Northern Trust (NTRS) investor relations material

Strategic priorities and business performance

• Focus remains on three pillars: optimizing growth, strengthening resiliency, and driving productivity, with strong progress over the past two years and continued emphasis for 2026.

• Revenue growth averaged 7% annually, with positive operating leverage and double-digit EPS growth, targeting further acceleration in 2026.

• Asset servicing business aims to improve margins from low 20s to high 20s over the next few years, prioritizing profitable growth and selective client acquisition.

• Wealth management strategy leverages differentiated capabilities for ultra-high net worth and family office clients, expanding services to lower tiers.

• Alternative investments are a key growth area, with allocations below 5% but significant upside as new products and third-party offerings are added.

Digital assets and technology investments

• Investments in digital asset capabilities focus on interoperability between digital and traditional platforms, with targeted spending and innovation in tokenized assets.

• Expansion from private to public blockchain is underway, requiring further investment and representing the next major stage in digital asset services.

• Commercialization opportunities include tokenization of money market funds and other illiquid assets, though revenue impact is still uncertain.

• Technology and education are emphasized to enhance client experience in alternative investments and digital asset offerings.

Financial outlook and capital management

• Net interest income (NII) is expected to finish the year up mid to high single digits, with Q4 tracking flat to marginally up versus Q3, supported by strong deposit levels and proactive balance sheet management.

• Expense growth is held below 5% for the year, with a dynamic, productivity-first planning process for 2026 to maintain positive operating leverage.

• Fee income is projected to show strong progression in Q4, aided by market gains and a robust business pipeline.

• 2026 NII guidance assumes three rate cuts, with mitigating actions in place to maintain flat or slightly up performance year-over-year.

• Capital return priorities include maintaining a strong buffer, with buybacks expected to continue at a similar pace as 2025, subject to business and market conditions.