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# Northern Trust reports Q2 2026 EPS of $4.23, boosted by $451.5 million of notable revenue items
- URL: https://www.theglobalbanker.com/northern-trust-q2-2026-eps-4-23-record-revenue-favorable-items/
- Published: 2026-07-22T14:41:00.000Z
- Updated: 2026-10-02T00:49:27.000Z
- Description: Northern Trust posted Q2 2026 EPS of $4.23, up 56% QoQ and 98% YoY, on revenue of $2.71 billion, boosted by $451.5 million in net favourable items.
- Author: TGB Editorial Team
- Tags: Banking News, Americas

Northern Trust reported second-quarter net income of $792.2 million and earnings per share of $4.23, up 56% sequentially and 98% year on year, on fully taxable-equivalent revenue of $2,705.6 million, boosted by $451.5 million in net favourable items during the quarter.

Revenue rose 22% sequentially and 35% year on year, the Chicago-based trust bank said in the earnings release filed with the Securities and Exchange Commission. Noninterest expense for the quarter was $1,638.6 million, up 16% year on year.

#### ONE-OFF ITEMS AMPLIFY THE HEADLINE

The $451.5 million comprised a $525.4 million gain related to Northern Trust's participation in the second Visa Inc. exchange offer, partly offset by a $73.9 million loss on debt securities sold in a portfolio repositioning. Excluding all notable items, which also included $145.6 million of expense charges, earnings per share rose 40% year on year, chief executive Michael O'Grady said.

Excluding notable items, revenue rose 13% year on year, according to chief executive Michael O'Grady, supported by robust fee growth, healthy capital markets activity and double-digit net interest income growth. Trust, investment and other servicing fees rose 10% year on year to $1,349.5 million, with custody and investment management fees lifted primarily by favourable markets.

#### COSTS AND NOTABLE CHARGES

Noninterest expense of $1,638.6 million included $145.6 million of notable charges for software dispositions, severance and a one-time equity grant to employees. O'Grady said expenses were well controlled and that the company generated more than 700 basis points of operating leverage for the second consecutive quarter.

Northern Trust returned more than $1 billion of capital to shareholders in the first half, and its board approved a $0.08, or 10%, increase in the quarterly dividend on 21 July.