Northern Trust Corporation (NASDAQ:NTRS) posted third-quarter earnings on Wednesday that came in above analyst estimates, though its stock edged down 0.80% in premarket trading following the announcement.
Net income per diluted common share reached $2.29, beating the $2.25 expected by analysts. Quarterly revenue came in at $2.03 billion, matching consensus forecasts and rising 3% year over year.
The company reported net income of $457.6 million, a slight 2% decline from $464.9 million a year earlier. However, earnings per share grew 3% from the prior year, aided by share buybacks that reduced the number of outstanding shares by 5%.
Trust, investment, and other servicing fees — Northern Trust’s largest revenue source — rose 6% year over year to $1.27 billion. Net interest income increased 5% to $596.3 million. Total revenue was up 3% compared to the same quarter in 2024.
“Northern Trust delivered strong third quarter results with solid revenue growth across trust fees, capital markets and net interest income,” said Michael O’Grady, Chairman and CEO. “ROE was at the high end of our target range, while lending and balance sheet measures remained sound.”
Assets under custody and administration totaled $18.2 trillion as of September 30, 2025, a 5% increase from the prior year. Assets under management reached $1.8 trillion, up 9% year over year, driven by favorable market conditions and new business inflows.
The company also reported a negative provision for credit losses of $17 million for the quarter, compared with an $8 million provision in the same period last year, reflecting improved macroeconomic conditions, particularly in its Commercial and Institutional portfolio.