Northern Trust's Q2 revenue up on fees, capital markets, net interest income

Northern Trust's (NTRS) second-quarter revenue surged on fee growth, capital markets, and net interest income.

Shares were +0.38% to $185.77 during pre-market trading on Wednesday.

The wealth management, asset servicing, asset management, and banking services provider's net income per diluted share rose to $4.23 from $2.71 a quarter ago and $2.13 a year ago.

For the second quarter of 2026, revenue increased 35% year-over-year and 22% sequentially to $2.71B.

Trust, investment, and other servicing fees rose 10% year-over-year to $1.35B. Other noninterest income came in at $673.0M. Net interest income was up 11% to $683.1M.

Net interest margin reached 1.81% during the quarter from 1.75% a quarter ago and 1.69% a year ago.

The company recorded a negative provision for credit losses during the quarter of $5.3M, compared to -$3.0M in the first quarter of 2026. The negative provision resulted from a decrease in the collective reserve, primarily driven by a strengthening macroeconomic outlook and improved credit quality for the commercial real estate and commercial and institutional portfolios.

"Excluding notable items in the period, earnings per share increased 40%. Revenue increased 13% versus last year, supported by robust fee growth, healthy capital markets activity, and double-digit net interest income growth," said CEO Michael O'Grady.

"Our progress against our strategic priorities helped drive an eighth consecutive quarter of positive organic trust-fee growth. Expenses were well controlled, and the corporation generated more than 700 basis points of operating leverage for the second consecutive quarter," said O'Grady.

Additionally, the bank raised its quarterly dividend by 10% to $0.88. The dividend is payable October 1; for shareholders of record September 4; ex-div September 4.

Earnings call is scheduled for 8:00 AM CT today.