Alexander Blostein's questions to Northern Trust Corp (NTRS) leadership • Q4 2024
Question
Alexander Blostein questioned the flexibility of the expense base, asking if the 'at or below 5%' growth target for 2025 is a firm commitment even in a stronger revenue environment. He also pressed for a more specific target for the expense-to-trust fee ratio for 2025.
Answer
Chairman and CEO Michael O'Grady acknowledged that some expenses naturally flex with revenue but stated the company is actively working to reduce this correlation, as demonstrated by the significant operating leverage in Q4. While declining to provide a specific 2025 target for the expense-to-fee ratio, he reiterated the goal is continued progress toward the medium-term range of 105-110%, highlighting the improvement to 113% in the current quarter.