01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Northern Trust Corporation reported second-quarter 2025 net income of $421.3 milliona, down from $896.1 million in the prior-year quarter, which included an $878.4 million net gain from participation in the Visa Exchange Offer.
Total revenue for the quarter was $1,997.9 millionb, down from $2,715.5 million, mainly because of that prior-year Visa gain. Trust, Investment and Other Servicing Fees rose to $1,231.1 million, and Net Interest Income increased to $610.5 million, driven by higher deposits, lower funding costs and foreign exchange swap activity. Noninterest Expense fell to $1,416.6 million from $1,533.9 million, which included prior-year severance charges and a $70.0 million charitable contribution.
Total assets grew to $171.88 billionc at June 30, 2025, from $155.51 billion at December 31, 2024, and deposits rose to $137.05 billion. Assets under custody/administration reached $18.07 trillion and assets under management reached $1.70 trillion, both up from December 31, 2024. The company repurchased $339.4 million of common stock in the quarter and declared $0.75 per share in common dividends.
Common Equity Tier 1 ratio under the standardized approach was 12.2%, and the company stated that its capital ratios exceeded well-capitalized requirements. On July 22, 2025, the Board approved a new share repurchase authorization of up to $2.5 billiond, replacing the prior program. Nonaccrual loans rose to $92.8 million from $56.0 million, which the filing attributes primarily to downgrades of a small number of loans across multiple segments.
02—Key points
Key Highlights
- Net income of $421.3 million for Q2 2025 versus $896.1 million a year earlier, when results included an $878.4 million net gain from the Visa Exchange Offer.
- Trust, Investment and Other Servicing Fees increased 6% to $1,231.1 million, driven by favorable markets and net new business.
- Net Interest Income rose 17% to $610.5 million, supported by higher deposits, lower funding costs and Treasury foreign exchange swap activity.
- Noninterest Expense declined 8% to $1,416.6 million, mainly due to prior-year severance and charitable contribution charges.
- Total assets reached $171.88 billion at June 30, 2025, up 11% from December 31, 2024; deposits rose 12% to $137.05 billion.
- Assets under custody/administration reached $18.07 trillion and assets under management reached $1.70 trillion, reflecting favorable markets.
- Nonaccrual loans increased to $92.8 million from $56.0 million, primarily from downgrades of a small number of loans, while the CET1 ratio (standardized) was 12.2%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.23B$1.17B | +5.6% |
| Net Income | $421.30M$896.10M | −53.0% |
| EPS (Basic) | $2.14$4.35 | −50.8% |
| EPS (Diluted) | $2.13$4.34 | −50.9% |
| Shares Outstanding (Basic) | 192.75M203.31M | −5.2% |
| Shares Outstanding (Diluted) | 193.37M203.74M | −5.1% |
05—Questions
Frequently Asked Questions
Why did reported net income fall so sharply year over year?
The prior-year quarter included an $878.4 million net gain related to participation in the Visa Exchange Offer recorded in Other Operating Income. Excluding that gain, the decline is smaller, though the filing also notes prior-year severance charges of $85.2 million and a $70.0 million charitable contribution that affected expenses.
What drove growth in net interest income?
The filing attributes the 17% increase to the favorable impact of higher deposits, lower funding costs, and foreign exchange swap activity executed by the Treasury Department. Net interest margin on an FTE basis was 1.69% versus 1.57% in the prior-year quarter.
How did client asset levels change?
Assets under custody/administration rose 7% from March 31, 2025 to $18.07 trillion, and assets under management rose to $1.70 trillion, both primarily reflecting favorable markets. Net inflows to AUM in the quarter were $0.7 billion.
Is the company's capital position considered strong, and what changed in capital returns?
The filing states capital ratios remained strong and exceeded well-capitalized requirements. Common Equity Tier 1 under the standardized approach was 12.2% versus 12.4% at December 31, 2024. The company repurchased $339.4 million of common stock in the quarter and, on July 22, 2025, approved a new $2.5 billion repurchase authorization.
Are credit quality trends a concern?
Nonaccrual loans rose to $92.8 million, or 0.21% of total loans, from $56.0 million at year-end 2024, due to downgrades of a small number of loans across multiple segments. The provision for credit losses was $16.5 million for the quarter, compared with $8.0 million a year earlier, reflecting specific reserves and a worsening macroeconomic outlook.
06—Continue