Northern Trust Corporation (NTRS), a leading provider of wealth management, asset servicing, asset management and banking, reported third-quarter net income of $642.9 million, or $3.40 a share, compared with $4.23 a share in the second quarter of 2026.

The sequential decline in earnings reflected a much smaller set of notable items than in the prior quarter. Third-quarter results included a $34.0 million pre-tax gain on the sale of the guardianship services business and a $14.7 million incremental gain on the second Visa exchange offer. The second quarter had included a $525.4 million Visa-related gain and a $73.9 million loss on available-for-sale securities, plus $145.6 million of pre-tax expense charges for software dispositions, severance and an equity grant.

Excluding those items, Chairman and Chief Executive Officer Michael O’Grady said revenues grew 11% from the year-earlier quarter, pretax income increased 21% and earnings per share increased 40%. He said all three businesses delivered organic trust-fee growth.

Trust, investment and other servicing fees rose 8% from the year-earlier quarter to $1,373.0 million. Asset Servicing fees were $761.5 million and Wealth Management fees $611.5 million. Securities lending fees were $29.4 million, which the company attributed to higher trading volumes and spreads. Custody and fund administration, investment management, private wealth and global family office fees all rose from a year earlier, which the company attributed primarily to favorable markets, with GFO also citing asset inflows.

Assets under custody/administration were $19.90 trillion at September 30, 2026, and assets under management were $1.96 trillion. The company said both increased from the prior-year quarter primarily on favorable markets and net client inflows.

Net interest income on an FTE basis was $679.1 million, up 14% from a year earlier, after 11% year-over-year growth in the second quarter. The net interest margin (FTE) was 1.83%, a 13 bps year-over-year expansion. The company said the year-over-year increase in both NII and NIM was driven by higher deposits, a favorable deposit mix and lower funding costs. Interest expense fell 10% from a year earlier to $1,401.7 million. Average earning assets were $147.6 billion.

Total average deposits were $123.4 billion, up 6% from a year earlier. Asset Servicing average deposits were $95.8 billion and Wealth Management $27.5 billion. Total average loans were $41.7 billion, up 1% from a year earlier.

Asset Servicing pre-tax income (FTE) was $405.2 million, with a 30.3% pre-tax margin. Wealth Management pre-tax income (FTE) was $391.6 million, with a 41.1% pre-tax margin (FTE). The $34.0 million guardianship-sale gain was included entirely in Wealth Management.

Other noninterest income was $250.0 million. Foreign exchange trading income was $84.1 million and security commissions and trading income $52.0 million. Other operating income included the guardianship-sale gain and the incremental Visa gain.

Noninterest expense was $1,492.5 million. Compensation and benefits were $761.1 million. The sequential expense decline versus the second quarter reflected the prior quarter’s $51.0 million severance charge, $33.1 million Invested as One equity grant and $61.5 million of software-disposition charges.

The provision for credit losses was $5.4 million, primarily from the charge-off of one commercial and institutional loan, reversing a $5.3 million release in the second quarter. Net charge-offs were $11.0 million and the ending allowance for credit losses was $184.7 million.

The company returned $514.2 million to common shareholders in the quarter through $161.9 million of dividends and $352.3 million of share repurchases, including 1,901,679 shares at an average $185.27. It raised the quarterly cash dividend to $0.88 a share from $0.80. Common equity Tier 1 capital under the standardized approach was $11.56 billion, for a 12.4% ratio at September 30, 2026.

O’Grady said the company entered the final quarter focused on supporting clients, investing in growth and delivering sustainable long-term value.