Northern Trust Corp.

Strong Q2 performance + major drivers of growth (good / key takeaways): - Net income: $792.2M, EPS $4.23, ROE 25.9%. - Total revenue: +13% YoY, driven by trust fees +10%, net interest income (NII) +11%, and capital markets revenues +69% YoY (FX trading, securities commissions/trading). - Operating leverage: >700 bps excluding notable items (i.e., expense discipline + revenue growth).

Notable items and “surprising” one-off effects (good and bad): - Visa Class B exchange offer: pre-tax gain ~ $525M recognized in “other operating income.” - Other notable charges totaling ~$220M (management referenced restructuring and other items): $62M software dispositions, $51M severance (reduction in force), $33M one-time equity grant. - Offsetting portfolio repositioning created ~$74M pre-tax loss in other non-interest income; overall, notable items were material but also boosted net income (approx. $232M favorable impact to net income). - Excluding notable items: EPS +40% YoY (important because it shows the “real” momentum beyond the Visa gain).

Wealth & Asset Servicing showing durability, with some timing/seasonality noise (opportunities + challenges): - Wealth management: trust/investment servicing fees +10% YoY to $592M; AUM +14% YoY to $534B. Company emphasized progress in family office / UHNW and adding revenue-producing talent (producer roles). - Asset servicing: revenues +16% YoY; pre-tax margin >30% excluding notable items. AUA/Admin up, with assets under administration > $1T (hedge funds + private capital + semi-liquid structures). - Sequential fee quirks explained: wealth management fees may be affected by lagged fee structures in GFO (~70% lag) and alternatives valuation frequency/manual processes, plus seasonal outflows—management expects better sequential results in Q3.