Northern Trust Corp at Barclays Global Financial Services Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Goldberg - Barclays Services Corp - Analyst : <_ALACRA_META_ABSTRACT>So maybe, Pete, let me just start with you this Chief Operating Officer role, it was a newly created role. At the time, the release said you're going to focus on ensuring operational excellence and resiliency, effective risk management controls and scalable growth. It sounds like all important stuff. Just maybe talk to about what you've been up to specifically and just how that's translating into dollars and cents?

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess -- so 2026, more than $200 million in productivity savings, a little bit more fair amount more. Do you care to size that as something you have to wait until January to get on the earnings call and just maybe just more context to that?

Question: Jason Goldberg - Barclays Services Corp - Analyst : That's fair. I guess basically what you said is just how does that fit into this modernization resiliency initiative that you've been talking about for the last year or so? And just kind of where are we or what inning are we in that venture?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And I guess, Pete, as COO, you obviously also -- you're focused heavily on productivity. What are you doing to ensure the cost curve at Northern Trust really continues to bend down? And just maybe talk to how AI fits into that?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then maybe one thing that I've heard Mike talk about is this whole client centricity -- centric capability model. Maybe explain to lens what that is, how it differs from your previous framework, and is this more productivity thing? Or could there be a growth impact?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And I guess the other thing we've heard around Northern Trust is this whole kind of [One] Northern Trust, which I understand will be a multiyear kind of transformational approach. Maybe you can just expand on that, maybe detailing its impact and just informing us where you are in this journey?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Helpful. I guess, Dave, as we now have you involved, just maybe talk to one year in the role as CFO, I guess, any observations of no bigger surprises, positive, negative? Any particular changes in your leadership you want to highlight? I will say that we did appreciate some of the increased disclosure we got last quarter.

Question: Jason Goldberg - Barclays Services Corp - Analyst : Makes sense. I guess on the topic of leadership changes, maybe just talk about some of the recent ones. Last week, there was an announcement kind of changing the Head of Asset Management who was leaving, I think maybe a little bit of a surprise to outsiders. Maybe start with that and then we can kind of speak to some of the other leadership changes we've seen in the last year or so.

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then I guess this time last year may change it to asset servicing and wealth management. The other two, obviously, big businesses. Kind of just any kind of updated thoughts in terms of how those businesses are run? Or is it kind of more status quo? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 8:15PM, NTRS.OQ - Northern Trust Corp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And I guess maybe I was hoping you could kind of delve into some of the topics going around -- but global or just private markets in general is certainly something that's come up quite a bit. The growth there is expected -- has been and expected to REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 8:15PM, NTRS.OQ - Northern Trust Corp at Barclays Global Financial Services Conference continue to be pretty strong. Just how does -- how is Northern Trust positioned to capture this opportunity in the Asset Servicing side?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And then maybe, Dave, just back to your prior job as running Global Family Office. It's 8% revenue growth in the first half of the year. Just talk about opportunities to further grow that business? And just how does it kind of play into the broader wealth franchise?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And maybe kind of put up the next ARS question as we shift to the financials. But average deposits, I think, were $122 billion last quarter, up 6%. I know typically, we see a seasonal decline in 3Q. Maybe just kind of talk to what you're seeing on that front?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then I guess, record NII in the second quarter, up 16% year on year. So you've talked to kind of only mid-single-digit growth with 2025. Maybe just talk to some of the near-term puts and takes and obviously you have a short-duration balance sheet that that's going to likely cut next week, I'm told. So just how kind of we think about both the near-term and longer-term NII opportunities?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Yes. And I guess maybe on the fee income side, the markets have obviously been strong. Just maybe talk to the current backdrop, new wins, pipelines, expected trajectory. I know some of your businesses benefit from lag pricing, which is really strong. Just how should we think about that?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then just maybe on the expense side, you talked to -- we put the next ARS question why I ask this. But you talked to less than 5% expense growth this year. Is that still the case? How do we think our feeling about that.

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And then I guess, less than 5% this year is better than you did last year. So I guess how do we start to think about 2026? Could we do maybe less than 4% next year. You've also talked to this 105%, 110% expense to trust fee ratio and pretax margin targets. When do you think you can get to those?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And then second quarter was record share repurchase, but we still have so much capital. I mean, I think over 500 basis points of excess capital, look at the most recent stress test, the next highest bank is like 350. So I know the customer comes first, but like can you do more here?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And then, I guess, in July, you kind of increased your ROE target from 10% to 15% to 13% to 15%, is like 15% the ceiling? Or do you think kind of the -- of a lot of the stuff we talked about today, including that on Northern Trust strategy can get you to something higher eventually.

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And -- you got to bring up the late June Wall Street Holtry journal article, particularly because 1 of my Sunday nights. But I mentioned Bank of New York approach Northern to express interest emerging, and the CEO has talked. I know Mike was pretty direct on this earnings call in July that you never really entertain discussions regarding the sale of the company nor do we intend to. So I guess two questions. First off, why don't you think it makes sense to at least entertain discussions? And then maybe secondly, what leads you to believe that dependence is the right approach, just given these are scale businesses and you're not the largest player.

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess, Dave, you opened yourself up to the last question. But you brought up your investment banking background, Mike's investment banking background, I guess, on the flip side, like what do acquisitions play a role in kind of Northern Trust future in terms of being a buyer?