Steven Chubak's questions to Northern Trust Corp (NTRS) leadership • Q4 2024
Question
Steven Chubak asked what drove the subdued AUM and AUC growth in Q4 relative to peers despite strong organic growth commentary, and if the company would consider adding organic growth to its formal targets. He also questioned why the pretax margin target was set at 30% when that level was already achieved in the latter half of the year.
Answer
Chief Financial Officer David Fox attributed the sequential AUC decline primarily to unfavorable currency movements (80%) and exposure to underperforming fixed income and international markets. Chairman and CEO Michael O'Grady stated there are no plans to add formal organic growth targets due to the estimates involved. He clarified the 30% pretax margin target is about achieving the right long-term balance between growth and returns, noting the full-year margin was still below that level.