Northern Trust (NTRS) Q4 2023 earnings summary

Executive summary

• Q4 net income was $113.1 million and diluted EPS was $0.52, down from $327.8 million and $1.49 in Q3; results included securities repositioning and FDIC assessment costs.

• Management cited accelerated YoY trust-fee growth, resilient average deposits, strong credit quality, lower YoY expense growth excluding notables, and improved capital and liquidity.

Financial highlights

• GAAP total revenue was $1,545.3 million, versus $1,726.5 million in Q3 and $1,519.0 million in Q4 2022.

• Net interest income was $483.1 million, versus $456.2 million in Q3 and $534.5 million in Q4 2022; Q4 FTE net interest income was $501.1 million.

• Net income was $113.1 million, versus $327.8 million in Q3 and $155.7 million in Q4 2022; diluted EPS was $0.52, versus $1.49 and $0.71, respectively.

• Q4 noninterest expense was $1,388.5 million, versus $1,278.2 million in Q3 and $1,323.6 million in Q4 2022; the FDIC assessment contributed $84.6 million of pretax expense.

Outlook and guidance

• 2024 priorities: accelerate profitable organic growth, maintain expense discipline, and improve operating-model resilience and efficiency for sustained long-term shareholder value.