NORTHERN TRUST CORPORATION REPORTS THIRD QUARTER NET INCOME OF $642.9 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $3.40
NORTHERN TRUST CORP (NTRS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE www.northerntrust.com INVESTOR CONTACT: Stephen Carroll | 312-557-3474 | Stephen.Carroll@ntrs.com MEDIA CONTACT: John O'Connell | 312-444-2388 | John.O'Connell@ntrs.com NORTHERN TRUST CORPORATION REPORTS THIRD QUARTER NET INCOME OF $642.9 MILLION, EARNIN
How this was made
The 30-second read
Why it matters
The earnings decline versus the prior quarter may trigger short‑term selling pressure, but continued fee growth and capital returns provide a longer‑term support narrative.
Market read
The filing offers fresh earnings data that can affect trading decisions on NTRS and may ripple to peers in the wealth‑management space.
What to watch
Strong cash return of $1.5B YTD and organic fee growth may offset earnings dip.
NORTHERN TRUST CORPORATION REPORTS THIRD QUARTER NET INCOME OF $642.9 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $3.40
GAAP total revenue increased 13% from the prior-year quarter, net income increased 40%, diluted earnings per common share increased 48%, and both Asset Servicing and Wealth Management posted higher trust-fee revenue. Sequential results declined from a second quarter that included a $525.4 million Visa Exchange Offer gain, while current-quarter earnings included $48.7 million of pre-tax notable-item gains.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Total RevenueGAAP | $2.29B | (15)% | 13% |
| Q3 2026 Total Revenue (FTE)non-GAAP | $2.30B | (15)% | 13% |
| Q3 2026 Trust, Investment and Other Servicing FeesGAAP | $1.37B | 2% | 8% |
| Q3 2026 Total Other Noninterest IncomeGAAP | $250M | (63)% | 48% |
| Q3 2026 Net Interest IncomeGAAP | $671.4M | (1)% | 14% |
| Q3 2026 Net Interest Income (FTE)non-GAAP | $679.1M | (1)% | 14% |
| Q3 2026 Net Interest MarginGAAP | 1.80% | 1 bps | 12 bps |
| Q3 2026 Net Interest Margin (FTE)non-GAAP | 1.83% | 2 bps | 13 bps |
| Q3 2026 Provision for Credit LossesGAAP | $5.4M | N/M | N/M |
| Q3 2026 Total Noninterest ExpenseGAAP | $1.49B | (9)% | 5% |
| Q3 2026 Income before Income TaxesGAAP | $796.5M | (25)% | 29% |
| Q3 2026 Income before Income Taxes (FTE)non-GAAP | $804.2M | (25)% | 29% |
| Q3 2026 Pre-Tax MarginGAAP | 34.7% | (4.8) pts | 4.1 pts |
| Q3 2026 Pre-Tax Margin (FTE)non-GAAP | 34.9% | (4.7) pts | 4.1 pts |
| Q3 2026 Provision for Income TaxesGAAP | $153.6M | (44)% | (5)% |
| Q3 2026 Effective Tax RateGAAP | 19.3% | (630) bps | (680) bps |
| Q3 2026 Net IncomeGAAP | $642.9M | (19)% | 40% |
| Q3 2026 Earnings Allocated to Common SharesGAAP | $621.9M | (20)% | 42% |
| Q3 2026 Diluted Earnings per Common ShareGAAP | $3.40 | (20)% | 48% |
| Q3 2026 Basic Earnings per Common ShareGAAP | $3.42 | (20)% | 49% |
| Q3 2026 Return on Average Common EquityGAAP | 20.1% | – | – |
| Q3 2026 Average AssetsGAAP | $159.2B | (3)% | 5% |
| Q3 2026 Total Assets Under Custody/Administrationother | $19.90T | (1)% | 9% |
| Q3 2026 Total Assets Under Custodyother | $15.80T | (1)% | 9% |
| Q3 2026 Total Assets Under Managementother | $1.96T | —% | 11% |
| Q3 2026 Ending Allowance for Credit LossesGAAP | $184.7M | (3)% | (11)% |
| Q3 2026 Total AssetsGAAP | $167.3B | (7)% | (2)% |
| Q3 2026 Total Common EquityGAAP | $12.48B | —% | 3% |
| Q3 2026 Common Equity Tier 1 Capital, Standardized Approachother | 12.4% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Asset Servicing Trust, Investment and Other Servicing FeesCustody and Fund Administration fees increased from the prior-year quarter primarily due to favorable markets; Investment Management fees increased primarily due to favorable markets; Securities Lending fees increased primarily due to higher trading volumes and spreads. | $761.5M | 1% | 8% |
| Wealth Management Trust, Investment and Other Servicing FeesPrivate Wealth fees increased from the prior-year quarter primarily due to favorable markets. GFO fees increased both sequentially and from the prior-year quarter primarily due to favorable markets and asset inflows. | $611.5M | 3% | 9% |
| Custody and Fund AdministrationIncreased from the prior-year quarter primarily due to favorable markets. | $511.7M | —% | 6% |
| Investment ManagementIncreased from the prior-year quarter primarily due to favorable markets. | $175.6M | 2% | 10% |
| Securities LendingIncreased from the prior-year quarter primarily due to higher trading volumes and spreads. | $29.4M | —% | 38% |
| Private WealthIncreased from the prior-year quarter primarily due to favorable markets. | $494.3M | 2% | 8% |
| Global Family Office (GFO)Increased both sequentially and from the prior-year quarter primarily due to favorable markets and asset inflows. | $117.2M | 7% | 16% |
Capital returns
- The Corporation returned $514.2 million to common shareholders in the current quarter through dividends and the repurchase of shares.
- The Corporation declared cash dividends totaling $161.9 million to common stockholders.
- The quarterly cash dividend increased to $0.88 per share on common stock from the previous $0.80 per share.
- The Corporation repurchased 1,901,679 shares of common stock, including 12,872 withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $352.3 million ($185.27 average price per share).
- The Corporation declared cash dividends totaling $16.2 million to preferred stockholders during the current quarter.
- The Corporation returned more than $1.5 billion to common shareholders year to date.
What drove it
- Total assets under custody/administration and assets under custody increased from the prior-year quarter, primarily driven by favorable markets and net client inflows.
- Total assets under management increased compared to the prior-year quarter primarily reflecting favorable markets and net client inflows.
- Net Interest Income on an FTE basis increased compared to the prior-year quarter primarily driven by higher deposits, a favorable deposit mix, and lower funding costs.
- Foreign Exchange Trading Income increased compared to the prior-year quarter primarily due to higher trading volumes driven by client activity and market volatility, particularly in Asia-Pacific markets.
- The current-quarter $34.0 million gain on the sale of the guardianship services business and $14.7 million incremental Visa Exchange Offer gain were recognized in Other Operating Income.
- The effective tax rate decreased sequentially and from the prior-year quarter primarily due to lower net tax impact from international operations, including a reduction in the current year valuation allowance attributable to U.S. foreign tax credits.
Concerns
- Other Noninterest Income declined 63% sequentially, reflecting the prior quarter's $525.4 million gain related to the second Visa Exchange Offer.
- The current-quarter provision for credit losses primarily resulted from the charge-off of one Commercial and Institutional (C&I) loan.
- Noninterest Expense increased 5% from the prior-year quarter, including higher technology expense, higher depreciation and amortization, and higher account servicing costs.
- Foreign Exchange Trading Income decreased sequentially primarily due to lower trading volumes driven by client activity and market volatility, particularly in Asia-Pacific markets.
- Total assets decreased 7% sequentially and total interest-bearing deposits decreased 8% sequentially.
What to watch
- Trust, Investment and Other Servicing Fees, which were $1,373.0 million in Q3 2026.
- Total assets under custody/administration and assets under management, which were $19,896.6 billion and $1,963.0 billion, respectively, at September 30, 2026.
- Net interest income and net interest margin, which were $679.1 million and 1.83% on an FTE basis in Q3 2026.
- The credit effect from the charge-off of one Commercial and Institutional (C&I) loan and the ending allowance for credit losses of $184.7 million.
- Technology, depreciation and amortization, and account servicing costs within noninterest expense.
- Current-quarter regulatory capital, risk-weighted assets and resulting ratios are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
Balance sheet and cash flow
- Federal Reserve and Other Central Bank Deposits were $37,779.1 million at September 30, 2026, compared to $50,556.4 million at June 30, 2026 and $49,328.9 million at September 30, 2025.
- Total Debt Securities were $64,499.1 million at September 30, 2026, compared to $61,615.2 million at June 30, 2026 and $55,864.1 million at September 30, 2025.
- Loans were $41,716.7 million at September 30, 2026, compared to $43,822.0 million at June 30, 2026 and $42,949.4 million at September 30, 2025.
- Total Interest-Bearing Deposits were $108,051.3 million at September 30, 2026, compared to $117,380.0 million at June 30, 2026 and $109,908.7 million at September 30, 2025.
- Senior Notes were $3,288.4 million at September 30, 2026, compared to $3,331.2 million at June 30, 2026 and $2,847.2 million at September 30, 2025.
- Long-Term Debt was $2,026.4 million at September 30, 2026, compared to $2,073.3 million at June 30, 2026 and $4,094.3 million at September 30, 2025.
- No operating cash flow or free cash flow was reported.
Analysis
Northern Trust reported Q3 2026 GAAP net income of $642.9 million and diluted earnings per common share of $3.40, up 40% and 48%, respectively, from Q3 2025. GAAP total revenue increased 13% to $2,294.4 million, supported by an 8% increase in trust, investment and other servicing fees to $1,373.0 million, a 14% increase in net interest income to $671.4 million, and a 48% increase in other noninterest income to $250.0 million. The effective tax rate fell to 19.3% from 26.1% in the prior-year quarter.
Client-asset trends supported the fee franchises. Total assets under custody/administration increased 9% from the prior-year quarter to $19,896.6 billion, while total assets under management increased 11% to $1,963.0 billion. Asset Servicing trust, investment and other servicing fees increased 8% to $761.5 million, and Wealth Management fees increased 9% to $611.5 million. Management attributed higher client assets to favorable markets and net client inflows, with GFO fee growth also supported by asset inflows.
Profitability improved year over year despite higher expenses. Total noninterest expense increased 5% to $1,492.5 million, while GAAP income before income taxes increased 29% to $796.5 million and GAAP pre-tax margin rose to 34.7% from 30.6%. Net interest margin increased to 1.83% on an FTE basis from 1.70%, driven by higher deposits, favorable deposit mix, and lower funding costs. The quarter included $48.7 million of pre-tax notable-item gains, comprising a $34.0 million guardianship-services-business sale gain and a $14.7 million incremental Visa Exchange Offer gain.
Sequential comparisons were affected by unusual Q2 items. GAAP total revenue declined 15% and net income declined 19% from Q2 2026, when other noninterest income included a $525.4 million Visa Exchange Offer gain. Q3 expense declined 9% sequentially as Q2 included $61.5 million of software-disposition charges, $51.0 million of severance-related charges, and $33.1 million related to the Invested as One equity grant. Credit costs moved to a $5.4 million provision from a $(5.3) million negative provision, primarily due to the charge-off of one C&I loan.
Capital deployment remained substantial. The Corporation returned $514.2 million to common shareholders in the quarter, including $352.3 million of repurchases and $161.9 million of common dividends, and raised the quarterly common dividend to $0.88 per share. Northern Trust reported that capital ratios remained strong and exceeded well-capitalized minimum requirements at September 30, 2026. The release did not provide forward financial guidance.
Management, verbatim
Northern Trust delivered strong third-quarter results, demonstrating continued progress against our One Northern Trust strategy.
Michael O’Grady, Chairman and Chief Executive Officer
Compared to the prior year and excluding notable items, revenues grew 11%, while disciplined expense management generated more than 600 basis points of positive operating leverage.
Michael O’Grady, Chairman and Chief Executive Officer
All three businesses delivered organic trust-fee growth, reflecting strong execution across the company.
Michael O’Grady, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue guidance, gross-margin guidance, operating-expense guidance and tax-rate guidance were not provided.
- Prior guidance was not provided.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Gross margin was not reported.
- Non-GAAP adjusted net income and non-GAAP adjusted earnings per share were not reported.
- A separate cash balance line item was not reported; the balance sheet reported Federal Reserve and Other Central Bank Deposits and Cash and Due from Banks and Other Central Bank Deposits.
- Q3 2026 Asset Servicing and Wealth Management total revenue by reporting segment were not reported; the release reported trust, investment and other servicing fees by business.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Northern Trust disclosed its Q3 2026 financial results via an SEC Form 8‑K, highlighting a $642.9M net income and $3.40 EPS.
Ticker impact
Northern Trust reported Q3 2026 net income of $642.9M and EPS $3.40, down from prior quarter, marking the first public disclosure of these results.
likely downside as the market prices in the earnings decline
The 8‑K filing is the primary source of the earnings numbers; the decline in net income and EPS is material for a mid‑cap financial services firm.
Market effects
Results may influence sentiment toward the broader financial services and wealth‑management sector.
U.S. markets may see modest pressure on banking/financial stocks.
Limited; primarily U.S. investors focused on the issuer.
Counterpoint
If the decline is viewed as temporary and asset inflows continue, the stock could rebound.
Key entities
- companyNorthern Trust Corporation
U.S. financial services firm reporting Q3 2026 earnings.
