Exhibit 99.3 Grace Higgins Second Vice President, Investor Relations (847) 946-9113 or grace.higgins@ntrs.com TABLE OF CONTENTS Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail. Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission. From April 1 ...

The current level reflects an upward revision of 3.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Analysts predict that the 'Asset Servicing Trust, Investment and Other Servicing Fees- Total' will reach $658.95 million. The estimate points to a change of +6.1% from the year-ago quarter. The average prediction of analysts places 'Asset Servicing Trust, Inves ...

Northern Trust has a decent earnings surprise history. Its earnings beat estimates in three of the trailing four quarters and missed once, the positive surprise being 8.64%, on average. Key Factors & Estimates for Q2 As the Federal Reserve kept the interest rates steady during the quarter at a 23-year high of 5.25-5.5%, NTRS is less likely to have recorded significant improvement in NII. Also, the inverted yield curve in the June-ended quarter and high funding costs are expected to have weighed on NII growt ...

Investors might want to bet on Northern Trust Corporation (NTRS) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street ...

Core Viewpoint - The consensus EPS estimate for Northern Trust has been revised 3.54% higher over the last 30 days, indicating a positive reassessment by analysts regarding the company's earnings prospects [1]. Earnings Estimates and Revisions - Northern Trust's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.58%, suggesting analysts are bullish on the company's earnings [8]. - The consensus EPS estimate for Citigroup has been revised 2.4% lower over the last 30 days, with an Earnings ESP of 0.00%, making it difficult to predict a beat on the consensus EPS estimate [14]. Earnings Performance History - Northern Trust has beaten consensus EPS estimates three out of the last four quarters, with a notable surprise of +15.65% in the last reported quarter [9][11]. - Citigroup has consistently beaten consensus EPS estimates in each of the trailing four quarters [14]. Revenue Expectations - Northern Trust is expected to report quarterly earnings of $1.75 per share, representing a year-over-year decline of -2.2%, with revenues anticipated to be $1.84 billion, up 5% from the year-ago quarter [20][25]. - Citigroup's revenues for the quarter are expected to be $19.97 billion, reflecting a year-over-year increase of +2.8% [10]. Market Sentiment and Predictions - Northern Trust is viewed as a compelling earnings-beat candidate, but investors should consider other factors before making investment decisions [13]. - The predictive power of Earnings ESP is significant for positive readings, particularly when combined with a strong Zacks Rank, which increases the likelihood of a positive surprise [23].

Northern Trust Corporation (NTRS) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this company have returned -5.6% over the past month versus the Zacks S&P 500 composite's -4.2% change. The Zacks Banks - Major Regional industry, to which Northern Trust belongs, has lost 2.1% over this period. Now the key question is: Where could the stock be headed in the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36609 NORTHERN TRUST CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-2 ...

Financial Data and Key Metrics Changes - The company reported a net income of $215 million and earnings per share of $0.96, with a return on average common equity of 7.3% [21] - Net interest income (NII) on a fully taxable equivalent (FTE) basis was $535 million, up 7% sequentially but down 2% year-over-year [22] - Non-interest expenses were $1.4 billion, down 2% sequentially and up 6% compared to the prior year [25] - The average balance sheet increased by 6% on a linked quarter basis, primarily due to higher deposit levels [24] Business Line Data and Key Metrics Changes - Trust, investment, and other servicing fees totaled $1.1 billion, a 5% sequential increase and a 7% increase compared to last year [15] - Assets under management (AUM) for asset servicing clients were $1.1 trillion, with investment management fees up 11% year-over-year [23] - Wealth management clients' AUM reached $421 billion, with trust, investment, and other servicing fees up 9% year-over-year [50] Market Data and Key Metrics Changes - Assets under custody and administration for asset servicing clients were $15.4 trillion at quarter-end, with asset servicing fees totaling $640 million [49] - The company experienced strong client volume levels in capital markets, particularly in FX trading [15] Company Strategy and Development Direction - The company aims to optimize growth, drive productivity, and strengthen resiliency, with a focus on scalable new business [18] - The "One Northern Trust" strategy is enhancing collaboration between asset management and asset servicing, leading to more new business opportunities [14] - The company is prioritizing share repurchases as part of its capital framework [6] Management's Comments on Operating Environment and Future Outlook - Management noted strong market tailwinds and positive new business momentum entering the second quarter [20] - The company is cautious about deposit levels, which have been difficult to predict, and anticipates a potential decline in NII of 3% to 5% for the second quarter [51][57] - Management expressed confidence in the strength of underlying equity markets and the progress made against strategic priorities [18] Other Important Information - The company was appointed as the sole asset servicing provider for Sanlam Asset Management's $9 billion of funds, indicating strong client relationships [19] - The company returned $285 million to common shareholders through cash dividends and stock repurchases [54] Q&A Session Summary Question: What is the outlook for NII growth in 2024? - Management indicated that NII growth is uncertain and will depend on deposit levels and market conditions [6] Question: Can you elaborate on the changes in compensation and expenses? - Compensation is expected to decrease by $35 million to $40 million sequentially, while expenses for equipment, software, and outside services are projected to increase by $10 million to $15 million [2][26] Question: How are you addressing the pressure on fee rates? - Management acknowledged pressure on fee rates but emphasized strong growth in client advisory fees and product-level fees due to favorable markets [9][13] Question: What is the impact of Visa proceeds on the company's capital strategy? - Visa proceeds are expected to enhance capital and liquidity, with a gradual deployment strategy [30][116] Question: How do you view the stability of non-interest bearing deposits? - Non-interest bearing deposits have stabilized and are expected to remain at current levels despite potential pressures [107][126]

Financial Performance - Net income for Q1 2024 was $334.6 million, a decrease of 15% compared to Q4 2023[15] - The company's earnings per share (EPS) for Q1 2024 was $1.51, down 17% from Q4 2023[15] - Total revenue (FTE) decreased by 6% to $1,654.1 million from $1,757.8 million[16] - Net income fell by 36% to $214.7 million compared to $334.6 million in the previous quarter[16] - Earnings per share (diluted) decreased by 37% to $0.96 from $1.51[16] - The company reported a net income of $1,107.3 million for 2023, down from $1,336.0 million in 2022, indicating a decrease of about 17%[18] - Earnings per diluted share for 2023 were $5.08, compared to $6.14 in 2022, representing a decline of approximately 17.2%[18] - Profit margin (pre-tax) for 2023 is 21.6%, down from 26.1% in 2022[58] - Profit margin (after-tax) (GAAP) for 2023 is 16.3%, down from 19.8% in 2022[58] Revenue and Income Sources - Trust, investment, and other servicing fees for Q1 2024 totaled $315.2 million, reflecting a 16% decline from the previous quarter[15] - Total noninterest income decreased by 8% to $1,118.7 million from $1,213.4 million[16] - Total fees for 2023 amounted to $4,361.8 million, consistent with the previous year's figure of $4,432.6 million[18] - The company reported a total of $2,461.9 million in servicing trust, investment, and other servicing fees, reflecting a decrease from $2,496.3 million[20] - Noninterest income to total revenue (GAAP) decreased to 70.7% in 2023 from 72.1% in 2022[58] - Noninterest income to total revenue (FTE) decreased to 70.1% in 2023 from 71.6% in 2022[58] Assets and Liabilities - The total assets on the balance sheet as of Q1 2024 were $1,053.9 million, a decrease of 17% year-over-year[15] - Total assets increased to $156,111.0 million as of March 31, 2024, up from $151,108.0 million a year earlier, representing a 3% growth[21] - Total liabilities increased to $144,009.2 million, reflecting a 3% rise from $139,520.2 million[21] - Total liabilities decreased from $144,666.2 million in 2022 to $131,152.4 million in 2023, a decline of approximately 9.3%[32] Interest Income and Margins - The net interest margin for Q1 2024 was 0.92%, slightly down from 0.91% in Q4 2023[15] - Interest income (FTE) increased by 67% to $2,452.9 million from $1,468.6 million[16] - Net interest income for 2023 reached $2,039.5 million, up from $1,932.8 million in 2022, reflecting a growth of approximately 5.5%[18] - The net interest margin increased to 4.69% in 2023, up from 1.30% in 2022, reflecting a significant improvement in profitability[36] - The net interest spread (GAAP) decreased to 0.69% in 2023 from 1.15% in 2022[58] Credit Losses and Provisions - Provision for credit losses improved to $(8.5) million from $15.0 million, indicating a reduction in expected credit losses[16] - The company experienced a provision for credit losses of $24.5 million in 2023, compared to a release of $12.0 million in 2022[18] - The allowance for credit losses was reported at $(172.8) million in 2023, compared to $(154.1) million in 2022, indicating a higher provision for potential losses[32] - The ending allowance for credit losses was $220.4 million, with loans and leases accounting for $178.7 million of this total[45] Growth and Strategic Initiatives - The company anticipates a continued focus on market expansion and new product development in 2024[12] - The company plans to enhance its technology capabilities to improve service delivery and client engagement[12] - The firm anticipates continued growth in Wealth Management, projecting an increase in client assets driven by market expansion and new product offerings[48] - Future outlook includes strategic acquisitions to bolster market presence and expand service offerings in key regions[48] Market and Client Engagement - The company is focusing on enhancing its technology infrastructure to support asset servicing and improve client experience[48] - The company reported a total of $200.9 million in the beginning allowance for credit losses, indicating a proactive approach to risk management[44]

Part I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Northern Trust provides wealth management, asset servicing, and banking solutions and is subject to extensive global regulation [Business Overview](index=6&type=section&id=Business%20Overview) The business centers on Asset Servicing and Wealth Management segments, supported by its Asset Management business Key Business Segment Metrics (as of December 31, 2023) | Segment | Key Services | Assets Under Custody/Administration (AUC/A) | Assets Under Management (AUM) | | :--- | :--- | :--- | :--- | | **Asset Servicing** | Custody, fund administration, investment operations outsourcing for institutional investors | $14.36 trillion | $1.03 trillion | | **Wealth Management** | Trust, investment management, custody, private banking for high-net-worth clients | $1.04 trillion | $402.5 billion | | **Total Managed Assets** | - | - | **$1.43 trillion** | - The company operates globally with offices in 24 U.S. states and Washington, D.C., and across 22 international locations[17](index=17&type=chunk) [Supervision and Regulation](index=7&type=section&id=Supervision%20and%20Regulation) The company is regulated as a Category II banking organization, subject to enhanced prudential standards and Basel III capital rules - The Corporation is classified as a **Category II banking organization**, subjecting it to enhanced prudential standards such as annual capital plans, supervisory stress tests, and enhanced risk management and liquidity requirements[34](index=34&type=chunk) Corporation Capital Ratios (as of December 31, 2023) | Capital Ratio | Standardized Approach | Advanced Approach | Minimum Required Ratio | | :--- | :--- | :--- | :--- | | **Common Equity Tier 1** | 11.4% | 13.4% | 4.5% | | **Tier 1 Capital** | 12.3% | 14.5% | 6.0% | | **Total Capital** | 14.2% | 16.5% | 8.0% | | **Tier 1 Leverage** | 8.1% | 8.1% | 4.0% | - The 2023 DFAST results kept Northern Trust's stress capital buffer at **2.5%** and its effective Common Equity Tier 1 minimum at **7.0%** for the capital plan cycle beginning October 1, 2023[60](index=60&type=chunk) - Proposed rules, including the Basel III Endgame Proposal and a long-term debt requirement, could significantly impact capital and funding requirements, with the Endgame Proposal estimated to increase **RWAs by 5% to 15%**[35](index=35&type=chunk)[50](index=50&type=chunk)[53](index=53&type=chunk) - The company is subject to U.S. liquidity standards, including the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR), and was in compliance with both as of December 31, 2023[61](index=61&type=chunk)[62](index=62&type=chunk) [Human Capital Management](index=17&type=section&id=Human%20Capital%20Management) The human capital strategy focuses on talent management, total rewards, and DE&I for its 23,100 global employees - As of December 31, 2023, Northern Trust employed approximately **23,100 full-time equivalent employees**, with 42% in Asia-Pacific, 41% in North America, and 17% in EMEA[110](index=110&type=chunk) Board and Executive Officer Diversity (December 31, 2023) | Group | Female | Male | White | Black | Hispanic | Asian | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Board of Directors** | 25% | 75% | 59% | 25% | 8% | 8% | | **Executive Officers** | 33% | 67% | 84% | 8% | 8% | —% | - The company's talent management strategy includes targeted recruitment, continuous learning through Northern Trust University, and annual talent planning processes[111](index=111&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [Item 1A. Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company is exposed to significant market, operational, credit, liquidity, regulatory, and strategic risks [Market Risks](index=22&type=section&id=Market%20Risks) Earnings are vulnerable to market volatility, interest rate changes, and macroeconomic conditions due to a fee-based revenue model - A majority of revenues are from **fee-based businesses**, which are tied to the market value of assets and are negatively impacted by market downturns[138](index=138&type=chunk) - Changes in interest rates can negatively affect earnings, as rapid rate increases in 2022-2023 impacted investment securities values, while low rates compress net interest margin[140](index=140&type=chunk)[141](index=141&type=chunk) - The company's large investment securities portfolio experienced **losses in 2023 and early 2024**, negatively impacting capital, liquidity, and earnings[147](index=147&type=chunk) [Operational Risks](index=24&type=section&id=Operational%20Risks) Risks stem from technology system failures, cybersecurity threats, human error, and reliance on third-party vendors - The business is highly dependent on information technology systems, and failures or security breaches could disrupt operations and cause liability claims[153](index=153&type=chunk) - **Cyber-attacks are a significant risk**, with threats like malware and ransomware potentially leading to theft of sensitive information and reputational damage[157](index=157&type=chunk)[158](index=158&type=chunk) - Global operations, which accounted for **32% of revenue in 2023**, expose the company to risks from political instability and complex regulatory environments[170](index=170&type=chunk) - Geopolitical conflicts, such as the one involving Russia and Ukraine, have restricted access to client assets and increased credit exposure to subcustodians[174](index=174&type=chunk) [Credit Risks](index=28&type=section&id=Credit%20Risks) Credit risks arise from the potential failure of borrowers or counterparties to meet their financial obligations - Failure to accurately assess credit repayment prospects or maintain an adequate allowance for credit losses can result in increased provisions that reduce earnings[176](index=176&type=chunk) - The company is exposed to **significant counterparty risk** due to extensive interconnections among financial institutions[178](index=178&type=chunk) [Liquidity Risks](index=29&type=section&id=Liquidity%20Risks) Effective liquidity management is crucial, with risks related to funding levels, reliance on subsidiary dividends, and credit ratings - The Corporation is a separate legal entity that **relies heavily on dividends from the Bank** to meet its obligations, which are subject to regulatory limitations[183](index=183&type=chunk) - A **downgrade in credit ratings** could adversely affect borrowing costs, capital access, and liquidity[186](index=186&type=chunk)[187](index=187&type=chunk) [Regulatory and Legal Risks](index=30&type=section&id=Regulatory%20and%20Legal%20Risks) The company operates in a highly regulated environment where non-compliance can result in significant penalties and reputational harm - The company is subject to extensive and evolving government regulation, and proposed rules like **Basel III Endgame** could increase compliance costs and capital requirements[190](index=190&type=chunk)[192](index=192&type=chunk) - Complex and evolving data privacy laws globally (e.g., GDPR, CCPA) increase compliance costs, risks, and potential liability for breaches[193](index=193&type=chunk) - The trust, custody, and investment management businesses are subject to the **risk of litigation**, particularly during periods of market volatility[199](index=199&type=chunk) [Strategic Risks](index=33&type=section&id=Strategic%20Risks) Strategic risks threaten the company's objectives, including competition, talent retention, and reputational damage - The company's success depends on its ability to **attract, retain, and motivate talented personnel** in a highly competitive environment[209](index=209&type=chunk) - **Intense competition** from a wide range of financial institutions could negatively affect pricing and profitability[212](index=212&type=chunk) - **Reputation is critical** for attracting and retaining clients and can be damaged by operational failures, legal issues, or negative publicity[213](index=213&type=chunk)[214](index=214&type=chunk) - **Climate change presents both physical and transition risks** that could adversely impact operations, clients, and asset values[220](index=220&type=chunk)[221](index=221&type=chunk) [Item 1B. Unresolved Staff Comments](index=37&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments - None[233](index=233&type=chunk) [Item 1C. Cybersecurity](index=38&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk is managed via a comprehensive program based on the NIST framework, with no material incidents identified - Cybersecurity oversight is provided by the Board's Business Risk Committee and a dedicated Cybersecurity Risk Oversight Subcommittee[234](index=234&type=chunk) - The company's cybersecurity and technology risk management program is based on the **National Institute of Standards and Technology (NIST) Cybersecurity Framework**[235](index=235&type=chunk) - The company utilizes external third-party security teams for regular assessments, operates a global security operations center, and maintains a Cybersecurity Incident Response Plan[236](index=236&type=chunk)[237](index=237&type=chunk) - To date, **no cybersecurity threats or incidents have been identified** that have materially affected or are reasonably likely to materially affect the company[240](index=240&type=chunk) [Item 2. Properties](index=39&type=section&id=Item%202.%20Properties) The executive offices are in a company-owned Chicago building, with most other global locations being leased - The main executive offices are located at 50 South La Salle Street, Chicago, in a Bank-owned building[241](index=241&type=chunk) - The majority of the company's offices, both domestic and international, are leased[241](index=241&type=chunk) [Item 3. Legal Proceedings](index=39&type=section&id=Item%203.%20Legal%20Proceedings) This section incorporates by reference the information on legal proceedings from Note 24 of the Financial Statements - Information regarding legal proceedings is incorporated by reference from Note 24, "Commitments and Contingent Liabilities"[244](index=244&type=chunk) [Supplemental Item – Information About Our Executive Officers](index=40&type=section&id=Supplemental%20Item%20%E2%80%93%20Information%20About%20Our%20Executive%20Officers) This section provides biographical information for the Corporation's key executive officers, including the CEO and CFO - Michael G. O'Grady, age 58, serves as Chairman of the Board, Chief Executive Officer, and President[248](index=248&type=chunk) - Jason J. Tyler, age 52, serves as Executive Vice President and Chief Financial Officer[259](index=259&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=42&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock (NTRS) performance, repurchase activity, and remaining authorization are detailed Common Stock Repurchases (Q4 2023) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | October 2023 | 316,100 | $64.51 | | November 2023 | 1,010,300 | $74.21 | | December 2023 | 609,500 | $80.68 | | **Total Q4** | **1,935,900** | **$74.66** | - As of December 31, 2023, approximately **21.0 million shares** may yet be purchased under the company's share repurchase program[263](index=263&type=chunk) - The **five-year cumulative total return** on Northern Trust's common stock ($118) lagged behind the S&P 500 Index ($207) and the KBW Bank Index ($132)[266](index=266&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, net income decreased 17% to $1.11 billion due to higher expenses, despite flat revenue and growth in client assets [Financial Overview](index=44&type=section&id=Financial%20Overview) Net income for 2023 fell 17% to $1.11 billion, driven by higher expenses that outpaced a modest rise in net interest income Financial Highlights | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $6,773.5 M | $6,761.2 M | +0.2% | | **Net Income** | $1,107.3 M | $1,336.0 M | -17% | | **Diluted EPS** | $5.08 | $6.14 | -17.3% | | **Return on Avg. Common Equity** | 10.0% | 12.7% | -270 bps | - Client Assets Under Custody/Administration (AUC/A) increased **13% to $15.40 trillion**, and Assets Under Management (AUM) increased **15% to $1.43 trillion**, primarily due to favorable markets[274](index=274&type=chunk) - Noninterest Expense increased by **6% ($301.3 million)**, mainly due to an $84.6 million FDIC special assessment, higher equipment costs, and compensation[276](index=276&type=chunk) [Consolidated Results of Operations](index=45&type=section&id=Consolidated%20Results%20of%20Operations) In 2023, flat revenue, a 6% rise in expenses, and a 29% drop in foreign exchange income drove lower profitability Revenue Breakdown (in Millions) | Revenue Component | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Trust, Investment and Other Servicing Fees | $4,361.8 | $4,432.6 | -2% | | Foreign Exchange Trading Income | $203.9 | $288.6 | -29% | | Net Interest Income | $1,982.0 | $1,887.2 | +5% | | **Total Revenue** | **$6,773.5** | **$6,761.2** | **~0%** | - Net Interest Income on a fully taxable equivalent (FTE) basis **increased 6% to $2.04 billion**, driven by a higher net interest margin of 1.56%[282](index=282&type=chunk) Noninterest Expense Breakdown (in Millions) | Expense Component | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Compensation | $2,321.8 | $2,248.0 | +3% | | Employee Benefits | $405.2 | $437.4 | -7% | | Outside Services | $906.5 | $880.3 | +3% | | Equipment and Software | $945.5 | $838.8 | +13% | | Other Operating Expense | $472.9 | $359.3 | +32% | | **Total Noninterest Expense** | **$5,284.2** | **$4,982.9** | **+6%** | - Other Operating Expense increased significantly, primarily due to an **$84.6 million FDIC special assessment** and a $25.6 million charge for a client capability write-off[346](index=346&type=chunk)[347](index=347&type=chunk) - The provision for credit losses was **$24.5 million**, mainly due to an increased reserve for the commercial real estate portfolio[336](index=336&type=chunk) [Reporting Segments and Related Information](index=56&type=section&id=Reporting%20Segments%20and%20Related%20Information) Both Asset Servicing and Wealth Management segments saw net income decline due to higher expenses, while AUM grew 15% Net Income by Reporting Segment (in Millions) | Segment | 2023 Net Income | 2022 Net Income | % Change | | :--- | :--- | :--- | :--- | | **Asset Servicing** | $674.8 | $762.4 | -11% | | **Wealth Management** | $731.6 | $806.6 | -9% | | **Other** | ($299.1) | ($233.0) | N/M | - Asset Servicing revenue increased 1%, but a **6% rise in noninterest expense** led to an 11% decline in net income[360](index=360&type=chunk)[362](index=362&type=chunk) - Wealth Management revenue decreased 2% and noninterest expense grew 4%, resulting in a **9% drop in net income**[372](index=372&type=chunk)[373](index=373&type=chunk) - Consolidated Assets Under Management (AUM) **increased 15% to $1.43 trillion**, reflecting favorable markets and net inflows of $43.9 billion[388](index=388&type=chunk)[389](index=389&type=chunk) [Consolidated Balance Sheet Review](index=62&type=section&id=Consolidated%20Balance%20Sheet%20Review) Total assets decreased 3% to $150.8 billion, driven by lower client deposits, while stockholders' equity grew 6% Select Average Balance Sheet Items (in Billions) | Item | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **Total Assets** | $142.6 | $152.6 | -6% | | **Total Earning Assets** | $130.8 | $138.8 | -6% | | **Total Loans** | $42.2 | $41.0 | +3% | | **Total Debt Securities** | $49.9 | $55.0 | -9% | | **Total Deposits** | $105.2 | $125.6 | -16% | | **Total Stockholders' Equity** | $11.5 | $11.1 | +4% | - The decrease in average earning assets was primarily due to **lower client deposits** as clients migrated to higher-yielding products[393](index=393&type=chunk)[395](index=395&type=chunk) - In 2023, the Corporation returned **$977.7 million to common stockholders** through dividends and share repurchases[334](index=334&type=chunk)[398](index=398&type=chunk) [Asset Quality](index=64&type=section&id=Asset%20Quality) The company maintained a high-quality asset portfolio, with improved unrealized losses and a low nonaccrual loan ratio - The debt securities portfolio is high quality, with **95% of AFS securities and 97% of HTM securities rated 'A' or higher**[406](index=406&type=chunk)[762](index=762&type=chunk) - Net unrealized losses in the total investment securities portfolio improved to **$2.3 billion** at year-end 2023 from $3.2 billion at year-end 2022[409](index=409&type=chunk) Nonaccrual Assets and Allowance for Credit Losses | Metric | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Nonaccrual Assets** | $65.1 M | $45.9 M | | **Nonaccrual Loans to Total Loans** | 0.13% | 0.11% | | **Total Allowance for Credit Losses** | $219.2 M | $199.6 M | | **Allowance for Loans to Total Loans** | 0.38% | 0.34% | - The increase in the Allowance for Credit Losses was primarily driven by the **commercial real estate portfolio**[432](index=432&type=chunk) [Capital Management](index=74&type=section&id=Capital%20Management) The company maintained a strong capital position, with all ratios exceeding 'well-capitalized' regulatory requirements Corporation Capital Ratios (Standardized Approach) | Ratio | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Common Equity Tier 1** | 11.4% | 10.8% | | **Tier 1 Capital** | 12.3% | 11.8% | | **Total Capital** | 14.2% | 13.9% | | **Tier 1 Leverage** | 8.1% | 7.1% | - The company's capital ratios as of December 31, 2023, exceeded the requirements for being classified as **'well-capitalized'** under U.S. regulatory rules[454](index=454&type=chunk) - The 2023 DFAST results maintained Northern Trust's stress capital buffer at 2.5%, resulting in an effective **CET1 minimum requirement of 7.0%**[456](index=456&type=chunk) [Risk Management](index=80&type=section&id=Risk%20Management) An integrated risk management framework based on a "three lines of defense" model governs seven key risk categories - The risk management framework is structured around a **"three lines of defense" model**: 1) business units, 2) the Risk Management function, and 3) Audit Services[489](index=489&type=chunk) - Key risk governance is provided by the Board of Directors and its committees, with executive oversight from the **Global Enterprise Risk Committee (GERC)**[491](index=491&type=chunk) Net Interest Income Sensitivity (as of Dec 31, 2023) | Interest Rate Change (Ramp over 12 months) | Estimated Impact on NII | | :--- | :--- | | **+100 bps** | +$43 million | | **+200 bps** | +$82 million | | **-100 bps** | -$63 million | | **-200 bps** | -$150 million | - The company actively manages liquidity risk and satisfied both the U.S. **Liquidity Coverage Ratio (LCR)** and **Net Stable Funding Ratio (NSFR)** requirements during 2023[557](index=557&type=chunk)[558](index=558&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=100&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements, supplementary data, and the independent auditor's report [Consolidated Financial Statements](index=103&type=section&id=Consolidated%20Financial%20Statements) The statements show a financial position with $150.8 billion in assets and $1.11 billion in net income for 2023 Key Consolidated Financial Data (Year-End 2023) | Metric | Amount (in Millions) | | :--- | :--- | | **Balance Sheet:** | | | Total Assets | $150,783.1 | | Total Loans, net | $47,424.7 | | Total Deposits | $116,164.0 | | Total Liabilities | $138,885.2 | | Total Stockholders' Equity | $11,897.9 | | **Income Statement (Full Year):** | | | Total Revenue | $6,773.5 | | Net Income | $1,107.3 | | **Cash Flow (Full Year):** | | | Net Cash from Operating Activities | $2,625.6 | | Net Cash from Investing Activities | $4,784.1 | | Net Cash from Financing Activities | ($7,182.6) | [Notes to Consolidated Financial Statements](index=107&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, fair value, credit loss allowance, and regulatory capital - Note 1 outlines significant accounting policies, including the basis of presentation, use of estimates, and revenue recognition[638](index=638&type=chunk) - Note 6 details the **Allowance for Credit Losses**, which increased to $219.2 million in 2023 from $199.6 million in 2022[798](index=798&type=chunk) - Note 24 discloses off-balance sheet commitments, including an **$84.6 billion guarantee to the FICC** and details on the company's holding of 4.1 million Visa Class B common shares[937](index=937&type=chunk)[947](index=947&type=chunk)[957](index=957&type=chunk) - Note 32 provides a detailed breakdown of regulatory capital ratios, confirming the Corporation's **'well-capitalized' status**[1029](index=1029&type=chunk) [Item 9A. Controls and Procedures](index=177&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of year-end 2023 - Management concluded that the Corporation's **disclosure controls and procedures were effective** as of December 31, 2023[1039](index=1039&type=chunk) - Management concluded that the Corporation maintained **effective internal control over financial reporting** as of December 31, 2023, a conclusion supported by an unqualified opinion from KPMG LLP[1041](index=1041&type=chunk) Part III [Items 10-14](index=179&type=section&id=Items%2010,%2011,%2012,%2013,%20and%2014) Information for these items is incorporated by reference from the company's 2024 Proxy Statement - Information required for Part III (Items 10-14) is **incorporated by reference** from the company's 2024 Proxy Statement[1054](index=1054&type=chunk)[1055](index=1055&type=chunk)[1056](index=1056&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=180&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements and exhibits filed with the Form 10-K - This section lists all financial statements and exhibits filed with the Form 10-K, including the consent of the independent registered public accounting firm and CEO/CFO certifications[1060](index=1060&type=chunk)[1061](index=1061&type=chunk) [Item 16. Form 10-K Summary](index=183&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[1067](index=1067&type=chunk)