Northern Trust Corporation Reports Decrease in Revenue and Net Income for Fiscal Year 2025

**Northern Trust Corporation Reports Annual Financial Results**

Northern Trust Corporation (NTRS) has released its 10-K filing, detailing the company's financial performance for the fiscal year ended December 31, 2025. The filing indicates a decrease in total revenue, which amounted to $8.09 billion, a 2% decrease compared to $8.29 billion in 2024. Net income applicable to common stock was $1.70 billion, a 15% decrease from $1.99 billion in the previous year. This translates to a diluted net income per common share of $8.74, down from $9.77 in 2024. The company attributes the revenue decline primarily to lower other operating income, which was significantly impacted by a $896.7 million gain related to Northern Trust's participation in a Visa Exchange Offer in the prior year.

Despite the revenue decrease, Northern Trust experienced growth in certain key areas. Trust, investment, and other servicing fees increased by 6% to $5.02 billion, driven by favorable market conditions, net new business, and positive currency movements. Net interest income also saw an increase of 11% to $2.41 billion, attributed to higher deposit levels and lower funding costs, although this was partially offset by lower yields on interest-earning assets. The company's provision for credit losses was a negative $7.5 million, compared to a negative $3.0 million in the previous year, reflecting adjustments in collective reserves.

Operationally, Northern Trust reported total assets under custody/administration (AUC/A) of $18.72 trillion and assets under management (AUM) of $1.80 trillion as of December 31, 2025. These figures represent increases of 11% and 12%, respectively, compared to the prior year, primarily due to favorable market conditions. The company's employee base stood at approximately 23,800 full-time equivalent employees at the end of 2025, a 2% increase from the previous year. The company continues to invest in technology, data, and AI to enhance its services and operational efficiency.

Looking ahead, Northern Trust's strategic focus remains on serving targeted client segments with specialized solutions in select geographies. The company emphasizes the development of scalable, sustainable fee-based income and will continue to invest in talent, technology, and operational excellence. The company's capital ratios remain well above regulatory requirements, with a Common Equity Tier 1 capital ratio of 12.6% under the standardized approach and 15.0% under the advanced approach. The Board of Directors authorized a new share repurchase program to repurchase up to $2.5 billion of the Corporation’s outstanding common stock, with $1.93 billion remaining under the plan as of December 31, 2025.