Key facts
- Northern Trust's second-quarter profit increased by 88%.
- A one-time gain of $525.4 million (pre-tax) from a Visa share exchange offer contributed to the results.
- Fee income from asset management and capital markets activity was strong.
- Assets under custody and administration grew 11% to $20 trillion.
- Assets under management increased 16% to $1.97 trillion.
- Net income rose to $792.2 million, or $4.23 per share.
Northern Trust reported an 88% increase in its second-quarter profit, driven by a significant one-time gain related to a Visa share exchange offer and robust fee income from its asset management division. The company's assets under custody and administration climbed 11% to $20 trillion, while assets under management grew 16% to $1.97 trillion.
Trust, investment, and other servicing fee income rose 10% to $1.35 billion, representing the company's primary revenue source. Northern Trust's net income for the quarter reached $792.2 million, or $4.23 per share, a substantial increase from $421.3 million, or $2.13 per share, in the same period last year. Excluding certain items, earnings per share saw a 40% rise, supported by healthy fee growth and strong capital markets activity.
The results align with those of peer institutions like BNY and State Street. The second quarter saw a rally in U.S. stock markets, fueled by optimism around corporate earnings and AI-linked stocks, with investors looking past Middle East conflict volatility.