Yahoo Finance

• Net Income: $392 million for the first quarter.

• Earnings Per Share (EPS): $1.90, a 13% increase compared to the prior year.

• Return on Average Common Equity: 13% for the quarter.

• Trust, Investment, and Other Servicing Fees: $1.2 billion, a 6% increase year-over-year.

• Net Interest Income (FTE basis): $574 million, up 7% from the prior year.

• Assets Under Custody and Administration: $15.8 trillion, a 3% year-over-year increase.

• Assets Under Management: $1.2 trillion, up 7% year-over-year.

• Net Interest Margin: 1.69%, down 2 basis points quarter-over-quarter.

• Average Deposits: $116 billion, up 3% compared to the fourth quarter.

• Noninterest Expense: Approximately $1.4 billion, up 4.8% year-over-year.

• Common Equity Tier 1 Ratio: 12.9%, up 50 basis points from the previous quarter.

• Return to Shareholders: $435 million through dividends and stock repurchases.

• Warning! GuruFocus has detected 5 Warning Sign with NTRS.

Release Date: April 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Northern Trust Corp (NASDAQ:NTRS) achieved its third consecutive quarter of positive operating leverage, driven by mid-single-digit growth in trust fees and net interest income.

• The company reported a 13% increase in EPS, excluding notable items, and a return on common equity of 13%.

• Northern Trust Corp (NASDAQ:NTRS) successfully raised $435 million to return to shareholders, reflecting strong capital management.

• The Asset Management segment saw strong fundraising, particularly in alternative investment solutions, with plans to nearly double capital raise versus prior year averages.

• The Wealth Management segment launched a dedicated ultra-high-net-worth segment, Family Office Solutions, which has already seen good client traction.

Negative Points

• Currency movements unfavorably impacted revenue growth by approximately 20 basis points.

• Trust, investment, and other servicing fees saw a 1% sequential decline.

• Net interest margin decreased by 2 basis points quarter-over-quarter.

• Expenses increased by 3% sequentially and 4.8% year-over-year, reflecting higher compensation and outside services expenses.

• The company faces a challenging macroeconomic and market backdrop, which could impact future performance.

Q & A Highlights

Q: Can you discuss the deposit beta assumptions underpinning your NII guidance, especially given the positive surprise in cumulative beta during this easing cycle? A: David Fox, CFO, explained that deposit betas have remained stable historically, with institutional business closer to 100% and wealth around 60%-70%. The company has focused on deposit pricing, which has benefited the deposit base positively.