How did Northern Trust perform in the third quarter of 2025?

Net income was $457.6 million, or $2.29 per diluted share, compared with $421.3 million ($2.13 per diluted share) in the second quarter of 2025 and $464.9 million ($2.22 per diluted share) in the prior-year quarter. Return on average common equity was 14.8%.

What drove revenue growth?

Trust, investment and other servicing fees increased 3% sequentially and 6% year over year to $1,265.5 million, primarily due to favorable markets, net new business and favorable currency movements. Foreign exchange trading income also rose 13% sequentially.

How did expenses and credit quality change?

Noninterest expense was $1,422.9 million, flat sequentially and up 5% year over year, largely from compensation and equipment and software. The company recorded a negative provision for credit losses of $17.0 million, a release, compared with a $16.5 million provision in the second quarter.

How strong is Northern Trust's capital position and what did it return to shareholders?

The standardized Common Equity Tier 1 ratio was 12.4% and the Tier 1 leverage ratio was 8.0% at September 30, 2025, both described as exceeding well-capitalized requirements. The company returned $431.3 million to common shareholders through dividends and repurchases in the quarter, and raised its quarterly dividend to $0.80 per share.

NTRS/NTRSO 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed October 22, 2025. Cited figures are marked; the original filing is the authoritative source.

Northern Trust Corporation reported third-quarter 2025 net income of $457.6 million^a, or $2.29 per diluted common share, compared with $2.13 in the second quarter of 2025 and $2.22 in the third quarter of 2024.

Total revenue on a fully taxable equivalent basis was $2,030.9 million^b, up 1% from the second quarter and 3% from the prior-year quarter. Trust, investment and other servicing fees rose 3% sequentially and 6% year over year to $1,265.5 million, driven by favorable markets, net new business and currency. The company stated its return on average common equity was 14.8%, at the high end of its target range, and that its fifth consecutive quarter of positive operating leverage was achieved.

Noninterest expense was flat sequentially at $1,422.9 million^c and up 5% from the prior-year quarter, mainly from compensation, base pay adjustments and equipment and software. The provision for credit losses was a negative $17.0 million, a release, compared with a $16.5 million provision in the second quarter, reflecting improved macroeconomic factors. Net interest income on an FTE basis was $596.3 million, down 3% sequentially but up 5% year over year, and the net interest margin on an FTE basis was 1.70%.

Assets under custody/administration reached $18.2 trillion^d and assets under management reached $1.8 trillion as of September 30, 2025, though the client asset figures for the current quarter are preliminary until the Form 10-Q is filed. Capital remained strong, with a standardized Common Equity Tier 1 ratio of 12.4% and a Tier 1 leverage ratio of 8.0% at September 30, 2025.

During the quarter the company repurchased 2,164,198 shares at a total cost of $277.0 million and declared a quarterly dividend increased to $0.80 per share from $0.75. The filing furnishes, rather than files, the earnings release, presentation materials and financial trends report under Item 2.02 and Item 7.01.

02—Key points

Key Highlights

Third-quarter 2025 net income of $457.6 million, or $2.29 per diluted share, versus $2.13 in the second quarter of 2025 and $2.22 in the third quarter of 2024.
Trust, investment and other servicing fees of $1,265.5 million, up 3% sequentially and 6% year over year.
Total revenue (FTE) of $2,030.9 million, up 1% sequentially and 3% year over year; net interest income (FTE) of $596.3 million, with a net interest margin (FTE) of 1.70%.
Noninterest expense of $1,422.9 million, flat sequentially and up 5% year over year, with a pre-tax margin (FTE) of 30.8%.
Negative provision for credit losses of $17.0 million, reflecting improved macroeconomic factors, versus a $16.5 million provision in the prior quarter.
Assets under custody/administration of $18.2 trillion and assets under management of $1.8 trillion at September 30, 2025, both up year over year; current-quarter client assets are preliminary until the Form 10-Q is filed.
Quarterly dividend raised to $0.80 per share from $0.75, and $277.0 million of common shares repurchased during the quarter.

03—Questions

Frequently Asked Questions

How did Northern Trust perform in the third quarter of 2025?
Net income was $457.6 million, or $2.29 per diluted share, compared with $421.3 million ($2.13 per diluted share) in the second quarter of 2025 and $464.9 million ($2.22 per diluted share) in the prior-year quarter. Return on average common equity was 14.8%.
What drove revenue growth?
Trust, investment and other servicing fees increased 3% sequentially and 6% year over year to $1,265.5 million, primarily due to favorable markets, net new business and favorable currency movements. Foreign exchange trading income also rose 13% sequentially.
How did expenses and credit quality change?
Noninterest expense was $1,422.9 million, flat sequentially and up 5% year over year, largely from compensation and equipment and software. The company recorded a negative provision for credit losses of $17.0 million, a release, compared with a $16.5 million provision in the second quarter.
How strong is Northern Trust's capital position and what did it return to shareholders?
The standardized Common Equity Tier 1 ratio was 12.4% and the Tier 1 leverage ratio was 8.0% at September 30, 2025, both described as exceeding well-capitalized requirements. The company returned $431.3 million to common shareholders through dividends and repurchases in the quarter, and raised its quarterly dividend to $0.80 per share.

04—Continue

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