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• It's like **JPMorgan Chase's** private banking and wealth management division, but exclusively for the ultra-rich and families.
• It's the 'Amazon Web Services' for large institutional investors, handling all the complex asset servicing and management behind the scenes.

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• Wealth Management: Provides comprehensive financial planning, investment management, trust, custody, and private banking services for high-net-worth individuals and families.
• Asset Servicing: Offers institutional clients a suite of services including global custody, fund administration, investment operations outsourcing, and securities lending.
• Asset Management: Manages investment portfolios across various asset classes like equities, fixed income, and alternatives for both institutional and individual clients.
• Banking Solutions: Delivers treasury management, foreign exchange, and general banking services to support client liquidity and operational needs.

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Northern Trust (NTRS) serves a diverse client base that includes both large institutional clients and high-net-worth individuals. Due to the confidential nature of its institutional client relationships, specific names of major customer companies are not publicly disclosed and are not available in the provided background information.

However, Northern Trust's Wealth Management segment primarily serves individuals and families. The major categories of customers served by this segment include:

• High-net-worth individuals and families
• Business owners
• Executives, professionals, and retirees

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Michael G. O'Grady Chairman and Chief Executive Officer

Michael G. O'Grady is the Chairman and Chief Executive Officer of Northern Trust, a position he has held since 2019 and 2018 respectively. He joined Northern Trust in 2011 and previously served as President (since 2017), President of Corporate & Institutional Services (2014–2016), and Chief Financial Officer (2011–2014) for the company. Before joining Northern Trust, he spent a decade at Bank of America Merrill Lynch (2000–2011) as a Managing Director in the firm's Investment Banking Group and head of the Depository Institutions Group for the Americas. He began his career at Merrill Lynch in 1992 as an associate, and prior to that, he worked for Price Waterhouse from 1987 to 1990.

David W. Fox, Jr. Chief Financial Officer

David W. Fox, Jr. was appointed Executive Vice President and Chief Financial Officer of Northern Trust Corporation, effective October 1, 2024. He joined Northern Trust in 2012. Before becoming CFO, he served as President of Northern Trust's Global Family & Private Investment Offices from 2015 to September 2024. Prior to that, he was Head of the Americas for the Asset Servicing business from 2012 to 2015. Before his tenure at Northern Trust, Mr. Fox held various leadership roles at J.P. Morgan Chase & Co. for over 25 years, including Vice Chairman of Investment Banking and CEO of Midwest Investment Banking.

Jason J. Tyler President, Wealth Management

Jason J. Tyler assumed the role of President of Wealth Management at Northern Trust, effective October 1, 2024. He previously served as Chief Financial Officer of Northern Trust. Mr. Tyler joined Northern Trust in 2011, and his past roles with the company include Global Head of Corporate Strategy, Global Head of the Institutional Group in the Asset Management business, and Chief Financial Officer for Wealth Management. Prior to joining Northern Trust, he spent eight years at Ariel Investments as Director of Research Operations and a member of the firm's Investment Committee. Earlier in his career, he held various leadership positions in Corporate Finance and Banking at American National Bank/Bank One.

Peter B. Cherecwich Chief Operating Officer

Peter B. Cherecwich was appointed Chief Operating Officer of Northern Trust, effective October 1, 2024. In this newly created role, he is responsible for ensuring operational excellence and resiliency across the firm. Prior to this appointment, Mr. Cherecwich served as President of Asset Servicing.

Daniel E. Gamba President, Asset Management

Daniel E. Gamba serves as the President of Northern Trust Asset Management.

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The key risks to Northern Trust's business are:

1. Market Volatility and Fee-Revenue Pressure: Northern Trust's business model is significantly dependent on fee-based services derived from its substantial assets under custody/administration (AUC/A) and assets under management (AUM). Consequently, fluctuations and downturns in global financial markets directly impact the value of these assets, leading to reduced fee income and pressure on its top-line revenue.
2. Evolving Regulatory and Legal Risks: As a global financial holding company, Northern Trust is subject to extensive and continuously evolving government regulations and supervision across various jurisdictions (U.S., UK, EU). These regulations encompass prudential standards (e.g., Basel III, CCAR/DFAST), liquidity and capital requirements, and emerging obligations in areas such as data privacy (GDPR, CCPA, EU AI Act) and sustainable finance. Navigating these complex and changing regulatory landscapes can lead to increased compliance costs, operational adjustments, and potential legal liabilities, negatively impacting its financial condition and operations.
3. Operational and Cybersecurity Risks: Northern Trust heavily relies on intricate information technology systems and networks, many of which are managed by third parties, to deliver its wealth management, asset servicing, and banking solutions. This dependency exposes the company to significant operational risks, including system failures, service disruptions, and sophisticated cybersecurity threats such as cyber-attacks and data breaches. Such incidents could severely impair operations, compromise sensitive data, damage the company's reputation, and result in substantial financial losses.

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The rise of Distributed Ledger Technology (DLT) and blockchain-based platforms for asset servicing and custody. These technologies have the potential to disintermediate traditional financial processes by enabling more efficient, transparent, and real-time settlement, potentially reducing the need for multiple intermediaries and the associated costs in areas like custody, fund administration, and securities lending, which are core services offered by Northern Trust's Corporate & Institutional Services segment.

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Northern Trust's Addressable Market Sizes for Key Services

Wealth Management

Asset Servicing

• Custody Services: The global custody services market was valued at USD 4.54 billion in 2024 and is expected to grow to USD 9.15 billion by 2033, at a CAGR of 8.1% from 2026 to 2033. Another source reported the custody service market at $45.19 billion in 2024, projected to reach $48.84 billion in 2025 with an 8.1% CAGR. North America holds the largest share of the global custody services market, accounting for approximately 45%.
• Fund Administration: The global fund administration services market size was valued at USD 12.8 billion in 2024 and is forecasted to reach USD 23.6 billion by 2033, growing at a CAGR of 7.1%. Another report indicates a global market size of USD 12.9 billion in 2024, with a projected growth to USD 25.8 billion by 2033 at a CAGR of 8.2%.

Asset Management

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Northern Trust (NTRS) anticipates future revenue growth over the next two to three years will be driven by several key factors:

1. Growth in Trust, Investment, and Other Servicing Fees: A primary driver for Northern Trust is the expansion of its core fee-based services. The company reported a 7% increase in trust fees in Q4 2025 and a 6% increase in Q3 2025, excluding notables. This growth is supported by favorable equity markets, net new business, and an increase in Assets Under Custody/Administration (AUC/AUA) and Assets Under Management (AUM), with AUM for asset servicing clients up 12% year-over-year in Q4 2025.
2. Net Interest Income (NII) Expansion: Northern Trust has seen significant growth in its Net Interest Income, which increased by 14% year-over-year in Q4 2025, reaching a new record. For 2026, the company forecasts low to mid-single-digit NII growth, indicating continued contribution from its banking solutions, even with potential rate cycle headwinds.
3. Strategic Expansion in Wealth Management: The Wealth Management segment is a strong contributor to revenue growth, with Assets Under Management for wealth management clients rising 13% year-over-year to $507 billion in Q4 2025. The Global Family Office (GFO) within this segment achieved record new business in 2025, including significant flows, and Family Office Solutions (FOS) exceeded client and asset targets by focusing on ultra-high-net-worth families.
4. Asset Servicing New Business and Private Markets Traction: The Corporate & Institutional Services (C&IS) segment, encompassing asset servicing, continues to secure new mandates and experience strong growth. Asset servicing fees increased by 6% over the prior year in Q3 2025. The company has noted strong traction and new business wins in private markets, reinforcing its position in providing integrated solutions for institutional investors.
5. Innovation and Product Launches: Northern Trust is focusing on enhancing its offerings through new products and technological integration. In 2025, the company launched 11 new ETF strategies and expanded its fixed income Separately Managed Accounts (SMAs) platform, achieving over $35 billion in net flows. Additionally, the company has introduced innovative products like tokenized money market funds and is embedding AI in its operations to drive productivity and potentially new service capabilities.

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Capital Allocation Decisions for Northern Trust (NTRS) Over the Last 3-5 Years

Share Repurchases

• In July 2025, Northern Trust's Board of Directors approved a new common stock repurchase authorization of up to $2.5 billion, which replaced a previous program from October 2021 and has no expiration date.
• Northern Trust returned $1.9 billion to shareholders in 2025, including a record $1.3 billion through share repurchases, resulting in a 5% reduction in shares outstanding.
• An October 2021 share repurchase program authorized the buyback of up to 25 million shares. As of December 31, 2025, approximately 1.9 million shares remained available under this plan.

Share Issuance

• Northern Trust utilizes repurchased shares for general purposes, including the issuance of shares under stock option and other equity incentive plans.
• The company's shares outstanding were 0.192 billion in 2025, representing a 4.77% decline from 2024.

Outbound Investments

• In May 2021, Northern Trust acquired Parilux Investment Technology, a provider of Portfolio Management Solutions, to enhance its Front Office Solutions platform.

Capital Expenditures

• Total capital expenditures were $774.2 million in 2025 and $745.5 million in 2024.
• These capital expenditures are primarily focused on technology investments aimed at infrastructure modernization, including the use of external cloud technologies, increasing operational efficiency and resiliency, and developing capabilities for secure and innovative client solutions.
• Northern Trust also continues to invest in renovation and relocation efforts.