Northern Trust (NTRS) investor relations material

Executive summary

• Net income for Q2 2026 was $792.2 million, up 88% year-over-year and 51% sequentially, with EPS of $4.23, reflecting strong revenue growth, robust fee income, and a significant one-time gain from the Visa Exchange Offer.

• Achieved eighth consecutive quarter of positive organic fee growth and double-digit net interest income growth, with over 700 basis points of operating leverage.

• Excluding notable items, EPS increased 40% year-over-year, and total revenue grew 13%.

• Returned over $1 billion to shareholders in the first half of 2026, including $499 million in Q2.

Financial highlights

• Total revenue (FTE) reached $2,705.6 million, up 35% year-over-year and 22% sequentially.

• Trust, investment, and other servicing fees rose 10% year-over-year to $1.35 billion.

• Net interest income was $683.1 million, up 11% year-over-year; net interest margin (FTE) was 1.81%.

• Assets under custody/administration reached $20.0 trillion, up 11% year-over-year; assets under management were $2.0 trillion, up 16%.

• Return on average common equity was 25.9% for Q2 2026.

Outlook and guidance

• Management expects continued growth in servicing fees and net interest income, supported by favorable market conditions and client inflows.

• Full-year NII expected to be up 9%-10% year-over-year, with total revenue growth now expected at 9%-10%.

• Excluding notable items, operating leverage for the full year is expected to be approximately 400 basis points.

• Regulatory capital ratios remain strong, with no change to the stress capital buffer following the 2026 DFAST results.

• The impact of proposed Basel III reforms is expected to be modest, but timing and final effects remain uncertain.