Brennan Hawken's questions to Northern Trust Corp (NTRS) leadership • Q4 2024
Question
Brennan Hawken sought confirmation on the company's 2025 expense growth target of 5% or better, referencing perceived uncertainty in prior comments. He also questioned if the medium-term Return on Equity (ROE) target of 10-15% is ambitious enough, given recent performance and growth.
Answer
Chief Financial Officer David Fox affirmed with 'very strong conviction' that the 2025 expense growth target is at or below 5%, emphasizing the goal of creating a resilient business model. Chairman and CEO Michael O'Grady defended the 10-15% ROE range, stating it balances the pursuit of higher returns with the need to invest in long-term growth, noting they aim for the upper half of that range.