Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Q4 2024 Earnings Presentation
21 slides from Northern Trust's earnings presentation, Jan 23, 2025
Slide 1: Strategic Update & Fourth Quarter 2024 Earnings Review
northerntrust.com / © 2025 Northern Trust NORTHERN TRUST CORPORATION Strategic Update & Fourth Quarter 2024 Earnings Review
Slide 2: 135 years of strength, stability & stewardship
northerntrust.com / © 2025 Northern Trust 2 135 years of strength, stability & stewardship Disciplined, client-centric strategy Highest standards of client service Product leadership & innovative services Solutions-focused technology & integrated operating platform
Slide 3: Strategic Updates
northerntrust.com / © 2023 Northern Trust 35 3 STRATEGIC UPDATES
Slide 4: One Northern Trust Strategic Pillars
northerntrust.com / © 2025 Northern Trust One Northern Trust Strategic Pillars 4 Key building blocks for elevating performance and unlocking shareholder value
Slide 5: 2024 Strategic Progress
northerntrust.com / © 2025 Northern Trust 2024 Strategic Progress 5 OPTIMIZE GROWTH STRENGTHEN RESILIENCY & MANAGE RISK DRIVE PRODUCTIVITY • Improved organic growth trajectory • Deepened client relationships through the delivery of holistic solutions • Structured and launched One Northern Trust unif
Slide 6: Wealth Management Update
Wealth Management Update Premier franchise well-positioned to accelerate organic trust fee growth 2024 ACCOMPLISHMENTS 2025 PRIORITIES • Improved organic growth trajectory, led by Global Family Office • Expanded prospect pipeline through investment in salesforce • Transitioned senior leadership team
Slide 7: Asset Management Update
Asset Management Update Amplifying our strengths and capturing growth in areas where we have the “Right to Win” 2024 ACCOMPLISHMENTS 2025 PRIORITIES • Strengthened core solutions through attracting top talent within investments and product • Generated positive net flows and improved organic growth t
Slide 8: Asset Servicing Update
Asset Servicing Update Focusing efforts on scalable capabilities aligned with evolving client needs & industry trends 2024 ACCOMPLISHMENTS 2025 PRIORITIES • New business focus on scalable services resulting in more profitable organic growth • Grew capital markets business meaningfully • Expanded mar
Slide 9: Financial Targets
northerntrust.com / © 2025 Northern Trust Financial Targets 9 Committed to delivering on our targets and driving improved shareholder value 105-110% Expenses to Trust Fees >30% Pre-Tax Margin 10-15% Return on Equity ENTERPRISE MEDIUM-TERM FINANCIAL TARGETS
Slide 10: Financial Highlights
northerntrust.com / © 2023 Northern Trust 105 10 FINANCIAL HIGHLIGHTS
Slide 11: Financial Highlights & Key Metrics
¹ Revenue and profit margin (pre-tax) stated on a fully taxable equivalent (FTE) basis are non-GAAP financial measures. A reconciliation to reported revenue and reported profit margin (pre-tax) prepared in accordance with U.S. generally accepted accounting principles (GAAP) is included in the Append
Slide 12: Asset Servicing Highlights
northerntrust.com / © 2025 Northern Trust 611.7 639.6 650.6 667.1 675.5 $420.4 $436.7 $445.9 $453.1 $456.9 $130.7 $140.0 $145.7 $152.6 $156.9 $22.0 $17.9 $16.5 $17.5 $20.4 $38.6 $45.0 $42.5 $43.9 $41.3 Other Securities Lending Investment Management Custody and Fund Administration 4Q 2023 1Q 2024 2Q
Slide 13: Wealth Management Highlights
northerntrust.com / © 2025 Northern Trust Wealth Management Highlights 13 Categories may not sum due to rounding. ¹ Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission. % CHANGE VS. Wealth Management Client Assets¹
Slide 14: Net Interest Income and Balance Sheet Trends
northerntrust.com / © 2025 Northern Trust $501.1 $535.4 $529.8 $569.4 $574.3 Net Interest Income (FTE¹) 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 125.0 133.8 135.4 134.8 133.7 $26.0 $35.9 $35.9 $36.1 $32.8 $49.2 $48.5 $50.0 $50.3 $51.6 $42.2 $41.6 $41.0 $39.9 $41.2 $7.7 $7.8 $8.5 $8.5 $8.1 Other Earni
Slide 15: Noninterest Expense
1,388.5 1,364.7 1,533.9 1,359.4 1,375.9 $666.0 $728.2 $765.4 $692.8 $702.5 $235.2 $229.3 $260.9 $256.3 $251.5 $252.0 $252.7 $277.5 $270.4 $274.4 $58.5 $54.1 $54.8 $53.8 $54.1 $176.8 $100.4 $175.3 $86.1 $93.4 Other Operating Expense Occupancy Equipment and Software Outside Services Compensation and E
Slide 16: Financial Highlights & Key Metrics: Full Year 2024
¹ Revenue and profit margin (pre-tax) stated on a fully taxable equivalent (FTE) basis are non-GAAP financial measures. A reconciliation to reported revenue and reported profit margin (pre-tax) prepared in accordance with U.S. generally accepted accounting principles (GAAP) is included in the Append
Slide 17: Capital Update
8.1% 7.8% 8.0% 8.1% 8.1% 4Q23 1Q24 2Q24 3Q24 4Q24 11.4% 11.4% 12.6% 12.6% 12.4% 4Q23 1Q24 2Q24 3Q24 4Q24 Capital Update 17 Standardized Tier 1 Leverage northerntrust.com / © 2025 Northern Trust Capital Highlights • Robust capital and liquidity • $11.9 billion in Tier 1 capital • 60% of deposits cove
Slide 18: Appendix
Appendix northerntrust.com / © 2025 Northern Trust
Slide 19: Reconciliation of Non-GAAP Financial Measures
northerntrust.com / © 2025 Northern Trust Reconciliation of Non-GAAP Financial Measures 19 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 m
Slide 20: Forward-looking Statements
northerntrust.com / © 2025 Northern Trust Forward-looking Statements 20 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
Slide 21: Northern Trust
wy NORTHERN TRUST