Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Q2 2025 Earnings Presentation
21 slides from Northern Trust's earnings presentation, Jul 23, 2025
Slide 1: Strategy Update & Second Quarter 2025 Earnings Review
NORTHERN TRUST CORPORATION Strategy Update & Second Quarter 2025 Earnings Review northerntrust.com / © 2025 Northern Trust
Slide 2: Delivering One Northern Trust for Clients
Delivering One Northern Trust for Clients Individuals Pensions Families WEALTH ASSET ASSET Endowments MANAGEMENT MANAGEMENT SERVICING $1.2 Trillion $1.7 Trillion $16.9 Trillion AUC/A1 AUM1 AUC/A1 Family Offices Sovereign Entities Asset Foundations INTEGRATED GLOBAL Managers OPERATING PLATFORM northe
Slide 3: Executing on One Northern Trust Strategy
Executing on One Northern Trust Strategy PILLARS OPTIMIZE • Improving organic growth GROWTH Managing Enterprise Risk • Advancing growth initiatives • Enhancing control environment STRENGTHEN • Bending the cost curve • Modernizing capabilities RESILIENCY & • Deploying AI and Achieve Operational Excel
Slide 4: Alternatives Solutions Driving Growth
Alternatives Solutions Driving Growth ALTERNATIVES SOLUTIONS 1H 2025 PROGRESS Proprietary fund-of-funds investing across • Record fundraising private equity, private credit, venture and hedge funds • Closed largest secondary fund Third Party Externally managed alternative • Fundraising exceeding tar
Slide 5: Wealth Management Update
Wealth Management Update MARKET POSITION $468.5B $1.2T Assets Assets under 2025 PRIORITIES 1H 2025 PROGRESS under Custody / Management 1 Administration 1 • Strong organic growth in Global Family Office • Deliver complete set • International market acceleration – revenue up Serve 30% of family office
Slide 6: Asset Management Update
Asset Management Update MARKET POSITION $1.7T Top 20 Assets under Global Asset 2025 PRIORITIES 1H 2025 PROGRESS Management 1 Manager • Boost growth within 50 • Fundraising up 60% vs. FY 2024 S. Capital and suite of $17B $327B alternative investment • Strong demand from Wealth Management, Alternative
Slide 7: Asset Servicing Update
Asset Servicing Update MARKET POSITION $16.9T $1.2T Assets Assets under under Custody / Management 1 2025 PRIORITIES 1H 2025 PROGRESS Administration 1 • Grow with alternative • Continued new business momentum investment managers 52% 80% globally • Alternatives assets under administration of Top 100
Slide 8: Bending the Cost Curve
Bending the Cost Curve Annual Expense Growth1 Productivity Drivers Client Centric Capability 6.5% Operating Model Operational Scale and Standards Growth Drivers 2025 Target: <5% Unified Technology 4.8% Global Resiliency Revenue Process Automation Generating Talent AI Business Process Re-Engineering
Slide 9: Financial Targets
Financial Targets 2025 Total Expense Positive Total Payout Growth 1 Operating Ratio <5% Leverage >100% MEDIUM-TERM Expenses to Pre-Tax Return on Trust Fees Margin Equity 105-110% >30% 13-15% northerntrust.com / © 2025 Northern Trust 9 ¹ Excluding notable items
Slide 10: Northern Trust…
Northern Trust… 135-year trusted steward of multi-generational wealth Unwavering fiduciary commitment Ingrained culture of integrity Long-term perspective northerntrust.com / © 2025 Northern Trust 10
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS northerntrust.com / © 2023 2025 Northern Trust 11 11
Slide 12: Financial Highlights & Key Metrics
Financial Highlights & Notable Items*: Key Metrics 2Q24 Pre-tax % CHANGE VS. RESULTS INCLUDE IMPACT OF NOTABLE ITEMS* $ in millions (except EPS and as noted) 2Q 2025 1Q 2025 2Q 2024 Revenue Impacts: Revenue (FTE¹) $ 2,002.6 3 % (26)% Noninterest Expense $ 1,416.6 — % (8)% • $878.4 million net gain r
Slide 13: Asset Servicing Highlights
Asset Servicing Highlights Asset Servicing Trust, Investment and Other Servicing Fees ($ in millions) +6% +3% $691.8 $667.1 $675.5 $671.9 $650.6 % CHANGE VS. Key Indicators (in billions): 2Q 2025 1Q 2025 2Q 2024 Assets under Custody / Administration (AUC/A) 2 $ 16,864.9 7 % 9 % Assets under Custody
Slide 14: Wealth Management Highlights
Wealth Management Highlights Wealth Management Trust, Investment and Other Servicing Fees ($ in millions) +5% —% $546.7 $541.9 $539.3 $529.5 $515.5 % CHANGE VS. Key Indicators (in billions): 2Q 2025 1Q 2025 2Q 2024 Assets under Custody / Administration (AUC/A) 2 $ 1,203.4 8 % 10 % Assets under Custo
Slide 15: Net Interest Income and Balance Sheet Trends
Net Interest Income and Balance Sheet Trends Net Interest Income (FTE¹) Average Earning Assets ($ in millions) ($ in billions) +16% +8% +7% +6% $145.8 $135.4 $138.0 $134.8 $133.7 Categories may not sum due to rounding. 1 Net interest income and net interest margin stated on an FTE basis are non-GAAP
Slide 16: Noninterest Expense
Noninterest Expense Expense Highlights Total Noninterest Expense Noninterest expense included the ($ in millions) following notable items: (8)% —% 2Q24 Pre-tax • $85.2 million severance-related charge • $70.0 million Northern Trust Foundation charitable contribution • $16.4 million software accelera
Slide 17: Capital Update
Capital Update Capital Highlights Northern Trust Corporation Capital Ratios • Robust capital and liquidity Standardi zed C o m m on Eq ui ty T i e r 1 Standardi zed T i e r 1 L e verage • $12.0 billion in Tier 1 capital • 66% of average deposits covered by highly liquid assets including 32% by cash
Slide 18: Appendix
Appendix northerntrust.com / © 2025 Northern Trust
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents a reconciliation of interest income, net interest income, net interest margin, total revenue, pre-tax income, and profit margin (pre-tax) prepared in accordance with GAAP to such measures on a fully taxable equivalent (FTE) b
Slide 20: Forward-looking Statements
Forward-looking Statements This presentation may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as
Slide 21: Northern Trust
y NORTHERN TRUST