NTRSOMEDIUM SIGNALFINANCIAL10-K

Northern Trust experienced declining profitability despite meaningful balance sheet growth, with net income and net interest income both falling while total assets expanded to $177.1 billion.

The combination of lower net income and reduced net interest income suggests margin pressure in a challenging rate environment, even as the company successfully grew its deposit base and total assets. The substantial increase in share buybacks to $1.3 billion indicates management's confidence in returning capital to shareholders despite earnings headwinds.

Comparing 2026-02-24 vs 2025-02-24View on EDGAR →
FINANCIAL ANALYSIS

Northern Trust's financial profile shows mixed signals with balance sheet expansion (+13.9% in total assets, +16.6% in deposits) coupled with profitability challenges (net income down 14.5%, net interest income declining 11.7%). The company reduced debt by 33.4% while meaningfully increasing share repurchases, suggesting active capital management. Overall, this reflects a bank managing through margin pressures while maintaining growth momentum in client assets and deposits.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+35.8%
$937.8M→$1.3B

Share repurchases increased 35.8% — management returning capital, signals confidence in intrinsic value.

Total Debt
Balance Sheet
-33.4%
$2.1B→$1.4B

Debt reduced 33.4% — deleveraging strengthens balance sheet and reduces financial risk.

Capital Expenditure
Cash Flow
-27.1%
$101.5M→$74.0M

Capex reduced 27.1% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Total Deposits
Balance Sheet
+16.6%
$122.5B→$142.8B

Deposits grew 16.6% — expanding customer base or increased trust in the institution.

Total Liabilities
Balance Sheet
+15%
$142.7B→$164.2B

Liabilities increased 15% — monitor debt-to-equity ratio and interest coverage.

Net Income
P&L
-14.5%
$2.0B→$1.7B

Net income declined 14.5% — review whether driven by operations, interest costs, or non-recurring items.

Total Assets
Balance Sheet
+13.9%
$155.5B→$177.1B

Asset base grew 13.9% — expansion through organic growth, acquisitions, or capital deployment.

Net Interest Income
P&L
-11.7%
$9.8B→$8.6B

Net interest income declined 11.7% — margin compression from rate changes or funding cost increases.

LANGUAGE CHANGES
NEW — 2026-02-24
PRIOR — 2025-02-24
ADDED
At January 31, 2026, 185,827,803 shares of common stock, $1.66 2/3 par value, were outstanding.
Department of the Treasury s Office of Foreign Assets Control 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION iii GLOSSARY OF TERMS (continued) ORC Operational Risk Committee OREO Other Real Estate Owned OTC Over-the-Counter PD Probability of Default PIPL Personal Information Protection Law (China) PRA Prudential Regulation Authority ROU Right-of-Use RWA Risk-Weighted Assets SEC U.S.
At December 31, 2025, the Bank had consolidated assets of $176.4 billion and common bank equity capital of $11.4 billion.
At December 31, 2025, the Corporation had consolidated total assets of $177.1 billion and stockholders equity of $13.0 billion.
At December 31, 2025, total Asset Servicing assets under custody/administration (AUC/A), assets under custody, and assets under management (AUM) were $17.4 trillion, $13.6 trillion, and $1.3 trillion, respectively.
Wealth Management is one of the largest providers of advisory services in the United States, with AUC/A, assets under custody, and AUM of $1.3 trillion, $1.3 trillion, and $507.2 billion, respectively, at December 31, 2025.
As discussed above, Northern Trust managed $1.8 trillion in assets as of December 31, 2025, including $1.3 trillion for Asset Servicing clients and $507.2 billion for Wealth Management clients.
Competition Northern Trust faces a number of competitors across its businesses.
Competition comes from other financial services organizations, both regulated and unregulated, whose products and services may span the markets in which Northern Trust conducts operations.
As a Category II banking organization, the Corporation must submit annual capital plans to the Federal Reserve Board, conduct supervisory and internal periodic stress tests to evaluate capital adequacy in adverse economic conditions, maintain enhanced risk management procedures, and comply with a liquidity risk management framework (discussed below in Liquidity Standards ) and single counterparty credit limits, and conduct liquidity stress tests.
REMOVED
At January 31, 2025, 195,697,744 shares of common stock, $1.66 2/3 par value, were outstanding.
2024 ANNUAL REPORT | NORTHERN TRUST CORPORATION iii GLOSSARY OF TERMS (continued) OFAC U.S.
Department of the Treasury s Office of Foreign Assets Control ORC Operational Risk Committee OREO Other Real Estate Owned OTC Over-the-Counter PD Probability of Default PIPL Personal Information Protection Law (China) PRA Prudential Regulation Authority ROU Right-of-Use RWA Risk-Weighted Assets SEC U.S.
At December 31, 2024, the Bank had consolidated assets of $154.9 billion and common bank equity capital of $10.8 billion.
At December 31, 2024, the Corporation had consolidated total assets of $155.5 billion and stockholders equity of $12.8 billion.
At December 31, 2024, total Asset Servicing assets under custody/administration (AUC/A), assets under custody, and assets under management (AUM) were $15.6 trillion, $12.2 trillion, and $1.2 trillion, respectively.
Wealth Management is one of the largest providers of advisory services in the United States, with AUC/A, assets under custody, and AUM of $1.1 trillion, $1.1 trillion, and $450.7 billion, respectively, at December 31, 2024.
As discussed above, Northern Trust managed $1.6 trillion in assets as of December 31, 2024, including $1.2 trillion for Asset Servicing clients and $450.7 billion for Wealth Management clients.
Competition Northern Trust faces intense competition in all aspects and areas of its business.
Competition comes from both regulated and unregulated financial services organizations, whose products and services span the local, national, and global markets in which Northern Trust conducts operations.
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