Q2 2026 Northern Trust Corp Earnings Call Transcript
Key Points
- Northern Trust Corp (NTRS) reported an eighth consecutive quarter of positive organic fee growth, demonstrating strong execution of their strategy.
- The company achieved a significant pre-tax gain of nearly $525 million from participating in the Visa Class B common stock exchange offer.
- Total revenue increased by 13% year-over-year, driven by 10% growth in trust fees, 11% growth in net interest income, and 69% growth in capital markets revenues.
- Assets under management in Wealth Management were up 7% sequentially and 14% year-over-year, reflecting strong client engagement.
- The company returned almost $500 million to shareholders during the quarter, with a payout ratio of 95% through the first half of the year, excluding notable items.
- Northern Trust Corp (NTRS) incurred approximately $220 million in restructuring charges and other notable items, impacting overall financial results.
- Non-interest expense increased by 5% as the company balanced cost management with ongoing investments, which could pressure margins.
- The company experienced some price compression in select liquidity products, impacting revenue growth.
- The competitive market for talent poses challenges in hiring revenue-generating professionals, which could affect growth in Wealth Management.
- The macro environment remains dynamic, presenting uncertainties that could impact future performance.
Good day, and welcome to the Northern Trust Corporation second-quarter 2026 earnings conference call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Steve Carroll, Head of Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Northern Trust Corporation's second-quarter 2026 earnings conference call. Joining me on our call this morning is Mike O'Grady, our Chairman and CEO; Dave Fox, our Chief Financial Officer; John Landers, our Controller; and Trace Stegeman from our Investor Relations team.
Our second quarter earnings press release and financial trends report are both available on our website at northerntrust.com. Also on our website, you will find our quarterly earnings review presentation, which we will use to guide today's conference call. This July 22 call is being webcast live on northerntrust.com. The only authorized rebroadcast of this call is the replay
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