Northern Trust (NTRS) Q4 2025 earnings summary

Executive summary

• Achieved strong financial and operational momentum in Q4 and full-year 2025, with trust fees up 7%, net interest income up 14%, and revenue up 9% year-over-year, excluding notable items.

• Delivered sixth consecutive quarter of positive trust fee and total operating leverage, with pre-tax margin expanding to 33% and EPS growing 19% year-over-year, excluding notables.

• Raised medium-term targets for pre-tax margin and return on equity, reflecting confidence in scalable growth strategies.

• Returned $1.9 billion to shareholders in 2025, including a record $1.3 billion in share repurchases, reducing share count by 5%.

• Advanced strategic pillars: optimized growth, productivity, and resiliency, with significant AI-driven automation and operational improvements.

Financial highlights

• Q4 2025 net income was $466 million, EPS $2.42, and ROE 15.4%.

• Q4 revenue (FTE) grew 8% year-over-year to $2.14 billion; net interest income reached $654 million, up 14% year-over-year; net interest margin at 1.81%.

• Assets under custody/administration reached $18.7 trillion, up 11% year-over-year; assets under management $1.8 trillion, up 12%.

• Excluding notable items, Q4 revenue up 9%, expenses up 5%, pre-tax margin at 33.2%, and EPS up 19%.

• Full-year 2025, excluding notables, revenue up 7%, expenses up 4.9%, pre-tax margin up 160 bps to 30%, and EPS up 17%.

Outlook and guidance

• Targeting expense-to-trust fees below 110%, pre-tax margin of 33%, and ROE in the mid-teens for the medium term.

• 2026 NII expected to grow low to mid-single digits; more than 100 bps of positive operating leverage anticipated.

• Expect to return more than 100% of earnings to shareholders in 2026.

• Mid-single digit revenue growth expected in 2026 under steady market conditions.