■ Increase · July 22, 2026
Northern Trust Q2 2026 Earnings: NII, AUM Growth Drive Results; Dividend Raised
Northern Trust reported Q2 2026 adjusted EPS of $2.97, beating estimates, driven by higher NII and fee income. The board raised the quarterly dividend by 10% to $0.88 per share.
Second-Quarter Results
Northern Trust Corporation (NTRS) reported second-quarter 2026 adjusted earnings per share of $2.97, surpassing the consensus estimate of $2.68. Net income on a GAAP basis reached $792.2 million, up 88% from the prior-year quarter. Total revenues of $2.62 billion increased 31% year over year, also beating expectations.
Revenue and Expense Details
Net interest income (NII) rose 11% to $675.5 million, with net interest margin expanding 11 basis points to 1.79%. Trust, investment and other servicing fees grew 10% to $1.35 billion. Other non-interest income surged to $673 million from $156.3 million a year ago. Non-interest expenses increased 16% to $1.64 billion.
Asset Servicing income before taxes was $323.3 million, up 19%, with a pre-tax margin of 23.7%. Wealth Management income before taxes rose 8% to $333.5 million, with a pre-tax margin of 37.4%. The Other segment recorded income before taxes of $415.5 million, compared to a loss of $11.5 million in the prior-year quarter.
Balance Sheet and Capital
As of June 30, 2026, total assets under custody (AUC) increased 12% year over year to $15.9 trillion, and assets under management (AUM) grew 16% to $1.9 trillion. The allowance for credit losses decreased 15% to $190.3 million, and non-accrual assets fell to $71.3 million from $92.8 million. The company reported a provision benefit of $5.3 million, compared to a provision expense of $16.5 million in the year-ago quarter.
The Common Equity Tier 1 capital ratio under the Standardized Approach was 12.2%, unchanged from a year ago. The total capital ratio improved to 15.5% from 14.8%, and the Tier 1 leverage ratio remained at 7.6%. Return on average common equity was 25.9%, up from 14.2%.
Shareholder Returns and Dividend Increase
During the quarter, Northern Trust returned $499.4 million to common shareholders through share repurchases and dividends. The company repurchased 2.1 million shares for $350.6 million at an average price of $164.65 per share and paid $148.8 million in common stock dividends. Following the Federal Reserve's 2026 stress test, the board approved a 10% increase in the quarterly dividend to $0.88 per share, effective July 21, 2026. For more details on NTRS's payout record, see the dividend history.
What It Means for Income Investors
Northern Trust's dividend increase reflects strong earnings and capital position, supported by growth in NII and fee income. The company's rising AUC and AUM balances provide a foundation for future revenue, though elevated expenses remain a factor to monitor.
Reporting based on: TradingView. Figures verified against market data where available.