with a Common Equity Tier 1 ratio of 12.9% on the standardized approach. The company repurchased 2,616,238 common shares for $287.2 million during the quarter.
02—Key points
Key Highlights
- Net income of $392.0 million ($1.90 diluted EPS) versus $214.7 million ($0.96) in Q1 2024; the prior-year quarter included a $189.4 million AFS debt security loss.
- Total revenue of $1.94 billion, up 18%, with Noninterest Income up 23% to $1,371.9 million and Net Interest Income up 8% to $568.1 million.
- Trust, Investment and Other Servicing Fees rose 6% to $1.21 billion, primarily due to favorable markets; Net Interest Income growth was driven by higher deposits and lower funding costs.
- Noninterest expense increased 4% to $1.42 billion, mainly from Equipment and Software and Compensation expense.
- Return on average common equity was 13.0% versus 7.3% a year earlier; net interest margin (FTE) was 1.69% versus 1.61%.
- Nonaccrual loans rose to $73.1 million from $56.0 million at December 31, 2024, mainly due to downgrades in residential real estate and commercial and institutional loans.
- Repurchased 2,616,238 common shares for $287.2 million; Common Equity Tier 1 ratio (standardized) was 12.9% at March 31, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 30, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.21B$1.14B | +6.2% |
| Net Income | $392.00M$214.70M | +82.6% |
| EPS (Basic) | $1.91$0.96 | +99.0% |
| EPS (Diluted) | $1.90$0.96 | +97.9% |
| Shares Outstanding (Basic) | 195.19M204.63M | −4.6% |
| Shares Outstanding (Diluted) | 196.12M205.13M | −4.4% |
05—Questions
Frequently Asked Questions
What drove the large increase in net income year over year?
Net income rose to $392.0 million from $214.7 million, mainly because the prior-year quarter included a $189.4 million loss on available-for-sale debt securities from a portfolio repositioning. Trust, Investment and Other Servicing Fees and Net Interest Income also increased, partly offset by higher noninterest expense.
How did client asset levels change?
Assets under custody/administration were $16,924.0 billion at March 31, 2025, up from $16,788.0 billion at December 31, 2024. Assets under custody decreased to $13,269.5 billion from $13,349.2 billion, driven by client outflows partly offset by currency translation. Assets under management were $1,607.8 billion, essentially flat versus year-end.
Is credit quality deteriorating?
Nonaccrual loans increased to $73.1 million from $56.0 million, and nonaccrual loans were 0.18% of total loans versus 0.13% at year-end. The provision for credit losses was $1.0 million, reflecting higher collective reserves tied to macroeconomic uncertainty, partly offset by improvements in the commercial real estate portfolio.
How strong is the company's capital position?
Northern Trust Corporation's standardized Common Equity Tier 1 capital ratio was 12.9% and Total Capital ratio was 15.7% at March 31, 2025, both above the well-capitalized thresholds. The Northern Trust Company's standardized Tier 1 Leverage ratio was 6.8%. Stockholders' equity was $12.9 billion.
06—Continue