Q2 2024 Northern Trust Corp Earnings Call Transcript
Key Points
- Trust fees increased by 6% year-over-year, reflecting strong client activity and favorable equity markets.
- Northern Trust Corp (NTRS) recognized a pre-tax gain of nearly $900 million from the Visa Class B common stock exchange offer.
- Wealth management generated 9% year-over-year trust fee growth, with strong new business momentum.
- Asset management saw positive liquidity flows for the sixth consecutive quarter and strong performance in active fixed income.
- The company reported a return on average common equity of 31.2%, indicating strong profitability.
- Reported results included approximately $200 million in restructuring charges and other notable items.
- Net interest income was down 1% sequentially, indicating some pressure on interest margins.
- Expenses increased by 6.6% year-over-year, driven by higher compensation and outside services costs.
- The company experienced a client exit in the asset servicing business, impacting trust fees by a few million dollars.
- Non-interest expense was up 12% sequentially and 15% year-over-year, reflecting higher costs associated with modernization and resiliency investments.
Good day, and welcome to the Northern Trust Corporation's second-quarter 2024 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, ma'am.
Thank you, operator. Good morning, everyone. Welcome to Northern Trust Corporation's second-quarter 2024 earnings conference call. Joining me on our call this morning is Mike O'Grady, our Chairman and CEO; Jason Tyler, our Chief Financial Officer; John Landers, our Controller; and Grace Higgins from our Investor Relations team.
Our second-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 July 17th call is being webcast live on northerntrust.com. The only authorized rebroadcast
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