Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Q3 2022 Earnings Presentation
11 slides from Northern Trust's earnings presentation, Oct 19, 2022
Slide 1: Third Quarter 2022 Quarterly Earnings Review
1northerntrust.com | © 2022 NorthernTrust Northern Trust Corporation .Third Quarter 2022 Quarterly Earnings Review . October 19, 2022
Slide 2: Executive Summary
2northerntrust.com | © 2022 NorthernTrust 2Q22 End of Period Month Lag1 Quarter Lag2 YoY Seq YoY Seq YoY Seq S&P 500 (16.8)% (9.3)% (10.2)% (7.2)% (11.9)% (16.4)% MSCI EAFE Local (13.5)% (6.6)% (7.5)% (5.1)% (9.0)% (8.8)% 1 month Libor (Avg) 238 bps 146 bps 3 month Libor (Avg) 287 bps 147 bps EUR /
Slide 3: Summary Results & Key Metrics
3northerntrust.com | © 2022 NorthernTrust SUMMARY RESULTS & KEY METRICS $ in millions (except EPS and as noted) % Change Vs. 3Q 2022 3Q 2021 2Q 2022 Revenue (FTE1) $1,767.1 7% (1%) Noninterest Expense 1,229.8 9% 1% Provision for Credit Losses 0.5 N/M N/M Net Income $394.8 0% 0% Diluted Earnings per
Slide 4: Total Revenue
4northerntrust.com | © 2022 NorthernTrust TOTAL REVENUE $ in millions Total Revenue (FTE1) $1,111 $1,111 $1,168 $1,143 $1,079 $66 $77 $81 $78 $65 $110 $119 $88 $89 $98 $357 $371 $388 $470 $525 $1,645 $1,677 $1,725 $1,780 $1,767 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 +7% -1% Trust, Investment and Ot
Slide 5: Trust, Investment & Other Servicing Fees
5northerntrust.com | © 2022 NorthernTrust TRUST, INVESTMENT & OTHER SERVICING FEES $ in millions (except as noted) % Change Vs. Trust, Investment & Other Servicing Fees 3Q 2022 3Q 2021 2Q 2022 Custody & Fund Administration $407.3 (12)% (6)% Investment Management 136.0 +20% (8)% Securities Lending 21
Slide 6: Net Interest Income
6northerntrust.com | © 2022 NorthernTrust NET INTEREST INCOME Average Earning Assets ($ in billions) $144.0 $148.8 $149.8 $139.9 $132.1 0.98% 0.99% 1.05% 1.35% 1.58% 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 NII (FTE1) in millions $ 525.3$ 357.1 $ 370.6 $ 387.7 $469.8 Loans & Leases Securities Deposit
Slide 7: Noninterest Expense
7northerntrust.com | © 2022 NorthernTrust NONINTEREST EXPENSE $ in millions Total Noninterest Expense $598 $618 $668 $666 $663 $211 $224 $213 $213 $221 $185 $196 $194 $204 $212 $54 $52 $51 $51 $51 $81 $79 $80 $90 $82 $1,129 $1,169 $1,206 $1,224 $1,230 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 +9% +1%
Slide 8: Capital
8northerntrust.com | © 2022 NorthernTrust CAPITAL Northern Trust Corporation Capital Ratios Advanced Approach Common Equity Tier 1 11.4% Tier 1 12.5% Total 13.5% Tier 1 Leverage 7.0% Supplementary Leverage 7.7% Standardized Approach Common Equity Tier 1 10.1% Tier 1 11.1% Total 12.2% Tier 1 Leverage
Slide 9: Appendix
9northerntrust.com | © 2022 NorthernTrust Appendix
Slide 10: Reconciliation of Non-GAAP Financial Measures
10northerntrust.com | © 2022 NorthernTrust 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) b
Slide 11: Forward-Looking Statements
11northerntrust.com | © 2022 NorthernTrust 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 ident