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Sep 30
Northern Trust Q3 2025 Earnings Report
Northern Trust reported solid third-quarter results with strong profitability and disciplined capital returns.
Key Takeaways
Northern Trust delivered stable revenue and higher earnings in Q3 2025, with strong pre-tax margins, a healthy return on equity, and active share repurchases.
EPS reached $2.29, up from the previous quarter.
Net income rose to $457.6M despite slightly lower revenue year-over-year.
Pre-tax profit margin remained strong at 30.8%.
The company repurchased $277M in common stock during the quarter.
Northern Trust
Northern Trust
Forward Guidance
No explicit forward guidance was provided in the presentation. However, the company emphasized strong capital positioning and operational momentum.
Positive Outlook
- Robust capital and liquidity levels with $12B in Tier 1 capital
- 63% of average deposits covered by highly liquid assets
- Strong pre-tax margin of 30.8%
- Continued momentum in asset servicing and wealth management
- Ongoing share repurchase activity shows confidence in financial health
Challenges Ahead
- Net income slightly lower compared to Q3 2024
- Decline in average deposits and loans in asset servicing segment
- Noninterest expense remained elevated
- Securities lending collateral remained flat QoQ
- Unrealized after-tax losses on AFS securities totaled $436.9M