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CHICAGO - On Wednesday, Northern Trust Corporation (NASDAQ:NTRS) reported third quarter earnings that exceeded analyst expectations, with net income per diluted common share reaching $2.29, compared to the analyst estimate of $2.25.
The company’s stock slipped 0.80% in pre-market trading following the earnings announcement.
Revenue for the quarter came in at $2.03 billion, in line with consensus estimates and up 3% from the same period last year.
The financial services company posted net income of $457.6 million for the quarter, down 2% from $464.9 million in the third quarter of 2024. Despite the slight decline in net income, the company’s earnings per share increased 3% YoY, benefiting from share repurchases that reduced the outstanding share count by 5% compared to the prior year.
Trust, investment and other servicing fees, the company’s largest revenue component, increased 6% YoY to $1.27 billion. Net interest income rose 5% YoY to $596.3 million, while total revenue grew 3% to $2.03 billion compared to the third quarter of 2024.
" Northern Trust delivered strong third quarter results with solid revenue growth across trust fees, capital markets and net interest income," said Michael O’Grady, Chairman and CEO. "ROE was at the high end of our target range, while lending and balance sheet measures remained sound."
The company reported assets under custody/administration of $18.2 trillion as of September 30, 2025, up 5% from the same period last year. Assets under management reached $1.8 trillion, a 9% increase YoY, primarily reflecting favorable markets and net new business.
Northern Trust’s provision for credit losses was a negative $17 million for the quarter, compared to an $8 million provision in the third quarter of 2024, reflecting improved macroeconomic factors primarily impacting the Commercial and Institutional portfolio.
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