Northern Trust (NTRS) Q1 2026 earnings summary

Executive summary

• First quarter 2026 saw net income of $525.5 million, up 34% year-over-year, with EPS rising 43% to $2.71–$2.72, driven by strong revenue growth, improved efficiency, and higher trust, investment, and servicing fees.

• Total revenue grew 14% year-over-year to $2.21–$2.213 billion, supported by organic growth, higher client activity, and favorable market and interest rate conditions.

• Return on average common equity reached 17.4%, and pre-tax margin expanded to 32%.

• All earnings were returned to shareholders through $510 million in dividends and share repurchases, representing a 100% payout ratio.

• Strategic initiatives included accelerating AI integration, scaling Family Office Solutions, and advancing digital asset offerings.

Financial highlights

• Trust, investment, and other servicing fees increased 11% year-over-year to $1.3–$1.34 billion.

• Net interest income rose 15% year-over-year to $654–$662 million; net interest margin was 1.75%.

• Noninterest expense increased 6% year-over-year to $1.51 billion, mainly from higher compensation and software costs.

• Assets under custody/administration rose 10% to $18.55–$18.6 trillion; assets under management increased 11% to $1.78 trillion.

• Book value per share at period end was $65.40, up 6% year-over-year.

Outlook and guidance

• Full-year net interest income expected to grow mid to high single digits, up from prior guidance.

• Management expects continued growth in trust and investment fees, supported by favorable markets and client inflows.

• Focus remains on operational efficiency, disciplined expense management, and maintaining strong capital ratios.

• More than 100 basis points of positive operating leverage expected for the year.