Northern Trust Corporation

The filings show a larger franchise with weaker earnings conversion. Northern Trust's balance sheet grew to $177.13 billion in total assets at December 31, 2025, with $164.17 billion in liabilities and $12.96 billion in equity, meaning equity was about 7.3% of assets. Asset Servicing and Wealth Management both depend on client assets; the 10-K reports $17.4 trillion in Asset Servicing AUC/A and $507.2 billion in Wealth Management AUM. Non-U.S. offices supplied 68% of average interest-bearing deposits in the first quarter of 2026, up from 65%, which raises reliance on those funding sources. The Beneish M-Score is -2.525, below the -1.78 threshold, so the label is not in the elevated manipulation-risk zone. That is a screening result, not proof that the numbers are accurate. The Piotroski F-Score is 4 of 6 computable signals, a checklist of standard profitability, leverage, liquidity and efficiency tests. The score is not reported as a full nine-signal result, so it should be read as partial coverage. The Altman Z''-Score and Fog Index are not on file, so no values are given for either. The long-term debt series in this data ends in 2012, so current debt levels are not assessed here. Readers may want to look at Note 4 on securities and Note 5 on loans in the 10-Q, and the Asset Quality section, to see how the provision moved from a $1.0 million expense a year earlier to a negative $3.0 million in the current quarter.

Catalyst.According to the 2025 annual report and the Q1 2026 10-Q, growth is tied to client balances across the two reporting segments, Asset Servicing and Wealth Management. Total revenues rose from $4.73 billion in 2024 to $5.02 billion in 2025, a 6.1% increase. In the quarter ended March 31, 2026, management attributes higher net interest income mainly to higher deposits, with interest-earning deposits up 16% and average interest-bearing deposits up 11% year over year, partly offset by lower interest rates. Average securities rose 15%, while average loans of $40.9 billion were roughly flat as Subscription Finance loans declined and Fund Finance loans grew.

Hidden risk.The revenue gain did not carry through to profit. Net income fell from $2.03 billion in 2024 to $1.74 billion in 2025, about 14% lower, while costs are rising. First-quarter 2026 noninterest expense was $1,508.0 million, up 6% from $1,417.6 million a year earlier, with compensation and benefits up 9%. Operating cash flow also swung from negative $486 million in 2024 to $5.53 billion in 2025, so the 3.19 ratio of operating cash flow to net income reflects one unusually strong year rather than a steady pattern. Management also links recent deposit growth partly to market volatility, which may not persist. The risk-factor text provided is only a table of contents, so specific risk disclosures cannot be assessed from this data.