Northern Trust Corporation Reports 18% Revenue Growth to $1.94 Billion in Q1 2025

Northern Trust Corporation reported significant financial growth in its first quarter of 2025, with total revenue reaching $1.94 billion, an 18% increase from $1.65 billion in the same period last year. This growth was primarily driven by a 23% rise in noninterest income, which totaled $1.37 billion, and an 8% increase in net interest income, amounting to $568.1 million. The company’s net income surged to $392 million, reflecting an 83% increase compared to $214.7 million in the prior year. The provision for credit losses was minimal at $1 million, contrasting sharply with a negative provision of $8.5 million in the previous year, indicating improved asset quality.

The balance sheet also showed notable changes, with total assets increasing by 6% to $165.1 billion from $155.5 billion at the end of 2024. Earning assets rose by 8% to $153.2 billion, while total deposits grew by 7% to $131 billion. Stockholders' equity increased slightly to $12.9 billion, up from $12.8 billion. The return on average common equity improved significantly to 13.0%, compared to 7.3% in the prior year, reflecting enhanced profitability.

Operationally, Northern Trust experienced a slight decline in assets under custody, which fell to $13.27 billion from $13.35 billion at the end of 2024, primarily due to client asset outflows. However, assets under management remained stable at $1.61 billion, with a slight decrease from $1.61 billion in the previous quarter. The company reported a total employee headcount of approximately 20,000, reflecting its commitment to maintaining a robust workforce to support its operations.

Strategically, Northern Trust has made organizational changes, including the establishment of an Enterprise Chief Operating Office to enhance operational support for its Asset Servicing and Wealth Management segments. This restructuring aims to streamline operations and improve service delivery. The company continues to focus on managing and servicing client assets, leveraging favorable market conditions to drive growth in its wealth management and asset servicing businesses.

Looking ahead, Northern Trust expressed optimism about its financial outlook, citing a stable economic environment and a commitment to maintaining strong capital ratios. The company remains well-capitalized, with Common Equity Tier 1 capital ratios exceeding regulatory requirements. Northern Trust's management anticipates continued growth in revenue and profitability, supported by strategic investments and a focus on client service excellence.