Q1 2026 Northern Trust Corp Earnings Call Transcript
Key Points
- Northern Trust Corp (NTRS) reported a strong start to 2026 with a 14% increase in total revenue year-over-year.
- The company achieved a 43% growth in EPS and a return on average common equity of 17.4%, which is at the higher end of their new medium-term target range.
- Northern Trust Corp (NTRS) returned $510 million to shareholders, representing a total payout ratio of 100%, including $359 million in share repurchases.
- The company is leveraging AI to enhance client experience, improve decision quality, and increase operating leverage, focusing on hyperpersonalization, AI-generated alpha, and infinite scalability.
- Asset Servicing business delivered solid organic growth with a 10% increase in trust fees and significant NII and capital markets activity, leading to a 700 basis points year-over-year pretax margin expansion.
- Despite strong revenue growth, the Wealth Management pretax margin remained flat at 37.1% due to reinvestment in the business.
- Currency movements unfavorably impacted expense growth by approximately 130 basis points year-over-year.
- Assets under custody administration were down 1% sequentially, although up 10% compared to the prior year.
- The net interest margin decreased sequentially to 1.75%, primarily due to large short-term institutional deposits.
- The company faces a highly competitive market for talent in the Wealth Management sector, which could impact growth initiatives.
Good day, and welcome to the Northern Trust Corporation first-quarter 2026 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the call over to Jennifer Childe, Director of Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to Northern Trust Corporation's first-quarter 2026 earnings conference call. Joining me on our call this morning is Michael OGrady, our Chairman and CEO; Dave Fox, our Chief Financial Officer; John Landers, our Controller; and Steve Carell and Trace Stegeman from our Investor Relations team.
Our first-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 April 21 call is being webcast live on northerntrust.com. The only authorized rebroadcast of this call is
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