Northern Trust Q2 2026 Earnings Call: Complete Transcript

On Wednesday, Northern Trust (NASDAQ: NTRS ) discussed second-quarter financial results during its earnings call.

The full transcript is provided below.

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View the webcast at Summary Northern Trust Corporation reported a strong second quarter with net income of $792.2 million and a 13% year-over-year revenue increase driven by growth in trust fees, net interest income, and capital markets revenues.

The company participated in the Visa Class B common stock exchange offer, recognizing a $525 million pre-tax gain, and incurred notable restructuring charges totaling approximately $220 million.

Wealth management delivered a 10% year-over-year increase in trust fees, with assets under management up 14%.

The company is expanding its Global Family Office and ultra high net worth client services.

Asset servicing revenues increased 16% year-over-year, with a focus on scalable growth and deepening client relationships.

The business recorded over $1 trillion in assets under administration in alternatives.

The company continues to invest in AI technology to enhance service, expertise, and integrity, viewing it as a force multiplier rather than a replacement for human judgment.

Capital return to shareholders was nearly $500 million for the quarter, with a 95% payout ratio excluding notable items.

A dividend increase was approved, reflecting confidence in the firm's earnings power.

Guidance for the full year includes expectations of 9-10% revenue growth and approximately 400 basis points of operating leverage, assuming a stable market environment.

Full Transcript OPERATOR 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.

Steve Carroll, Head of Investor Relations 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 Michael O'Grady, our Chairman and CEO; Dave Fox, our Chief Financial Officer; John Landers, our Comptroller; and Trace Stedgeman 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 22nd call is being webcast live on northerntrust.com.

The only authorized rebroadcast of this call is the replay that will be made available on our website through August 22nd.

Northern Trust disclaims any continuing accuracy of the information provided in this call after today.

Please refer to our safe harbor statement regarding forward-looking statements in the back of the accompanying presentation, which will apply to our commentary on this call.

During today's question and answer session, please limit your initial query to one question and one related follow-up.

This will allow us to move through the queue and enable as many people as possible the opportunity to ask questions as time permits.

Thank you again for joining us today.

Let me turn the call over to Michael O'Grady.

Fredrick Wilson, Chief Executive Officer Thank you, Steve, and good morning, everyone.

Let me join in welcoming you to our second quarter 2026 earnings call.

Our results this quarter reflect strong execution of our One Northern Trust strategy and a very constructive market environment.

We delivered an eighth consecutive quarter of positive organic fee growth and generated significant positive operating leverage, underscoring both the strength of our diversified business model and the discipline with which we are managing the firm.

As we've discussed, our strategy is centered on driving sustainable organic growth, improving productivity, and strengthening resiliency.