Northern Trust 8-K Report, Financial Results (Jul 23, 2025)

Northern Trust Corporation reported second-quarter 2025 net income of $421.3 million^a, or $2.13 per diluted common share, compared with $392.0 million ($1.90 per diluted share) in the first quarter of 2025 and $896.1 million ($4.34 per diluted share) in the second quarter of 2024.

Total revenue on an FTE basis was $2,002.6 million^b, up from $1,945.6 million in the prior quarter and down from $2,722.4 million in the prior-year quarter, which included notable items such as a $878.4 million net gain from the Visa Exchange Offer. Trust, investment and other servicing fees rose to $1,231.1 million, and net interest income on an FTE basis increased to $615.2 million. Return on average common equity was 14.2%, and the expense-to-trust-fee ratio was 115%.

Assets under custody/administration reached $18.07 trillion^c and assets under management reached $1.70 trillion at June 30, 2025, both up from the prior quarter and the prior-year quarter, driven mainly by favorable markets. Noninterest expense was $1,416.6 million, roughly flat sequentially and down from $1,533.9 million a year earlier, which included $182.2 million of restructuring and other notable charges. The provision for credit losses was $16.5 million, compared with $1.0 million in the first quarter, reflecting higher specific reserves on a small number of nonperforming loans and a worsening macroeconomic outlook.

The company returned $485.6 million^d to common shareholders in the quarter through dividends and repurchases of 3,374,980 shares at a total cost of $339.4 million. Capital ratios remained above well-capitalized thresholds, with a standardized Common Equity Tier 1 ratio of 12.2% at June 30, 2025, preliminary until the Form 10-Q is filed. The filing furnishes the earnings press release, a presentation covering strategy and results, and a financial trends report as exhibits.