NORTHERN TRUST CORP

Northern Trust Corporation is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals, operating as a financial holding company through various U.S. and non-U.S. subsidiaries, including The Northern Trust Company, an Illinois banking corporation headquartered in Chicago and founded in 1889. The Corporation has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region.

Northern Trust faces a number of competitors across its businesses, including other custodial banks, investment counseling firms, deposit-taking institutions, asset management firms, benefits consultants, trust companies, investment banking firms, insurance companies, and various financial technology companies, including software providers and data services firms. Northern Trust's growth strategy is to leverage its differentiators—trusted brand, deep expertise, tailored technology, proven relationships and network, and strong balance sheet—to serve targeted client segments with specialized solutions in select geographies, emphasizing the development and growth of scalable, sustainable fee-based income.

Northern Trust generates the majority of its revenue from Noninterest Income, which primarily consists of Trust, Investment and Other Servicing Fees, with Net Interest Income comprising the remainder. The Corporation focuses on managing and servicing client assets through its two client-focused reporting segments: Asset Servicing and Wealth Management, with asset management and related services provided to both segments primarily by the Asset Management business, whose revenue and expenses are allocated fully to Asset Servicing and Wealth Management.

Asset Servicing is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors, encompassing custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management. At December 31, 2025, total Asset Servicing assets under custody/administration, assets under custody, and assets under management were $17.4 trillion ¹, $13.6 trillion ², and $1.3 trillion ³, respectively. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses, providing trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking, and 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 ⁴, $1.3 trillion ⁵, and $507.2 billion ⁶, respectively, at December 31, 2025.

Asset Management, through the Corporation's various subsidiaries, supports the Asset Servicing and Wealth Management reporting segments by providing a broad range of asset management and related services, delivering investment solutions through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds, with capabilities including active and passive equity, active and passive fixed income, cash management, multi-asset and alternative asset classes, and multi-manager advisory services. Northern Trust managed $1.8 trillion ⁷ in assets as of December 31, 2025, including $1.3 trillion ⁸ for Asset Servicing clients and $507.2 billion ⁹ for Wealth Management clients.

On July 22, 2025, the Corporation announced that its Board authorized a new share repurchase program to repurchase up to $2.5 billion ¹⁰ of the Corporation's outstanding common stock with a capacity of $1.9 billion ¹¹ of repurchase authority remaining under the plan as of December 31, 2025. During the year ended December 31, 2025, the Corporation increased its quarterly common stock dividend to $0.80 ¹² per share from the previous $0.75 ¹³ per share, declared cash dividends totaling $600.5 million ¹⁴ to common stockholders and $41.8 million ¹⁵ to preferred stockholders, and repurchased 11,005,509 ¹⁶ shares of common stock at a total cost of $1.3 billion ¹⁷ ($115.72 ¹⁸ average price per share).

Total revenue for the year ended December 31, 2025 was $8,086.4 million ¹⁹, a decrease of 2% from $8,290.4 million ²⁰ in 2024. Net income was $1,736.9 million ²¹ in 2025, compared to $2,031.1 million ²² in 2024, a decrease of 14%. Diluted earnings per common share were $8.74 ²³ in 2025 versus $9.77 ²⁴ in 2024. The return on average common equity was 14.4% ²⁵ in 2025, compared to 17.4% ²⁶ in 2024.

The Corporation's most recent 165(d) plan was submitted timely to the FDIC and Federal Reserve Board by October 1, 2025, and its next 165(d) plan submission is a targeted resolution plan due July 1, 2028, with future resolution plans due every three years after that. The Bank submitted its most recent interim supplement timely by July 1, 2025, and its full resolution plan is due July 1, 2026.

Northern Trust's growth strategy is to leverage its differentiators—trusted brand, deep expertise, tailored technology, proven relationships and network, and strong balance sheet—to serve targeted client segments with specialized solutions in select geographies, and the Corporation will continue to enable its strategy through significant investments in talent and culture, technology, data, AI and operational excellence. The Corporation emphasizes the development and growth of scalable, sustainable fee-based income.

Northern Trust will continue to enable its strategy through significant investments in talent and culture, technology, data, AI and operational excellence, and the Corporation emphasizes the development and growth of scalable, sustainable fee-based income.

Northern Trust employed approximately 23,800 ²⁷ full-time equivalent employees as of December 31, 2025, with a regional breakout of 42% ²⁸ Asia-Pacific, 41% ²⁹ North America, and 17% ³⁰ Europe, Middle East, and Africa. The Corporation continues to invest in its Human Capital Management System to help streamline manual processes, enable dynamic workforce analytics, and unlock new capabilities through a central manager workspace.

On July 22, 2025, the Corporation's Board of Directors approved a new common stock repurchase authorization authorizing the repurchase of up to $2.5 billion ³¹ of the Corporation's outstanding shares of common stock, which has no expiration date. The Corporation declared cash dividends totaling $600.5 million ³² to common stockholders and $41.8 million ³³ to preferred stockholders during the year ended December 31, 2025, and increased its quarterly common stock dividend to $0.80 ³⁴ per share from the previous $0.75 ³⁵ per share.

The earnings of Northern Trust are affected by numerous external influences, chief among them general economic conditions, both domestic and international, and actions that governments and their central banks take in managing their economies, which affect all of Northern Trust's businesses, as well as the quality, value, and profitability of its loan and investment portfolios. The Corporation is subject to extensive regulation and supervision under state and federal laws in the United States and in each of the jurisdictions in which it does business, and changes in laws or regulations applicable to Northern Trust may have a material effect on its businesses and results of operations.

Northern Trust faces a number of competitors across its businesses, including other custodial banks, investment counseling firms, deposit-taking institutions, asset management firms, benefits consultants, trust companies, investment banking firms, insurance companies, and various financial technology companies, and as its businesses grow and markets evolve, it may encounter increasing and new forms of competition around the world. The Corporation is subject to extensive and evolving government regulation and supervision that impacts its operations, and changes by the U.S. and other governments to laws, regulations and policies applicable to the financial services industry could heighten the challenges it faces and make regulatory compliance more difficult and costly.

Northern Trust is dependent on fee-based business for a majority of its revenues, which may be affected adversely by market volatility, a downturn in economic conditions, underperformance, or negative trends in investment preferences, as fees for many products and services are based on the market value of assets under management, custody or administration. Changes in interest rates could affect earnings negatively, as the direction and level of interest rates are important factors in earnings, and the Corporation is subject to many types of operational risks, including failures of technological systems or networks, breaches of security measures resulting from cyber-attacks, and errors in the provision of services. The Corporation is subject to extensive and evolving government regulation and supervision, and failure to comply with regulations or supervisory expectations could result in penalties and regulatory constraints. As of December 31, 2025, the Corporation held cash that accumulates in relation to Russian securities with its subcustodian or clearing agencies for the benefit of certain clients in its Asset Servicing business which are subject to restrictions that inhibit its ability to access or transfer such deposits, and which amount is expected to increase significantly over time as long as the sanctions and other relevant restrictions remain in effect.

Management's message emphasizes that Northern Trust's talent is its greatest asset and a core enabler of its strategy, and that empowering employees is central to its talent vision. The Corporation's culture is embedded with five behaviors: relentlessly client-centric, constantly managing risk, respectfully candid, intentionally inclusive, and always accountable. Management highlights that Northern Trust will continue to enable its strategy through significant investments in talent and culture, technology, data, AI and operational excellence, and that the Corporation emphasizes the development and growth of scalable, sustainable fee-based income.