Northern Trust Corporation (NASDAQ:NTRS) Q4 2021 Earnings Conference Call January 20, 2022 12:00 PM ET Company Participants Mark Bette - Senior Vice President and Director of Investor Relations Michael O'Grady - Chairman and Chief Executive Officer Jason Tyler - Executive Vice President and Chief Financial Officer Lauren Allnutt - Senior Vice President and Controller Conference Call Participants Glenn Schorr - Evercore ISI Steven Chubak - Wolfe Research, LLC Kenneth Usdin - Jefferies LLC Alexander Blostein ...

Northern Trust Corporation .Fourth Quarter 2021 Quarterly Earnings Review . January 20, 2022 northerntrust.com | © 2022 Northern northerntrust.com | © 2022 NorthernTrust 1 EXECUTIVE SUMMARY 4Q21 End of Period Month Lag1 Quarter Lag2 YoY Seq YoY Seq YoY Seq Net income of $406.4 million, diluted earnings per common share of $1.91 Return on average common equity of 14.5% The current quarter included: Key Macroeconomic Factors 1 Month Lag YoY represents the average month-ends of Sept. 2021 – Nov. 2021 vs. Sept. ...

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 September 30, 2021 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) Delawar ...

Northern Trust Corporation (NASDAQ:NTRS) Q3 2021 Results Conference Call October 20, 2021 10:00 AM ET Company Participants Mark Bette - SVP and Director IR Mike O???Grady - Chairman and CEO Jason Tyler - CFO Conference Call Participants Glenn Schorr - Evercore Steven Chubak - Wolfe Research Brennan Hawken - UBS Mike Mayo - Wells Fargo Securities Gerard Cassidy - RBC Betsy Graseck - Morgan Stanley Ken Usdin - Jefferies Jim Mitchell - Seaport Research Brian Bedell - Deutsche Bank Rob Wildhack - Autonomous Res ...

Financial Performance - Net income increased by 18% to $368.1 million for the quarter, compared to $313.3 million in the prior year[17]. - Total revenue rose by 5% to $1.58 billion, up from $1.51 billion in the same quarter last year[18]. - The annualized return on average common equity improved to 13.7% from 12.2% year-over-year[17]. - Net Income increased by $69.3 million, or 10%, to $743.2 million, with diluted earnings per share rising to $3.42 from $3.02[73]. - For the quarter ended June 30, 2021, Net Income for Corporate & Institutional Services increased by $18.4 million, or 13%, compared to the prior-year quarter[118]. - For the six months ended June 30, 2021, Net Income for Corporate & Institutional Services decreased, primarily due to higher Noninterest Expense and lower Net Interest Income, despite higher Trust, Investment and Other Servicing Fees[119]. - For the quarter ended June 30, 2021, Net Income for Wealth Management increased by $43.4 million, or 24%, primarily due to higher Trust, Investment and Other Servicing Fees and a release of credit reserves[129]. Revenue Sources - Trust, Investment and Other Servicing Fees increased by 12% to $1.08 billion, driven by favorable markets and new business[18]. - Total C&IS Trust, Investment and Other Servicing Fees increased by 8% to $611.5 million in Q2 2021 from $566.2 million in Q2 2020, driven by a 21% increase in Custody and Fund Administration fees[26]. - Wealth Management Trust, Investment and Other Servicing Fees rose by 17% to $463.9 million in Q2 2021 compared to $395.3 million in Q2 2020, with notable increases across all regions[26]. - Total Other Noninterest Income remained stable at $348.9 million, with a slight increase of 0.4% compared to $348.5 million in 2020[86]. - Total Noninterest Income for Corporate & Institutional Services for the six months ended June 30, 2021, was $1,503.6 million, an increase of $98.8 million, or 7%, from the prior-year period[119]. Expenses - Noninterest expense rose by 8% to $1.12 billion, attributed to higher employee benefits and compensation expenses[22]. - Noninterest Expense increased by $83.9 million, or 8%, totaling $1.12 billion, primarily due to higher compensation and employee benefits[68]. - Total Noninterest Expense increased by $135.8 million, or 6%, to $2,238.3 million, primarily due to higher compensation and employee benefits expenses[103]. - For the quarter ended June 30, 2021, Noninterest Expense for Corporate & Institutional Services increased by $48.0 million, or 7%, primarily due to higher expense allocations and compensation expenses[126]. Interest Income and Margin - Net interest income decreased by 10% to $335.6 million, primarily due to a lower net interest margin[20]. - Net Interest Income (FTE) decreased by $35.9 million, or 41.6%, primarily due to lower average interest rates and a decrease in net interest margin[57]. - The net interest margin (FTE adjusted) was 0.97%, down from 1.22% year-over-year, indicating a decline in profitability from interest-earning assets[53]. - Net Interest Income for Corporate & Institutional Services decreased by $12.3 million, or 7%, for the quarter ended June 30, 2021, and by $62.9 million, or 17%, for the six months ended June 30, 2021[123]. Assets and Investments - Total assets increased by 1% to $172.3 billion as of June 30, 2021[9]. - Assets under custody/administration grew by 8% to $15.73 billion[9]. - Total Assets Under Custody/Administration reached $15,727.1 billion, a 30% increase year-over-year from $12,098.3 billion[35]. - Total Assets Under Management increased by 22% to $1,539.4 billion in Q2 2021 from $1,257.8 billion in Q2 2020, reflecting favorable markets and net inflows[41]. - The ending balance of Assets Under Management (AUM) increased to $1,539.4 billion as of June 30, 2021, up from $1,449.1 billion at the end of the previous quarter, representing a growth of 6.2%[46]. Credit and Reserves - A release of credit reserves of $27.0 million occurred, compared to a provision of $66.0 million in the prior year[21]. - The provision for credit losses released $27.0 million in the current quarter, compared to a provision of $66.0 million in the prior-year quarter[64]. - The allowance for credit losses was maintained at a ratio of 1.4 times the nonaccrual loans and leases as of June 30, 2021[162]. - The total allowance for credit losses was $195.3 million, down from $251.8 million as of December 31, 2020, reflecting a decrease of approximately 22.4%[170]. Market Performance - The S&P 500 index increased by 43% year-over-year, impacting the Corporation's results positively[32]. - Market performance contributed $78.2 billion to the AUM, with a notable increase from $31.5 billion in the previous quarter[46]. - The company experienced a significant increase in cash and other assets inflows, totaling $197.2 billion for the quarter, compared to $165.6 billion in the previous quarter[46]. Taxation - The Provision for Income Taxes in the current quarter totaled $118.4 million, with an effective tax rate of 24.3%, up from $89.9 million and 22.3% in the prior-year quarter[23]. - The effective tax rate increased to 24.3% from 22.3%, primarily due to the deferred tax impact of the UK statutory tax rate increase[72]. - Income tax expense for the six months ended June 30, 2021, was $239.2 million, with an effective tax rate of 24.3%, compared to 22.0% in the prior-year period[108]. Shareholder Returns - The company declared cash dividends totaling $148.1 million to common stockholders for the three months ended June 30, 2021[143]. - The company repurchased 252,304 shares of common stock at a total cost of $30.2 million during the three months ended June 30, 2021, with an average price of $119.59 per share[145]. Regulatory Capital - The Common Equity Tier 1 Capital ratio for Northern Trust Corporation was 12.0% as of June 30, 2021, consistent with the 12.0% reported on March 31, 2021, and above the minimum requirement of 4.5%[183]. - The Total Capital ratio for Northern Trust Corporation was 14.5% as of June 30, 2021, remaining stable compared to 14.5% on March 31, 2021, and exceeding the minimum requirement of 8.0%[183]. Risk Management - Northern Trust's market risk management includes measuring daily the risk of loss associated with non-U.S. currency positions using a Value-at-Risk (VaR) model[190]. - The total regulatory Value-at-Risk (VaR) for global foreign currency, as of June 30, 2021, shows an average of $0.1 million for FX and IR drivers combined[32]. - The reconciliation to fully taxable equivalent (FTE) shows that net interest income on a GAAP basis for the three months ended June 30, 2021, was $335.6 million, while the FTE-adjusted net interest income was $343.9 million[204].

Financial Data and Key Metrics Changes - The company reported second quarter net income of $368.1 million, with earnings per share at $1.72 and a return on common equity of 13.7% [12] - Year-over-year revenue increased by 5%, with noninterest income up 10% and net interest income down 9% [13] - Expenses rose by 8%, while net income increased by 18% [13] - Assets under custody and administration grew to $15.7 trillion, up 30% year-over-year [13] Business Line Data and Key Metrics Changes - In Wealth Management, trust investment and other servicing fees were $464 million, up 17% year-over-year [17] - Asset Management saw strong growth in liquidity products and FlexShares ETFs, with assets under management reaching $1.5 trillion, up 22% year-over-year [8][13] - Corporate & Institutional Services (C&IS) fees totaled $612 million, up 8% year-over-year, with custody and fund administration fees at $455 million, up 21% year-over-year [15] Market Data and Key Metrics Changes - The company experienced a favorable market environment, contributing to a 12% year-over-year growth in trust fees despite headwinds from money market fee waivers [9] - Average one month and three month LIBOR rates were stable during the quarter, with modest declines noted [12] Company Strategy and Development Direction - The company is focused on executing growth strategies across its businesses, including expanding sustainable investment solutions and enhancing digital capabilities [6][8] - The launch of the Tax Policy Resource Center aims to generate new business opportunities [7] - The company continues to invest in technology and staff to build a diverse workforce for future growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the low interest rate environment while focusing on efficiency and organic growth [10] - The company is operating in "resiliency mode" due to the public health environment, with plans for staff to return to offices [10] - Management highlighted the importance of a strong capital base and liquidity profile to support client needs [22] Other Important Information - The company repurchased 252,000 shares of common stock at a cost of $30 million and declared cash dividends of $0.70 per share totaling $148 million [22] - The corporate social responsibility report was published, marking a decade of transparent reporting [9] Q&A Session Summary Question: Can you unpack some of the trends on expenses? - Management noted that compensation expenses were controlled, with a focus on reinvesting savings into technology [25][26] Question: How does the company view share repurchases in the current environment? - Management indicated that share repurchases are tied to various factors, including dividends and capital required for RWA growth [29][30] Question: What is the outlook on net interest income and fee waivers? - Management expects fee waivers to decline sequentially, with recent Fed actions positively impacting the run rate [39] Question: Can you provide context on loan growth? - Loan growth was driven by proactive client engagement and episodic large client borrowing needs [42] Question: How is the company positioned for the OCIO market? - Management expressed confidence in their OCIO business, highlighting strong expertise and client relationships [59][60]

Northern Trust Corporation .Second Quarter 2021 Quarterly Earnings Review . July 21, 2021 northerntrust.com | © 2021 NorthernTrust 1 EXECUTIVE SUMMARY 2Q21 End of Period Month Lag1 Quarter Lag2 Net income of $368.1 million, diluted earnings per common share of $1.72 Return on average common equity of 13.7% The current quarter included a $17.6 million pre-tax pension settlement charge Key Macroeconomic Factors YoY Seq YoY Seq YoY Seq | --- | --- | --- | --- | --- | --- | --- | |-----------------------|------ ...

[Consolidated Financial Highlights (Unaudited)](index=3&type=section&id=Consolidated%20Financial%20Highlights%20(unaudited)) Northern Trust's Q1 2021 financial performance and position, highlighting net income growth and client assets Key Financial Performance (Q1 2021 vs Q1 2020) | Metric | Q1 2021 ($ Millions) | Q1 2020 ($ Millions) | % Change | | :-------------------------------- | :-------- | :-------- | :--------- | | Noninterest Income | 1,243.3 | 1,179.6 | 5% | | Net Interest Income | 340.1 | 408.1 | (17)% | | Total Revenue | 1,583.4 | 1,587.7 | — | | Provision for Credit Losses | (30.0) | 61.0 | N/M | | Noninterest Expense | 1,117.5 | 1,065.6 | 5% | | Net Income | 375.1 | 360.6 | 4% | | Net Income — Diluted (Per Share) | 1.70 | 1.55 | 9% | | Return on Average Common Equity | 13.7% | 13.4% | | | Net Interest Margin | 1.00% | 1.51% | | Selected Balance Sheet Data (March 31, 2021 vs Dec 31, 2020) | Metric | March 31, 2021 ($ Millions) | Dec 31, 2020 ($ Millions) | % Change | | :------------------------ | :-------------------------- | :-------------------------- | :--------- | | Total Assets | 163,924.1 | 170,003.9 | (4)% | | Deposits | 137,457.4 | 143,878.0 | (4)% | | Stockholders' Equity | 11,457.9 | 11,688.3 | (2)% | | Assets Under Custody/Administration ($ Billions) | 14,795.1 | 14,532.5 | 2% | | Assets Under Management ($ Billions) | 1,449.1 | 1,405.3 | 3% | - Northern Trust Corporation's Common Equity Tier 1 Capital ratio was **12.0%** (Standardized Approach) and **12.8%** (Advanced Approach) at March 31, 2021, exceeding the minimum capital ratio of **4.5%**[10](index=10&type=chunk) [Part I – Financial Information](index=5&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures about Market Risk](index=5&type=section&id=Items%202.%20and%203.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20and%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Detailed analysis of Northern Trust's Q1 2021 financial performance, covering revenue, expenses, credit quality, and capital [General Business Overview](index=5&type=section&id=General) Northern Trust provides wealth management, asset servicing, asset management, and banking solutions - Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking solutions[13](index=13&type=chunk) - The Corporation focuses on managing and servicing client assets through its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management[13](index=13&type=chunk) [COVID-19 Pandemic and Recent Events](index=5&type=section&id=COVID-19%20Pandemic%20and%20Recent%20Events) Northern Trust addressed Q1 2021 COVID-19 challenges: workforce health, client assistance, and community support - Northern Trust focused on the health and well-being of its workforce, meeting clients' needs, and supporting communities during the COVID-19 pandemic[14](index=14&type=chunk) - As of March 31, 2021, Northern Trust had outstanding loans totaling **$213.9 million** under the Paycheck Protection Program (PPP), with **219** loan forgiveness applications totaling **$34.2 million** fully forgiven[18](index=18&type=chunk) - Northern Trust provided **$2.6 million** in COVID-19 relief support and **$110.5 million** in low-cost funding to Community Development Financial Institutions (CDFIs) through March 31, 2021[21](index=21&type=chunk)[22](index=22&type=chunk) [Overview of Financial Results](index=6&type=section&id=Overview%20of%20Financial%20Results) Northern Trust reported **4%** net income growth and **9%** diluted EPS increase in Q1 2021 Q1 2021 Financial Performance Overview | Metric | Q1 2021 ($ Millions) | Q1 2020 ($ Millions) | Change ($ Millions) | % Change | | :-------------------------------- | :-------- | :-------- | :---------- | :--------- | | Net Income | 375.1 | 360.6 | 14.5 | 4% | | Net Income — Diluted (Per Share) | 1.70 | 1.55 | 0.15 | 9% | | Total Revenue | 1,583.4 | 1,587.7 | (4.3) | — | | Trust, Investment and Other Servicing Fees | 1,063.7 | 1,003.6 | 60.1 | 6% | | Net Interest Income | 340.1 | 408.1 | (68.0) | (17)% | | Provision for Credit Losses | (30.0) | 61.0 | (91.0) | N/M | | Noninterest Expense | 1,117.5 | 1,065.6 | 51.9 | 5% | | Effective Tax Rate | 24.4% | 21.8% | | | - Annualized return on average common equity was **13.7%** in Q1 2021, up from **13.4%** in Q1 2020[24](index=24&type=chunk) [Trust, Investment and Other Servicing Fees](index=7&type=section&id=Trust,%20Investment%20and%20Other%20Servicing%20Fees) Trust, Investment and Other Servicing Fees increased **6%** to **$1.06 billion** in Q1 2021 Trust, Investment and Other Servicing Fees (Q1 2021 vs Q1 2020) | Category | Q1 2021 ($ Millions) | Q1 2020 ($ Millions) | Change ($ Millions) | % Change | | :--------------------------------------- | :------------------- | :------------------- | :------------------ | :--------- | | C&IS Trust, Investment and Other Servicing Fees | 620.5 | 574.4 | 46.1 | 8% | | Wealth Management Trust, Investment and Other Servicing Fees | 443.2 | 429.2 | 14.0 | 3% | | **Total Consolidated Fees** | **1,063.7** | **1,003.6** | **60.1** | **6%** | | Custody and Fund Administration (C&IS) | 446.0 | 394.9 | 51.1 | 13% | | Investment Management (C&IS) | 115.9 | 120.8 | (4.9) | (4)% | | Securities Lending (C&IS) | 18.2 | 23.4 | (5.2) | (22)% | - Northern Trust voluntarily waived **$50.2 million** of money market mutual fund fees for Q1 2021 due to the low-interest-rate environment[32](index=32&type=chunk) Client Assets (March 31, 2021 vs March 31, 2020) | Metric | March 31, 2021 ($ Billions) | March 31, 2020 ($ Billions) | % Change YoY | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------- | | Assets Under Custody/Administration | 14,795.1 | 10,876.6 | 36% | | Assets Under Custody | 11,534.2 | 8,254.7 | 40% | | Assets Under Management | 1,449.1 | 1,119.3 | 29% | [Other Noninterest Income](index=10&type=section&id=Other%20Noninterest%20Income) Other Noninterest Income increased **2%** to **$179.6 million** in Q1 2021, due to higher Other Operating Income Other Noninterest Income (Q1 2021 vs Q1 2020) | Category | Q1 2021 ($ Millions) | Q1 2020 ($ Millions) | Change ($ Millions) | % Change | | :-------------------------------- | :------------------- | :------------------- | :------------------ | :--------- | | Foreign Exchange Trading Income | 78.7 | 88.9 | (10.2) | (12)% | | Security Commissions and Trading Income | 34.8 | 41.7 | (6.9) | (17)% | | Other Operating Income | 54.9 | 34.4 | 20.5 | 60% | | **Total Other Noninterest Income** | **179.6** | **176.0** | **3.6** | **2%** | - The increase in Other Operating Income was primarily due to higher miscellaneous income and a prior-year quarter market value adjustment for a seed capital investment[57](index=57&type=chunk) [Net Interest Income](index=11&type=section&

Northern Trust Corporation (NASDAQ:NTRS) Q1 2021 Earnings Conference Call April 20, 2021 9:00 AM ET Company Participants Mark Bette - Director, Investor Relations Mike O'Grady - Chairman and CEO Jason Tyler - Chief Financial Officer Lauren Allnutt - Controller Kelly Lernihan - Investor Relations Conference Call Participants Glenn Schorr - Evercore Mike Mayo - Wells Fargo Brennan Hawken - UBS Alex Blostein - Goldman Sachs Brian Bedell - Deutsche Bank Steven Chubak - Wolfe Research Mike Carrier - Bank of Amer ...

Northern Trust Corporation .First Quarter 2021 Quarterly Earnings Review . April 20, 2021 northerntrust.com | © 2021 Northern northerntrust.com | © 2021 NorthernTrust 1 EXECUTIVE SUMMARY 1Q21 End of Period Month Lag1 Quarter Lag2 1 month Libor (Avg) (128) bps (3) bps 3 month Libor (Avg) (133) bps (2) bps EUR / USD (6.6)% 4.1% GBP / USD (10.1)% (0.9)% Net income of $375.1 million, diluted earnings per common share of $1.70 Return on average common equity of 13.7% Key Macroeconomic Factors | --- | --- | --- | ...