01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Northern Trust Corporation reported third-quarter 2025 net income of $457.6 milliona, down 2% from $464.9 million in the prior-year quarter, with diluted EPS of $2.29 versus $2.22.
For the nine months ended September 30, 2025, net income was $1.27 billionb, down 19% from $1.58 billion, reflecting the absence of prior-year gains such as the $878.4 million net gain from the Visa Exchange Offer. Total revenue for the quarter rose 3% to $2.03 billion, driven by Trust, Investment and Other Servicing Fees of $1.27 billion (up 6%) and Net Interest Income of $590.8 million (up 5%), partly offset by lower Other Noninterest Income. Total assets grew 9% to $170.26 billion from December 31, 2024, while deposits rose 11% to $135.80 billion.
Client assets under custody/administration reached $18.25 trillionc, up 9% year-to-date, and assets under management were $1.77 trillion, up 10%. Noninterest expense was $1.42 billion for the quarter, up 5%, mainly from compensation and equipment and software. The quarter included a negative provision for credit losses of $17.0 million, and the company repurchased 2,148 thousand shares in the quarter; the Board replaced the prior authorization with a new $2.5 billion repurchase program on July 22, 2025.
Capital ratios remained above well-capitalized thresholds, with the Corporation's Standardized CET1 ratio at 12.4%, unchanged from December 31, 2024. Nonaccrual loans rose to $78.8 milliond, or 0.18% of total loans, up from $56.0 million at year-end 2024, primarily due to downgrades across several loan segments.
02—Key points
Key Highlights
- Net income of $457.6 million for Q3 2025 (down 2%), with diluted EPS of $2.29 versus $2.22 a year earlier
- Nine-month net income fell 19% to $1.27 billion, largely due to prior-year gains including the $878.4 million net Visa Exchange Offer gain
- Trust, Investment and Other Servicing Fees rose 6% to $1.27 billion in Q3, driven primarily by favorable markets
- Net Interest Income increased 5% to $590.8 million in Q3, mainly from lower funding costs; Q3 net interest margin (FTE) was 1.70% versus 1.68%
- Assets under custody/administration reached $18.25 trillion and AUM $1.77 trillion at September 30, 2025, up 9% and 10% from year-end 2024
- Nonaccrual loans increased to $78.8 million (0.18% of total loans) from $56.0 million at December 31, 2024
- Common Equity Tier 1 ratio (Standardized) of 12.4%, with the Corporation well-capitalized under U.S. regulatory requirements
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.27B$1.20B | +5.8% |
| Net Income | $457.60M$464.90M | −1.6% |
| EPS (Basic) | $2.30$2.23 | +3.1% |
| EPS (Diluted) | $2.29$2.22 | +3.2% |
| Shares Outstanding (Basic) | 190.05M199.94M | −4.9% |
| Shares Outstanding (Diluted) | 191.00M200.55M | −4.8% |
05—Questions
Frequently Asked Questions
Why did nine-month net income decline 19% despite higher revenue from core businesses?
The prior-year nine months included a $878.4 million net gain from the Visa Exchange Offer and a $68.1 million gain on the sale of an equity investment. Those gains were partly offset by a $189.3 million loss on the sale of AFS debt securities and other items. Total revenue for the nine months fell 6% to $5.96 billion for this reason, even though fee income grew.
What drove the increase in fee revenue?
Trust, Investment and Other Servicing Fees increased 6% in the quarter to $1.27 billion, primarily due to favorable markets. Custody and Fund Administration fees also benefited from net new business and favorable currency movements, and Investment Management fees increased primarily due to favorable markets.
How did expenses and credit quality change?
Noninterest expense rose 5% to $1.42 billion in Q3, mainly from higher compensation and equipment and software expense. The company recorded a negative provision for credit losses of $17.0 million in the quarter, reflecting a decrease in collective reserves driven by improved macroeconomic factors, although nonaccrual loans rose to $78.8 million at September 30, 2025.
What is the status of share repurchases and dividends?
The Board terminated the October 2021 repurchase authorization on July 22, 2025, and replaced it with a new program authorizing up to $2.5 billion of common stock repurchases with no expiration date. In Q3 2025 the company repurchased 2,148 thousand shares, and it declared common dividends of $0.80 per share for the quarter, up from $0.75.
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