Northern Trust Corp Files Q2 2024 10-Q

TL;DR

**NTCC Q2 10-Q filed. Financials look solid.**

AI Summary

Northern Trust Corporation filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position. Key financial data points and disclosures are presented, reflecting the company's operations in the second quarter of 2024.

Why It Matters

This filing provides investors and analysts with crucial financial details about Northern Trust's performance and stability during the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the specific quarter for which financial information is provided.)
• 12/31 — Fiscal Year End (Specifies the end date of the company's fiscal year.)

Key Players & Entities

• NORTHERN TRUST CORP (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 0000073124 (company) — Central Index Key for Northern Trust Corp
• 6022 (industry_code) — Standard Industrial Classification for Commercial Banks
• DE (state) — State of incorporation
• 1231 (date) — Fiscal year end
• 3126306000 (phone_number) — Business phone number

FAQ

Key Financial Figures

• $1.66 — ange on which registered Common Stock, $1.66 2/3 Par Value NTRS The NASDAQ Stock Mar
• $958.4 m — ee months ended June 30, 2024 increased $958.4 million, or 55%, to $2.72 billion in the
• $2.72 billion — 24 increased $958.4 million, or 55%, to $2.72 billion in the current quarter from $1.76 billi
• $1.76 billion — .72 billion in the current quarter from $1.76 billion in the prior-year quarter. The current-
• $878.4 million — . The current-quarter results include a $878.4 million net gain related to the Visa transactio
• $69.8 m — ment and Other Servicing Fees increased $69.8 million, or 6%, from $1.10 billion in the
• $1.10 billion — es increased $69.8 million, or 6%, from $1.10 billion in the prior-year quarter to $1.17 bill
• $1.17 billion — 10 billion in the prior-year quarter to $1.17 billion in the current quarter, primarily due t
• $877.2 million — ss. Other Noninterest Income increased $877.2 million from $149.3 million in the prior-year q
• $149.3 million — st Income increased $877.2 million from $149.3 million in the prior-year quarter to $1.03 bill
• $1.03 billion — .3 million in the prior-year quarter to $1.03 billion in the current quarter. The increase in
• $11.4 m — stments. Net Interest Income increased $11.4 million, or 2%, to $522.9 million in the
• $522.9 million — come increased $11.4 million, or 2%, to $522.9 million in the current quarter as compared to $
• $511.5 million — n in the current quarter as compared to $511.5 million in the prior-year quarter, primarily du
• $8.0 m — re was a Provision for Credit Losses of $8.0 million, as compared to a negative Provis

Filing Documents

• ntrs-20240630.htm (10-Q) — 5678KB
• q22024ex311.htm (EX-31.1) — 11KB
• q22024ex312.htm (EX-31.2) — 11KB
• q22024ex32.htm (EX-32) — 7KB
• 0000073124-24-000206.txt ( ) — 27090KB
• ntrs-20240630.xsd (EX-101.SCH) — 105KB
• ntrs-20240630_cal.xml (EX-101.CAL) — 208KB
• ntrs-20240630_def.xml (EX-101.DEF) — 730KB
• ntrs-20240630_lab.xml (EX-101.LAB) — 1180KB
• ntrs-20240630_pre.xml (EX-101.PRE) — 986KB
• ntrs-20240630_htm.xml (XML) — 6993KB

– Financial Information

Part I – Financial Information Items 2 and 3: Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk 3

: Consolidated Financial Statements (unaudited)

Item 1: Consolidated Financial Statements (unaudited) 34 Consolidated Balance Sheets 34 Consolidated Statements of Income 35 Consolidated Statements of Comprehensive Income 35 Consolidated Statements of Changes in Stockholders' Equity 36 Consolidated Statements of Cash Flows 37

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 38

: Controls and Procedures

Item 4: Controls and Procedures 85

– Other Information

Part II – Other Information

: Legal Proceedings

Item 1: Legal Proceedings 86

: Risk Factors

Item 1A: Risk Factors 86

: Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2: Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 86

: Defaults Upon Senior Securities

Item 3: Defaults Upon Senior Securities 86

: Mine Safety Disclosures

Item 4: Mine Safety Disclosures 86

: Other Information

Item 5: Other Information 86

: Exhibits

Item 6: Exhibits 87

Signatures

Signatures 88 i CONSOLIDATED FINANCIAL HIGHLIGHTS (UNAUDITED) THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, CONDENSED INCOME STATEMENTS ($ In Millions) 2024 2023 % CHANGE (1) 2024 2023 % CHANGE (1) Noninterest Income $ 2,192.6 $ 1,245.6 76 % $ 3,311.3 $ 2,459.0 35 % Net Interest Income 522.9 511.5 2 1,051.0 1,042.7 1 Total Revenue 2,715.5 1,757.1 55 4,362.3 3,501.7 25 Provision for Credit Losses 8.0 (15.5) N/M (0.5) (0.5) N/M Noninterest Expense 1,533.9 1,331.9 15 2,898.6 2,617.5 11 Income before Income Taxes 1,173.6 440.7 166 1,464.2 884.7 66 Provision for Income Taxes 277.5 108.9 155 353.4 218.3 62 Net Income $ 896.1 $ 331.8 170 % $ 1,110.8 $ 666.4 67 % PER COMMON SHARE Net Income — Basic $ 4.35 $ 1.56 179 % $ 5.30 $ 3.07 72 % — Diluted 4.34 1.56 179 5.28 3.07 72 Cash Dividends Declared Per Common Share 0.75 0.75 — 1.50 1.50 — Book Value — End of Period (EOP) 58.38 51.94 12 58.38 51.94 12 Market Price — EOP 83.98 74.14 13 83.98 74.14 13 SELECTED BALANCE SHEET DATA ($ In Millions) JUNE 30, 2024 DECEMBER 31, 2023 % CHANGE (1) End of Period: Total Assets $ 156,797.1 $ 150,783.1 4 % Earning Assets 144,445.3 140,369.6 3 Deposits 122,990.9 116,164.0 6 Stockholders' Equity 12,655.8 11,897.9 6 THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2024 2023 % CHANGE (1) 2024 2023 % CHANGE (1) Average Balances: Total Assets $ 148,001.2 $ 145,899.6 1 % $ 146,559.8 $ 146,973.8 — % Earning Assets 135,401.1 134,116.4 1 134,608.9 135,031.8 — Deposits 113,341.6 105,598.7 7 112,852.2 108,874.0 4 Stockholders' Equity 12,358.8 11,448.7 8 12,071.3 11,365.5 6 CLIENT ASSETS ($ In Billions) JUNE 30, 2024 DECEMBER 31, 2023 % CHANGE (1) Assets Under Custody/Administration (2) $ 16,567.4 $ 15,404.9 8 % Assets Under Custody 13,041.4 11,916.5 9 Assets Under Management 1,526.7 1,434.5 6 N/M - Not meaningful (1) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Consolidated Financi

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Items 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures about Market Risk The following is management's discussion and analysis of the financial condition and results of operations (MD&A) of Northern Trust Corporation (Corporation) for the second quarter of 2024. The following should be read in conjunction with the consolidated financial statements and related footnotes included in this report as well as the Annual Report on Form 10-K for the year ended December 31, 2023. Investors also should read the section entitled "Forward-Looking Statements." Certain terms used in this report are defined in the Glossary included in our Annual Report on Form 10-K for the year ended December 31, 2023. SECOND QUARTER CONSOLIDATED RESULTS OF OPERATIONS General The Corporation is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals. The Corporation focuses on managing and servicing client assets through its two client-focused reporting segments: Asset Servicing and Wealth Management. Asset management and related services are provided to Asset Servicing and Wealth Management clients primarily by the Asset Management business. Except where the context requires otherwise, the terms "Northern Trust," "we," "us," "our," "its," or similar terms mean the Corporation and its subsidiaries on a consolidated basis. Overview of Financial Results Revenue for the three months ended June 30, 2024 increased $958.4 million, or 55%, to $2.72 billion in the current quarter from $1.76 billion in the prior-year quarter. The current-quarter results include a $878.4 million net gain related to the Visa transactions. For further detail on the Visa transactions, refer to Note 20—Commitments and Contingent Liabilities for further information. Trust, Investment and Other Servic

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View this 10-Q filing on SEC EDGAR