NEWS RELEASE | ![]() | |||||||
www.northerntrust.com | ||||||||
MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER: | ||
“Northern Trust’s third quarter results reflect continued momentum across our businesses. Trust fees increased 8% and net interest income grew 21%, both as compared to the prior-year quarter. Excluding notables, earnings per share grew 32% and we returned more than $450 million to shareholders. Importantly, we generated positive trust fee and total operating leverage while continuing to make significant investments in our businesses and infrastructure. We proudly celebrated our company’s 135th anniversary during the third quarter. Northern Trust’s core principles of service, expertise, and integrity, upon which our company was founded, still guide us today. As we look forward, we are taking actions to position the firm for higher underlying growth and greater operational efficiency, including the leadership changes we announced last month. We enter the fourth quarter with a strong new business pipeline and our attention squarely focused on serving the evolving needs of our clients.” | ||
FINANCIAL SUMMARY & KEY METRICS | ||||||||||||||||||||
% Change Q3 2024 vs. | ||||||||||||||||||||
($ In Millions except per share data) | Q3 2024 | Q2 2024 | Q3 2023 | Q2 2024 | Q3 2023 | |||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,196.6 | $ | 1,166.1 | $ | 1,111.9 | 3 | % | 8 | % | ||||||||||
Other Noninterest Income (Loss) | 209.6 | 1,026.5 | 158.4 | (80) | 32 | |||||||||||||||
Net Interest Income (FTE*) | 569.4 | 529.8 | 469.4 | 7 | 21 | |||||||||||||||
Total Revenue (FTE*) | $ | 1,975.6 | $ | 2,722.4 | $ | 1,739.7 | (27) | % | 14 | % | ||||||||||
Noninterest Expense | $ | 1,359.4 | $ | 1,533.9 | $ | 1,278.2 | (11) | % | 6 | % | ||||||||||
Provision for Credit Losses | 8.0 | 8.0 | 14.0 | — | (43) | |||||||||||||||
Provision for Income Taxes | 136.2 | 277.5 | 106.5 | (51) | 28 | |||||||||||||||
FTE Adjustment* | 7.1 | 6.9 | 13.2 | 3 | (47) | |||||||||||||||
Net Income | $ | 464.9 | $ | 896.1 | $ | 327.8 | (48) | % | 42 | % | ||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 445.0 | $ | 884.3 | $ | 308.5 | (50) | % | 44 | % | ||||||||||
Diluted Earnings per Common Share | $ | 2.22 | $ | 4.34 | $ | 1.49 | (49) | 49 | ||||||||||||
Return on Average Common Equity | 15.4 | % | 31.2 | % | 11.6 | % | ||||||||||||||
Return on Average Assets | 1.26 | % | 2.44 | % | 0.93 | % | ||||||||||||||
Average Assets | $ | 146,842.9 | $ | 148,001.2 | $ | 140,201.6 | (1) | % | 5 | % |
NORTHERN TRUST CORPORATION THIRD QUARTER 2024 RESULTS |
CLIENT ASSETS | ||||||||||||||||||||
Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation’s trust, investment and other servicing fees, the largest component of noninterest income. | ||||||||||||||||||||
As of | % Change September 30, 2024 vs. | |||||||||||||||||||
($ In Billions) | September 30, 2024* | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | |||||||||||||||
Assets Under Custody/Administration | ||||||||||||||||||||
Asset Servicing | $ | 16,278.0 | $ | 15,470.8 | $ | 13,206.2 | 5 | % | 23 | % | ||||||||||
Wealth Management | 1,145.0 | 1,096.6 | 958.5 | 4 | 19 | |||||||||||||||
Total Assets Under Custody/Administration | $ | 17,423.0 | $ | 16,567.4 | $ | 14,164.7 | 5 | % | 23 | % | ||||||||||
Assets Under Custody(1) | ||||||||||||||||||||
Asset Servicing | $ | 12,662.1 | $ | 11,955.5 | $ | 10,064.4 | 6 | % | 26 | % | ||||||||||
Wealth Management | 1,132.7 | 1,085.9 | 951.0 | 4 | 19 | |||||||||||||||
Total Assets Under Custody | $ | 13,794.8 | $ | 13,041.4 | $ | 11,015.4 | 6 | % | 25 | % | ||||||||||
Assets Under Management | ||||||||||||||||||||
Asset Servicing | $ | 1,177.9 | $ | 1,107.3 | $ | 963.4 | 6 | % | 22 | % | ||||||||||
Wealth Management | 443.9 | 419.4 | 369.9 | 6 | 20 | |||||||||||||||
Total Assets Under Management | $ | 1,621.8 | $ | 1,526.7 | $ | 1,333.3 | 6 | % | 22 | % |
TRUST, INVESTMENT AND OTHER SERVICING FEES | ||||||||||||||||||||
% Change Q3 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q3 2024 | Q2 2024 | Q3 2023 | Q2 2024 | Q3 2023 | |||||||||||||||
Asset Servicing Trust, Investment and Other Servicing Fees | ||||||||||||||||||||
Custody and Fund Administration | $ | 453.1 | $ | 445.9 | $ | 428.1 | 2 | % | 6 | % | ||||||||||
Investment Management | 152.6 | 145.7 | 137.1 | 5 | 11 | |||||||||||||||
Securities Lending | 17.5 | 16.5 | 20.4 | 6 | (14) | |||||||||||||||
Other | 43.9 | 42.5 | 40.4 | 3 | 8 | |||||||||||||||
Total Asset Servicing | $ | 667.1 | $ | 650.6 | $ | 626.0 | 3 | % | 7 | % | ||||||||||
Wealth Management Trust, Investment and Other Servicing Fees | ||||||||||||||||||||
Central | $ | 186.6 | $ | 180.7 | $ | 172.3 | 3 | % | 8 | % | ||||||||||
East | 136.4 | 132.7 | 126.1 | 3 | 8 | |||||||||||||||
West | 105.7 | 103.3 | 95.8 | 2 | 10 | |||||||||||||||
Global Family Office (GFO) | 100.8 | 98.8 | 91.7 | 2 | 10 | |||||||||||||||
Total Wealth Management | $ | 529.5 | $ | 515.5 | $ | 485.9 | 3 | % | 9 | % | ||||||||||
Total Consolidated Trust, Investment and Other Servicing Fees | $ | 1,196.6 | $ | 1,166.1 | $ | 1,111.9 | 3 | % | 8 | % |
NORTHERN TRUST CORPORATION THIRD QUARTER 2024 RESULTS |
OTHER NONINTEREST INCOME | ||||||||||||||||||||
% Change Q3 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q3 2024 | Q2 2024 | Q3 2023 | Q2 2024 | Q3 2023 | |||||||||||||||
Other Noninterest Income | ||||||||||||||||||||
Foreign Exchange Trading Income | $ | 54.1 | $ | 58.4 | $ | 51.8 | (7) | % | 4 | % | ||||||||||
Treasury Management Fees | 8.2 | 9.0 | 7.5 | (9) | 9 | |||||||||||||||
Security Commissions and Trading Income | 35.5 | 34.3 | 30.9 | 4 | 15 | |||||||||||||||
Other Operating Income | 111.8 | 924.7 | 68.2 | (88) | 64 | |||||||||||||||
Investment Security Gains (Losses), net | — | 0.1 | — | N/M | N/M | |||||||||||||||
Total Other Noninterest Income (Loss) | $ | 209.6 | $ | 1,026.5 | $ | 158.4 | (80) | % | 32% |
NET INTEREST INCOME | ||||||||||||||||||||
% Change Q3 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q3 2024 | Q2 2024 | Q3 2023 | Q2 2024 | Q3 2023 | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income (FTE*) | $ | 2,537.3 | $ | 2,513.4 | $ | 1,948.2 | 1 | % | 30 | % | ||||||||||
Interest Expense | 1,967.9 | 1,983.6 | 1,478.8 | (1) | 33 | |||||||||||||||
Net Interest Income (FTE*) | $ | 569.4 | $ | 529.8 | $ | 469.4 | 7 | % | 21 | % | ||||||||||
Average Earning Assets | $ | 134,767.8 | $ | 135,401.1 | $ | 128,254.4 | — | % | 5 | % | ||||||||||
Net Interest Margin (FTE*) | 1.68 | % | 1.57 | % | 1.45 | % | 11 | bps | 23 | bps |
NORTHERN TRUST CORPORATION THIRD QUARTER 2024 RESULTS |
PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||
As of and for the three-months ended, | % Change September 30, 2024 vs. | |||||||||||||||||||
($ In Millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | |||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
Beginning Allowance for Credit Losses | $ | 209.6 | $ | 201.5 | $ | 197.5 | 4 | % | 6 | % | ||||||||||
Provision for Credit Losses | 8.0 | 8.0 | 14.0 | — | (43) | |||||||||||||||
Net Recoveries (Charge-Offs) | 2.4 | 0.1 | 0.3 | N/M | N/M | |||||||||||||||
Ending Allowance for Credit Losses | $ | 220.0 | $ | 209.6 | $ | 211.8 | 5 | % | 4 | % | ||||||||||
Allowance assigned to: | ||||||||||||||||||||
Loans | $ | 184.8 | $ | 167.7 | $ | 166.8 | 10 | % | 11 | % | ||||||||||
Undrawn Loan Commitments and Standby Letters of Credit | 26.5 | 29.5 | 28.3 | (10) | (6) | |||||||||||||||
Debt Securities and Other Financial Assets | 8.7 | 12.4 | 16.7 | (30) | (48) | |||||||||||||||
Ending Allowance for Credit Losses | $ | 220.0 | $ | 209.6 | $ | 211.8 | 5 | % | 4 | % |
NORTHERN TRUST CORPORATION THIRD QUARTER 2024 RESULTS |
NONINTEREST EXPENSE | ||||||||||||||||||||
% Change Q3 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q3 2024 | Q2 2024 | Q3 2023 | Q2 2024 | Q3 2023 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation | $ | 583.6 | $ | 665.2 | $ | 558.1 | (12) | % | 5 | % | ||||||||||
Employee Benefits | 109.2 | 100.2 | 100.8 | 9 | 8 | |||||||||||||||
Outside Services | 256.3 | 260.9 | 229.6 | (2) | 12 | |||||||||||||||
Equipment and Software | 270.4 | 277.5 | 232.5 | (3) | 16 | |||||||||||||||
Occupancy | 53.8 | 54.8 | 58.7 | (2) | (8) | |||||||||||||||
Other Operating Expense | 86.1 | 175.3 | 98.5 | (51) | (13) | |||||||||||||||
Total Noninterest Expense | $ | 1,359.4 | $ | 1,533.9 | $ | 1,278.2 | (11) | % | 6 | % | ||||||||||
End of Period Full-Time Equivalent Employees | 23,300 | 23,000 | 23,300 | 1 | % | — | % |
PROVISION FOR INCOME TAXES | ||||||||||||||||||||
% Change Q3 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q3 2024 | Q2 2024 | Q3 2023 | Q2 2024 | Q3 2023 | |||||||||||||||
Net Income | ||||||||||||||||||||
Income before Income Taxes | $ | 601.1 | $ | 1,173.6 | $ | 434.3 | (49)% | 38 | % | |||||||||||
Provision for Income Taxes | 136.2 | 277.5 | 106.5 | (51) | 28 | |||||||||||||||
Net Income | $ | 464.9 | $ | 896.1 | $ | 327.8 | (48)% | 42 | % | |||||||||||
Effective Tax Rate | 22.7 | % | 23.6 | % | 24.5 | % | (90) | bps | (180) | bps |
NORTHERN TRUST CORPORATION THIRD QUARTER 2024 RESULTS |
CAPITAL ACTIONS |
CAPITAL RATIOS |
September 30, 2024* | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||
Capital Ratios - Northern Trust Corporation | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Well-Capitalized Ratios | Minimum Capital Ratios | |||||||||||||||||||||
Common Equity Tier 1 Capital | 12.6 | % | 14.0 | % | 12.6 | % | 13.9 | % | 11.4 | % | 13.2 | % | N/A | 4.5 | % | ||||||||||||||
Tier 1 Capital | 13.6 | 15.1 | 13.6 | 15.0 | 12.4 | 14.3 | 6.0 | 6.0 | |||||||||||||||||||||
Total Capital | 15.6 | 17.0 | 15.5 | 16.9 | 14.5 | 16.5 | 10.0 | 8.0 | |||||||||||||||||||||
Tier 1 Leverage | 8.1 | 8.1 | 8.0 | 8.0 | 7.9 | 7.9 | N/A | 4.0 | |||||||||||||||||||||
Supplementary Leverage | N/A | 9.2 | N/A | 9.1 | N/A | 8.4 | N/A | 3.0 |
September 30, 2024* | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||
Capital Ratios - The Northern Trust Company | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Well-Capitalized Ratios | Minimum Capital Ratios | |||||||||||||||||||||
Common Equity Tier 1 Capital | 12.3 | % | 13.9 | % | 12.9 | % | 14.6 | % | 12.3 | % | 14.5 | % | 6.5 | % | 4.5 | % | |||||||||||||
Tier 1 Capital | 12.3 | 13.9 | 12.9 | 14.6 | 12.3 | 14.5 | 8.0 | 6.0 | |||||||||||||||||||||
Total Capital | 14.0 | 15.5 | 14.6 | 16.1 | 14.2 | 16.4 | 10.0 | 8.0 | |||||||||||||||||||||
Tier 1 Leverage | 7.3 | 7.3 | 7.6 | 7.6 | 7.8 | 7.8 | 5.0 | 4.0 | |||||||||||||||||||||
Supplementary Leverage | N/A | 8.2 | N/A | 8.6 | N/A | 8.3 | 3.0 | 3.0 |
NORTHERN TRUST CORPORATION THIRD QUARTER 2024 RESULTS |
RECONCILIATION TO FULLY TAXABLE EQUIVALENT |
QUARTERS | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
($ in Millions) | THIRD | SECOND | FIRST | FOURTH | THIRD | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income - GAAP | $ | 2,530.2 | $ | 2,506.5 | $ | 2,445.6 | $ | 2,199.6 | $ | 1,935.0 | ||||||||||
Add: FTE Adjustment | 7.1 | 6.9 | 7.3 | 18.0 | 13.2 | |||||||||||||||
Interest Income (FTE) - Non-GAAP | $ | 2,537.3 | $ | 2,513.4 | $ | 2,452.9 | $ | 2,217.6 | $ | 1,948.2 | ||||||||||
Net Interest Income - GAAP | $ | 562.3 | $ | 522.9 | $ | 528.1 | $ | 483.1 | $ | 456.2 | ||||||||||
Add: FTE Adjustment | 7.1 | 6.9 | 7.3 | 18.0 | 13.2 | |||||||||||||||
Net Interest Income (FTE) - Non-GAAP | $ | 569.4 | $ | 529.8 | $ | 535.4 | $ | 501.1 | $ | 469.4 | ||||||||||
Net Interest Margin - GAAP(1) | 1.66 | % | 1.55 | % | 1.59 | % | 1.53 | % | 1.41 | % | ||||||||||
Net Interest Margin (FTE) - Non-GAAP(1) | 1.68 | % | 1.57 | % | 1.61 | % | 1.59 | % | 1.45 | % | ||||||||||
Total Revenue | ||||||||||||||||||||
Total Revenue - GAAP | $ | 1,968.5 | $ | 2,715.5 | $ | 1,646.8 | $ | 1,545.3 | $ | 1,726.5 | ||||||||||
Add: FTE Adjustment | 7.1 | 6.9 | 7.3 | 18.0 | 13.2 | |||||||||||||||
Total Revenue (FTE) - Non-GAAP | $ | 1,975.6 | $ | 2,722.4 | $ | 1,654.1 | $ | 1,563.3 | $ | 1,739.7 | ||||||||||
NORTHERN TRUST CORPORATION THIRD QUARTER 2024 RESULTS |
FORWARD LOOKING STATEMENTS |
WEBCAST OF THIRD QUARTER EARNINGS CONFERENCE CALL |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | % Change(1) | |||||||||||||||||||
($ In Millions Except Per Share Data) | Q3 2024 vs. | |||||||||||||||||||
Q3 2024 | Q2 2024 | Q3 2023 | Q2 2024 | Q3 2023 | ||||||||||||||||
Noninterest Income | ||||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,196.6 | $ | 1,166.1 | $ | 1,111.9 | 3 | % | 8 | % | ||||||||||
Foreign Exchange Trading Income | 54.1 | 58.4 | 51.8 | (7) | 4 | |||||||||||||||
Treasury Management Fees | 8.2 | 9.0 | 7.5 | (9) | 9 | |||||||||||||||
Security Commissions and Trading Income | 35.5 | 34.3 | 30.9 | 4 | 15 | |||||||||||||||
Other Operating Income | 111.8 | 924.7 | 68.2 | (88) | 64 | |||||||||||||||
Investment Security Gains (Losses), net | — | 0.1 | — | N/M | N/M | |||||||||||||||
Total Noninterest Income | 1,406.2 | 2,192.6 | 1,270.3 | (36) | 11 | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income | 2,530.2 | 2,506.5 | 1,935.0 | 1 | 31 | |||||||||||||||
Interest Expense | 1,967.9 | 1,983.6 | 1,478.8 | (1) | 33 | |||||||||||||||
Net Interest Income | 562.3 | 522.9 | 456.2 | 8 | 23 | |||||||||||||||
Total Revenue | 1,968.5 | 2,715.5 | 1,726.5 | (28) | 14 | |||||||||||||||
Provision for Credit Losses | 8.0 | 8.0 | 14.0 | — | (43) | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation | 583.6 | 665.2 | 558.1 | (12) | 5 | |||||||||||||||
Employee Benefits | 109.2 | 100.2 | 100.8 | 9 | 8 | |||||||||||||||
Outside Services | 256.3 | 260.9 | 229.6 | (2) | 12 | |||||||||||||||
Equipment and Software | 270.4 | 277.5 | 232.5 | (3) | 16 | |||||||||||||||
Occupancy | 53.8 | 54.8 | 58.7 | (2) | (8) | |||||||||||||||
Other Operating Expense | 86.1 | 175.3 | 98.5 | (51) | (13) | |||||||||||||||
Total Noninterest Expense | 1,359.4 | 1,533.9 | 1,278.2 | (11) | 6 | |||||||||||||||
Income before Income Taxes | 601.1 | 1,173.6 | 434.3 | (49) | 38 | |||||||||||||||
Provision for Income Taxes | 136.2 | 277.5 | 106.5 | (51) | 28 | |||||||||||||||
NET INCOME | $ | 464.9 | $ | 896.1 | $ | 327.8 | (48) | % | 42 | % | ||||||||||
Preferred Stock Dividends | 16.2 | 4.7 | 16.2 | N/M | — | |||||||||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 448.7 | $ | 891.4 | $ | 311.6 | (50) | % | 44 | % | ||||||||||
Earnings Allocated to Participating Securities | 3.7 | 7.1 | 3.1 | (48) | 20 | |||||||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 445.0 | $ | 884.3 | $ | 308.5 | (50) | % | 44 | % | ||||||||||
Per Common Share | ||||||||||||||||||||
Net Income | ||||||||||||||||||||
Basic | $ | 2.23 | $ | 4.35 | $ | 1.49 | (49) | % | 49 | % | ||||||||||
Diluted | 2.22 | 4.34 | 1.49 | (49) | 49 | |||||||||||||||
Average Common Equity | $ | 11,589.2 | $ | 11,473.9 | $ | 10,651.7 | 1 | % | 9 | % | ||||||||||
Return on Average Common Equity | 15.4 | % | 31.2 | % | 11.6 | % | ||||||||||||||
Return on Average Assets | 1.26 | % | 2.44 | % | 0.93 | % | ||||||||||||||
Cash Dividends Declared per Common Share | $ | 0.75 | $ | 0.75 | $ | 0.75 | — | % | — | % | ||||||||||
Average Common Shares Outstanding (000s) | ||||||||||||||||||||
Basic | 199,938 | 203,306 | 207,022 | (2) | % | (3) | % | |||||||||||||
Diluted | 200,549 | 203,739 | 207,253 | (2) | (3) | |||||||||||||||
Common Shares Outstanding (EOP) (000s) | 198,218 | 201,638 | 207,036 | (2) | (4) |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | ||||||||||||||
($ In Millions Except Per Share Data) | NINE MONTHS | |||||||||||||
2024 | 2023 | % Change(1) | ||||||||||||
Noninterest Income | ||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 3,505.6 | $ | 3,271.8 | 7 | % | ||||||||
Foreign Exchange Trading Income | 169.5 | 154.9 | 9 | |||||||||||
Treasury Management Fees | 26.5 | 23.8 | 11 | |||||||||||
Security Commissions and Trading Income | 107.7 | 101.7 | 6 | |||||||||||
Other Operating Income | 1,097.5 | 170.2 | N/M | |||||||||||
Investment Security Gains (Losses), net | (189.3) | 6.9 | N/M | |||||||||||
Total Noninterest Income | 4,717.5 | 3,729.3 | 26 | |||||||||||
Net Interest Income | ||||||||||||||
Interest Income | 7,482.3 | 5,125.4 | 46 | |||||||||||
Interest Expense | 5,869.0 | 3,626.5 | 62 | |||||||||||
Net Interest Income | 1,613.3 | 1,498.9 | 8 | |||||||||||
Total Revenue | 6,330.8 | 5,228.2 | 21 | |||||||||||
Provision for Credit Losses | 7.5 | 13.5 | (44) | |||||||||||
Noninterest Expense | ||||||||||||||
Compensation | 1,875.9 | 1,757.8 | 7 | |||||||||||
Employee Benefits | 310.5 | 303.2 | 2 | |||||||||||
Outside Services | 746.5 | 671.3 | 11 | |||||||||||
Equipment and Software | 800.6 | 693.5 | 15 | |||||||||||
Occupancy | 162.7 | 173.8 | (6) | |||||||||||
Other Operating Expense | 361.8 | 296.1 | 22 | |||||||||||
Total Noninterest Expense | 4,258.0 | 3,895.7 | 9 | |||||||||||
Income before Income Taxes | 2,065.3 | 1,319.0 | 57 | |||||||||||
Provision for Income Taxes | 489.6 | 324.8 | 51 | |||||||||||
NET INCOME | $ | 1,575.7 | $ | 994.2 | 59 | % | ||||||||
Preferred Stock Dividends | 37.1 | 37.1 | — | |||||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 1,538.6 | $ | 957.1 | 61 | % | ||||||||
Earnings Allocated to Participating Securities | 13.2 | 9.7 | 36 | |||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 1,525.4 | $ | 947.4 | 61 | % | ||||||||
Per Common Share | ||||||||||||||
Net Income | ||||||||||||||
Basic | $ | 7.53 | $ | 4.56 | 65 | % | ||||||||
Diluted | 7.51 | 4.56 | 65 | |||||||||||
Average Common Equity | $ | 11,321.7 | $ | 10,538.3 | 7 | % | ||||||||
Return on Average Common Equity | 18.2 | % | 12.1 | % | ||||||||||
Return on Average Assets | 1.44 | % | 0.92 | % | ||||||||||
Cash Dividends Declared per Common Share | $ | 2.25 | $ | 2.25 | — | % | ||||||||
Average Common Shares Outstanding (000s) | ||||||||||||||
Basic | 202,614 | 207,611 | (2) | % | ||||||||||
Diluted | 203,131 | 207,928 | (2) | |||||||||||
Common Shares Outstanding (EOP) (000s) | 198,218 | 207,036 | (4) |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
BALANCE SHEET | ||||||||||||||||||||
($ In Millions) | % Change(1) | |||||||||||||||||||
September 30, 2024 vs. | ||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||||||||||||||
Assets | ||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 40,848.3 | $ | 43,206.1 | $ | 32,266.3 | (5) | % | 27 | % | ||||||||||
Interest-Bearing Due from and Deposits with Banks(2) | 5,464.7 | 5,558.9 | 5,216.4 | (2) | 5 | |||||||||||||||
Securities Purchased under Agreements to Resell | 981.6 | 859.6 | 384.3 | 14 | 155 | |||||||||||||||
Debt Securities | ||||||||||||||||||||
Available for Sale | 28,311.9 | 26,861.7 | 24,342.1 | 5 | 16 | |||||||||||||||
Held to Maturity | 22,708.6 | 22,798.6 | 24,920.4 | — | (9) | |||||||||||||||
Trading Account | — | — | 0.1 | N/M | (76) | |||||||||||||||
Total Debt Securities | 51,020.5 | 49,660.3 | 49,262.6 | 3 | 4 | |||||||||||||||
Loans | 41,950.3 | 42,135.2 | 43,577.0 | — | (4) | |||||||||||||||
Other Interest-Earning Assets(3) | 2,465.7 | 3,025.2 | 3,349.3 | (18) | (26) | |||||||||||||||
Total Earning Assets | 142,731.1 | 144,445.3 | 134,055.9 | (1) | 6 | |||||||||||||||
Allowance for Credit Losses | (193.3) | (179.5) | (182.7) | 8 | 6 | |||||||||||||||
Cash and Due from Banks and Other Central Bank Deposits(4) | 3,014.3 | 2,390.1 | 1,912.4 | 26 | 58 | |||||||||||||||
Buildings and Equipment | 480.3 | 481.0 | 465.0 | — | 3 | |||||||||||||||
Client Security Settlement Receivables | 354.2 | 193.4 | 147.6 | 83 | 140 | |||||||||||||||
Goodwill | 707.8 | 697.4 | 692.8 | 1 | 2 | |||||||||||||||
Other Assets | 8,659.4 | 8,769.4 | 9,239.6 | (1) | (6) | |||||||||||||||
Total Assets | $ | 155,753.8 | $ | 156,797.1 | $ | 146,330.6 | (1) | % | 6 | % | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Interest-Bearing Deposits | ||||||||||||||||||||
Savings, Money Market and Other | $ | 23,069.0 | $ | 28,074.0 | $ | 24,362.6 | (18) | % | (5) | % | ||||||||||
Savings Certificates and Other Time | 6,255.2 | 6,378.4 | 4,038.6 | (2) | 55 | |||||||||||||||
Non-U.S. Offices - Interest-Bearing | 69,684.3 | 67,612.3 | 60,826.9 | 3 | 15 | |||||||||||||||
Total Interest-Bearing Deposits | 99,008.5 | 102,064.7 | 89,228.1 | (3) | 11 | |||||||||||||||
Federal Funds Purchased | 2,761.9 | 2,406.4 | 5,539.3 | 15 | (50) | |||||||||||||||
Securities Sold under Agreements to Repurchase | 170.8 | 629.2 | 545.9 | (73) | (69) | |||||||||||||||
Other Borrowings(5) | 6,903.2 | 6,823.7 | 6,870.9 | 1 | — | |||||||||||||||
Senior Notes | 2,820.9 | 2,744.0 | 2,688.9 | 3 | 5 | |||||||||||||||
Long-Term Debt | 4,077.2 | 4,073.0 | 4,060.7 | — | — | |||||||||||||||
Total Interest-Bearing Liabilities | 115,742.5 | 118,741.0 | 108,933.8 | (3) | 6 | |||||||||||||||
Demand and Other Noninterest-Bearing Deposits | 22,174.8 | 20,926.2 | 20,937.8 | 6 | 6 | |||||||||||||||
Other Liabilities | 5,087.5 | 4,474.1 | 4,611.8 | 14 | 10 | |||||||||||||||
Total Liabilities | 143,004.8 | 144,141.3 | 134,483.4 | (1) | 6 | |||||||||||||||
Common Equity | 11,864.1 | 11,770.9 | 10,962.3 | 1 | 8 | |||||||||||||||
Preferred Equity | 884.9 | 884.9 | 884.9 | — | — | |||||||||||||||
Total Equity | 12,749.0 | 12,655.8 | 11,847.2 | 1 | 8 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 155,753.8 | $ | 156,797.1 | $ | 146,330.6 | (1) | % | 6 | % |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
AVERAGE BALANCE SHEET | ||||||||||||||||||||
($ In Millions) | % Change(1) | |||||||||||||||||||
Q3 2024 vs. | ||||||||||||||||||||
Q3 2024 | Q2 2024 | Q3 2023 | Q2 2024 | Q3 2023 | ||||||||||||||||
Assets | ||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 36,067.3 | $ | 35,924.1 | $ | 28,000.8 | — | % | 29 | % | ||||||||||
Interest-Bearing Due from and Deposits with Banks(2) | 4,828.1 | 4,999.7 | 4,301.4 | (3) | 12 | |||||||||||||||
Federal Funds Sold | 0.2 | 0.3 | 1.2 | (31) | (81) | |||||||||||||||
Securities Purchased under Agreements to Resell | 977.2 | 731.9 | 950.8 | 34 | 3 | |||||||||||||||
Debt Securities | ||||||||||||||||||||
Available for Sale | 27,462.6 | 26,591.4 | 24,430.7 | 3 | 12 | |||||||||||||||
Held to Maturity | 22,834.0 | 23,373.8 | 25,919.2 | (2) | (12) | |||||||||||||||
Trading Account | — | — | 0.4 | — | (100) | |||||||||||||||
Total Debt Securities | 50,296.6 | 49,965.2 | 50,350.3 | 1 | — | |||||||||||||||
Loans | 39,884.0 | 41,034.6 | 42,210.4 | (3) | (6) | |||||||||||||||
Other Interest-Earning Assets(3) | 2,714.4 | 2,745.3 | 2,439.5 | (1) | 11 | |||||||||||||||
Total Earning Assets | 134,767.8 | 135,401.1 | 128,254.4 | — | 5 | |||||||||||||||
Allowance for Credit Losses | (180.5) | (175.8) | (170.4) | 3 | 6 | |||||||||||||||
Cash and Due from Banks and Other Central Bank Deposits(4) | 1,742.3 | 1,802.0 | 1,694.6 | (3) | 3 | |||||||||||||||
Buildings and Equipment | 482.2 | 485.8 | 474.1 | (1) | 2 | |||||||||||||||
Client Security Settlement Receivables | 335.0 | 321.4 | 350.3 | 4 | (4) | |||||||||||||||
Goodwill | 702.9 | 697.1 | 698.9 | 1 | 1 | |||||||||||||||
Other Assets | 8,993.2 | 9,469.6 | 8,899.7 | (5) | 1 | |||||||||||||||
Total Assets | $ | 146,842.9 | $ | 148,001.2 | $ | 140,201.6 | (1) | % | 5 | % | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Interest-Bearing Deposits | ||||||||||||||||||||
Savings, Money Market and Other | $ | 25,233.0 | $ | 27,554.9 | $ | 22,624.9 | (8) | % | 12 | % | ||||||||||
Savings Certificates and Other Time | 6,639.6 | 6,027.4 | 3,665.2 | 10 | 81 | |||||||||||||||
Non-U.S. Offices - Interest-Bearing | 64,347.2 | 63,216.3 | 58,680.5 | 2 | 10 | |||||||||||||||
Total Interest-Bearing Deposits | 96,219.8 | 96,798.6 | 84,970.6 | (1) | 13 | |||||||||||||||
Federal Funds Purchased | 2,320.9 | 3,010.7 | 5,935.9 | (23) | (61) | |||||||||||||||
Securities Sold under Agreements to Repurchase | 504.3 | 574.6 | 426.0 | (12) | 18 | |||||||||||||||
Other Borrowings(5) | 7,085.9 | 7,053.5 | 10,981.7 | — | (35) | |||||||||||||||
Senior Notes | 2,795.6 | 2,728.7 | 2,713.2 | 2 | 3 | |||||||||||||||
Long-Term Debt | 4,075.1 | 4,071.1 | 2,126.9 | — | 92 | |||||||||||||||
Total Interest-Bearing Liabilities | 113,001.6 | 114,237.2 | 107,154.3 | (1) | 5 | |||||||||||||||
Demand and Other Noninterest-Bearing Deposits | 16,340.9 | 16,543.0 | 16,792.5 | (1) | (3) | |||||||||||||||
Other Liabilities | 5,026.3 | 4,862.2 | 4,718.2 | 3 | 7 | |||||||||||||||
Total Liabilities | 134,368.8 | 135,642.4 | 128,665.0 | (1) | 4 | |||||||||||||||
Common Equity | 11,589.2 | 11,473.9 | 10,651.7 | 1 | 9 | |||||||||||||||
Preferred Equity | 884.9 | 884.9 | 884.9 | — | — | |||||||||||||||
Total Equity | 12,474.1 | 12,358.8 | 11,536.6 | 1 | 8 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 146,842.9 | $ | 148,001.2 | $ | 140,201.6 | (1) | % | 5 | % |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
QUARTERLY TREND DATA | QUARTERS | |||||||||||||||||||
($ In Millions Except Per Share Data) | 2024 | 2023 | ||||||||||||||||||
THIRD | SECOND | FIRST | FOURTH | THIRD | ||||||||||||||||
Net Income Summary | ||||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,196.6 | $ | 1,166.1 | $ | 1,142.9 | $ | 1,090.0 | $ | 1,111.9 | ||||||||||
Other Noninterest Income | 209.6 | 1,026.5 | (24.2) | (27.8) | 158.4 | |||||||||||||||
Net Interest Income | 562.3 | 522.9 | 528.1 | 483.1 | 456.2 | |||||||||||||||
Total Revenue | 1,968.5 | 2,715.5 | 1,646.8 | 1,545.3 | 1,726.5 | |||||||||||||||
Provision for Credit Losses | 8.0 | 8.0 | (8.5) | 11.0 | 14.0 | |||||||||||||||
Noninterest Expense | 1,359.4 | 1,533.9 | 1,364.7 | 1,388.5 | 1,278.2 | |||||||||||||||
Income before Income Taxes | 601.1 | 1,173.6 | 290.6 | 145.8 | 434.3 | |||||||||||||||
Provision for Income Taxes | 136.2 | 277.5 | 75.9 | 32.7 | 106.5 | |||||||||||||||
Net Income | $ | 464.9 | $ | 896.1 | $ | 214.7 | $ | 113.1 | $ | 327.8 | ||||||||||
Per Common Share | ||||||||||||||||||||
Net Income - Basic | $ | 2.23 | $ | 4.35 | $ | 0.96 | $ | 0.52 | $ | 1.49 | ||||||||||
- Diluted | 2.22 | 4.34 | 0.96 | 0.52 | 1.49 | |||||||||||||||
Cash Dividends Declared per Common Share | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | |||||||||||||||
Book Value (EOP) | 59.85 | 58.38 | 54.83 | 53.69 | 52.95 | |||||||||||||||
Market Value (EOP) | 90.03 | 83.98 | 88.92 | 84.38 | 69.48 | |||||||||||||||
Financial Ratios | ||||||||||||||||||||
Return on Average Common Equity | 15.4 | % | 31.2 | % | 7.3 | % | 4.0 | % | 11.6 | % | ||||||||||
Return on Average Assets | 1.26 | 2.44 | 0.60 | 0.33 | 0.93 | |||||||||||||||
Net Interest Margin (GAAP) | 1.66 | 1.55 | 1.59 | 1.53 | 1.41 | |||||||||||||||
Net Interest Margin (FTE*) | 1.68 | 1.57 | 1.61 | 1.59 | 1.45 | |||||||||||||||
Assets Under Custody / Administration ($ in Billions) - End Of Period | ||||||||||||||||||||
Asset Servicing | $ | 16,278.0 | $ | 15,470.8 | $ | 15,385.4 | $ | 14,362.6 | $ | 13,206.2 | ||||||||||
Wealth Management | 1,145.0 | 1,096.6 | 1,087.1 | 1,042.3 | 958.5 | |||||||||||||||
Total Assets Under Custody / Administration | $ | 17,423.0 | $ | 16,567.4 | $ | 16,472.5 | $ | 15,404.9 | $ | 14,164.7 | ||||||||||
Assets Under Custody ($ In Billions) - End Of Period | ||||||||||||||||||||
Asset Servicing | $ | 12,662.1 | $ | 11,955.5 | $ | 11,723.1 | $ | 10,882.0 | $ | 10,064.4 | ||||||||||
Wealth Management | 1,132.7 | 1,085.9 | 1,081.0 | 1,034.5 | 951.0 | |||||||||||||||
Total Assets Under Custody | $ | 13,794.8 | $ | 13,041.4 | $ | 12,804.1 | $ | 11,916.5 | $ | 11,015.4 | ||||||||||
Assets Under Management ($ In Billions) - End Of Period | ||||||||||||||||||||
Asset Servicing | $ | 1,177.9 | $ | 1,107.3 | $ | 1,080.1 | $ | 1,032.0 | $ | 963.4 | ||||||||||
Wealth Management | 443.9 | 419.4 | 420.6 | 402.5 | 369.9 | |||||||||||||||
Total Assets Under Management | $ | 1,621.8 | $ | 1,526.7 | $ | 1,500.7 | $ | 1,434.5 | $ | 1,333.3 | ||||||||||
Asset Quality ($ In Millions) - End Of Period | ||||||||||||||||||||
Nonaccrual Loans | $ | 39.3 | $ | 38.5 | $ | 37.0 | $ | 63.6 | $ | 68.8 | ||||||||||
Other Real Estate Owned (OREO) | — | — | — | 1.5 | 0.3 | |||||||||||||||
Total Nonaccrual Assets | $ | 39.3 | $ | 38.5 | $ | 37.0 | $ | 65.1 | $ | 69.1 | ||||||||||
Nonaccrual Assets / Loans and OREO | 0.09 | % | 0.09 | % | 0.08 | % | 0.14 | % | 0.16 | % | ||||||||||
Gross Charge-offs | $ | — | $ | (0.3) | $ | (11.1) | $ | (3.1) | $ | (0.8) | ||||||||||
Gross Recoveries | 2.4 | 0.4 | 0.7 | 0.7 | 1.1 | |||||||||||||||
Net Recoveries (Charge-offs) | $ | 2.4 | $ | 0.1 | $ | (10.4) | $ | (2.4) | $ | 0.3 | ||||||||||
Annualized Net Recoveries (Charge-offs) to Avg Loans | 0.02 | % | — | % | (0.10) | % | (0.02) | % | — | % | ||||||||||
Allowance for Credit Losses Assigned to: | ||||||||||||||||||||
Loans | $ | 184.8 | $ | 167.7 | $ | 162.4 | $ | 178.7 | $ | 166.8 | ||||||||||
Undrawn Loan Commitments and Standby Letters of Credit | 26.5 | 29.5 | 25.2 | 26.9 | 28.3 | |||||||||||||||
Debt Securities and Other Financial Assets | 8.7 | 12.4 | 13.9 | 14.8 | 16.7 | |||||||||||||||
Loans Allowance / Nonaccrual Loans | 4.7 | x | 4.4 | x | 4.4 | x | 2.8 | x | 2.4 | x | ||||||||||