Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Q4 2023 Earnings Presentation
14 slides from Northern Trust's earnings presentation, Jan 18, 2024
Slide 1: northerntrust.com / © 2023 Northern Trust
northerntrust.com / © 2023 Northern Trust
Slide 2: 130+ years of strength, stability & stewardship
130+ years of strength, stability & stewardship Disciplined, client-centric strategy Product leadership & innovation Highest standards of client service Solutions-focused technology & integrated operating platform northerntrust.com / © 2023 Northern Trust 2
Slide 3: northerntrust.com / © 2023 Northern Trust
northerntrust.com / © 2023 Northern Trust 33
Slide 4: Financial Highlights & Key Metrics
Financial Highlights & Key Metrics Notable Items: % CHANGE VS. RESULTS INCLUDE IMPACT OF NOTABLE ITEMS $ in millions (except EPS and as noted) 4Q 2023 3Q 2023 4Q 2022 4Q23 Pre-tax 1 Revenue (FTE ) $ 1,563.3 (10)% 2% Noninterest Expense $ 1,388.5 9% 5% • $176.4 million investment security loss Provis
Slide 5: Asset Servicing Highlights
Asset Servicing Highlights Asset Servicing Revenues ($ in millions) +4% (2)% $621.2 $626.0 $603.0 $611.7 $588.0 $38.2 $40.4 % CHANGE VS. $38.6 $44.1 $21.5 $20.4 $38.6 $22.0 $19.3 $19.1 Asset Servicing Client Assets¹ (in billions): 4Q 2023 3Q 2023 4Q 2022 $134.1 $137.1 Other $126.2 $130.7 Assets unde
Slide 6: Wealth Management Highlights
Wealth Management Highlights Wealth Management Revenues ($ in millions) +5% (2)% $485.9 $478.3 $475.1 $454.1 $460.6 $91.7 % CHANGE VS. $91.3 $87.6 $84.6 $86.0 Wealth Management Client Assets¹ (in billions): 4Q 2023 3Q 2023 4Q 2022 Global Family Office (GFO) $95.8 $97.3 Assets under Custody / Adminis
Slide 7: Net Interest Income and Balance Sheet Trends
Net Interest Income and Balance Sheet Trends Average Earning Assets Net Interest Income (FTE1) ($ in billions) ($ in millions) (7)% (9)% (3)% $550.0 +7% $133.8 $136.0 $134.1 $544.4 $524.6 $6.9 $128.3 $6.8 $7.8 $125.0 $501.1 $7.7 $7.7 $469.4 $42.3 $42.0 Other Earning $42.4 $42.2 Assets² $42.2 1.63% 1
Slide 8: Noninterest Expense
Noninterest Expense Expense Notes Total Noninterest Expense ($ in millions) +5% • Expenses included the following: +9% • Severance-related charge of $38.7 million in 2Q23 ($36.7 million in Compensation expense $1,388.5 $1,331.9 and $2.0 million in Outside Services expense); $1,323.6 $1,285.6 $176.8
Slide 9: Highlights & Key Metrics: Full Year 2023
Highlights & Key Metrics: Full Year 2023 Notable Items: RESULTS INCLUDE IMPACT OF NOTABLE ITEMS % CHANGE VS. 2023 Pre-tax $ in millions (except EPS and as noted) 2023 2022 Revenue (FTE ) 1 $ 6,831.0 • $176.4 million investment security loss — Noninterest Expense $ 5,284.2 6% • $84.6 million FDIC spe
Slide 10: Capital Update
Capital Update Capital Highlights Northern Trust Corporation Capital Ratios • Robust capital and liquidity • $10.2 billion in Tier 1 capital • 55% of deposits covered by highly liquid assets including Standardized Common Equity Tier 1 Ratio Standardized Tier 1 Leverage Ratio 7.9% 8.1% 30% by cash an
Slide 11: Appendix
Appendix
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents a reconciliation of interest income, net interest income, net interest margin, total revenue, pre-tax income, and profit margin (pre-tax) prepared in accordance with GAAP to such measures on a fully taxable equivalent (FTE) b
Slide 13: Forward-looking Statements
Forward-looking Statements This presentation may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as
Slide 14: Northern Trust
uy NORTHERN TRUST