NORTHERN TRUST CORPORATION 2023 ANNUAL REPORT
FINANCIAL HIGHLIGHTS
2023 ANNUAL REPORT | FINANCIAL HIGHLIGHTS
2023 | 2022 | PERCENT CHANGE1 | |||||
For the year ended December 31 ($ in millions) | |||||||
Revenues (Fully Taxable Equivalent Basis2) | $ | 6,831.0 | $ | 6,806.8 | - % | ||
Net Income | 1,107.3 | 1,336.0 | (17) | ||||
Dividends Declared on Common Stock | 630.2 | 613.0 | 3 | ||||
Dividends Declared on Preferred Stock | 41.8 | 41.8 | - | ||||
Per Common Share | |||||||
Net Income - Basic | $ | 5.09 | $ | 6.16 | (17)% | ||
Net Income - Diluted | 5.08 | 6.14 | (17) | ||||
Cash Dividends Declared per Common Share | 3.00 | 2.90 | 3 | ||||
Book Value - End of Period | 53.69 | 49.78 | 8 | ||||
Market Value - End of Period | 84.38 | 88.49 | (5) | ||||
At Year-End ($ in millions) | |||||||
Earning Assets | $ | 140,369.6 | $ | 142,484.7 | (1)% | ||
Total Assets | 150,783.1 | 155,036.7 | (3) | ||||
Deposits | 116,164.0 | 123,932.1 | (6) | ||||
Stockholders' Equity | 11,897.9 | 11,259.5 | 6 | ||||
Average Balances ($ in millions) | |||||||
Earning Assets | $ | 130,801.3 | $ | 138,839.0 | (6)% | ||
Total Assets | 142,649.2 | 152,551.9 | (6) | ||||
Deposits | 105,245.5 | 125,592.4 | (16) | ||||
Stockholders' Equity | 11,496.8 | 11,081.4 | 4 | ||||
Client Assets at Year-End ($ in billions) | |||||||
Assets Under Custody / Administration | $ | 15,404.9 | $ | 13,604.0 | 13 % | ||
Assets Under Custody | 11,916.5 | 10,604.6 | 12 | ||||
Assets Under Management | 1,434.5 | 1,249.5 | 15 | ||||
Financial Ratios and Metrics | |||||||
Return on Average Common Equity | 10.0% | 12.7% | |||||
Return on Average Assets | 0.78 | 0.88 | |||||
Dividend Payout Ratio | 59.1 | 47.2 | |||||
Net Interest Margin (Fully Taxable Equivalent Basis2) | 1.56 | 1.39 | |||||
DECEMBER 31, 2023 | DECEMBER 31, 2022 | ||||||
CAPITAL RATIOS | Standardized | Advanced | Standardized | Advanced | |||
Approach | Approach | Approach | Approach | ||||
Common Equity Tier 1 Capital | 11.4% | 13.4% | 10.8% | 11.5% | |||
Tier 1 Capital | 12.3 | 14.5 | 11.8 | 12.5 | |||
Total Capital | 14.2 | 16.5 | 13.9 | 14.5 | |||
Tier 1 Leverage | 8.1 | 8.1 | 7.1 | 7.1 | |||
Supplementary Leverage | N/A | 8.6 | N/A | 7.9 | |||
- Percentage change calculations are based on actual balances rather than the rounded amounts presented.
-
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-taxseverance-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-taxseverance-related charge, and $14.0 million pre-tax occupancy charge.
2023 ANNUAL REPORT | FINANCIAL HIGHLIGHTS
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Northern Trust Corporation published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 16:43:06 UTC.
