Northern Trust
Annual Report 2023

Plain-text annual report

20 23 A N N UA L R E P O RT F I N A N CI A L H I G H LI G H TS 2023 ANNUAL REPORT | FINANCIAL HIGHLIGHTS 2023 2022 PERCENT CHANGE1 For the year ended December 31 ($ in millions) Revenues (Fully Taxable Equivalent Basis2) Net Income Dividends Declared on Common Stock Dividends Declared on Preferred Stock Per Common Share Net Income — Basic Net Income — Diluted Cash Dividends Declared per Common Share Book Value — End of Period Market Value — End of Period At Year-End ($ in millions) Earning Assets Total Assets Deposits Stockholders’ Equity Average Balances ($ in millions) Earning Assets Total Assets Deposits Stockholders’ Equity Client Assets at Year-End ($ in billions) Assets Under Custody / Administration Assets Under Custody Assets Under Management Financial Ratios and Metrics Return on Average Common Equity Return on Average Assets Dividend Payout Ratio Net Interest Margin (Fully Taxable Equivalent Basis2) $ $ $ $ $ 6,831.0 1,107.3 630.2 41.8 5.09 5.08 3.00 53.69 84.38 140,369.6 150,783.1 116,164.0 11,897.9 130,801.3 142,649.2 105,245.5 11,496.8 15,404.9 11,916.5 1,434.5 $ $ $ $ $ 6,806.8 1,336.0 613.0 41.8 6.16 6.14 2.90 49.78 88.49 142,484.7 155,036.7 123,932.1 11,259.5 138,839.0 152,551.9 125,592.4 11,081.4 13,604.0 10,604.6 1,249.5 10.0% 0.78 59.1 1.56 12.7% 0.88 47.2 1.39 — % (17) 3 — (17)% (17) 3 8 (5) (1)% (3) (6) 6 (6)% (6) (16) 4 13 % 12 15 CAPITAL RATIOS Common Equity Tier 1 Capital Tier 1 Capital Total Capital Tier 1 Leverage Supplementary Leverage DECEMBER 31, 2023 DECEMBER 31, 2022 Standardized Approach Advanced Approach Standardized Approach Advanced Approach 11.4% 12.3 14.2 8.1 N/A 13.4% 14.5 16.5 8.1 8.6 10.8% 11.8 13.9 7.1 N/A 11.5% 12.5 14.5 7.1 7.9 1 Percentage change calculations are based on actual balances rather than the rounded amounts presented. 2 Revenues and Net Interest Margin are presented on a fully taxable equivalent basis, a non-generally accepted accounting principle financial measure that facilitates the analysis of asset yields. A reconciliation of revenues and net interest margin on a GAAP basis to revenue and net interest margin on an FTE basis is provided here. Note: FY 2023 revenue includes a $176.4 million pre-tax loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, recognized in Investment Security Gains (Losses), net, and a $6.9 million pre-tax gain upon sale of available for sale debt securities. FY 2023 expense includes an $84.6 million pre-tax Federal Deposit Insurance Corporation (FDIC) special assessment, $38.7 million pre-tax severance-related charge, $25.6 million pre-tax charge related to the write-off of an investment in a client capability, and $12.8 million pre-tax occupancy charge. FY 2022 revenue includes a $213.0 million pre-tax loss on available for sale debt securities recorded in Investment Security Gains (Losses), net, related to an intent to sell, arising from a repositioning of the portfolio. FY 2022 expense includes a $44.1 million pre-tax pension settlement charge, $32.0 million pre-tax severance-related charge, and $14.0 million pre-tax occupancy charge. 2023 ANNUAL REPORT | FINANCIAL HIGHLIGHTS

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