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 ...

The consensus EPS estimate for the quarter has been revised 3.54% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- ha ...

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]

northerntrust.com / © 2024 Northern Trust 8 Capital Update 1Q 2024 CAPITAL RATIOS STANDARDIZED APPROACH ADVANCED APPROACH 11.3% 11.3% 11.4% 11.4% 11.4% 1Q23 2Q23 3Q23 4Q23 1Q24 Standardized Common Equity Tier 1 7.3% 7.4% 7.9% 8.1% 7.8% 1Q23 2Q23 3Q23 4Q23 1Q24 Standardized Tier 1 Leverage | --- | --- | --- | |------------------------------|-------|-------| | Common Equity Tier 1 Capital | 11.4% | 13.5% | | Tier 1 Capital | 12.4% | 14.6% | | Total Capital | 14.2% | 16.5% | | Tier 1 Leverage | 7.8% | 7.8% | | ...

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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ FORM 10-K ____________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 (NASDAQ:NTRS) Q4 2023 Earnings Conference Call January 18, 2024 9:00 AM ET Company Participants Jennifer Childe - Director, IR Michael O???Grady - Chairman & CEO Jason Tyler - CFO Conference Call Participants Glenn Schorr - Evercore Steven Chubak - Wolfe Research Alex Blostein - Goldman Sachs Brennan Hawken - UBS Michael Brown - KBW Ryan Kenny - Morgan Stanley Brian Bedell - Deutsche Bank Jim Mitchell - Seaport Global Robert Wildhack - Autonomous Research Operator Good day, and we ...