Brian Bedell's questions to Northern Trust Corp (NTRS) leadership • Q4 2024
Question
Brian Bedell asked whether the company targets total operating leverage, including volatile NII, or if the primary focus remains on the expense-to-trust fee ratio. He also inquired about the strategy to increase the penetration of Northern Trust Asset Management (NTAM) products within its Wealth Management channel, and if the mix could return to historical highs.
Answer
Chief Financial Officer David Fox emphasized that the goal is a sustainable model, meaning the expense curve must decline regardless of market-driven NII performance. Chairman and CEO Michael O'Grady stated they see a positive opportunity to increase NTAM penetration by better aligning the businesses, segmenting solutions for different wealth tiers (GFO, ultra-high net worth), and expanding offerings like ETFs and alternatives.