Northern Trust (NTRS) 23 Oct 242024 Q3 Earnings call transcript

Good day, and welcome to the Northern Trust Corporation's Third Quarter 2024 Earnings Conference Call.

As a reminder, today's conference is being recorded.

At this time, I'd like to turn the call over to Ms. Jennifer Childe, Director of Investor Relations. Please go ahead, ma'am.

operator. you, Thank and XXXX everyone, Northern Corporation's Trust Good Conference welcome Call. Quarter Earnings Third morning, to

Joining our new Relations our Chairman Dave Landers, and Management me our O'Grady, former team. Fox, CEO; Mike on and Grace Financial Jason call our this Controller; new Tyler, Officer; Financial and Investor our Chief President Chief Wealth is of Officer; morning John our from Higgins

financial trends website third report both Our release quarter our press available at and northerntrust.com. earnings on are

you continuing website, Page which Trust harbor accompanying to our of to again today's XX through accuracy our available the Also authorized our presentation, Northern Please is call this Instructions] Thank conference live find today. [Operator October rebroadcast on on information earnings review safe webcast call made only presentation, on for this on the will will we XX. to disclaims our joining you quarterly This northerntrust.com. statements provided being XX today. will guide us forward-looking The of our replay website in November commentary apply this call of be on refer call. which that the use is statement call. regarding any will

over call me turn Mike Let the to O'Grady.

you, Thank Jennifer.

welcoming me call. third Let in you quarter join our to XXXX earnings

number meet minutes, your Management many the I'm over earnings CFO X to call, right business few a will mentioned, challenging review into in and including his our of will Jason opportunity October skills, have considerable in you vision Jason's to and last as Dave the a Jennifer for events, quarter balance President our weeks. Jason We're became CFO, understanding Dave X, Jason third Wealth sheet he fourth several the Wealth I our collapse confident institutions place lead and our and quarter will Dave take of including pandemic to on chapter year. take for through business. questions. Management the growth. and of the coming COVID will of past grateful of the of on that financial As successfully Fox when our managing its years financial next has Jason became the the performance contributions

deep served to at of respected compound the Servicing a have long our ran highly Family track to annual also the CFO of leading and want business. Northern's performance. as GFO Dave is welcome in also recently, of strong right financial make Office for acumen a Dave and leader I XX%. success Dave industry Dave driving tenure, fees whose a Under Chair. Asset as grew CFO. record businesses trust Head his to Americas. Most next financial knowledge Dave rate the serve choice him Global

Turning quarter to third performance. our

also our performance, up excluding interest X%, strong and from grew benefited positive Relative earnings Trust per the prior year, momentum businesses. but net notables, market share income XX% XX%. across results Our to continued reflect fees were of

we significant and and while in investments generated Trust total leverage, positive our operating business make continuing Importantly, infrastructure. fee to

returned million $XXX also shareholders. We to

strong generated levels. X% of fee year-over-year we Management, reached Trust AUM record Wealth Within growth and

organic improved, Our particularly reflecting year-to-date. started the and to third Global Family months. XX quarter new of a momentum generating the Office over business number past of well, initiatives XX mid-single-digit the both maturation performed in growth,

years, strategy. servicing, drove One of asset with sourced including through this been Northern a have a win healthy of the power portion marquee growth, which focus relationships, an Trust International of area recent in demonstrating our collaboration

continued organic This index growth translated liquidity into AUM flows seventh generated consecutive and despite Management pressure in flows positive quarter positive active for fixed income the and tax products. equities, healthy on Asset advantaged alternatives.

and X-year organic outperforming benchmarks Continued over our fixed active frames. with strong supporting X- growth investment performance X-, income is time

our treasury-only leveraging NTAM Northern market including largely to and a is deliver One less launched than products, fund billion firm. capabilities has entire strategy performance Year-to-date, new to also GFO to months, money nearly from X of XX clients. Trust flows in attributable soles that the clients NTAM's generated in $X has

Servicing volumes well performed in Our and the margins. the business continues for double were were Asset up activities capital booked second at healthy, Transaction attractive quarter. quarter business growth new digits be Markets to

and our opportunities is that new our that goal to As require business incremental we products discussed, lower services focus of to and We've existing is costs shifted generate to scalable. cross-selling levels clients. to

example, wherein $XX an we than asset of announced trading week, manager all derivatives be in will a Artemis, for As equity outsourced U.K.-based funds to with an traded activity OTC Northern. this and AUM, all billion with more and leading expansion our Artemis' relationship exchange

We domiciled life including of cycle investments its custody, will complete from agency the execution now and Luxembourg funds. and these depository, global administration, services fund custody support U.K. to transfer for

should it While business as our in will mix realize profitable whole more strategy, take our it lead pivot to benefits to the of time growth shifts. the

company proudly third the we upon principles still the and During of celebrated which company's XXXth founded, integrity, guided. our was our expertise anniversary, service, core quarter,

the value As needs stakeholders for continuing and for underlying firm invest the meet all taking and to higher our our position we forward, to create look come. for growth we're to enhance of to our all efficiency, evolving while steps foundation, to strengthen years operational the clients

performance it turn our review the I'll for over to that, financial Jason Jason? to quarter. with And

Jennifer me quarter to call. third you, Thank earnings join Mike. you our and XXXX And and Mike, welcome let

Page the into on Let's of X. starting results the quarter financial dive

third average was net $XXX of return This income morning, we earnings $X.XX. equity per of reported million, XX.X%. on share our quarter common And

equity included with an operating Together, items other associated Visa million existing results these X notable and $XX payment by after $XX pretax a boosted our escrow gain million million swap tax. on a pretax $XX agreements. reported income and investment $XX Our million

million, sequential $XXX up servicing record income totaled and last fees X% increase on an basis other sequentially was Net XX% and year and year. billion, a $X.X to X% investment X% FTE ago. compared up Trust, a increase a interest an from

were and compared the sequentially custody year. under to as XX% X% assets prior up and Our administration

Our X% sequentially and remains were very assets under management strong. overall, year-over-year. And our quality up XX% credit

down all was noninterest Other a up X% X% and X% in the was up share than Expenses X% income for periods, earnings and year. prior items slightly year-over-year down on less XX% XX%. up basis. and sequentially notable Excluding up X% per sequentially were Revenue year and prior the sequentially over grew

Turning on to asset results servicing X. our Page

last at $XX.X increase. now fund our fully Assets exits $XXX clients for totaled administration year-over-year under trillion equity U.S. run weaker servicing XX% markets X% and custody were reflected which and a a end, year-over-year, Both dampened reflecting asset million. administration fees we Custody $XXX comparisons fees were quarter, rate. up underlying million, are in discussed from dollar. were and reflecting by strong the quarter

were year-over-year up favorable a XX% and, clients fees Investment prior strong due new $X.X within Assets markets under for management a management over Asset to Servicing lesser were to year. up asset XX% trillion, the activities. business $XXX servicing extent, million,

Moving to business Management Wealth our on Page X.

up million, Management primarily billion clients servicing due and for under quarter clients Trust, for up end, markets. $XXX to were year-over-year. XX% management other investment X% were Assets Wealth equity management at $XXX year-over-year strong our fees wealth

and income trends. Moving our interest balance net and to sheet X Page

an basis assets Our offset on as loans increase average a in in quarter earning by a linked securities. were flat was decrease

X.X highly the XX% duration on of of than balance liquidity and portfolio, average. to average XX% total strong continues than sheet liquid our The with more remain X assets earning securities our years, comprising duration be levels and year. assets Our less total of deposits

second modestly $XXX in several was was than of at better income factors: came Average were levels interest quarter X.XX%. deposits interest expectations. XX% net was attributable Net noninterest-bearing our First, million $XXX deposits remained the deposits X% mix. to and and from margin The billion, strength stable our

on off, third, institutional were more conditions, spreads by accounts priced realized third especially cuts. similar replaced improved. conducive to Second, very had million from items. contributions rate other the they relative items level NII In to attractively pricing these And aggregate, higher-than-average quarter deposits We with approximately elevated quarterly And by and saw large deposits. transactional $XX deposit million. a expected, very rent of recent the deposit $XX several strong and as we given a we thin beta roll

Turning to Page X.

quarter, year. expense to reported, compared up as noninterest in down billion sequentially As prior approximately the third XX% X% was the and $X.X

Excluding and notable the were slide, on up as year-over-year. sequentially previous both third expenses X% quarter approximately the X% listed in periods, items in

all to unfavorable spend. growth flat XX% underlying business to and expense largely was It initiative in go the back period, and let's Now, sequentially. and expense also items. sequentially. incremental prior increased Outside Compensation the of from exclude this was adjustments, the notable review with expense prior up our and X% over which year's pay quarter, movements. currency hiring modernization services modest our the flat the associated year core modernization relative expenses resiliency impact was levels due of base reflecting year, Compensation

amortization XX% expenses. and higher mostly Equipment up related to increased Sequentially, and was it X%. software year-over-year, expense depreciation

Excluding Trust XXX points notables, operating XXX and improved fee XXX leverage, ratio on basis points by we expense-to-trust leverage generated of linked overall fee a our operating basis. basis of points over quarter basis over

quarter, X% As to operating expenses up our be expect to fourth relative the quarter. we total out we third look approximately to the

Page X. Turning to

required operate Our at above the capital in well continue our levels levels and regulatory strong regulatory quarter, and we ratios remained minimum. to

standardized a its common and ratio in RWA flat slight accretion equity by Our approach Tier increase was the remained offset under X XX.X%, capital at levels.

on quarter. through million. At up X.X%, of was securities quarter $XXX our of quarter leverage common $XXX available-for-sale We $XXX the million stock and Our pretax XX Tier dividends common end, returned from ratio million cash unrealized the was in loss shareholders X to $XXX points repurchases prior million. basis

He's years. critical a play impactful Now you. the an quick very takes wish and world-class ensuring he before of worked it's work CFO as the Fox been X want XX Northern with analyst on been the for to a since It joined community role last call, best driving and the as Northern Dave has he It's in long-term shareholders. and I starting to a investors have I for Q&A and ago. within to a joy a change as for serve closely forward-thinking we the personal to executive, I success. the role. positioned note, Dave honor portion he's the years with a the that pleasure new offer going strategic on company thank

line open with please for questions. And that, the

We will Steven first question with Chubak our Instructions] Wolfe [Operator from Research. take

year, sensitivity morning. you filling actually this on is the talked the Steven earlier this asset This Sharon different across had sheet. the balance for categories Jason, about in

the about floating. repositioning Can XXX% give given a cash and sensitive to Loans securities a short X/X on just you've of time since So actions us done quick the last rates. securities, couple mix update floating rate you that

I again it a to do Can I little Can I answer sorry. you your on. question make sure want -- you louder? didn't I'm just really precisely. catch

Sure. Yes.

Sorry.

to sensitive short well So earlier and this the across floating. asset year, X/X loans you talked balance as rates about the XXX% book sensitivity categories, about securities sheet different and cash

Just you given you've the securities mix? rate mark-to-market update, on can that quick give some us floating of a actions repositioning taken since the like

is about Floating XX% at this point. Yes.

as then or And can should resiliency? get in we frame how Great. completed you in expect When inflated was look to dollars expense the we redeployed investments be at year's Okay. investments 'XX, fall forecast our and expense those franchise? investment growth should to whether the just much line by of this elsewhere those beyond bottom

And just how modernization trend asking and to investments that's and about the you're to in over clarify, resiliency time? expense going

Yes.

thematically dollar have effort is desires somewhere expect of X, next in the redeploy year, don't business. at some other see to that likely our we'll next start and efforts least to automation a to technology for quarters. else. do improve some dollar late for decline. and distinct But modernization address to will try and that more point, any This it that, we the We continue at plans So X

will of next from Poonawala We take our with Ebrahim Bank question America.

Congrats, David your on roles. Jason new and

focus -- there from efficiency expense of ordinary efficiency out to changes, around any in time means following Jason, spend? it should the leadership in Mike, we line perspective you not up to What there. terms of these operational think, what what operational of read a we changes year is going of, base Jason. preseason additional us give time into how forward? bottom maybe bit back of just heard something I kind tied were just September. announced incremental And come we a and more to perspective expense Just this baked is the back of investments broadly, into But will out expense Or expenses quarter? investors that fourth results. on to as wondering, on little I'm realignment more and the Maybe I responded into the Would the going about should love for be all think resiliency? translating

I'll start Mike. it's off. Sure. Ebrahim,

So I following strategy. we would say, believe in structure

back big we company. And other put reflect tried that client place operational which our was of on strategy COO, changes we foundation, growth in already in managing we've And a Chief Jason one changes also going decades the COO creating strengthening role but so we've relationships optimizing of COO experience the and is keep which to ago, both will be the the focused and mentioned also that straightforward, growth. importantly, changes to Pete and And a Operating really he's operations, of the Cherecwich productivity. is organizational positioned Pete's complex driving or very the scalable with year in drive the Dave. global September resiliency over well announced with the excellence, But Officer, and

transition and we be the in to and operationalizing likewise, is get client Chair trying and over Parker focused ensure through out Steve resiliency organizational to Vice the much is it and work the that that Trust So such that scale focused front. efficiencies greater way. your of company things importantly that continue operating on on Asset President front. Teresa Servicing a in ourselves that and to on took do One we way Northern very we Fradkin of way for in And can differentiate role the of to to that do point, a the all align Pete, a that are organization we strategy we the

help the strategy. organizational feel to us I very So good the drive about changes

sheet, when from up rate quarter NII is backdrop should this given the Jason, the question, I we on balance million third I $XXX get quarter. If quarter, look some grow cuts, the positive expect was to It in may just And Got the deposit a gradual if stabilizing, positioning NII the for this we of levels? continues you. follow at guess, we it. NII that surprise if

it We're into to the the pleasantly flat. deposits. -- we being the But good part results of like very we looks that much of surprised leave deposit reason that coming some were were knew exits -- meaningful other of going fact by in into though anticipated the that coming there's deposits And deposits. news for deposits was organization, were the large down. quarter. we more just sure. those that, of NII had thinly And in replaced That's with level priced areas even Underneath we attractively that

seasonal You that, decline didn't we through in on in to the we that typical add August, see go particular.

we're the not it's the if better. so as And they -- nature feel the the now, it's where deposits deposit book is the much said, now of quarter, And cuts. deposits look just the levels about holding of fully. That are but into good underlying much anticipating right as to in, and the the hard book rate strength fourth we offset deposit you

a unlikely strong, X.XX is in ] looking still And quarter which at [ call be good, that slightly so we're but level NII, it in have that's still think as we for why here possible. fourth an increase very to -- would down. from general, would X.XX But to

our Alex Blostein next take Sachs. Goldman will question We with from

on Congrats moves. to the team whole various

NII level to Just the just discussion, more one set time.

decline had kind it be and QX, And quarter go the is what's million go, expect were? guidance off from have to kind of beyond that fall million level there, the activity. betas Jason, kind what sounds likely as but on sort partially maybe this So off And of the deposits, to of sequential basically elevated obviously, forward of that's the fairly I'm on right? in Do you those set high like use $XX you driving you potentially highlighted. expand $XX and of transactional on are the trying jumping to far fourth to right cost just of then as deposit to deposits that

Sure.

third of back FHLB of go up of in another liability doesn't -- and those adjustments, direction on So this this our It FTE a try I level. point, things. in the let the -- dividends, put and feel if And whole takes me to order. deposits I and that. there's usually premium come like went pricing, repo the swap there's quarter. activity, leveraging basket then the there's lot. other reverse there's FX activity, element core On but is asset a in items, good also most quarter But to add launch

an the all And so thoughtful $XX But way into that those of more go and activity the it now away to of way adds million you do to other right It's FX next that's million to NII. the elevation. are. more it quarter. actually the that don't to just $XX expect ask just us rates is is have the opportunity is environment way gives -- It part we because with swaps question the to

so -- come we don't fully going quarter. to saw to lift And second was an it It expect down. third explanation fully that we from why of more to the elevation of

And going ] is of that but different a impact going banks to reflection with normalized to a so on to actions largely also those the ]. X.XX X.XX items more [ some are rate of have that [ X.XX levels, central drag of

items come growth maybe is to guys hopefully guys that. a the X-ish All with in that. to stronger in and talked out the percent the then this be of right. past, I organizational to year expense for it. below respect questions the longer-term the expense have about bogey market-related you around And there north This with X, expense along expenses further previous shaking hoping to over are I obviously heard be structure. question But to your maybe guess some revenues made, on and time, for growth algorithm. growth business changes are Mike, answer you And which align that Got you obviously a the in substantially

maybe news. given you expect years? expense where us But be longer-term firm's the kind kind growth couple next of the of sort help good it's these of summarize, to of So changes over

continuing for on Alex, this leverage quarter, and ]. positive be expense-to-trust XXX% at operating with point leverage range year-to-date, focused fee this this fee of ratio XXX% above of to we're operating to our the it's target [ So level driving positive still our at

into grind margin range. in from as XXs to margin, And area pretax want want be to target perspective, to that the low a down we that a likewise, as continue So well. target

we've And that that, have. leverage the goal. strength the the that's said, had on enabled may environment revenues has rate can't the that. to accomplish we in to -- this which driving achieve always us first So then a that year, That market strong and count drive

we So to need down rate expense absolute growth bring the further.

be of objective is go by so level hitting the probability down will XXXX been. growth as driving rate expense leverage to below that the increase also operating our And the that into that we and achieve it's it

We Betsy with from will our take Morgan question next Stanley. Graseck

the the Help be richest opportunity is opportunity? you're the where servicing, questions One are to Is for doing Mike, that us it asset there understand of more pivot it for focus deliver? you on deepening hire? platform? as pockets management, is you're more of thinking it affected? -- before? -- the -- thinking And help asset most is off going Is of mentioned products then from key have those about understand of different couple Is to it So us how the that conversation, in how investment relationships the a should a management? this is what relationships? more here. it is how growth you to Could Or key we deepening Is forward. resources last wealth organization where you just about

Sure.

that the together other of to strategy, things. Betsy, stakeholders. ensure clients the working all of point, the our from of likewise within a outcomes and are a number client So a is to all groups Northern Trust produce company which the to for is best businesses your combination it our of perspective, One and And is that for

from working if you beginning, is the closely businesses it more will. the first, right So

So going opportunities. and to market

second asset trying and providing with you So clients asset for and on one servicing that if to then to starting management opportunity for overall cross-sell, opposed example, front. as necessarily an with the will, solution

where management, the and Wealth has of and the about between well. Management Management also work as been A would businesses to as our as investment are? done X are I ensure new clients the opportunities far servicing linkages asset that with strong As lot thinking are between Definitely needs asset we but products. those management that very produce of highlight we Wealth

were I for base. we the in As was continue new number of of our the back to launched needs order them. that I'll done of, We'll that that mentioned, a specific really some of do funds the off solutions of year research client say, to provide right this

the Also types to we products to capabilities it of deliver, as that new have is point, as far new your or services.

for That's the example. call just client we what Artemis which level size a a the up and launched trading Artemis. and providing integrated or that to a clients mentioned I business number ago, capability of works new trading where latest capability where of taken So we built like outsourced years them we're that we've this solutions, to of

of lot that opportunity front a as well. So on

can ahead. you as go So -- see

up, you No, sorry. finish

No. Go ahead, Betsy.

to useful. expense on tangible -- think very see what should I to as on about wonder, about looking line, impact was into holistically or in return then this When the accomplish you the we're how thinking going overall just and you not translate think that's return do just you equity? common opportunities how you're but pivot, profitability. just That on

Yes.

already the relationship client have the that no to there's we we more to for extent the are that us. services question them provide incremental scalable So that

And it more where profitability that's translates so overall. into

mention, Betsy, in front on I about second business is that thing type thinking most. the that pursuing The of we're the would

of front. on the in growth resources. require front way new new that opportunities scalable is really And we we mean that As that we on say, focusing on what want more less

success, us in Europe, to less resources also that custody higher we if that way again, in So asset scalable in to that profitability where other business people require for technology, a with would we're example, more this but required, we've than a into where to of other providing the adding both services lot win incremental year are in of in segments America, for owners extent that translates are That them can level overall. the but also is, areas or we had the a that.

So the that on that's objective front.

from We Mike with Mayo Fargo. question Wells will take our next

banking years One XXX happening. the everything point price private initiative all and Trustbank is versus best-in-class stock the lost Northern or Trust And relationships, see see I trade below and a even else has Stanley I that Morgan X premium then peers something.

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that. think on give why perspective that perspective if big you a have you But on Mike, you So

Sure.

roles a also we combination brought experience, in into new putting both we So the the where can people leverage but from talent of outside. it's Mike, their

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not quality, just as earnings know. themselves, it's it's So you the but the

to that's all create what So the the through stock multiple and value the drive ultimately it's the price. earnings directed at

And follow-up. as just one then maybe

you. extra that the expect Jason fresh relates able to by their So as to that bring started. the Jason, But maybe emphasize function, we level? more, little bit you well incrementally, to like more it by new a like to take emphasize Maybe you next would what bit CFO might already And and the is Dave, be incremental managers little to it's right perspective to would roles. to a next the in it

Yes.

just the here. more to I is do good a Jason initial thoughts So But give around opportunity what parts our of I company and scalable his think would emphasize two, for then it's with those overall. it

and Asset company. products Wealth So Management our not Management but is or service And just our business that business.

to grow we trying those we faster past. So the in have businesses than are organically

Mike, that front. on the push, the tilt so And or that's

And of deep your others initial some want just comfortable and the bit and quickly I get views. talk with a of strategic approach of to to do understanding will value just Dave, and you it with. His about Jason, little you business think creation. also the But understanding

Mike. Yes. Sure,

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more we think in that those talk way try that I And do. I different grow to think very to it's putting can so And initiatives using is each there can the about we're that framework clear the is that business of where dimensions faster. future the in a we it

our take Brennan question will UBS. from Hawken with next We

X% circle math quarter based But to expenses be in and expenses. driving XXXX in went that fourth fees. commitment name, the So you're release to keep suggested least another on quick as north guide, said And that commitment appreciate And act was last totally made the I press CFO that of actually going made on I had growth the to sub-X%. we're right down you operating wanted before at back on XXXX. expense my Jason, as out, leverage think you sort to of

And so -- Dave candidate. is an internal

-- quite a expense can this issue. inflation, under hold XXXX gotten So has that recently cadence an more How leverage but it? commitment that operating is How guys does steady with we without in it's should new recent a get been more leverage CFO? new have It's operating importantly, high? and you how but point elevated control bit years not can to bar a I whatnot, like really the think here it And where growth a having you compounded of with Northern. about issue understand a matters for

Yes.

change. is of Brennan, it part So organizational the

a of centralizing are number more operations that distributed. that So just will now fundamentally, involve

And changes say, to it. committing that. so just, actually do to It's than I'll making it's more

in the, have managing other call I'll long these the they're we've that do to the investments part term. the and they're required in The foundation term. it thing right this risk environment we been it, broader part when you of required. of make felt That's in volatility and as that's investments, for And of is the to making environment, in that far the just the the is as level where longer

there definitely which platforms. technology variability to it's the some where example, for what are. trying think or are modernization working redundancy require does make platforms that that we're the their increasing we that automation front. in ensuring that front, we Transitioning what stability about requires of move do, doing But those to to third-party the Jason well. Now when have as we within investment of on the that Doing testing more when to ensure all those providers that the that resiliency quickly mentioned, the off of of Making has cloud, incidents. have changes we with sure understand we level the create of technology, are end-of-life to extent on we

not just harden there's that a, doing core say, and that's from number and resiliency an solidify a we client perspective. So risk I'll we've also and investment to think for because kind but perspective from things from of efficient perspective are good a and a us, of that done also experience

very So think doing the why why is only plan. doing what forward, It's good clear for drive we've high-quality and but we're be to go not that's as on ultimately, we to that's that as good we well. and tried why clients, it's and it we're going for growth the shareholders

some getting quarter. the to meat on forward coming I those bones Okay. look in

don't that's transition the decent should growth thinking If decline back touched here? growth for how sheet, could I a you What in further or about And we into the on So great. loan like outlook looks think from it or balances balance be this it. quarter. amount caused pulled that? loans I

is initiative Sure. overall then have trend a the past in initiatives deposits see or the I've the lot noted franchise. We're to very so terms growth in loan And strategic the side of in and experienced client in And it of our had creating We think institutional business. you be on on ironically, the of are loan there's lending growth the wealth growth headline grow the that in coming the what the the book side. shrink we before, going we've right alongside nothing about don't is The can not in lending, we should A quarter. loans And forward, specifically trying that deposits to more book. now. spiky. the

correlation business. more tied And be in to will so growth the Wealth the

We our next Glenn with question will Evercore. take Schorr from

side. want great to business, Wealth Like question on at grow It's another great we Maybe Wealth. and the always it. a you're

investments on you press like a talk new and release maybe about a the collaboration Hamilton maybe bit people, some and drill that a had products bit down include geographies. a little comment more been talked yesterday. in you've that concept, making You little Maybe the about about because Lane

Yes.

start. So I'll

see do on been to So rest aggressively faster well clients, our those has the at I at are market. business and the GFO We is than the end. more with think the us average, really what that's the early very you the of larger Dave should what even investing because growing Wealth. in able of upper do -- end been see high And it you that's

great be we're the about in franchise, more to better and see were generating beneath from clients We experience holds that can even that. client-generating our regions, those the you feel able invest within well. the proposition and supports where professionals If that's higher heavily where in And revenue even end. there to our value That's look you'd and an perspective. we doing at town

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We take RBC. question our next Cassidy will from with Gerard

questions. Congratulations, times remarks Northern your Jason. Mike, One as your in answers you to on touched prepared of a number as well

measure the just As as if that outsiders, I to success in regularly or Your trying metrics to we are wondering was somehow how programs of investors, you this some peers using types you're success point well achieve? your strategy? what of could measure can us pursuing should we review to strategies. similar

Sure, Gerard.

business say, we're -- And The your the on company, One marketplace. our is focused One using is about point, is important, fact within it really the in it. Gerard, So to Trust is unique what it's it's that, with unique. also that something I'll but it's not Northern because that

that getting that get company, ensuring company, as about the we're that order front, together also the the can we business everybody or can sure group the outcomes. right you're it talked to businesses. make silos what that the working to client down be in right efficiencies of certainly, across across be, and breaking we've we're in regardless in And want on are Within the

than And as that certainly the are way. one of across cuts client, we're to mentioned, any we Trust Northern our stronger as alone. businesses market that going I and then So with as

we that your what way So we're trying measuring that's of start to what's behind with specific we're it, it. the the To on do. objectives is point doing it

has going going specifically, to many metric, or key at, to measurement growth which did it's but times market performance that. I then can to indicators that KPIs opportunity organic where mentioned, how do if okay, looking So all something it's granted new rate. our involved it That's go measure, be internal X with to we or to about the flow really in our of through then that X the we a it to we're it's thinking an businesses there start that

And so we're trying growth is rate. organic what a to that's higher drive

and overall so do financial businesses. to that the flows that, between you markets add see performance And we when need the that. impact collaboration from into then our the That it, to into

those can And worked of part you Franken, I as here. say it way Trust, across performance. as all see That's say, that's or has to forward I'll go who looking just but ultimately, another And Steve of we're operationalizing So you're a of in one some we to going provide, it businesses the his by we're One career. ensure in doing over these lot financial know, actually KPIs not with that Northern mentioned we activities. what why

balance know Trust. income up Very sheet than the net And Northern entire is with good. touched And Jason, expectations the said sheet back, Northern I you balance apologize coming it, in X.X% that is about a the in rate quarter. One the portfolio you above we by the the screwing let's -- see correct, I and a a If on fourth One interest range, incur duration, name of call for think I Fed the next little curve do that. end securities in X%. the curve longer of year end is long year stays forward the funds

guidance in generally, color you So you asking not favorable there? get a a slope folks? But 'XX can share Or interest a on curve. we income positive . net some is NII. I'm that environment the for number for

portfolio. on reasons, securities for we came various Well, the shorter

is loan is. what the of done of so the effectively. balance anything the And pretty the haven't change stable. it that rest sheet to strategically cash book, duration And we is The

yield headwind if curve. played at view of us. At look going telling obviously the we this to it's played point, well year. with us. And we next curve And into did the that for duration be portfolio. is balance more out going reasons. NII for of securities well a of that come we out a One the do what variety So a for what the of sheet largely us, the was with shorter, yield and moves again, We did it

we X philosophy, balance cuts, we rate risk manage if -- our not we're approach X, our our on X, to how the especially see going So change sheet. tolerances, there's

that occurring to it how the we some headwind. So a just manage that's said, That going be are there to are in offsets normally portfolio.

deposit the one, example, of feeling the we stability level. are better For

us gives more using ability So that to the non-HQLA. consider

Second, arise of base in if book. see the we effectively did the deposit

we from have And are so that would maturing, not slight a then still next as think the is deposit we seen much reinvestment there positive. into as some. And year of there's securities benefit levels but are before,

sure too different those of takes. guidance, to a And as give -- factors to as it's just all well puts right, some There and us some playing the I did make the into realize but the that want so people for puts are takes. early you're And are it. are

third a presently Very pointed quarter. that is to at say that you you to you in end when out good. And that your think table the Q the I asset-sensitive us sensitivity fair give statement? guys it are of fair interest Is the us

Yes, and clarifying we in for where Gerard. my have thanks should that. summary of are, mentioned I that

actions this balance slight point, we've the largely of years. at is asset taken sheet the over just the in coming sensitivity couple there So last from

Bedell We will our Brian with next Deutsche Bank. from take

maybe. appreciate discussed But all the you to growth talked too else just you, the changes. -- and in the you've organic a first opposed Maybe organizational Q&A. and and question to at in Mike asset Wealth growth. growth In going comment, on comments of Congrats focusing the everyone to you've I for revenue organic chime back on Jason, foremost, could segment, as

can Wealth see you confirm to more say, investment getting more within let's selling Northern from, Trust organic that providing So I internally that as things or opposed Other So managed doing the you just coming that. potentially segment. want And customers. product, more growth do do more internally? to new of

coming rate you about think just could in of And So that? Wealth would we type growth revenue from growth if target you just time? see of what more growth are -- maybe for organic over organic looking the

Yes.

and we'd business about to from -- around start lower expect a said historically higher the should that growth somewhere for organic we level see servicing end. little a let talked we of asset a X% coming the with We're bit overall. amount like amount me Wealth. So have We've from that

I that, more be think balanced. an we try more that's should of expectation have -- to

envelope And to it's is come think because to the where more that, in If sense And more to X.X% reasonable. number be even risk couple down so got from, for changing talked Wealth start X% break I of with we're lending, area that's to existing a comes a an about the something our to if it's we great. term, that pushing a clients it organically, clients. it's to but where our more about, we where medium there's risk both, less client see tolerances. give should that that But target. base, be within tolerances, of not But we product the we're with about utilization. We've think for try within and new doing focusing lot existing a people focus us want thinking of different going categories about would I and on philosophy a combination aggressively and not and and

gain we do And -- that clients of them. of those solutions the Wealth. end still our at more different so with And the overall about with to clients, also can mode our wallet thinking upper are way, share client still that it's about shifts base a thinking market, they extent the in

they're flows growth. we not our our from which market view And about growth getting just that's should organic, couple think flows of how not company. so that be is business, And growth, a with into their if coming do And Then to to their target that client perspective. that, that's well more growth but putting new new into you what are able organic there we're level. thinking the we organic don't our as as becomes

And then questions. couple helpful. Super maybe of cleanup just a

period. up. went book think that I'm over factor the lag? prices time a on you've that of think It got -- a loan if the I within variable rate one there's months, X/X of portion that's me a Just longer like X about prices wrong, I but yields looks pricing. correct the Is and then

rates thanks the maybe the it's then for pricing expenses, So just on just all in if book? that and expenses, commentary talk on to great. relative can about And you one

one this Just question there looks that be growth, would year. like which X% expense

really to you growth you'd that -- You're higher leverage you're total bring that and strong operating targeting Is X% fee have in is could [ be revenue, Trust still that revenue it if and have positive year possible scenario? or operating ] your generating moving a goal. on that expense towards down expense your

lags, mind, to as business the portion you tied Well, keep them is small got a in just But in month that both right extent that well, more there's in funds. of then comment clients the a daily terms have lag. the first, that's the small on very growth, want to And the and general, on that's But mutual right, that's on a expense you're But more month Mike it here. -- likely dynamic. on in

things to the of lead a growth, higher decouple we was that to we One to want revenue strong this should concept expense talked a have about growth. if last year we of, that try

expense get trying It along there Now some to to of therefore, absolute. shouldn't impact business, to that tolerating in be dynamic we're of higher higher an growth. general, of growth. away more is that we -- We've from of if the expenses. are it. has growing that about are But with revenue projecting And inevitable we're come going markets on the some talked expenses because

able with or is do confidence -- year, into next to why even this we we X% less. confidence about so next higher. year, And into good level that's came being Come year

Agreed.

framework we've Brian. talked same about, that Again,

variable I market. that, pricing, the not was about the the talking loans on on rate Just the loans,

was what So within book, resets -- was this loans is and the quarter? variable were So drove think rate -- the is the reset it -- lag up I in months yield of X/X the quarter the of X --

No, higher. -- it book. draft clarifying appreciate about that's little it -- But that. the little it's a in That's I over a really XX% would war to We're is XX% higher you floating bit and bit -- loan like

Seaport take next question Jim We with our will Mitchell from Global.

capital maybe just the on Jason, return.

capital are ratios been still minimum. out, you above pointed as high, stepping well have up buybacks the pretty guys the You

on term buyback up? this for this is expect and level intermediate this rates we profitability this is the looks should a something is the pretty are keep of watermark high level you side? stable? improves Can Or So sort as OCI good.

neither. It's not -- maybe it's

it -- right at if it XX% while. to we now. about you about of a through is elevated, walk so income And We right elevated stay point. over And pieces, could for have I dividends this about X/X the and it -- time, it to X/X but think stay at if going about it's should XX% net talk being

If including before, lot end. equity you we've end but and repurchase. And at we've that's that at take we're it's level the for Visa out that a where upper or or But of us and Visa of -- investment being in monetizing dynamic. but CETX. liquidity been the at put so XX.X% upper that level, share obviously comfortable available the And the been the XX.X%, even

next could time. do over the tolerate that deploying other we are coming bit. and to this comes we a we And that little Visa it still X. have year at maybe over know And that this still at we we the so down approximately And XX.X% point, tranches is continue or be level, reason

equivalent roughly will And so it be another benefit.

And more thoughtful working too to be bit. of so at XX.X% we'll from thinking quarters, not for it aggressively. through would to not about But point this it okay take and see be any to a trying in a come trying down over to time -- trying approach us aggressive overly we're little several do anything

the exit when that's intermediate I then XX.X% term, about monetization think it of a And a lower maybe half, Can to the the longer have? contemplate you you second shares, given XX% Great. CETX take Visa of Right. term you than lower? tailwind. Do of obviously the or

-- the should in we're that Mike I let should future, talking far I or

is a at the that's capital, saying, same is and yes, environment strong very level absolutely given XX.X% comfortable well. the as I'll lower the, are broader levels time, and at of Jason fine, say, yet As

we about good higher very feel year. quarter repurchases we as the position move the level into and and we in of next had that this capital So

We Vivek JPMorgan. will Juneja take from question next our with

of A couple questions.

has spending X% that? if to in to goes resilience, et color this would the does say, And you growth what's growth you the X% next hundred driven mentioned the the added that half that's -- year? in down on Any X would that? on Firstly, rate a away level. incremental since below basis need points -- for much that that Mike, year? fund Any modernization, that couple Jason, bring -- How your clarification cetera, won't that of expense quarters, you of what you or second to more to

Yes.

So do higher all that I'll think Vivek, in it see I one I attribution rate say, services. indication the there, growth forward. project in about have going we and think growth it's in equipment the and difficult do the to, talked that an X% then areas on you I that the that of

will. the But that's come spend through. you'll you that see that So most -- if of X%, technology make where it's up doesn't

that has there revenue overall, that on market, are to are components As expense both Jason drive side. levered the other including broken the before, down and on fact it side the we

X% this -- to year. So that's what an that of aspect the rate drove

As we've in to accomplish what be want But to Vivek, forward, about, the broadly we talked just technology looking we'll we as and able down. overall. need certainly we make go investments to bring to more that

organizational about one more some question changes the you, from in lot bring shot use a for outside? don't you're you this at earlier Why question Mike. Separate the of such where changes. to There opportunity making talent was a

time, both. do combination a Over Vivek, Yes. to of we continue

to we so roles we of in go which talent. will bring which of market and number some talked are here roles external about And a other there but

or in has Dave time actually at on period, longer as much been we'd or you other you some that period, mean, management. for time at the say, been Northern. we've some For strategy myself know as been places as have than but Northern might Jason been I

will, in if talent a talent we the having between big same is have from a strong strong of development that do want and think you promoting we a and it's the what we outside. So because we talent to program, mix bringing time, within talent at develop part

will there able of be that. plenty opportunities be do So to to

next We question Fargo. will Mike take from with Mayo our Wells

we're you versus how right few that peers, does it's you the also where see up seems So does How X%. it's that growth did and And maybe you stack the benchmark than hear X.X% because and I compete? like compare to when to you targeting that brokers Sandbox equity, just organic when in years? you're growth off other private that, more just the some last state

Sure.

of over of years. of So a than -- it's It's that couple last lower One, would than been years. higher last it's couple the things. over that what the couple be been

Before target that, at that we had been range. -- within

are compare. that be range. before, and doing We again. I to comparative other want it then some And to winner. are that's that a that And hard purposes, be it's doing better worse. there so it of want We also to very top at we've And firms think the end done from why can -- confident than are it's we feel and we that do some

don't, some fees, firms some banking, include firms Some firms include product their some don't. firms

and from from our can And that strong. leads the perspective are shareholders. of and it very do peers, such to part the The same earnings do why incremental profitability the amount to Some perspective, for of our makes we is -- and financial we if growth they're so it our if that that's economics better business. is institutionalized. an also a That's good profitability -- growth. Wealth better because a business model That's clients profitability embedded of it's model reason our relative of our our

shareholders. target it for mean what feel and And about that so we would good

back remarks. call We to to further I not would the turn Childe like any questions. Jennifer do for have closing

near with We the Thanks call. on in participation look today's for forward you your future. again

call. you Thank your participation. today's concludes for This

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