Glenn Schorr's questions to Northern Trust Corp (NTRS) leadership • Q4 2024
Question
Glenn Schorr inquired about the durability of Northern Trust's Net Interest Income (NII), questioning the sustainability of the 7% growth in noninterest-bearing deposits and seeking clarity on recent deposit pricing adjustments. He also asked for details on the company's alternative investments strategy, including its current state, build-out plans, and areas of client demand.
Answer
Chief Financial Officer David Fox explained that while some seasonality may exist in the growth of noninterest-bearing deposits, it was not unusual. He clarified that pricing adjustments are part of a comprehensive liquidity management strategy across multiple currencies. Chairman and CEO Michael O'Grady detailed the alternatives strategy, which spans investor solutions via 50 South Capital and a third-party manager platform, as well as administrative and banking services for private capital firms, noting that the platform is built but has room for expansion.