David Smith's questions to Northern Trust Corp (NTRS) leadership • Q4 2024
Question
David Smith noted Northern Trust's elevated capital levels compared to peers and asked about near-term capital deployment plans and target capital ratios. He also inquired about the expected quarterly cadence of Net Interest Income (NII) throughout 2025, given the full-year guidance.
Answer
Chairman and CEO Michael O'Grady confirmed capital levels are strong, enabling higher share repurchases which are expected to continue at a similar pace in 2025, with a total payout ratio at or above the 78% seen in 2024. Chief Financial Officer David Fox explained that predicting the quarterly NII cadence is difficult due to the company's liability-driven model and the need to accommodate unpredictable client activity, such as loan demand.