Northern Trust (NTRS) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $464.9M, up 42% year-over-year, with EPS of $2.22, reflecting strong market conditions and business momentum.

• Revenue increased 14% to $1.98B, driven by higher trust, investment, and servicing fees, and a $68.1M gain on an equity investment sale.

• Leadership changes included a new CFO and President of Wealth Management, and the creation of a COO role to drive scalable growth and operational efficiency.

• The One Northern Trust strategy and product innovation drove cross-business collaboration and deeper client relationships.

• Celebrated 135 years of strength, stability, and stewardship, emphasizing a disciplined, client-centric strategy.

Financial highlights

• Trust, investment, and other servicing fees rose 8% year-over-year to $1.20B; net interest income (FTE) increased 21% to $569.4M.

• Assets under custody/administration reached $17.4T, up 23% year-over-year; assets under management were $1.62T, up 22%.

• Earnings per share grew 36% year-over-year, excluding notable items.

• Return on average common equity was 15.4%; net interest margin (FTE) was 1.68%.

• $453M returned to shareholders via dividends and buybacks.

Outlook and guidance

• Q4 net interest income expected in the $550–560M range, slightly down due to anticipated rate cuts.

• Total operating expenses projected to rise ~2% sequentially in Q4; expense growth targeted below 5% for 2025.

• Management expects continued revenue growth, supported by favorable markets and new business, but notes ongoing expense pressures from compensation and technology investments.

• Regulatory capital requirements are expected to increase under the Basel III Endgame Proposal, with phased implementation starting July 2025.

• Organic growth in wealth targeted at 2.5–3% over the medium term.