Northern Trust 8-K Report, Financial Results (Oct 23, 2024)

Northern Trust Corporation reported third-quarter 2024 results on October 23, 2024, with net income of $464.9 million^a and diluted earnings per common share of $2.22, compared with $896.1 million and $4.34 in the second quarter of 2024 and $327.8 million and $1.49 in the third quarter of 2023.

Third-quarter results included a $68.1 million^b pre-tax gain on the sale of an equity investment, recorded in Other Operating Income. Total revenue on a fully taxable equivalent basis was $1,975.6 million, down from $2,722.4 million in the prior quarter, which had included a large Visa-related gain, but up from $1,739.7 million a year earlier. Trust, investment and other servicing fees rose to $1,196.6 million, and net interest income on an FTE basis grew to $569.4 million.

Client assets continued to grow. Assets under custody/administration reached $17.42 trillion^c and assets under management reached $1.62 trillion at September 30, 2024, both up year over year. Noninterest expense was $1,359.4 million, and the provision for credit losses was $8.0 million, reflecting an increase in collective and individual reserves, including the default of one commercial and institutional loan.

The company returned approximately $453.0 million^d to common shareholders through dividends and share repurchases during the quarter, repurchasing 3,463,546 shares at a total cost of $301.4 million. Capital ratios remained above well-capitalized thresholds at both the holding company and The Northern Trust Company, and the company stated that the Q3 client assets and capital ratios are preliminary until the Form 10-Q is filed. The filing furnishes the earnings press release (Exhibit 99.1), presentation materials (Exhibit 99.2) and a financial trends report (Exhibit 99.3) under Items 2.02 and 7.01 and states that these are not deemed filed for purposes of Section 18 of the Exchange Act.