- Asset Servicing fees increased 6% year-over-year to $692 million, with assets under custody and administration reaching $16.9 trillion, up 9% year-over-year.
- Capital ratios remained strong with a common equity Tier 1 ratio of 12.2% and Tier 1 leverage ratio of 7.6%.
- Expenses increased 4.8% year-over-year excluding notable items, the lowest rate of growth in six quarters.
- Net interest income on an FTE basis was a record $615 million, up 7% sequentially and 16% year-over-year.
- Northern Trust reported second quarter net income of $421 million, earnings per share of $2.13, and a return on average common equity of 14.2%.
- Provision for credit losses increased to $16.5 million, mainly due to reserves for a small number of nonperforming loans, expected to normalize in future quarters.
- Returned $486 million to shareholders through dividends and share repurchases, reflecting a payout ratio of 117%.
- Revenue grew 8% year-over-year excluding notables, with trust, investment and other servicing fees totaling $1.2 billion, a 6% increase compared to last year.
- Wealth Management assets under management were $469 billion, up 12% year-over-year, with pretax profit increasing 18% over the prior year period.
Explore Similar Insights
- Asset quality remained strong with net charge-offs at 13 basis points ($18 million), slightly higher than the prior quarter's 11 basis points.
- Deposits grew by over $1.5 billion, with noninterest-bearing deposits outpacing time deposits on a percentage basis.
- East West Bancorp reported record quarterly revenue, net income, and earnings per share in Q3 2025.
- Efficiency ratio for Q3 was 35.6%, reflecting strong expense control despite investments for growth.
- Fee income hit a record $92 million, up 13% year-over-year, with wealth management fees growing 36%.
- Net interest income (NII) reached a record $677 million, including $32 million from discount accretion and interest recoveries; adjusted NII was $645 million.
- Nonperforming assets stood at 25 basis points, and criticized loans declined to 2.14%.
- Operating expenses were $261 million, including a $27 million one-time compensation charge related to equity awards for retirement-eligible employees.
- AXIS delivered an annualized operating return on equity of 19% in Q2 2025, with record diluted book value per common share of $70.34, up 18.6% year-over-year.
- Catastrophe losses were $37 million, primarily from severe convective storms in the U.S., with a cat loss ratio of 2.6%.
- G&A ratio was 11.6%, slightly up from 11.4% a year ago due to severance and IT investments.
- Insurance segment gross premiums written were $1.9 billion, a 7% increase year-over-year, with an overall combined ratio of 85.3%.
- Investment income was strong at $187 million, benefiting from FX and a market yield of 5% above the 4.6% book yield.
- Net income available to common shareholders was $216 million or $2.72 per diluted common share; operating income was $261 million or $3.29 per diluted common share.
- Operating earnings per share reached an all-time high of $3.29, a 12% increase over the prior year quarter.
- Record second quarter premiums totaled $2.5 billion, including $732 million in new business, with a combined ratio of 88.9%.
- Reinsurance segment gross premiums were down 6.8%, with a combined ratio of 92% and underwriting income of $38 million.
- Reserve releases totaled $20 million from short-tail lines, split between insurance and reinsurance.
- Expect to hold expenses flat at approximately $96.5 million in Q4 and into 2026.
- Factoring business touches 6-7% of all trucks on the road in the for-hire market.
- Factoring segment revenue growth targeted at 20% for next year, up from mid to high single digits.
- Invested $110 million in technology, maintaining a high tech spend relative to expense base.
- LoadPay revenue per funded account currently at $750, with some accounts generating $4,000-$5,000 annually.
- Payments business continued revenue growth despite tough market conditions.
- Payments volume from major partners like C.H. Robinson and RxO onboarded but revenue ramping up gradually.
- Restructuring efforts led to a 5% reduction in expense base, mostly realized in Q4.
- Credit quality improved materially with net charge-offs less than $1 million when normalized for USPS and acquired portfolio impacts.
- EBITDA margin for the payments segment improved to approximately 14%, with a long-term goal of exceeding 40%.
- Factoring invoice size was influenced by customer mix and market pressures, with a diverse portfolio including both small and large carriers.
- Noninterest-bearing deposit growth was strong, driven by mortgage warehouse deposits and payments float.
- The Greenscreens acquisition added roughly $10 million in contracted ARR with an expected drag of about $3 million per quarter on earnings due to amortization and expenses.
- The second quarter 2025 results showed positive revenue growth, particularly in the transportation businesses.
- Capital ratios and tangible book value per share increased linked quarter driven by improved profitability and strategic balance sheet repositioning.
- Consumer loan balances decreased by $41 million due to strategic run down of indirect auto portfolio; residential mortgage lending modestly grew.
- Credit quality remained strong with substandard loans at 1.29%, nonperforming loans at 54 basis points, and net charge-offs near $254,000 or 2 basis points for the quarter.
- Horizon Bancorp reported strong second quarter 2025 earnings driven by core community banking franchise strength, significant net interest margin expansion, low net charge-offs of 2 basis points annualized, and improved ROAA and ROATCE metrics.
- Loan growth was solid with net loans held for investment growing $75.5 million or 1.5% in the quarter and 6.2% annualized, led by commercial loans growth of $117 million (14.8% quarterly growth).
- Net interest margin increased by 19 basis points to 3.23%, including 7 basis points of outsized interest recoveries; excluding recoveries, margin expanded driven by improved asset and liability mix and disciplined pricing.
- Noninterest income was stable with seasonal strength in interchange fees and mortgage gain on sale; expenses were well managed at $39.4 million, with full year expense outlook now approximately flat versus 2024.
- Reported earnings per share grew by 58% for the first six months of 2025 compared to the prior year.
- B2B segment revenue grew nearly 40%, driven by a significant BaaS partner and growth in the BaaS portfolio.
- Consumer Services segment revenue declined but active account declines moderated, with retail channel showing flat active accounts and slight increases in key metrics.
- Corporate segment revenues increased due to higher interest income from balance sheet optimization and bond repositioning.
- Green Dot reported a strong Q2 2025 with adjusted revenue up 24% year-over-year and adjusted EBITDA up 34%, both exceeding expectations.
- Money Movement segment saw tax business outperform expectations with profits up over 10%, while money processing revenue declined modestly due to lower transaction volumes but improved revenue per transaction.
- Non-GAAP EPS reached $0.40 per share, a 60% increase year-over-year.
- Overall segment margins were flat year-over-year, with margin improvements in direct channel offsetting retail declines.
- Rapid Employer Services revenue declined due to challenges in the staffing industry, but margin expanded by 45 basis points due to improved profitability.
Dafinchi