Northern Trust (NTRS) Goldman Sachs U.S. Financial Services Conference summary

Strategic priorities and business evolution

• Focus remains on three pillars: optimizing growth, strengthening resiliency, and driving productivity, with an emphasis on accelerating growth and productivity in 2026.

• Asset servicing business targets higher profitability by being selective with new business and aiming for high-20s margins within a couple of years.

• Wealth management strategy leverages differentiated capabilities for ultra-high net worth and family office clients, expanding tailored services to broader client tiers.

• Expansion in alternatives, with proprietary and third-party products, aims to increase allocations from below 5% and double fund offerings on the platform.

• Digital asset capabilities are being developed, focusing on interoperability and commercialization, with investments shifting toward public blockchain solutions.

Financial performance and outlook

• Revenue growth averaged 7% over two years, with positive operating leverage and double-digit EPS growth.

• NII guidance for Q4 is reaffirmed as up mid to high single digits year-over-year, with deposit levels and asset management driving results.

• Expense growth is tightly managed, with a sub-5% target for 2025 and a dynamic, productivity-first planning process for 2026.

• NII for 2026 is expected to be flat to marginally up, factoring in three anticipated rate cuts and ongoing balance sheet optimization.

• Positive operating leverage remains the guiding principle, with flexibility to adjust investments and expenses as market conditions evolve.

Capital management and market positioning

• Capital return priorities include maintaining a buffer above regulatory minimums and continuing opportunistic buybacks at a similar pace to 2025.

• The capital ratio is managed within an 11-12% range, with flexibility to accommodate business growth and market shifts.

• The firm is positioned to leverage its scale and differentiated offerings in both institutional and wealth channels, focusing on profitable growth and innovation.