From The Motley Fool · Motley Fool Transcribing · · 3m
Northern Trust Q3 2026 Earnings Report
Northern Trust reports 40% higher Q3 earnings with $642.9M net income and $1.96T assets under management.
In brief
Northern Trust reports 40% higher Q3 earnings with $642.9M net income and $1.96T assets under management. Northern Trust achieved 40% year-over-year net income growth to $642.9 million while expanding assets under management to $1.96 trillion. Originally reported by The Motley Fool.
Q3 Earnings Results
Northern Trust reported Q3 2026 net income of $642.9 million, a 40% increase from $457.6 million in the prior-year quarter.
Diluted EPS Growth
Diluted earnings per share rose 40% year over year to $3.40, excluding notable items.
Revenue Growth
Total revenue reached $2.3 billion, reflecting 11% year-over-year growth after excluding $48.7 million in notable gains.
Net Interest Income
Net interest income grew 14% year over year to $679.1 million due to higher deposit balances and favorable deposit mix.
Operating Leverage
Operating leverage exceeded 600 basis points as 11% revenue growth outpaced a 5% increase in noninterest expenses.
Assets Under Custody
Assets under custody and administration reached $19.9 trillion, up 9% year over year driven by favorable markets and net client inflows.
Assets Under Management
Assets under management grew to $1.96 trillion, representing 11% year-over-year growth.
Trust Fees
Trust, investment, and other servicing fees increased 8% year over year to $1.4 billion with organic growth across all business segments.
Global Family Office
Global family office fees rose 16% year over year to $117.2 million, reaching the strongest quarterly level of the year.
Asset Servicing Margin
Asset servicing pretax margin reached 30.3%, an expansion of 5.6 percentage points year over year.
Wealth Management Margin
Wealth management pretax margin increased to 41.1% from 40.5% in the prior-year quarter.
Capital Returns
Northern Trust returned $514.2 million to shareholders through $352.3 million in share repurchases and $161.9 million in dividends.
Common Equity Tier 1 Ratio
Common equity tier 1 capital ratio increased to 12.4%, up 20 basis points sequentially due to declining risk-weighted assets.
Securities Lending
Securities lending fees grew 38% year over year to $29.4 million supported by borrowing demand in U.S. equities and Asia-Pacific markets.
Foreign Exchange Trading
Foreign exchange trading income rose 47% year over year to $84.1 million despite a 13% sequential decline in volumes.
Provision for Credit Losses
Provision for credit losses totaled $5.4 million, primarily from a charge-off related to one Commercial and Institutional loan.
One Northern Trust Strategy
Northern Trust's One Northern Trust strategy integrates asset servicing and wealth management solutions to deepen client relationships.
AI Integration
AI agents save relationship managers two to three hours on every client memo, allowing more time for client interaction.
Digital Asset Strategy
Northern Trust launched the Northern Institutional Funds Stablecoin Cash Reserves Portfolio for stablecoin issuers.
ETF Conversions
Northern Trust plans to convert six Northern Funds, representing $33 billion in assets, to ETFs by Q1 2027.
The headline
Northern Trust achieved 40% year-over-year net income growth to $642.9 million while expanding assets under management to $1.96 trillion.
