NTRS · Northern Trust Corporation

Northern Trust Corporation delivered robust first quarter 2026 results, with net income increasing 34% year-over-year to $525.5 million and diluted EPS rising 43% to $2.71. The strong performance was driven by a 14% increase in total revenue to $2.21 billion, supported by growth across multiple business lines. Trust, investment and other servicing fees grew 11% year-over-year to $1.34 billion, benefiting from favorable markets, currency movements, and net new business across both Asset Servicing and Wealth Management segments. Net interest income on an FTE basis increased 15% year-over-year to $661.6 million, primarily driven by higher deposits, though the net interest margin decreased sequentially due to higher funding costs. Other noninterest income showed particular strength, with foreign exchange trading income up 49% year-over-year to $87.7 million due to higher volumes driven by market volatility, and security commissions and trading income rising 33% to $52.1 million. The company demonstrated disciplined expense management with noninterest expense increasing only 6% year-over-year to $1.51 billion, resulting in approximately 740 basis points of positive operating leverage and a pre-tax margin of 32.0%. Asset metrics showed solid growth, with total assets under custody/administration reaching $18.6 trillion, up 10% year-over-year primarily due to favorable markets, while assets under management increased 11% to $1.8 trillion. The company maintained a strong capital position with a Common Equity Tier 1 ratio of 12.0% under the standardized approach and returned 100% of earnings to shareholders through $150.8 million in common stock dividends and $358.9 million in share repurchases. Management commentary highlighted the effectiveness of the diversified business model and continued execution of strategic priorities, though they noted that global and economic uncertainty persists.