Q4 2025 Northern Trust Corp Earnings Call Transcript
Key Points
- Trust fees grew by 7% and net interest income increased by 14% year-over-year, indicating strong financial performance.
- Northern Trust Corp (NTRS) achieved a 19% growth in earnings per share (EPS) and expanded its pretax margin to 33%, excluding notable items.
- The company returned $1.9 billion to shareholders in 2025, including a record $1.3 billion in share repurchases, reducing share count by 5%.
- Significant strides were made in strategic pillars, such as optimized growth and productivity, enhancing client relationships and market share.
- Asset Management delivered strong liquidity with 12 consecutive quarters of positive flows, and liquidity AUM reached nearly $340 billion.
- Currency movements unfavorably impacted expense growth by approximately 140 basis points.
- The effective tax rate increased to 26.5% in the fourth quarter, up 310 basis points from the prior year, due to higher tax impacts from international operations.
- Expenses increased by 9% year-over-year in the fourth quarter, although excluding notable items, they were up 5%.
- Wealth Management's pretax profit decreased by 3% over the prior year's record levels, with a pretax margin contraction of 300 basis points to 38.9%.
- The company recorded $69 million in net unfavorable notable items, including $59 million in severance-related expenses.
Good day, and welcome to the Northern Trust Corporation fourth-quarter 2025 earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jennifer Childe, Director of Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to Northern Trust Corporation's fourth-quarter 2025 earnings conference call. Joining me on our call this morning is Michael 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 fourth-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 January 22 call is being webcast live on northerntrust.com. The only authorized rebroadcast of this call is the replay
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