Q1 2025 Northern Trust Corp Earnings Call Transcript
Key Points
- Northern Trust Corp (NTRS) achieved its third consecutive quarter of positive operating leverage, driven by mid-single-digit growth in trust fees and net interest income.
- The company reported a 13% increase in EPS, excluding notable items, and a return on common equity of 13%.
- Northern Trust Corp (NTRS) successfully raised $435 million to return to shareholders, reflecting strong capital management.
- The Asset Management segment saw strong fundraising, particularly in alternative investment solutions, with plans to nearly double capital raise versus prior year averages.
- The Wealth Management segment launched a dedicated ultra-high-net-worth segment, Family Office Solutions, which has already seen good client traction.
- Currency movements unfavorably impacted revenue growth by approximately 20 basis points.
- Trust, investment, and other servicing fees saw a 1% sequential decline.
- Net interest margin decreased by 2 basis points quarter-over-quarter.
- Expenses increased by 3% sequentially and 4.8% year-over-year, reflecting higher compensation and outside services expenses.
- The company faces a challenging macroeconomic and market backdrop, which could impact future performance.
Good day, and welcome to the Northern Trust Corporation First Quarter 2025 Earnings Conference Call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Jennifer Childe, Director of Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to Northern Trust Corporation's First Quarter 2025 Earnings Conference Call. Joining me on our call this morning is Mike O'Grady, our Chairman and CEO; Dave Fox, our Chief Financial Officer; John Landers, our Controller; and Trace Stegeman from our Investor Relations team. Our first quarter earnings press release and financial trends report are both available on our website at northerntrust.com. Also on our website, you will find our quarterly earnings review presentation, which we will use to guide today's conference call.
This April 22 call is being webcast live on northerntrust.com. The only authorized rebroadcast of this call is the
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