Northern Trust Corporation (NTRS)

Northern Trust reported third-quarter 2026 net income of $642.9 million on 21 October, or $3.40 per diluted common share 1. A year earlier the figures were $457.6 million and $2.29 1.

The second quarter had been larger at $792.2 million because it held a $525.4 million gain from the company's part in a second Visa exchange offer 1. The third quarter held a $34.0 million gain on selling the guardianship services business and a smaller Visa gain of $14.7 million 1.

Chairman and chief executive Michael O'Grady said that, leaving out notable items, revenues grew 11% from a year earlier and pretax income rose 21% 1. Expenses grew more slowly than revenue, which the company calls operating leverage 1.

Assets under custody and administration, the client assets the bank safekeeps or services, were $19,896.6 billion at 30 September, up 9% from a year before 1. The quarterly common dividend rose to $0.88 per share from $0.80 1.

Two leadership items are open 54. Chief financial officer David Fox told the company on 28 September that he plans to retire on or around 31 March 2027, and a search for a successor is planned 5. The board named Rima Qureshi, a former Verizon strategy chief, a director on 20 October 4.

Northern Trust is a Chicago bank founded in 1889 3. Its parent company, Northern Trust Corporation, was formed as a holding company for the bank in 1971 3.

Revenue was $6,773.5 million in 2023 and $8,290.4 million in 2024, a rise of 22% 3. Most of that jump came from a one-time net gain of $878.4 million tied to the company's part in a Visa exchange offer 3.

Net income followed the same path: $1,107.3 million in 2023 and $2,031.1 million in 2024 3. In 2023 the company also took a $169.5 million loss on selling bonds it held, part of a portfolio repositioning 3.

In 2025 revenue slipped 2% to $8,086.4 million, and net income fell to $1,736.9 million 3. The drop came because the prior year's Visa gain of $896.7 million did not repeat 3.

The core business grew underneath 3. Trust, investment and other servicing fees, the money charged for holding and managing client assets, rose $290.0 million in 2025, mainly from favorable markets, net new business and currency moves 3.

Net interest income, the gap between what the bank earns on loans and securities and what it pays on deposits, rose 10% to $2.4 billion on a taxable-equivalent basis 3. The filing credits higher deposits and lower funding costs 3.

Costs rose 2% in 2025 to $5,754.4 million, including a $58.8 million severance charge for staff cuts 3. A similar charge of $85.2 million had appeared in 2024 3.

In 2026 the second quarter carried the Visa gain and also a $61.5 million charge for software dispositions and a $51.0 million severance charge 1. Those items explain why the third quarter's profit was lower than the second's 1.

Asset Servicing

Asset Servicing is the larger business by fees 1. It holds, records and reports on investments for pension funds, foundations, endowments, fund managers, insurers and sovereign wealth funds 3.

In the third quarter its custody and fund administration fees were $511.7 million, investment management fees $175.6 million and securities lending fees $29.4 million 1. Its pretax income was $405.2 million, a margin of 30.3% 1.

The annual report names its rivals as other custodial banks, asset managers, trust companies and financial technology firms, including software providers and data services firms 3.

Wealth Management

Wealth Management serves wealthy individuals and families, business owners and family offices with trust, investment, private banking and philanthropic services 3. Private Wealth fees were $494.3 million in the third quarter and Global Family Office fees were $117.2 million, up 16% from a year earlier 1.

Segment pretax income was $391.6 million, a 41.1% margin 1. The guardianship services business, with about $1.2 billion in assets under management, is being sold to Wintrust Private Trust Company 6.

Asset Management and banking

Asset Management builds the funds and portfolios sold through both segments, from index and active funds to private equity and exchange traded funds, and its results are fully allocated to them 3. Total assets under management were $1,963.0 billion at 30 September 1.

Banking supports the clients 1. Net interest income was $679.1 million and the net interest margin 1.83% on a taxable-equivalent basis 1. Average loans were $41,730.9 million and average deposits $123,420.0 million 1.

People and places

The company had 23,800 full-time equivalent employees at 30 September 1. Michael O'Grady has been chief executive since 2018 and chairman since 2019 3.

The headquarters at 50 South La Salle Street in Chicago is bank-owned, and most other offices are leased 3. Support work also runs from facilities in India, Ireland and the Philippines 3.

Capital and current problems

The common equity tier 1 ratio, a measure of the bank's loss-absorbing capital, was 12.4% under the standardized approach at 30 September, and the company said its ratios exceed well-capitalized minimums 1. A $5.4 million credit provision came mainly from the charge-off of one commercial and institutional loan 1.

The company says it is routinely a defendant in legal actions and subject to regulatory examinations, and management does not expect a material loss from them 2.

The umbrella, in words

The Northern Trust Company, an Illinois bank founded in 1889, is the principal subsidiary and the main source of the parent's assets, revenue and income 3. Exhibit 21 lists it as 100% owned 9.

Other wholly owned subsidiaries on Exhibit 21 include Northern Trust Investments, Inc. (Illinois), Northern Trust Global Services SE (Luxembourg) and Northern Trust Company of California 9. It also owns 18.2% of Equity Data Science, Inc. 9.

The proxy statement lists holders of more than 5% of the common stock at 31 December 2025: Vanguard 12.6%, BlackRock 8.2%, FMR 7.4% and State Street 5.1% 8. The exhibit also lists dozens of community development funds, a kind of tax credit vehicle for neighborhood projects 9.

Northern Trust said on 3 August that it would redeem all of its Series D preferred stock on 1 October 2026 7. The guardianship sale to Wintrust, announced in July, is expected to close later this year 6.

The chief financial officer plans to retire on or around 31 March 2027, and the company plans a search for the next one 5. Rima Qureshi will receive director equity awards for service through the 2027 annual meeting 10.

The annual report says the company will keep investing in talent and culture, technology, data, AI and operational excellence 3. It describes its growth strategy as serving targeted client segments with specialized solutions in select geographies 3.

Regulators proposed a rule that would make banks of $100 billion or more in assets hold minimum long-term debt, though the timing of any final rule is uncertain 3. The next targeted resolution plan is due 1 July 2028 3.