Northern Trust Rides IPO Revival as Capital Markets Revenue Jumps

Chicago-based Northern Trust is primarily a custodian, asset servicer and wealth manager rather than an investment bank that underwrites initial public offerings. Even so, major listings such as SpaceX can lift its business through custody mandates, securities lending, liquidity flows and newly monetized wealth. The revival in IPOs and broader capital-markets activity therefore matters because it creates fee opportunities across several divisions, while stronger equity markets also increase the value of client assets on which Northern Trust earns servicing and management fees.

Northern Trust on July 22, 2026 reported second-quarter revenue of $2.71 billion, net income of $792.2 million and earnings of $4.23 a share. Capital-markets revenue surged 69% from a year earlier, while securities-lending income rose 46% to $29 million as demand increased for U.S., Asia-Pacific and IPO-related shares. Assets under custody and administration reached $20 trillion. Chief Financial Officer Dave Fox cautioned that elevated foreign-exchange trading, capital-markets and securities-lending revenue may normalize in the second half, when tougher market comparisons and the expected departure of unusually large deposits could temper growth.