Northern Trust Corporation · NASDAQ:NTRS

Northern Trust — Q4 2022 Earnings Presentation

13 slides from Northern Trust's earnings presentation, Jan 19, 2023

  1. Slide 1: Fourth Quarter 2022 Quarterly Earnings Review

    1northerntrust.com | © 2023 Northern Trustnortherntrust.co | 2023 orthern Northern Trust Corporation .Fourth Quarter 2022 Quarterly Earnings Review . January 19, 2023 Exhibit 99.2

  2. Slide 2: Executive Summary

    2northerntrust.com | © 2023 Northern Trust 2Q22 End of Period Month Lag1 Quarter Lag2 YoY Seq YoY Seq YoY Seq S&P 500 (19.4)% 7.1% (14.4)% (2.8)% (16.8)% (5.3)% MSCI EAFE Local (9.5)% 8.4% (9.0)% (1.3)% (13.5)% (4.3)% 1 month Libor (Avg) 381 bps 144 bps 3 month Libor (Avg) 434 bps 151 bps EXECUTIVE

  3. Slide 3: Summary Results & Key Metrics

    3northerntrust.com | © 2023 Northern Trust SUMMARY RESULTS & KEY METRICS $ in millions (except EPS and as noted) % Change Vs. 4Q 2022 4Q 2021 3Q 2022 Revenue (FTE1) $1,534.5 (8)% (13)% Noninterest Expense 1,323.6 13% 8% Provision for Credit Losses 5.0 N/M N/M Net Income $155.7 (62)% (61)% Diluted Ea

  4. Slide 4: Total Revenue

    4northerntrust.com | © 2023 Northern Trust TOTAL REVENUE $ in millions Total Revenue (FTE1) $1,111 $1,168 $1,143 $1,079 $1,042 $77 $81 $78 $65 $65 $119 $88 $89 $98 $(123) $371 $388 $470 $525 $550 $1,677 $1,725 $1,780 $1,767 $1,535 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 -8% -13% Trust, Investment an

  5. Slide 5: Trust, Investment & Other Servicing Fees

    5northerntrust.com | © 2023 Northern Trust TRUST, INVESTMENT & OTHER SERVICING FEES $ in millions (except as noted) % Change Vs. Trust, Investment & Other Servicing Fees 4Q 2022 4Q 2021 3Q 2022 Custody & Fund Administration $406.3 (11)% – % Investment Management 123.8 +9% (9)% Securities Lending 19.

  6. Slide 6: Net Interest Income

    6northerntrust.com | © 2023 Northern Trust NET INTEREST INCOME Average Earning Assets ($ in billions) $148.8 $149.8 $139.9 $132.1 $133.8 0.99% 1.05% 1.35% 1.58% 1.63% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 NII (FTE1) in millions $ 550.0 Loans & Leases Securities Deposits w/ Banks Fed Deposits & Oth

  7. Slide 7: Noninterest Expense

    7northerntrust.com | © 2023 Northern Trust NONINTEREST EXPENSE $ in millions Total Noninterest Expense $618 $668 $666 $663 $688 $224 $213 $213 $221 $233 $196 $194 $204 $212 $229 $52 $51 $51 $51 $66 $79 $80 $90 $82 $108 $1,169 $1,206 $1,224 $1,230 $1,324 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 +13% +

  8. Slide 8: Results & Key Metrics: Full Year 2022

    8northerntrust.com | © 2023 Northern Trust 1 Revenue and pre-tax margin stated on an FTE basis is a non-GAAP financial measure. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 12. 2 Actual numbers for all periods, not %

  9. Slide 9: Revenue and Expense: Annual Trends

    9northerntrust.com | © 2023 Northern Trust 1 Net interest income and total revenue on an FTE basis are non-GAAP financial measures. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 12. $ in millions REVENUE AND EXPENSE:

  10. Slide 10: Capital

    10northerntrust.com | © 2023 Northern Trust CAPITAL Northern Trust Corporation Capital Ratios Advanced Approach Common Equity Tier 1 11.5% Tier 1 12.5% Total 14.5% Tier 1 Leverage 7.1% Supplementary Leverage 7.9% Standardized Approach Common Equity Tier 1 10.8% Tier 1 11.8% Total 13.9% Tier 1 Levera

  11. Slide 11: Appendix

    11northerntrust.com | © 2023 Northern Trustnortherntrust.co | 2023 orthern Appendix

  12. Slide 12: Reconciliation of Non-GAAP Financial Measures

    12northerntrust.com | © 2023 Northern Trust RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following table presents a reconciliation of total revenue, net interest income, net interest margin and pre-tax margin prepared in accordance with GAAP to such measures on a fully taxable equivalent (FTE)

  13. Slide 13: Forward-Looking Statements

    13northerntrust.com | © 2023 Northern Trust 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 iden

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