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Northern Trust 8-K Report, Regulation FD Disclosure (Apr 16, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed April 16, 2024
Period End
April 16, 2024
Securities
NTRSNTRSO
In the record · 2016–202610-K1110-Q338-K118

NTRS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 118 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · May ’22May ’22
  2. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed April 16, 2024. Cited figures are marked; the original filing is the authoritative source.

On April 16, 2024, Chairman and Chief Executive Officer Michael G.

O'Grady spoke at Northern Trust Corporation's Annual Meeting of Stockholders, and the Corporation furnished the slides he presented as Exhibit 99.1. A webcast replay is available for 30 days from the presentation date through the Investor Relations section of the company's website. The filing states that the information is furnished under Item 7.01 and is not deemed "filed" for purposes of Section 18 of the Exchange Act.

The slides report full-year 2023 results. Noninterest income was $4,792 milliona (down 2%), net interest income was $1,982 million (up 5%), and total revenue was $6,774 million. Total noninterest expense rose 6% to $5,284 million, and net income fell 17% to $1,107 million.

Diluted EPS was $5.08b compared with $6.14 in 2022, and return on average common equity was 10.0% compared with 12.7%. The slides identify 2023 notable items, including an $84.6 million FDIC special assessment, a $38.7 million severance-related charge, a $25.6 million client capability charge, a $12.8 million occupancy charge, and $(169.5) million of net investment security gains.

As of December 31, 2023, the slides show regulatory capital ratios on the standardized approach of 11.4% for Common Equity Tier 1, 12.3% for Tier 1 capital, 14.2% for total capital, and 8.1% for Tier 1 leverage, all above stated minimum requirements. The presentation also cites $1.4 trillionc in assets under management, $1.1 trillion in wealth management client assets and liabilities, and $15.4 trillion in assets under custody/administration, and it outlines strategic objectives to strengthen resiliency, drive productivity, and optimize growth.

02—Key points

Key Highlights

  1. Full-year 2023 net income was $1,107 million, down 17%, and diluted EPS was $5.08 versus $6.14 in 2022.
  2. Total revenue was $6,774 million, with noninterest income of $4,792 million (down 2%) and net interest income of $1,982 million (up 5%).
  3. Total noninterest expense increased 6% to $5,284 million, and the slides cite a $84.6 million FDIC special assessment among 2023 notable items.
  4. Return on average common equity was 10.0% in 2023, compared with 12.7% in 2022.
  5. Regulatory capital ratios as of December 31, 2023 were 11.4% CET1 and 14.2% total capital on the standardized approach, with an 8.1% Tier 1 leverage ratio.
  6. Assets under management were $1.4 trillion, client assets and liabilities in wealth management were $1.1 trillion, and assets under custody/administration were $15.4 trillion.
  7. The presentation outlines three strategic objectives: strengthen resiliency, drive productivity, and optimize growth, supported by investments in talent, technology, and data.

03—Questions

Frequently Asked Questions

  1. What did Northern Trust disclose in this 8-K filing?

    The company furnished under Item 7.01 the slides that Chairman and CEO Michael G. O'Grady presented at the April 16, 2024 Annual Meeting of Stockholders, attached as Exhibit 99.1. The information is furnished and not deemed filed for purposes of Section 18 of the Exchange Act.

  2. How did Northern Trust perform financially in 2023?

    According to the slides, net income was $1,107 million, down 17% from 2022, and diluted EPS was $5.08 versus $6.14. Total revenue was $6,774 million, and return on average common equity was 10.0% versus 12.7% the prior year.

  3. What notable items affected 2023 results?

    The slides list 2023 pre-tax notable items including an $84.6 million FDIC special assessment, a $38.7 million severance-related charge, a $25.6 million client capability charge, a $12.8 million occupancy charge, and $(169.5) million of net investment security gains.

  4. How strong are the company's regulatory capital ratios?

    As of December 31, 2023, the slides show a standardized-approach Common Equity Tier 1 ratio of 11.4%, Tier 1 capital ratio of 12.3%, total capital ratio of 14.2%, and Tier 1 leverage ratio of 8.1%. Each is above the minimum requirement listed on the slide.

  5. How can investors access the presentation?

    The slides are attached as Exhibit 99.1 to the filing. A webcast of the presentation will be available for replay for 30 days from the presentation date through the Investor Relations section of the company's website at www.northerntrust.com/about-us/investor-relations.

04—Continue

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