NEWS RELEASE | ![]() | |||||||
www.northerntrust.com | ||||||||
MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER: | ||
“Northern Trust finished the year with strong fourth quarter results, reflecting the progress we’ve achieved executing against our One Northern Trust strategy. Relative to the prior year, fourth quarter fee revenue grew substantially, supported by organic growth across all three businesses. Net Interest Income and net interest margin both increased, we returned more than $400 million to shareholders, and we generated a 15.3% return on common equity. Importantly, we delivered healthy trust fee and total operating leverage in both the quarter and for the full year, as our productivity initiatives are driving efficiencies while enabling continued reinvestment in the business and support for our modernization and resiliency efforts.” “We begin 2025 well-positioned to build on 2024’s accomplishments, focused on accelerating growth, making further progress on our productivity initiatives, and investing for the future.” | ||
FINANCIAL SUMMARY & KEY METRICS | ||||||||||||||||||||
% Change Q4 2024 vs. | ||||||||||||||||||||
($ In Millions except per share data) | Q4 2024 | Q3 2024 | Q4 2023 | Q3 2024 | Q4 2023 | |||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,222.2 | $ | 1,196.6 | $ | 1,090.0 | 2 | % | 12 | % | ||||||||||
Other Noninterest Income (Loss) | 173.6 | 209.6 | (27.8) | (17) | N/M | |||||||||||||||
Net Interest Income (FTE*) | 574.3 | 569.4 | 501.1 | 1 | 15 | |||||||||||||||
Total Revenue (FTE*) | $ | 1,970.1 | $ | 1,975.6 | $ | 1,563.3 | — | % | 26 | % | ||||||||||
Noninterest Expense | $ | 1,375.9 | $ | 1,359.4 | $ | 1,388.5 | 1 | % | (1) | % | ||||||||||
Provision for Credit Losses | (10.5) | 8.0 | 11.0 | N/M | N/M | |||||||||||||||
Provision for Income Taxes | 138.8 | 136.2 | 32.7 | 2 | N/M | |||||||||||||||
FTE Adjustment* | 10.5 | 7.1 | 18.0 | 49 | (41) | |||||||||||||||
Net Income | $ | 455.4 | $ | 464.9 | $ | 113.1 | (2) | % | N/M | |||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 447.0 | $ | 445.0 | $ | 106.5 | — | % | N/M | |||||||||||
Diluted Earnings per Common Share | $ | 2.26 | $ | 2.22 | $ | 0.52 | 2 | N/M | ||||||||||||
Return on Average Common Equity | 15.3 | % | 15.4 | % | 4.0 | % | ||||||||||||||
Return on Average Assets | 1.24 | % | 1.26 | % | 0.33 | % | ||||||||||||||
Average Assets | $ | 146,570.2 | $ | 146,842.9 | $ | 136,588.7 | — | % | 7 | % |
NORTHERN TRUST CORPORATION FOURTH 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 December 31, 2024 vs. | |||||||||||||||||||
($ In Billions) | December 31, 2024* | September 30, 2024 | December 31, 2023 | September 30, 2024 | December 31, 2023 | |||||||||||||||
Assets Under Custody/Administration | ||||||||||||||||||||
Asset Servicing | $ | 15,640.1 | $ | 16,278.0 | $ | 14,362.6 | (4) | % | 9 | % | ||||||||||
Wealth Management | 1,147.9 | 1,145.0 | 1,042.3 | — | 10 | |||||||||||||||
Total Assets Under Custody/Administration | $ | 16,788.0 | $ | 17,423.0 | $ | 15,404.9 | (4) | % | 9 | % | ||||||||||
Assets Under Custody(1) | ||||||||||||||||||||
Asset Servicing | $ | 12,214.0 | $ | 12,662.1 | $ | 10,882.0 | (4) | % | 12 | % | ||||||||||
Wealth Management | 1,135.2 | 1,132.7 | 1,034.5 | — | 10 | |||||||||||||||
Total Assets Under Custody | $ | 13,349.2 | $ | 13,794.8 | $ | 11,916.5 | (3) | % | 12 | % | ||||||||||
Assets Under Management | ||||||||||||||||||||
Asset Servicing | $ | 1,159.7 | $ | 1,177.9 | $ | 1,032.0 | (2) | % | 12 | % | ||||||||||
Wealth Management | 450.7 | 443.9 | 402.5 | 2 | 12 | |||||||||||||||
Total Assets Under Management | $ | 1,610.4 | $ | 1,621.8 | $ | 1,434.5 | (1) | % | 12 | % |
TRUST, INVESTMENT AND OTHER SERVICING FEES | ||||||||||||||||||||
% Change Q4 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q4 2024 | Q3 2024 | Q4 2023 | Q3 2024 | Q4 2023 | |||||||||||||||
Asset Servicing Trust, Investment and Other Servicing Fees | ||||||||||||||||||||
Custody and Fund Administration | $ | 456.9 | $ | 453.1 | $ | 420.4 | 1 | % | 9 | % | ||||||||||
Investment Management | 156.9 | 152.6 | 130.7 | 3 | 20 | |||||||||||||||
Securities Lending | 20.4 | 17.5 | 22.0 | 16 | (7) | |||||||||||||||
Other | 41.3 | 43.9 | 38.6 | (6) | 7 | |||||||||||||||
Total Asset Servicing | $ | 675.5 | $ | 667.1 | $ | 611.7 | 1 | % | 10 | % | ||||||||||
Wealth Management Trust, Investment and Other Servicing Fees | ||||||||||||||||||||
Central | $ | 195.3 | $ | 186.6 | $ | 171.9 | 5 | % | 14 | % | ||||||||||
East | 140.7 | 136.4 | 121.5 | 3 | 16 | |||||||||||||||
West | 110.0 | 105.7 | 97.3 | 4 | 13 | |||||||||||||||
Global Family Office (GFO) | 100.7 | 100.8 | 87.6 | — | 15 | |||||||||||||||
Total Wealth Management | $ | 546.7 | $ | 529.5 | $ | 478.3 | 3 | % | 14 | % | ||||||||||
Total Consolidated Trust, Investment and Other Servicing Fees | $ | 1,222.2 | $ | 1,196.6 | $ | 1,090.0 | 2 | % | 12 | % |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2024 RESULTS |
OTHER NONINTEREST INCOME | ||||||||||||||||||||
% Change Q4 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q4 2024 | Q3 2024 | Q4 2023 | Q3 2024 | Q4 2023 | |||||||||||||||
Other Noninterest Income | ||||||||||||||||||||
Foreign Exchange Trading Income | $ | 61.7 | $ | 54.1 | $ | 49.0 | 14 | % | 26 | % | ||||||||||
Treasury Management Fees | 9.2 | 8.2 | 7.8 | 13 | 20 | |||||||||||||||
Security Commissions and Trading Income | 42.8 | 35.5 | 33.3 | 20 | 28 | |||||||||||||||
Other Operating Income | 59.9 | 111.8 | 58.5 | (46) | 2 | |||||||||||||||
Investment Security Gains (Losses), net | — | — | (176.4) | — | N/M | |||||||||||||||
Total Other Noninterest Income (Loss) | $ | 173.6 | $ | 209.6 | $ | (27.8) | (17) | % | N/M |
NET INTEREST INCOME | ||||||||||||||||||||
% Change Q4 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q4 2024 | Q3 2024 | Q4 2023 | Q3 2024 | Q4 2023 | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income (FTE*) | $ | 2,290.5 | $ | 2,537.3 | $ | 2,217.6 | (10) | % | 3 | % | ||||||||||
Interest Expense | 1,716.2 | 1,967.9 | 1,716.5 | (13) | — | |||||||||||||||
Net Interest Income (FTE*) | $ | 574.3 | $ | 569.4 | $ | 501.1 | 1 | % | 15 | % | ||||||||||
Average Earning Assets | $ | 133,684.0 | $ | 134,767.8 | $ | 125,025.1 | (1) | % | 7 | % | ||||||||||
Net Interest Margin (FTE*) | 1.71 | % | 1.68 | % | 1.59 | % | 3 | bps | 12 | bps |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2024 RESULTS |
PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||
As of and for the three-months ended, | % Change December 31, 2024 vs. | |||||||||||||||||||
($ In Millions) | December 31, 2024 | September 30, 2024 | December 31, 2023 | September 30, 2024 | December 31, 2023 | |||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
Beginning Allowance for Credit Losses | $ | 220.0 | $ | 209.6 | $ | 211.8 | 5 | % | 4 | % | ||||||||||
Provision for Credit Losses | (10.5) | 8.0 | 11.0 | N/M | N/M | |||||||||||||||
Net Recoveries (Charge-Offs) | (3.4) | 2.4 | (2.4) | N/M | 41 | |||||||||||||||
Ending Allowance for Credit Losses | $ | 206.1 | $ | 220.0 | $ | 220.4 | (6) | % | (6) | % | ||||||||||
Allowance assigned to: | ||||||||||||||||||||
Loans | $ | 168.0 | $ | 184.8 | $ | 178.7 | (9) | % | (6) | % | ||||||||||
Undrawn Loan Commitments and Standby Letters of Credit | 30.4 | 26.5 | 26.9 | 15 | 13 | |||||||||||||||
Debt Securities and Other Financial Assets | 7.7 | 8.7 | 14.8 | (12) | (48) | |||||||||||||||
Ending Allowance for Credit Losses | $ | 206.1 | $ | 220.0 | $ | 220.4 | (6) | % | (6) | % |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2024 RESULTS |
NONINTEREST EXPENSE | ||||||||||||||||||||
% Change Q4 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q4 2024 | Q3 2024 | Q4 2023 | Q3 2024 | Q4 2023 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation | $ | 595.2 | $ | 583.6 | $ | 564.0 | 2 | % | 6 | % | ||||||||||
Employee Benefits | 107.3 | 109.2 | 102.0 | (2) | 5 | |||||||||||||||
Outside Services | 251.5 | 256.3 | 235.2 | (2) | 7 | |||||||||||||||
Equipment and Software | 274.4 | 270.4 | 252.0 | 1 | 9 | |||||||||||||||
Occupancy | 54.1 | 53.8 | 58.5 | 1 | (8) | |||||||||||||||
Other Operating Expense | 93.4 | 86.1 | 176.8 | 9 | (47) | |||||||||||||||
Total Noninterest Expense | $ | 1,375.9 | $ | 1,359.4 | $ | 1,388.5 | 1 | % | (1) | % | ||||||||||
End of Period Full-Time Equivalent Employees | 23,300 | 23,300 | 23,100 | — | % | 1 | % |
PROVISION FOR INCOME TAXES | ||||||||||||||||||||
% Change Q4 2024 vs. | ||||||||||||||||||||
($ In Millions) | Q4 2024 | Q3 2024 | Q4 2023 | Q3 2024 | Q4 2023 | |||||||||||||||
Net Income | ||||||||||||||||||||
Income before Income Taxes | $ | 594.2 | $ | 601.1 | $ | 145.8 | (1)% | N/M | ||||||||||||
Provision for Income Taxes | 138.8 | 136.2 | 32.7 | 2 | N/M | |||||||||||||||
Net Income | $ | 455.4 | $ | 464.9 | $ | 113.1 | (2)% | N/M | ||||||||||||
Effective Tax Rate | 23.4 | % | 22.7 | % | 22.4 | % | 70 | bps | 100 | bps |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2024 RESULTS |
CAPITAL ACTIONS |
CAPITAL RATIOS |
December 31, 2024* | September 30, 2024 | December 31, 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 | 12.4 | % | 14.5 | % | 12.6 | % | 14.0 | % | 11.4 | % | 13.4 | % | N/A | 4.5 | % | ||||||||||||||
Tier 1 Capital | 13.3 | 15.6 | 13.6 | 15.1 | 12.3 | 14.5 | 6.0 | 6.0 | |||||||||||||||||||||
Total Capital | 15.1 | 17.4 | 15.6 | 17.0 | 14.2 | 16.5 | 10.0 | 8.0 | |||||||||||||||||||||
Tier 1 Leverage | 8.1 | 8.1 | 8.1 | 8.1 | 8.1 | 8.1 | N/A | 4.0 | |||||||||||||||||||||
Supplementary Leverage | N/A | 8.9 | N/A | 9.2 | N/A | 8.6 | N/A | 3.0 |
December 31, 2024* | September 30, 2024 | December 31, 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 | 11.4 | % | 13.6 | % | 12.3 | % | 13.9 | % | 12.2 | % | 14.6 | % | 6.5 | % | 4.5 | % | |||||||||||||
Tier 1 Capital | 11.4 | 13.6 | 12.3 | 13.9 | 12.2 | 14.6 | 8.0 | 6.0 | |||||||||||||||||||||
Total Capital | 12.8 | 15.0 | 14.0 | 15.5 | 13.8 | 16.3 | 10.0 | 8.0 | |||||||||||||||||||||
Tier 1 Leverage | 6.9 | 6.9 | 7.3 | 7.3 | 8.0 | 8.0 | 5.0 | 4.0 | |||||||||||||||||||||
Supplementary Leverage | N/A | 7.5 | N/A | 8.2 | N/A | 8.5 | 3.0 | 3.0 |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2024 RESULTS |
RECONCILIATION TO FULLY TAXABLE EQUIVALENT |
QUARTERS | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
($ in Millions) | FOURTH | THIRD | SECOND | FIRST | FOURTH | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income - GAAP | $ | 2,280.0 | $ | 2,530.2 | $ | 2,506.5 | $ | 2,445.6 | $ | 2,199.6 | ||||||||||
Add: FTE Adjustment | 10.5 | 7.1 | 6.9 | 7.3 | 18.0 | |||||||||||||||
Interest Income (FTE) - Non-GAAP | $ | 2,290.5 | $ | 2,537.3 | $ | 2,513.4 | $ | 2,452.9 | $ | 2,217.6 | ||||||||||
Net Interest Income - GAAP | $ | 563.8 | $ | 562.3 | $ | 522.9 | $ | 528.1 | $ | 483.1 | ||||||||||
Add: FTE Adjustment | 10.5 | 7.1 | 6.9 | 7.3 | 18.0 | |||||||||||||||
Net Interest Income (FTE) - Non-GAAP | $ | 574.3 | $ | 569.4 | $ | 529.8 | $ | 535.4 | $ | 501.1 | ||||||||||
Net Interest Margin - GAAP(1) | 1.68 | % | 1.66 | % | 1.55 | % | 1.59 | % | 1.53 | % | ||||||||||
Net Interest Margin (FTE) - Non-GAAP(1) | 1.71 | % | 1.68 | % | 1.57 | % | 1.61 | % | 1.59 | % | ||||||||||
Total Revenue | ||||||||||||||||||||
Total Revenue - GAAP | $ | 1,959.6 | $ | 1,968.5 | $ | 2,715.5 | $ | 1,646.8 | $ | 1,545.3 | ||||||||||
Add: FTE Adjustment | 10.5 | 7.1 | 6.9 | 7.3 | 18.0 | |||||||||||||||
Total Revenue (FTE) - Non-GAAP | $ | 1,970.1 | $ | 1,975.6 | $ | 2,722.4 | $ | 1,654.1 | $ | 1,563.3 | ||||||||||
NORTHERN TRUST CORPORATION FOURTH QUARTER 2024 RESULTS |
FORWARD LOOKING STATEMENTS |
WEBCAST OF FOURTH QUARTER EARNINGS CONFERENCE CALL |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | % Change(1) | |||||||||||||||||||
($ In Millions Except Per Share Data) | Q4 2024 vs. | |||||||||||||||||||
Q4 2024 | Q3 2024 | Q4 2023 | Q3 2024 | Q4 2023 | ||||||||||||||||
Noninterest Income | ||||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,222.2 | $ | 1,196.6 | $ | 1,090.0 | 2 | % | 12 | % | ||||||||||
Foreign Exchange Trading Income | 61.7 | 54.1 | 49.0 | 14 | 26 | |||||||||||||||
Treasury Management Fees | 9.2 | 8.2 | 7.8 | 13 | 20 | |||||||||||||||
Security Commissions and Trading Income | 42.8 | 35.5 | 33.3 | 20 | 28 | |||||||||||||||
Other Operating Income | 59.9 | 111.8 | 58.5 | (46) | 2 | |||||||||||||||
Investment Security Gains (Losses), net | — | — | (176.4) | — | N/M | |||||||||||||||
Total Noninterest Income | 1,395.8 | 1,406.2 | 1,062.2 | (1) | 31 | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income | 2,280.0 | 2,530.2 | 2,199.6 | (10) | 4 | |||||||||||||||
Interest Expense | 1,716.2 | 1,967.9 | 1,716.5 | (13) | — | |||||||||||||||
Net Interest Income | 563.8 | 562.3 | 483.1 | — | 17 | |||||||||||||||
Total Revenue | 1,959.6 | 1,968.5 | 1,545.3 | — | 27 | |||||||||||||||
Provision for Credit Losses | (10.5) | 8.0 | 11.0 | N/M | N/M | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation | 595.2 | 583.6 | 564.0 | 2 | 6 | |||||||||||||||
Employee Benefits | 107.3 | 109.2 | 102.0 | (2) | 5 | |||||||||||||||
Outside Services | 251.5 | 256.3 | 235.2 | (2) | 7 | |||||||||||||||
Equipment and Software | 274.4 | 270.4 | 252.0 | 1 | 9 | |||||||||||||||
Occupancy | 54.1 | 53.8 | 58.5 | 1 | (8) | |||||||||||||||
Other Operating Expense | 93.4 | 86.1 | 176.8 | 9 | (47) | |||||||||||||||
Total Noninterest Expense | 1,375.9 | 1,359.4 | 1,388.5 | 1 | (1) | |||||||||||||||
Income before Income Taxes | 594.2 | 601.1 | 145.8 | (1) | N/M | |||||||||||||||
Provision for Income Taxes | 138.8 | 136.2 | 32.7 | 2 | N/M | |||||||||||||||
NET INCOME | $ | 455.4 | $ | 464.9 | $ | 113.1 | (2) | % | N/M | |||||||||||
Preferred Stock Dividends | 4.7 | 16.2 | 4.7 | (71) | — | |||||||||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 450.7 | $ | 448.7 | $ | 108.4 | — | % | N/M | |||||||||||
Earnings Allocated to Participating Securities | 3.7 | 3.7 | 1.9 | (1) | 91 | |||||||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 447.0 | $ | 445.0 | $ | 106.5 | — | % | N/M | |||||||||||
Per Common Share | ||||||||||||||||||||
Net Income | ||||||||||||||||||||
Basic | $ | 2.27 | $ | 2.23 | $ | 0.52 | 2 | % | N/M | |||||||||||
Diluted | 2.26 | 2.22 | 0.52 | 2 | N/M | |||||||||||||||
Average Common Equity | $ | 11,692.6 | $ | 11,589.2 | $ | 10,830.6 | 1 | % | 8 | % | ||||||||||
Return on Average Common Equity | 15.3 | % | 15.4 | % | 4.0 | % | ||||||||||||||
Return on Average Assets | 1.24 | % | 1.26 | % | 0.33 | % | ||||||||||||||
Cash Dividends Declared per Common Share | $ | 0.75 | $ | 0.75 | $ | 0.75 | — | % | — | % | ||||||||||
Average Common Shares Outstanding (000s) | ||||||||||||||||||||
Basic | 197,241 | 199,938 | 206,170 | (1) | % | (4) | % | |||||||||||||
Diluted | 198,114 | 200,549 | 206,484 | (1) | (4) | |||||||||||||||
Common Shares Outstanding (EOP) (000s) | 195,970 | 198,218 | 205,126 | (1) | (4) |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | ||||||||||||||
($ In Millions Except Per Share Data) | TWELVE MONTHS | |||||||||||||
2024 | 2023 | % Change(1) | ||||||||||||
Noninterest Income | ||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 4,727.8 | $ | 4,361.8 | 8 | % | ||||||||
Foreign Exchange Trading Income | 231.2 | 203.9 | 13 | |||||||||||
Treasury Management Fees | 35.7 | 31.6 | 13 | |||||||||||
Security Commissions and Trading Income | 150.5 | 135.0 | 11 | |||||||||||
Other Operating Income | 1,157.4 | 228.7 | N/M | |||||||||||
Investment Security Gains (Losses), net | (189.3) | (169.5) | 12 | |||||||||||
Total Noninterest Income | 6,113.3 | 4,791.5 | 28 | |||||||||||
Net Interest Income | ||||||||||||||
Interest Income | 9,762.3 | 7,325.0 | 33 | |||||||||||
Interest Expense | 7,585.2 | 5,343.0 | 42 | |||||||||||
Net Interest Income | 2,177.1 | 1,982.0 | 10 | |||||||||||
Total Revenue | 8,290.4 | 6,773.5 | 22 | |||||||||||
Provision for Credit Losses | (3.0) | 24.5 | N/M | |||||||||||
Noninterest Expense | ||||||||||||||
Compensation | 2,471.1 | 2,321.8 | 6 | |||||||||||
Employee Benefits | 417.8 | 405.2 | 3 | |||||||||||
Outside Services | 998.0 | 906.5 | 10 | |||||||||||
Equipment and Software | 1,075.0 | 945.5 | 14 | |||||||||||
Occupancy | 216.8 | 232.3 | (7) | |||||||||||
Other Operating Expense | 455.2 | 472.9 | (4) | |||||||||||
Total Noninterest Expense | 5,633.9 | 5,284.2 | 7 | |||||||||||
Income before Income Taxes | 2,659.5 | 1,464.8 | 82 | |||||||||||
Provision for Income Taxes | 628.4 | 357.5 | 76 | |||||||||||
NET INCOME | $ | 2,031.1 | $ | 1,107.3 | 83 | % | ||||||||
Preferred Stock Dividends | 41.8 | 41.8 | — | |||||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 1,989.3 | $ | 1,065.5 | 87 | % | ||||||||
Earnings Allocated to Participating Securities | 16.9 | 11.6 | 45 | |||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 1,972.4 | $ | 1,053.9 | 87 | % | ||||||||
Per Common Share | ||||||||||||||
Net Income | ||||||||||||||
Basic | $ | 9.80 | $ | 5.09 | 93 | % | ||||||||
Diluted | 9.77 | 5.08 | 92 | |||||||||||
Average Common Equity | $ | 11,414.9 | $ | 10,612.0 | 8 | % | ||||||||
Return on Average Common Equity | 17.4 | % | 10.0 | % | ||||||||||
Return on Average Assets | 1.39 | % | 0.78 | % | ||||||||||
Cash Dividends Declared per Common Share | $ | 3.00 | $ | 3.00 | — | % | ||||||||
Average Common Shares Outstanding (000s) | ||||||||||||||
Basic | 201,264 | 207,248 | (3) | % | ||||||||||
Diluted | 201,870 | 207,564 | (3) | |||||||||||
Common Shares Outstanding (EOP) (000s) | 195,970 | 205,126 | (4) |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
BALANCE SHEET | ||||||||||||||||||||
($ In Millions) | % Change(1) | |||||||||||||||||||
December 31, 2024 vs. | ||||||||||||||||||||
December 31, 2024 | September 30, 2024 | December 31, 2023 | September 30, 2024 | December 31, 2023 | ||||||||||||||||
Assets | ||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 38,774.9 | $ | 40,848.3 | $ | 34,281.0 | (5) | % | 13 | % | ||||||||||
Interest-Bearing Due from and Deposits with Banks(2) | 5,563.7 | 5,464.7 | 5,241.4 | 2 | 6 | |||||||||||||||
Federal Funds Sold | 25.0 | — | — | N/M | N/M | |||||||||||||||
Securities Purchased under Agreements to Resell | 426.0 | 981.6 | 784.7 | (57) | (46) | |||||||||||||||
Debt Securities | ||||||||||||||||||||
Available for Sale | 29,001.5 | 28,311.9 | 23,089.8 | 2 | 26 | |||||||||||||||
Held to Maturity | 22,296.7 | 22,708.6 | 26,221.7 | (2) | (15) | |||||||||||||||
Trading Account | — | — | — | — | — | |||||||||||||||
Total Debt Securities | 51,298.2 | 51,020.5 | 49,311.5 | 1 | 4 | |||||||||||||||
Loans | 43,390.6 | 41,950.3 | 47,617.0 | 3 | (9) | |||||||||||||||
Other Interest-Earning Assets(3) | 2,749.6 | 2,465.7 | 3,134.0 | 12 | (12) | |||||||||||||||
Total Earning Assets | 142,228.0 | 142,731.1 | 140,369.6 | — | 1 | |||||||||||||||
Allowance for Credit Losses | (175.5) | (193.3) | (192.3) | (9) | (9) | |||||||||||||||
Cash and Due from Banks and Other Central Bank Deposits(4) | 1,058.7 | 3,014.3 | 1,534.3 | (65) | (31) | |||||||||||||||
Buildings and Equipment | 490.3 | 480.3 | 502.2 | 2 | (2) | |||||||||||||||
Client Security Settlement Receivables | 41.1 | 354.2 | 212.6 | (88) | (81) | |||||||||||||||
Goodwill | 694.9 | 707.8 | 702.3 | (2) | (1) | |||||||||||||||
Other Assets | 11,170.9 | 8,659.4 | 7,654.4 | 29 | 46 | |||||||||||||||
Total Assets | $ | 155,508.4 | $ | 155,753.8 | $ | 150,783.1 | — | % | 3 | % | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Interest-Bearing Deposits | ||||||||||||||||||||
Savings, Money Market and Other | $ | 26,122.6 | $ | 23,069.0 | $ | 25,252.1 | 13 | % | 3 | % | ||||||||||
Savings Certificates and Other Time | 5,731.7 | 6,255.2 | 4,109.7 | (8) | 39 | |||||||||||||||
Non-U.S. Offices - Interest-Bearing | 66,274.9 | 69,684.3 | 63,971.1 | (5) | 4 | |||||||||||||||
Total Interest-Bearing Deposits | 98,129.2 | 99,008.5 | 93,332.9 | (1) | 5 | |||||||||||||||
Federal Funds Purchased | 2,159.5 | 2,761.9 | 3,045.4 | (22) | (29) | |||||||||||||||
Securities Sold under Agreements to Repurchase | 462.0 | 170.8 | 784.7 | 170 | (41) | |||||||||||||||
Other Borrowings(5) | 6,521.0 | 6,903.2 | 6,567.8 | (6) | (1) | |||||||||||||||
Senior Notes | 2,769.7 | 2,820.9 | 2,773.2 | (2) | — | |||||||||||||||
Long-Term Debt | 4,081.3 | 4,077.2 | 4,065.0 | — | — | |||||||||||||||
Total Interest-Bearing Liabilities | 114,122.7 | 115,742.5 | 110,569.0 | (1) | 3 | |||||||||||||||
Demand and Other Noninterest-Bearing Deposits | 24,353.5 | 22,174.8 | 22,831.1 | 10 | 7 | |||||||||||||||
Other Liabilities | 4,243.8 | 5,087.5 | 5,485.1 | (17) | (23) | |||||||||||||||
Total Liabilities | 142,720.0 | 143,004.8 | 138,885.2 | — | 3 | |||||||||||||||
Common Equity | 11,903.5 | 11,864.1 | 11,013.0 | — | 8 | |||||||||||||||
Preferred Equity | 884.9 | 884.9 | 884.9 | — | — | |||||||||||||||
Total Equity | 12,788.4 | 12,749.0 | 11,897.9 | — | 7 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 155,508.4 | $ | 155,753.8 | $ | 150,783.1 | — | % | 3 | % |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
AVERAGE BALANCE SHEET | ||||||||||||||||||||
($ In Millions) | % Change(1) | |||||||||||||||||||
Q4 2024 vs. | ||||||||||||||||||||
Q4 2024 | Q3 2024 | Q4 2023 | Q3 2024 | Q4 2023 | ||||||||||||||||
Assets | ||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 32,847.0 | $ | 36,067.3 | $ | 25,951.3 | (9) | % | 27 | % | ||||||||||
Interest-Bearing Due from and Deposits with Banks(2) | 4,955.3 | 4,828.1 | 4,261.6 | 3 | 16 | |||||||||||||||
Federal Funds Sold | 0.4 | 0.2 | 1.0 | 68 | (60) | |||||||||||||||
Securities Purchased under Agreements to Resell | 680.9 | 977.2 | 573.1 | (30) | 19 | |||||||||||||||
Debt Securities | ||||||||||||||||||||
Available for Sale | 29,350.4 | 27,462.6 | 23,469.9 | 7 | 25 | |||||||||||||||
Held to Maturity | 22,231.6 | 22,834.0 | 25,685.2 | (3) | (13) | |||||||||||||||
Trading Account | — | — | 0.2 | — | (100) | |||||||||||||||
Total Debt Securities | 51,582.0 | 50,296.6 | 49,155.3 | 3 | 5 | |||||||||||||||
Loans | 41,169.9 | 39,884.0 | 42,170.0 | 3 | (2) | |||||||||||||||
Other Interest-Earning Assets(3) | 2,448.5 | 2,714.4 | 2,912.8 | (10) | (16) | |||||||||||||||
Total Earning Assets | 133,684.0 | 134,767.8 | 125,025.1 | (1) | 7 | |||||||||||||||
Allowance for Credit Losses | (192.9) | (180.5) | (182.5) | 7 | 6 | |||||||||||||||
Cash and Due from Banks and Other Central Bank Deposits(4) | 1,453.4 | 1,742.3 | 1,754.6 | (17) | (17) | |||||||||||||||
Buildings and Equipment | 485.8 | 482.2 | 486.4 | 1 | — | |||||||||||||||
Client Security Settlement Receivables | 281.9 | 335.0 | 205.9 | (16) | 37 | |||||||||||||||
Goodwill | 699.7 | 702.9 | 696.4 | — | — | |||||||||||||||
Other Assets | 10,158.3 | 8,993.2 | 8,602.8 | 13 | 18 | |||||||||||||||
Total Assets | $ | 146,570.2 | $ | 146,842.9 | $ | 136,588.7 | — | % | 7 | % | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Interest-Bearing Deposits | ||||||||||||||||||||
Savings, Money Market and Other | $ | 24,834.8 | $ | 25,233.0 | $ | 23,888.7 | (2) | % | 4 | % | ||||||||||
Savings Certificates and Other Time | 6,193.9 | 6,639.6 | 4,279.0 | (7) | 45 | |||||||||||||||
Non-U.S. Offices - Interest-Bearing | 64,094.5 | 64,347.2 | 56,970.9 | — | 13 | |||||||||||||||
Total Interest-Bearing Deposits | 95,123.2 | 96,219.8 | 85,138.6 | (1) | 12 | |||||||||||||||
Federal Funds Purchased | 2,488.8 | 2,320.9 | 3,906.0 | 7 | (36) | |||||||||||||||
Securities Sold under Agreements to Repurchase | 505.4 | 504.3 | 364.5 | — | 39 | |||||||||||||||
Other Borrowings(5) | 6,928.9 | 7,085.9 | 6,960.8 | (2) | — | |||||||||||||||
Senior Notes | 2,782.4 | 2,795.6 | 2,714.2 | — | 3 | |||||||||||||||
Long-Term Debt | 4,079.4 | 4,075.1 | 4,064.1 | — | — | |||||||||||||||
Total Interest-Bearing Liabilities | 111,908.1 | 113,001.6 | 103,148.2 | (1) | 8 | |||||||||||||||
Demand and Other Noninterest-Bearing Deposits | 17,416.6 | 16,340.9 | 16,450.4 | 7 | 6 | |||||||||||||||
Other Liabilities | 4,668.0 | 5,026.3 | 5,274.6 | (7) | (11) | |||||||||||||||
Total Liabilities | 133,992.7 | 134,368.8 | 124,873.2 | — | 7 | |||||||||||||||
Common Equity | 11,692.6 | 11,589.2 | 10,830.6 | 1 | 8 | |||||||||||||||
Preferred Equity | 884.9 | 884.9 | 884.9 | — | — | |||||||||||||||
Total Equity | 12,577.5 | 12,474.1 | 11,715.5 | 1 | 7 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 146,570.2 | $ | 146,842.9 | $ | 136,588.7 | — | % | 7 | % |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
QUARTERLY TREND DATA | QUARTERS | |||||||||||||||||||
($ In Millions Except Per Share Data) | 2024 | 2023 | ||||||||||||||||||
FOURTH | THIRD | SECOND | FIRST | FOURTH | ||||||||||||||||
Net Income Summary | ||||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,222.2 | $ | 1,196.6 | $ | 1,166.1 | $ | 1,142.9 | $ | 1,090.0 | ||||||||||
Other Noninterest Income | 173.6 | 209.6 | 1,026.5 | (24.2) | (27.8) | |||||||||||||||
Net Interest Income | 563.8 | 562.3 | 522.9 | 528.1 | 483.1 | |||||||||||||||
Total Revenue | 1,959.6 | 1,968.5 | 2,715.5 | 1,646.8 | 1,545.3 | |||||||||||||||
Provision for Credit Losses | (10.5) | 8.0 | 8.0 | (8.5) | 11.0 | |||||||||||||||
Noninterest Expense | 1,375.9 | 1,359.4 | 1,533.9 | 1,364.7 | 1,388.5 | |||||||||||||||
Income before Income Taxes | 594.2 | 601.1 | 1,173.6 | 290.6 | 145.8 | |||||||||||||||
Provision for Income Taxes | 138.8 | 136.2 | 277.5 | 75.9 | 32.7 | |||||||||||||||
Net Income | $ | 455.4 | $ | 464.9 | $ | 896.1 | $ | 214.7 | $ | 113.1 | ||||||||||
Per Common Share | ||||||||||||||||||||
Net Income - Basic | $ | 2.27 | $ | 2.23 | $ | 4.35 | $ | 0.96 | $ | 0.52 | ||||||||||
- Diluted | 2.26 | 2.22 | 4.34 | 0.96 | 0.52 | |||||||||||||||
Cash Dividends Declared per Common Share | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | |||||||||||||||
Book Value (EOP) | 60.74 | 59.85 | 58.38 | 54.83 | 53.69 | |||||||||||||||
Market Value (EOP) | 102.50 | 90.03 | 83.98 | 88.92 | 84.38 | |||||||||||||||
Financial Ratios | ||||||||||||||||||||
Return on Average Common Equity | 15.3 | % | 15.4 | % | 31.2 | % | 7.3 | % | 4.0 | % | ||||||||||
Return on Average Assets | 1.24 | 1.26 | 2.44 | 0.60 | 0.33 | |||||||||||||||
Net Interest Margin (GAAP) | 1.68 | 1.66 | 1.55 | 1.59 | 1.53 | |||||||||||||||
Net Interest Margin (FTE*) | 1.71 | 1.68 | 1.57 | 1.61 | 1.59 | |||||||||||||||
Assets Under Custody / Administration ($ in Billions) - End Of Period | ||||||||||||||||||||
Asset Servicing | $ | 15,640.1 | $ | 16,278.0 | $ | 15,470.8 | $ | 15,385.4 | $ | 14,362.6 | ||||||||||
Wealth Management | 1,147.9 | 1,145.0 | 1,096.6 | 1,087.1 | 1,042.3 | |||||||||||||||
Total Assets Under Custody / Administration | $ | 16,788.0 | $ | 17,423.0 | $ | 16,567.4 | $ | 16,472.5 | $ | 15,404.9 | ||||||||||
Assets Under Custody ($ In Billions) - End Of Period | ||||||||||||||||||||
Asset Servicing | $ | 12,214.0 | $ | 12,662.1 | $ | 11,955.5 | $ | 11,723.1 | $ | 10,882.0 | ||||||||||
Wealth Management | 1,135.2 | 1,132.7 | 1,085.9 | 1,081.0 | 1,034.5 | |||||||||||||||
Total Assets Under Custody | $ | 13,349.2 | $ | 13,794.8 | $ | 13,041.4 | $ | 12,804.1 | $ | 11,916.5 | ||||||||||
Assets Under Management ($ In Billions) - End Of Period | ||||||||||||||||||||
Asset Servicing | $ | 1,159.7 | $ | 1,177.9 | $ | 1,107.3 | $ | 1,080.1 | $ | 1,032.0 | ||||||||||
Wealth Management | 450.7 | 443.9 | 419.4 | 420.6 | 402.5 | |||||||||||||||
Total Assets Under Management | $ | 1,610.4 | $ | 1,621.8 | $ | 1,526.7 | $ | 1,500.7 | $ | 1,434.5 | ||||||||||
Asset Quality ($ In Millions) - End Of Period | ||||||||||||||||||||
Nonaccrual Loans | $ | 56.0 | $ | 39.3 | $ | 38.5 | $ | 37.0 | $ | 63.6 | ||||||||||
Other Real Estate Owned (OREO) | — | — | — | — | 1.5 | |||||||||||||||
Total Nonaccrual Assets | $ | 56.0 | $ | 39.3 | $ | 38.5 | $ | 37.0 | $ | 65.1 | ||||||||||
Nonaccrual Assets / Loans and OREO | 0.13 | % | 0.09 | % | 0.09 | % | 0.08 | % | 0.14 | % | ||||||||||
Gross Charge-offs | $ | (4.1) | $ | — | $ | (0.3) | $ | (11.1) | $ | (3.1) | ||||||||||
Gross Recoveries | 0.7 | 2.4 | 0.4 | 0.7 | 0.7 | |||||||||||||||
Net Recoveries (Charge-offs) | $ | (3.4) | $ | 2.4 | $ | 0.1 | $ | (10.4) | $ | (2.4) | ||||||||||
Annualized Net Recoveries (Charge-offs) to Avg Loans | (0.03) | % | 0.02 | % | — | % | (0.10) | % | (0.02) | % | ||||||||||
Allowance for Credit Losses Assigned to: | ||||||||||||||||||||
Loans | $ | 168.0 | $ | 184.8 | $ | 167.7 | $ | 162.4 | $ | 178.7 | ||||||||||
Undrawn Loan Commitments and Standby Letters of Credit | 30.4 | 26.5 | 29.5 | 25.2 | 26.9 | |||||||||||||||
Debt Securities and Other Financial Assets | 7.7 | 8.7 | 12.4 | 13.9 | 14.8 | |||||||||||||||
Loans Allowance / Nonaccrual Loans | 3.0 | x | 4.7 | x | 4.4 | x | 4.4 | x | 2.8 | x | ||||||||||