Northern Trust reported first-quarter net income of $525.5 million, up from $466.0 million in the fourth quarter of 2025 and $392.0 million a year earlier.
Diluted earnings per share rose to $2.71 from $2.42 in the prior quarter and $1.90 in the first quarter of 2025.
Revenue reached $2.21 billion, compared with $2.14 billion in the fourth quarter and $1.95 billion in the prior-year quarter. Trust, investment and other servicing fees climbed to $1.34 billion from $1.31 billion in the previous quarter and $1.21 billion a year earlier. Other noninterest income increased to $210.2 million from $174.1 million and $158.1 million, while net interest income edged up to $661.6 million from $654.3 million and $573.7 million.
Pre-tax income rose to $708.2 million from $646.5 million in the prior quarter and $527.0 million a year ago. The pre-tax margin widened to 32.0% from 30.3% and 27.1%.
Return on average common equity improved to 17.4% from 15.4% in the fourth quarter and 13.0% in the first quarter of 2025.
Average assets increased to $165.3 billion from $154.9 billion in the prior quarter and $150.3 billion a year earlier. Average earning assets rose to $153.7 billion from $143.0 billion and $138.0 billion.
Client assets also grew year over year. Assets under custody/administration totaled $18.55 trillion, up from $18.72 trillion in the fourth quarter and $16.92 trillion a year earlier. Assets under custody were $14.78 trillion, versus $14.89 trillion and $13.27 trillion. Assets under management reached $1.78 trillion, compared with $1.80 trillion and $1.61 trillion.
Within servicing fees, asset servicing generated $740.5 million, up from $729.6 million in the prior quarter and $671.9 million a year earlier. Wealth management servicing fees were $600.9 million, compared with $577.8 million and $541.9 million.
Foreign exchange trading income increased to $87.7 million from $74.3 million in the fourth quarter and $58.7 million a year earlier. Security commissions and trading income rose to $52.1 million from $49.9 million and $39.1 million. Other operating income jumped to $70.4 million from $49.9 million and $60.3 million.
Noninterest expense was $1.51 billion, up from $1.50 billion in the prior quarter and $1.42 billion a year earlier. Compensation and benefits rose to $822.2 million from $806.3 million and $754.1 million. Equipment and software expense increased to $308.1 million from $301.1 million and $280.9 million, while outside services fell to $236.7 million from $248.1 million.
The company returned $509.7 million to common shareholders during the quarter, including $150.8 million in dividends and $358.9 million in share repurchases. It repurchased 2,488,148 shares at an average price of $144.25.
Average deposits climbed to $129.0 billion from $119.8 billion in the fourth quarter and $115.9 billion a year earlier. Asset servicing deposits rose to $102.4 billion from $92.6 billion and $89.3 billion. Wealth management deposits were $26.5 billion, little changed from the prior quarter and up from $25.3 billion a year earlier.
The allowance for credit losses ended the quarter at $195.2 million, down from $198.3 million at year-end and $207.3 million a year earlier. As a result of these announcements, the company's shares have moved -1.25% on the market, and are now trading at a price of $137.98. For more information, read the company's full 8-K submission here.
