NTRS - Earnings call transcript Q1 2021 | Northern Trust Corporation

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Operator

Good day. And welcome to Northern Trust First Quarter 2021 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Mark Bette, Director of Investor Relations. ahead. go Please

Mark Bette

Good Corporation’s Olivia. And to welcome Thank quarter morning, XXXX Trust first earnings Northern you, everyone. conference call.

our CEO; Chief Joining our Lernihan from our on call Relations are Kelly morning me team. Investor Mike Controller; Chairman and and Officer; Jason Financial our our Tyler, Lauren Allnutt, this O'Grady,

only presentation website use press find on Also our is guide replay you will being earnings release call after report webcast call. information authorized XXth available May live quarter rebroadcast be any will northerntrust.com. financial first today. Trust this This on trends will both on call at are quarterly the the northerntrust.com. which earnings continuing today’s is Northern conference in website review of our through The Our to and XXth. provided call available this made our we on of our that April disclaims website, accuracy

our include that course, future predict. and implied today’s future XXXX statements, and is Exchange uncertainties What materially Safe to expectations you these filed of Actual we events Now of which statement. affect Securities the Form those expressed current for from results. and differ by reports because during many Trust’s of results, statements Northern could forward-looking with results. report the realization actual difficult say XX-K to Harbor Commission estimates for may those could information or call or conference on subject our to are I annual that results risks factors about urge are read and detailed other

joining us enable many as today. the to related and to query the people as for initial Thank queue follow-up. us questions and your question as limit please session, through question-and-answer ask permits. This again allow will move today’s you one possible time opportunity to During one

turn to the call Mike me over O'Grady. Let

Mike O'Grady

Thank you, Mark.

we providing healthy which call quarter what ongoing hope and operate our public and your while resiliency our focused are call. on clients health welcoming continue are join XXXX to remotely. families our you of are Trust, Northern of first me in Let service, I mode, to crisis, working in worldwide majority we continuity earnings employees well. you means we At the Amid the

the wanted Jason in offer comments financials on some call through performance Before quarter. to walk over detail, turning to to the our for the I brief

by growth Our the pressured versus declines the share the The offset results as return in in year rate as Revenue average with persistent interest interest environment money year, trust consistent per fees. prior fees waivers. by XX.X%. well and of income, interest as for were revenue growth X% earnings trading-related our equity trust common reflected prior resulted quarter on and of a was net fee low has income our in market net X% as

outlook, X% in which did past clients our losses. negative, with we’ve our was more the of our leverage momentum. business, first marketing fees key despite organic our sequential we needs the Within prior trust further as Asset operating experienced experienced our during fee within at year-over-year the one and quarter, from engagement see Northern challenging quarters’ X% an across drove driven support average balances. this improved growth capital providing overall management release X growth this While during growth demonstrated to success year, efforts relative and we products profile see and in engagement, total for Institute us loan the base in mandates, Within within of of growth success an $XXX have growth saw average quarter. our impact businesses, us to the of deposits Management, liquidity strong Throughout effectively assets Servicing increase growth also ESG The credit on current In Trust reduced point client we our digital under environment, the fee of fee percentage $XX we performance, Throughout continue and have and and Asset continued Wealth the results continue of being the with sequential the growth well produce have reserves to drive of trust initiatives XX% active positive economic our points. versus benefited quant good was billion during X quarter regions, by initiatives. year executed which million strategic in client enabled to to leverage, organic strategies segments. have each a conversations Management, end strong quarter, diversified and and operating and waivers,

Moving a continuing rate effectively to through to interest forward, on the well focused persistent we and manner. organically in scalable efficiencies, navigate on driving focusing as environment, greater remain grow low profitable as continuing

expertise commitment, extraordinary want throughout exceptional. express I these sincere Finally, be for to continues and our appreciation to times employees professionalism whose my

Now, Jason let to to financial in our quarter. detail the results greater turn the review me call for

Jason Tyler

Thank you, Mike.

you Mark first earnings in call. quarter XXXX to Let welcoming join Mike me and our

the return Let’s on earnings equity into was first share and $X.XX $XXX.X morning quarter average reported of dive were net quarter the two. on per This we million, XX.X%. our financial starting page income results of common

fees sequential both or equity on a markets in portion the local quarter. Recall XXX performed EAFE bottom significant levels strong had on of lag based based that the those on month see trust our S&P of two, quarter and asset You well are performance can the calculations. page during lag

-- during modest million quarter. Year-over-year charges. net interest the review relating the shown this and to non-interest up sequential interest income severance of prior Net Move and and XX%. up income year income expense X% average Expenses net up while down prior increased three-month the and Recall three grew revenue included and page comparison, highlights the XX%. As that Expenses on occupancy net the first with up $XX.X income financial the slightly. were with revenue declined X% one-month to was In with is flat X% X%. page, income income X%, declines. quarter rates non-interest LIBOR X%. increased quarter in stable

quarter. the portfolio X% on charges, quarter, by conditions prior average XX.X% ago the million quarter. expenses million driven sequential the X.X% the a million on up in a relative equity projected a provision reflected of was for $XX the the prior Return reserves to prior compared of The those release credit $XX The were for credit Excluding provision on quarter and losses in year -- and to was basis. in a $X.X in improvement of the a per release economic in up release in the continued quarter, year a prior XX.X% and common from and quality quarter.

X% and on sequential Assets grew trillion under of basis. and ago custody administration year a from a $XX.X XX% increased

Assets under year a custody trillion increased XX% $XX.X ago and on X% grew of a basis. from sequential

sequential from trillion, on year XX% up a Assets under $X.X and management ago a were X% basis. up

Let’s starting in greater look at the with results page on revenue detail four.

First and quarter of revenue $X.X representing Trust, last billion the equivalent up X% investment $X.X and from on revenue, was largest up X% the flat and year sequentially. a taxable sequentially. component basis and billion, totaled prior were other year X% our fully with servicing fees

The was product. one offset Other supplemental XX% million from operating year transition X% quarter, down volumes. the The sequentially. was income agreements. XX% trading was sequentially. $XX growth a income year The solutions sequential capital a and volatility, plans up activity. by growth impacted million market by income higher and year higher by non-interest compared XX% up management Within trading integrated and compensation and a to the up exchange ago, and ago relating in commissions volume decline ago interest for swap through XX% The partially a and prior with adjustment it totaled performance within ago components income, higher and a strong X% associated was seed by down compared to year-over-year operating to interest includes expense value XX% investment, income year-over-year agreements. sequential more core totaled I’ll up but growth to decline visa year and brokerage the sequential up XX% supplemental driven which securities later lower compared year and year-over-year performance driven million quarter, year was was swap from sequentially. $XX visa in within trading a sequentially. our on related up a the while compensation this, Net to primarily expense. which was reflected increase discuss is relating remaining declined lower business, plans swap had Foreign basis. The expense The detail the income increased the and XX% first quarter, of rate up $XXX by was our $XXX ago lower driven in sequential in lower The other our million slightly

of components and page the at look Let’s trust on fees investment five. our

first and fund $XXX year-over-year institutional fees markets, fees Custody the and business, services year-over-year, and X% corporate quarter up and totaled For and in year-over-year translation. and sequentially. sequential up were million The primarily X% million driven a increase up currency by $XXX XX% were administration X% was basis. on up volumes. and is by business and new currency transaction business, translation performance favorable new higher sequential favorable driven The favorable

unfavorable administration and management quarter $XX Fee quarter. partially new market The driven in The compared sequentially. driven favorable prior down performance for new by fees and favorable markets. Both is currency in fee in growth by C&IS Investment favorable C&IS C&IS were million the million custody business XX% markets, higher were translation. markets year-over-year the sequentially. comparisons impacted X% year-over-year totaled new end, year-over-year were partially currency $XX.X at translation. trillion by business offset offset clients by $XX.X first X% and Assets money favorable up under X% quarter, business, down $XXX was of sequential in up to and million waivers and waivers, by

XX% while by in by XX% for up year The favorable by The driven lower The higher decline million and was driven were prior XX% year-over-year by levels Securities markets XX% spreads. Average driven collateral the flows and C&IS the $X.X performance year-over-year up favorable translation. and sequential were lending markets, spreads, currency was $XX year-over-year growth management down partially was under by were clients up sequentially. growth year-over-year driven X% and trillion, X% flow. fees was client and sequentially. sequential up up from offset favorable net Assets quarter, volumes, the lower sequentially.

by prior primarily quarter. fee higher year-over-year partially were a fee growth and impacted Across reflected the market. and regions were markets, favorable were waivers, fees wealth to offset fees $XX Within compared investment X% totaled in first Moving servicing year $XXX Fee million waivers trust, both quarter, other million to and the our compared management to in up were year-over-year quarter. million partially both sequential global favorable and and by offset and the lower office, prior family the waivers. on higher basis $XX wealth sequentially management prior business, by and

management up Assets under wealth XX% at and and billion growth client was up year-over-year by markets while partially by X% favorable management for sequential quarter our outflows. year-over-year end, were clients the flows, performance markets, favorable reflected driven The $XXX offset net sequentially.

income year. XX% versus Earning quarter down to interest deposits six, prior the versus million year. $XXX Moving was XX% assets averaged quarter, prior in page in were prior billion XX% the and and year. up net was the the billion Average up the from $XXX $XXX were

balance as was loan from due balances lower The quarter make a year. sequential basis shift sheet. sequentially interest margin points the in up well and basis, to up slightly. primarily assets net interest points net on earning were X% prior income rates, declined Average as averaged ago. a X While interest within sequential XX%. year a and basis average On X% billion basis margin down net shift sheet net to due margin was deposits and interest The $XX.X partially while increased quarter increased interest were X% the declined the mix balance compared rates. the lower XX to The

our first reduction $X.X strategy. million higher an $XX $XX.X were workplace associated the quarter prior or enforced lease lower X% arising million expenses exit estate seven, with than an severance the prior included related X% page to real quarter to and year Turning in early from and sequentially. a a expense The charge billion

driven totaled incentive was and X% was million was growth, and pay Excluding adjustments, sequentially. salary down base and due up to compared by prior these staff items year Compensation expenses growth $XXX expense translation. unfavorable higher expense higher sequentially. were X% expense year currency X% The the to up prior year-over-year

incentives. the prior XX% sequentially, by up in compensation charge equity the was driven cash Excluding based primarily higher period, and

was year-over-year ago staff, quarter’s sequentially. increase increase medical Employee in was associated This and $XX to expense eligible year the driven sequential equity incentives higher X% The million up expense. expense up costs, was partially charge. partially costs. was The XX% included down growth payroll up million to prior third-party and was compared $XX benefits retirement lower payroll of included million retirement, data one $XXX driven $XXX a in data sub-custody, withholding primarily primarily expense Prior by million from and X% year. consulting with ago the $X.X processing Outside year medical by The offset year-over-year X% prior by and withholding, offset higher higher a quarter. advisor lower market million costs. by was and services quarter from and related from

the Excluding down related growth ago from was sequentially. XX% due a included $XX.X of primarily down expense were were to lease $XXX Occupancy higher expense year and charge of costs. software to $XX The The amortization and and quarter flat prior X% software million consulting down services an up legal, a Equipment early X% from million and costs basis. and one lower X% technical charge relating exit. reflected year sequential an million ago support on year-over-year costs.

was expenses, supplemental XX% ratios ratio XX.X% our our other plan equity approach. partially Turn a costs. standardized and approach by charge, the capital the year compensation driven remained building ago X of increase on common sequential of primarily with the sequentially. by staff miscellaneous driven Tier by flat higher million $XX lower rent operating and relatively expense operation related and that under strong expense business XX% Excluding was lower category page a to year-over-year The lower promotion from eight, X% down advanced under and and expense. Other up was costs basis offset

and Tier was standardized leverage approaches. X.X% advanced ratio Our both the under X

the we million. million shares $XXX During common of first X.X quarter, at cost a repurchase of stock

support to $XXX The continues We current also shareholders. declared to base demonstrate the capital importance totaling million share, profile needs. a environment cash dividends client’s of liquidity and strong $X.XX per of common our to

service to and provide they’ve exceptional expertise clients expect. to solution our We continue with the come

Asset to conference call Our answer to across Management Mike, please the for and Trust competitive happy would marketplace. your Servicing our each Asset Lauren positioning be you again of the earnings in and Thank questions. open continues Wealth well Northern in quarter businesses, line. Management, participating resonate today. I Olivia, first Mark,

Operator

Evercore. first is Please question from ahead. you. Our Thank Instructions] [Operator go with coming Glenn Schorr

Mike O'Grady

Glenn. morning, Good

Glenn Schorr

Good XX heard the net flows whether Thank in morning. one, I throughout parts lot On is new ESG mandates either within Thanks minutes of quantify very I question Asset of your Management, prepared but take winning maybe has prepared remarks. heard you lot about my is on any I’ll of of or very organic think business, up commentary you you’re I much. most your seeing remarks, pandemic and a pause Asset a guess positive you much. growth. I Servicing now talk of been business, kind there can you you’re related that them. in where cover what qualify, business freeing across

Thanks. great? would So on that any be color

Jason Tyler

Yeah. Mike, want do on you start to it?

Mike O'Grady

Sure.

and would imagine, And been as the clients. also, clients. strategy through I specifically them of foundation say, clients, across important. being place able right you going first I Glenn, company if to I the support the extremely earned you has So, started will continue strong the us But largest of pandemic, our to I to think, you serve Asset growth our there, the in existing many our would would are seeing is described retaining growth we organic as And Servicing. clients

So big that’s a positive. been

have seen, marketplace would Second, I I say full is return would that, we activity. to a say,

So do effective asset the or that. their to for our own are looking behalf in operating asset improving their on opportunities either invest models actively how and become looking both efficiency way and the beneficiaries of more of at they clients, they managers owners

operations played utilizing consolidating in that or new very into and had technology Servicing Asset well that has we’ve strategies So, underway our years. providers, for

about middle and well, resonating our their strategy front, of provide business things So whole as office. manager in the record solutions, manage and can to that our office thinking back thinking book of clients their like services is have alternative where we at which assets, portfolio high about front definitely clients, for is order ability levels look to an then investment office asset across across

So high say, then, with for we’ve some of level in strategies had and I period. would success place activity time

Glenn Schorr

it. net feel the up deposits on bottoms finally you you. ton, last just income, follow-up the Maybe and income that. but were a now behind backup down NIM X, net redeployment interest terms has maybe some Appreciate thoughts do was your interest Appreciate Thank that in of opportunities? of

Jason Tyler

if if million and a average don’t billion on I and that was unpack on it. impact, Sure. mean, dollar the I effectively, has few bottom assets. those our quarter want $X you strong call we to loan a up return that saw you take growth

the still If the $X million going going billion, anywhere deposits from from think predictable for the and points do. is points get overall. you’re XXX to more then that’s $X some still XXX But -- to continues as had, to basis lift you mature lift that’s that’s going $X book you security And have basis quarter. to reinvestment also offset on in or by million that in to got forward, something which maturation we’re obviously,

but And then what’s other easier happen on so continue going important loan that’s obviously, we’re volume. reinvestment the more we side, components of seeing strong the loan then to see side, it’s to to on demand the happen than to going if what on what’s predict

Operator

Thank you.

next Fargo. Our Wells Please from comes with go question Mike ahead. Mayo

Mike Mayo

Hi.

Jason Tyler

Mike. Hi,

Mike Mayo

Annual priority today your productivity. at is XXXX a see I Meeting

side, waivers I side, have actually back But the continue not to the year was margin imagine last headcounts achieve. put quarter-over-quarter, what And some where XXs, to metrics pretax was is it might to the fee the X% and I you’d on around negative on the will So positive first quarter the I increase. you the down all. wondering if like could see at

would and it to year? get like end all where you up So where to this does

Mike O'Grady

Yeah.

Let different in take a me buckets. that few

You’re to That’s everything discipline the extreme new predictable. we on to is can go business. And and right. can But do The productivity earn do we not exhibit scratch hard side. It’s is and extraordinarily and overly important. productivity we what claw we do.

earlier. external internally we talked leverage. operating metrics to look of put at which at look We at fee fee haven’t and lot to internally. And so leverage look we’re but that, then at about able different leverage, we ways we’re operating looking it operating a trust organic We

coming see down, -- we lot our call we business up And lift that’s -- see the to continue our to it’s related of to a lot because so amount from organic proper or we if we’re business -- to in. to relates And the of make new our in perspective, we we of the growth just want coming don’t business, show different to expenses the just relates those expenses, in in growth that’s want in. to expenses to want of want way going sure a the areas

down meaningful for right, lower so you’re talked Now, comes of headcount headcount in reduction the for that we and initiatives a company. the about was back through us you in salary -- played that to expense about see it’s that and and XXX January

end it’s this is And on of waivers, that very so we we’ve you’re commitment that’s still movements the very, seeing -- I management. have of discipline a curve. facing. and we the talked right, have fee Then million it’s difficult reflective rates those expense -- short that need also are on a the dynamic -- I quarter, we’re the we’re think fact the that people about that lower a to around think and meaningful And $XX the realize

XX-year waivers going. funds. and at not on basis. run we’ve and very sit fee rate we’ve billion $XXX And to that but information, million are to pool consistent As $XX more quarterly give a a consistent one a we’ve that’s how rate as we like And looks zero $XX on money run right million much now guidance, those up, the of number five-year, why market seen for that’s year, repo tried one overnight difficult seen as

impact monitor there. Now, we it’s improvement hopefully, identified. sheet that’s has you on and have it and to a big obviously see as the some the we pretax sit today we Fed balance changes, something margin where But so

Mike Mayo

the market you remind your the asset then And the every fees? stock can us I guess one relationship you between change and have in higher of tailwind values, the

Mike O'Grady

asset In Sure. about It’s general XX% ways based top values even and you of varies might the your areas some talking Mark, going in close in the can it’s… in numbers -- business head, we’re split about. more. have that then to XX% but XX% C&IS, wealth, those by it are of on to you

Mark Bette

Right. a at are management, equity asset the or as really Yeah. C&IS family a asset across mark well the the equity would that’s when of XX%, look is all there cash. fixed equity equity is then XX% as assets, third… office, there closer regions income to the probably probably get but sensitivity different. assets, be as in to more values, in global sensitivity The values, XX% to is -- you a is which sensitivity looking wealth And if we And the whereas to what you the is equity little the there relationship

Mike O'Grady

Yeah.

Mark Bette

because the allocated. the just client’s of assets are … way

Operator

you. Thank

will ahead. Hawken UBS. Please We with go to now Brennan go

Brennan Hawken

morning. for taking questions. Good Thanks my

back you It which quite from trending half and on do this first as might are Bank thoughts there? the deposits here, the much the were on significant duration went loan of lot deposit was in How sheet these asset so growth on the view a how seems your think would curious about the as this imply of year though I is robust you last that of pretty a -- up, deposits. Central excess? So, things short It inflection growth. balance -- am side

need in and deposits do time you those do growth be you your for So to how sustainability redeploying if that? might thinking of on deposits how about over in time some give are order you could and maybe color what the expectations this much

Mike O'Grady

Sure.

to up interestingly to I mean the right, deposits you’re deposits we interest-related is interest-bearing that were So I good think up, on news hold total margin. and able the

much levels is your treasury at despite even -- do the Central of net capacity deposits, saw the zero To those putting and there’s doubt take also question the would to That longer those. ones beyond cost. decline below that things those how the and deposits there volume lot got part that let we those -- that Banks. book we deposits, And in said, is nature and do, no a we’ve let a that’s on of sheet. LIBOR season fact the we the and decline balance other term think before But trans book of types in more can You are of of we more a run get because are meaningful. so the book the would more are to institutional I need to in non-operational before and them in we about be might season exposure we transitional obviously, the nature saw

Brennan Hawken

think question Okay. All loan about, think when NII, when to Thanks. about, in really, Glenn’s that. the it’s between right. in response you growth in you then a and we rates. commented Appreciate -- Jason And would I footrace about think, had reinvestment

the not but I half last than growth bit all of loan think picked higher back trend here of up versus the the quarter average. year, this that necessarily period your end,

three-month you. that loan from we those think as LIBORs about for off So better about seen rate And month to loan are are and -- is here? loans demand the still should What for you think your looking Thank amongst as at the rates? book still we growth clients? one how far

Jason Tyler

Sure.

having that’s NII levels -- is in the all, Wealth talked meaningful. really vast the it’s is side from we’ve consistently of the the do And almost or has growth big deposits, Management the in be. So, fact much as as to about exclusively And vast, billion chunky, majority come more predict higher and deposits, has deposit the demand NII. not the though it much difficult what business. that will $X It impact very dollars, the they’re too loan don’t loan the even of first but come for interesting meaningful on average quite are,

and we’ve be half, random. about and what about year isn’t with say, communicating two over I’d years, have liquidity experienced more the last clients and we this to provider However, for talked fact them desire a the simply, We’ve with aggressively them. that is our be a been

engagement also $XXX part that clients sheet money on liquidity there but and also on the is market lending clients. in what funds, billion -- AUM do we of with business and on with the again, on it’s in a up the our big shows side, Wealth where, Management not Our the just deposits balance particularly

And hold on this think, a to to more is so -- lift potentially I it’s so accelerate. don’t it’s more random predictive that that’s strategic going continue of has dismissing that we and not see something been, is we’re or either. But it

Operator

Thank you.

with to go Sachs. now Please will We ahead. go Goldman Alex Blostein

Mike O'Grady

Alex. morning, Good

Alex Blostein

how kind your us minimums. for you relative how ratios. That’s Can bar, not obviously continue be you remind strong Hey. guys the talk morning. guys. little morning, you you and Good look binding to Great. to constraints regulatory maybe the Northern bit, little about peers. Trust, capital in of all key or very obviously, for typically a of to about at the Thanks Good think taking bit the set position question. I want across shift gears kind a

So given of some kind and of thinking then, of from how they’re made your the to Northern inform at buybacks into run they translate and does How the how here? increased your that changes have minimum ultimately, appetite access does about that Trust that with? for levels willing capital setting view they’re

Mike O'Grady

Sure.

Board heard more things relative how now calculation on doing guys aligned, important. sure where conversation about point. we the basis want but we where doing regulatory at think it’s less just on and absolute basis what basis, to eye right are on is -- consistently we an right, make thinking you’re -- an from be have We that process, that how talk with is less a about us take that about a the want And to and we things a about this algebraic you industry engagement think of say of a to relative on So, where an our perspective. continues place, we’re I’d keeping it’s we totally -- I’ve

CETX So We’ve of less room where a are. the so. regulatory plenty absolute obviously got levels at XX from sitting given minimum the perspective

X you so though $XXX we’re still Tier and the about we’ve if significantly, that’s Xs -- average into leverage, the And deposit billion even well talked about printed think industry base. coming has down

a So not look you giving I’m but out take just to here, our I’m get your about capacity what number, buffers not our going -- question would like. to just X%

translate have billion way you all today. could down the If deposits, $XXX the you on would and equal to to about X%, sheet balance balance else billion $XXX all of that came in a sheet

you’re a easily about And of billion for on also, we use base so it’s think, balance And we $XXX that’s $XX lot for and room. clients know. organizations so don’t the a not of sheet billion importantly, that currently like talking I

candidate really a pool depositors are of We’re dealing from clients. that existing

we’re good and ago. we this And deposits months capacity can actions obviously point, at so, have, we XX the about things given given that how set watching, were but something where feel it’s dramatically change,

Alex Blostein

access repurchases outlined. get capital guess how trying Right. was for to more return capital about of opportunity framework to think here, given guys you from the you’ve the I kind that share I of the

Mike O'Grady

Thanks clarifying. for

that. Let me with tack

it perspective, including to XX% and return a can do is that tackle a we everything in -- quarter comes from we capital of do there target, we help me not, stock back the return ways this using capital are directly. example because we sheet clients. Let about think balance that how don’t XX% It’s just invest great up different buy that interesting, or to

because activity $X the way decline saw saw so more the because and treasury higher run areas, our use the can balance bond about about those for best the And think In form in of lending more think from buying, showed And we thinking you we’re muni the quarter, activity, best return. us down, with buying on in in to in but there’s an sheet increase come levels up what’s stock. returns that to And we we each way perspective of long of RWA client back higher the purchases. about what’s this the in lending not a activity a sec and there capital meaningful was higher activity and saw denominator. CETX, we saw

our everything are We’re there. the we What’s getting terms looking what -- are price-to-book. in of be at returns looking we at from going what to we’re -- think

looking we I turns us will mentioned, like. to to us lending use the long for the returns other as also use run the for attractive growth and about -- And in those expanding or there come C&IS have clients turns things what capital. those with when the ability to We’re desire think into capital. look up and things into with at of It better good be relationships good it ways very

Alex Blostein

we that. Got it. think, a for That think sort today. makes I us stands sort Great. I portfolio. of the in re-pricing just little refresh again follow-up the And of about then sense. to sensitivities NIR talked Thanks the Maybe in a past, around dynamics where so again, some quick bit that securities

securities I think yield, portfolio So XXX about, so. is or

the constant securities of but how of drag want I you rates yield rates of do lower, you are say already of most over where expect securities to to the re-priced guys next on the look much see portfolio a couple more has If sort holding current quarters? they at today,

Jason Tyler

at Yeah. money re-priced and of re-priced, book the take loan re-priced, of obviously you -- at securities just a point, obviously, billion XX% the assets it’s $XX at so about re-priced this this earning book the has give of $XXX Well, if assets, billion all XX% point. security, of in of sense what’s market $XX look you has to have the

I what book giving to we much And also We was the want if impact. in terms five-year, you -- at of about if on loan and is the you impact had reinvesting coming alone, is about from there the reinvesting tell securities. the million was that’s and other because also and -- pure a But at in actually down But tend that be significant play a the it we about interesting, $XX then runoff we’re this of influence two-year, -- sit the the so was with asked so and drain that NIR securities portfolio, this I start the the what’s where rate, re-priced point those as quarter where you one to think fact on the you brought run year, just want what’s with least so you I’ll for, don’t implications how are to the happening thinking at -- that’s it. as not there then think you it’s up, numbers factors a in we’re that, that three-year, down quarter-over-quarter that well. come But are. to as basis point. through And that this has

Operator

Thank you.

with to go now go Bank. Deutsche will ahead, We Please Bedell Brian

Mike O'Grady

Hi, Brian.

Brian Bedell

are of Jason you? Good that Hi. have quarters couple and with one last Great. that can book, move has you’ll made to least for bottomed XX% you loan I up. If looks book loan starting start the the maybe like the back morning. off on at Hey. re-priced, the comment now on How just is

about term, maybe XX% that most some that’s maybe about whether of question how re-pricing that’s that bringing dynamics of of of talk are what that my loans around loans given new a you’re Jason the on And of LIBOR be thinking improve the are that So helping use yield. just what the some of would rate and are sort versus you’re tied the then that? on new longer reference those to to plan is of going planned LIBOR, those

Jason Tyler

Sure.

corporate effectively loans transition reference as so some of the a from a there’s are, what’s seems has growth most within growth that of lot be that you take do industry longer covering it. personal to longer as a in book the the then closely, and on, lot business within have So Yeah, that’s of I’m LIBOR transition. loans the come has been. book you of our the you’re come be terms that’s within wealth, activity more the and The in of have where dated in sure based just And know going that and really looking we going small midsize and implications SOFR the and to and often disproportionately of organizations, again LIBOR corporate be but to rate and there’ll loans watching move a and to mortgage know. to it’s so Brian,

Brian Bedell

said of transition it’s mean, yield any this an term not mean, the effective stage, there’s because I too by you that is there at guess, rate. But or I book is too to transition loan that Is implication the SOFR, on I any early early? or simply it

Jason Tyler

and they’ll I and rate but of is transition that we’ll early, not LIBOR rate. the dates, And even because think reflect -- was a reference the today we the to not but ago. the is relationship and there’ll SOFR and just different have it’s get reset lot duration it a in not spread different. SOFR is it than the, more industry between There’s a we to obviously, those There’s once changes, a be -- credit. be it’s different Well, so hoping what and changes year

think has we And so to some point the hard industry make work going work the I to conversations be to what switch. that on the got do at are like where actually

Operator

you. Thank

Please go question next Research. comes with Wolfe ahead. Our from Steven Chubak

Mike O'Grady

Steve.

Steven Chubak

morning. Good Hi.

questions. couple of had modeling ticky tack a I So

at pretty consistent pretty had of line custody is increases million exited and had the $XXX just That range a fund sensitive about million on first The sequential to million. quarters. fees the two item $XXX what meaningful versus past We’ve two these been historically quarter non-asset within $XXX administration.

what’s that point perspective, modeling right thinking about what’s off the a And strength look Just item? line curious about the we driving XQ? as we maybe just in from be think ahead recent should as we to jumping

Mark Bette

Yeah.

sure make I’m to totally. tracking Just

about talking income non-interest on you’re the income at million So $XXX statement. other

Steven Chubak

the $XXX administration. and million sensitivity within actually It’s non-asset portion. custody But the fund it’s

with part statement. the that’s move So around will that presumably that

Mark Bette

Yeah.

is Mark. this So

XX% then we referring quite are talk frankly, flat kind or fees. rest either XX% sensitivity fixed mix volumes within fees of there’s the some There about -- about transaction or fees those. you’re to and are those account when the the So that of are to, there even of level asset fees sensitive

maybe So related. transaction it is volume say you could roughly of half

-- volumes saw. the that So pickup of created lift we and some so this that did we in X% those lift that or the saw or sequential transaction percent of quarter or we see a sequential

that So answering is your question. hope I

Steven Chubak

Yeah. Yeah. That’s sufficient.

$XXX be million we be should So elevated of have that the $XXX some some it and like sounds fair? million million, may higher than -- a see could $XXX could been rebasing there, but to normalization but it is bit we that, expecting presumably, the

Mark Bette

specifically by activity I doing, don’t -- broken Yeah. like we down yeah, split. numbers that a that I transaction quarter moves that. That’s during -- have That’s kind a those most guide probably certainly mean, because around would bit. heavier don’t we each necessarily of I that you’re directional recent the don’t this have quarter, fair. fees But did benefited that it have we saw

Steven Chubak

Okay. No. color. That’s helpful

down second we’ve up the the follow bit my you for are down. deposit on on actually actually in It’s costs. beat more those Just seen interest-bearing continued was focused come NII, where liability the held side, consecutive the quarter by grind that

rate further, deposit holds or level point. curious been see that additional has backdrop cut Just largely if have room this to at you if costs exhausted any the

Mike O'Grady

basis is rates. couple in in points used about international. down negative book that that book already reflective felt a are having currencies of lot a I coming decent that think It’s that and I to it’s

is we’ve And an at zero talked be continue so the expectation that playing beta to there. seems that point about there’s that will dynamic broken, through that that once

And be to dialogue that I about we’ve is. we’re the got rates necessarily so like clients year where win because clients and with But talked sensitive a a costs. tracking good there, can deposit all topic. think looking it’s and things We’ve the wouldn’t at same lot indicate are the way obviously there

the don’t we deterioration compresses So side more. asset have further as

Operator

you. Thank

Please with of now to We America. go Carrier Bank ahead. Mike will go

Mike O'Grady

morning, Good Mike.

Mike Carrier

the morning. question. Hi. taking Good morning. Good Thanks for

how provided Asset improved like business? backdrop as versus on conditions to seems on organic in is has growth, in competitive investment focused some it the that in And just Just improvement you where are on good particularly COVID everybody Servicing Mike, see question given year? wealth, starting Glenn’s been part of the change, question, book color a last you that management

Mike O'Grady

compete we most on we’ve we -- in continued market the on is grow. in extremely it’s and right, So, clients effectively of so But providing wealth, I think which where we focused why competitive, to segment. for stay both the the parts the marketplace important that is you’re that

part of So where in strongest growth has the our been market upper there. we’re seeing the

there’s above wealth. So particularly think where obviously equity been million assets values time in an going $XX clients this with increase are and period, about up, during

So with like in and the planning. and in changes potential drives for it that the growth. increases then administration need that, taxes things But also change

of both prospects. a opportunities activity, existing level also high So but with clients, with our

Mike Carrier

you ahead the as Okay. in then try from, we just the on excuse any terms as waiver rates slightly Great. and growth say, and areas aligning stabilizing become over then focus a organic about? than and investment the short guys NII eventually thinking eventually realize short tailwind, post-COVID, transition like expense lower low firm levels or you like me, outlook, should to But areas headwinds that, necessary, And they to of we time. like be rise efficiency real that headwinds, rates like estate that new

Mike O'Grady

we’re I situation the point. I there is, What this still detail by also that incurring we’re expense to it’s right talked very will start at certain to about, side, mode and obviously it’s but expenses Jason, costs can in then not add resiliency I am it, sure, say, dynamic on which certain, that But that are this -- it. mean has now. we a

travel So business obviously, promotion lower is was than and it pre-pandemic.

of We’re operating as many lower. facilities people not those facilities. cost The operating our with is in

to So have that that would transition costs the increase. those extent expect would you some that on do of that that out we front lower you

that the say it And require say, go with those talked about, does organic which that in would come growth with investment. third across and but well sure I in you large you’re and continue have right piece, the we’re of it then of think of the technology as would on clients the I people thing the this. the form our mean, efforts, that, growth. of all investment talent, right second along want be can on to adding bring require seeing last bringing service the have that, that you I does benefit way. and ensure businesses The again we’re the can we doing capabilities, to in we’re our yes, is, that new sure regard year digitalization also it stable making level but is in as around it secure, to that accelerated That safe, I providing new to just means talent we’ve supporting make new this

remote that it’s does, focused going a working about we to well. So Jason continue as did as say, be backdrop going grow, we environments, earlier, have efficiency. require part to the investment in and efficiencies to but of also to okay, see why there talked we’re that’s on that are And some

how at that our I and for of some can are And look opportunities real we, the talked support estate there to shrink and example, that footprint so footprint see use to about. investments the if

Operator

Thank you.

We will now go go to Betsy Graseck Stanley. ahead. Please with Morgan

Mike O'Grady

morning, Good Betsy.

Betsy Graseck

morning. Good Hi. Hi.

touched that’s a there? one strategy. Management the just seeing well for of that advising know got I we demand runway sorry, yet, Wealth more that that acceleration you around demand is A for Okay. as or the the themes a while. that and virtual been sense haven’t are wanted is other you’ve get the of still at for to couple strategy stage if to I business, on underway

Jason Tyler

tackled the clients Wealth engagement the our virtual -- on side way wealth of through kind of the it’s goals Management within is So approach. we’ve use with continued

strong we what very perspective. there’s take same were we think with engagement from to that COVID. engagements client overall those strong momentum platform was were feel led to -- good, very it’s have very, a It able and quickly and an so very that then with the discussions business And very conversations, but virtual through clients differentiated very is

of with to for with positive. areas journeys become continued Mike going through, use our and but extremely add Management in a been up investment specific So strong detailed the well. large that to business. it’s specific where it, and Wealth about can it’s more how with are That’s and investment platform, digitizing very add core just gone and -- as our an we one investments that’s And clients more the talked matching area us what and

the been as about -- client just paying talking those business Steve are off Scores, engagement. good clearly that with so Promoter Net Our has Fradkin, strong is how who investment and that runs

Betsy Graseck

just to then recently, in I’m press be some it’s of with been are crypto when that on, regard going And activities separately, sure Okay. custody you’ve I not the the know launched. to you working

on a got Standard you’ve think partnership I with going Chartered.

give -- maybe -- because crypto that with when end part negative foresee the your So, negative to to investors, into investors, a the managers rate. -- that I you dealing question, decent think can hear that well, there use European enable doesn’t over you demand asset about to services an interest of rates. just not I least opportunity or that. color it’s the some work not on What with clients, is us there’s offer for but it And at custody can is crypto just you too, with going servicers

of So how one long or is it you offer is of far tool, was? is until until how just your it you liquidity crypto to kind thinking

Mike O'Grady

safety now right that for fastest. to markets provide clearly it broadly digital of is So, some keep Betsy, in their are it way in allows one more security to in as evolving, absolutely the you constantly and time and that. evolving innovating assets a in have we’re managing we do And know, again, assets, crypto clients the have the that and pace financial for business period and the and the with areas us the

well, I what fintech traditional it which or that a to provide do that with point Chartered will custody. partnered Chartered custody have, the cryptocurrencies. is to crypto we’re Standard with called venture has to what’s on in regard expertise your the a leverage there, custody so We’ve crypto that And front but And think assets we trying of Standard in accomplish important Zodia, as way.

independent expect this that XXXX that’s point use. and So some for still a at And again clients pace. point, why be evolve entity that develop approved it’s can at separate in at that we will

be order a to they challenges returns. address potentially also I’ll it’s will many point, not broadly, your assets only have clients call from to it, regulatory at done potential going we perspective. opportunities again, more own, So this we’ve we’ve the different think see our broadly I whether to why And but ways it’s approvals, to then either not or developing And and that’s in in on digital but digital earn tokenization, a in various better to cryptocurrencies done order where in which space, absolutely, I There’s done that or a be Broadridge. number about our where to a different capability cryptocurrencies, BondEvalue, only experimented assets, own partners with of part done blockchain, which PE we’ve more with talked areas with whether it’s with what we’ve of innovation. be able on look either

Operator

Thank you.

to move ahead. with from Securities. Mitchell next Please is now our question. go Global We Seaport Jim will That coming

Jim Mitchell

morning. Good Hey.

Mike O'Grady

Hi, Jim.

Jim Mitchell

a full Hey. market quite or be a seem lag on Management the or Wealth appreciation Maybe question just disparity bit though to basis it’s a whether outcomes pretty lag lag of month in it quarter similar. the was business, even

in family just think is So do there’s sort fee the about -- it we How more that a difference? global lot office? of waivers

Mike O'Grady

Yeah.

talked so… we’ve the hit lag is the waivers much there there. in business distinction -- good waivers the drove what frankly. it’s example. see and GFO a more it a It’s -- that shouldn’t right. it But people about the hit in It hard. that was institutional This not And You is fact waivers that linear. business, Where obviously, and the as that’s

Jim Mitchell

Okay.

Mike O'Grady

traditional see hit we’re now … more and but just hit the retail later have come starting regions it pricing not closer so those to waivers and whereas the waivers to in, earlier.

and will of billions that dynamic is there we is have clients Second GFO though dollars. move spiking

if significant on see you movements -- two, movements, can have you a that have so all And can one, they’re basis. three clients big sequential then you’ll

things, the the higher sequential waivers and rate actually those look was the -- some client If overall spiky you year-over-year, very regions. the impacted one is But organic for by slightly look than two, growth GFO obviously large growth two movement.

Jim Mitchell

Okay.

global in in And so or to be fee the we C&IS waivers, and going about that? also that incremental of maybe more hit geography how family is the to office think XQ

Mike O'Grady

the think -- that more be point all they’re this going in it’s it’s here, funds -- at somewhat I mode. there -- from to more linear. I -- waiver think are mean, I we’re

I million it’s $XX a don’t of look, but year-over-year was think the $XX forward, over in linear going wealth and billion we’re that’s look, That think not aggregate in -- disparity but effectively, that of billion in was the $XX almost so billion billion just And big. see $X big just so overall to was quarter should was increase in going that’s and I one there and was quarter people $X as it GFO a And realize billion $X relationship. alone GFO quarter. to a so

Jim Mitchell

Right.

Thank you. Okay.

Mike O'Grady

You bet.

Operator

you. Thank

Please go ahead. Next we’ll Sandler. move to Harte Jeff with Piper

Mike O'Grady

Hey, Jeff.

Jeff Harte

Hey. Good circle I you back us continue To I mean, think, is expectation in kind comes could asset actually that But $XXX see you bit of assets edge regularly, The a buyback did like estimated have ramping kind the the it versus Historically in to thinking differentiate stock. buyback, to there of they in the between like guys. in partial our the can weighted help up buying a weighted be difference conservative kind the it’s might capacity your buyback? million of first risk quarter given actual with quarter? guys risk below least growth. first morning, just good what out someone feels

Jason Tyler

it to It’s theme of about that returns. related think wanting comes Yeah. and completely back to

us buy we’re XX park for just money And a at do or basis making it’s points. at so, of we Fed the back stock not decision like

buybacks. be is but nice client it’s that it’s -- to share we to see the activity driving -- us to For able alternative

for we’re we just us up in RWA So just itself. that very that up on see being in, sec as with to different about. And it’s is going cause redeploy the need, RWA, a higher you And think say client but saw loan answer that’s and it’s billion, zero to asset billion activity $X $X of be deposits options little, lending say, certainly coming demand side. to it which just able are the comes a doing -- we nice in then not we significantly, to the to those that’s or the

the long balance that’s is And sheet did for have share do equity we repurchase on building the activity million-ish timeframe. the so we thing same relationships related, used time, the at run. do over But best $XXX in the can client good return in

at XX% like, activity things So not we’re you it like can balancing in market. here all is like OCI the at be and looking to we what client it’s is were But going absent what imagine look those together. look

Jeff Harte

Okay. Thanks.

right kind going Wealth Wealth pacing the business So Management C&IS that just to with should seems for touch stopped the fee two businesses. growth way there reason the a a is we growth C&IS. now. I while up could across think those that it on to think really relative outgrowing of kind growth, Management It about I guess, forward like mean, of or kind that start trajectories catching wise is of

Jason Tyler

we other the going businesses every to it’s think, periods what’s one, think of predict faster. each points for future, an and of time, one always get you we and long inflection difficult those The inflection. good over have acted to of case the oh, businesses the grow Couple as time to is this hedges faster things, is what -- going growing to than be

you’d exposure if over or got having faster. look wealth C&IS For years, you couple is to sure, last equity general markets. good grown the few But see in

-- there’s help should and growth, run, and long think wealth the end also a good so And particularly you as well. the the those title over market at top of things so

And so growing future we wouldn’t the the long prediction the businesses run faster. one over call in a of necessarily on

Mike O'Grady

of from to from just we they complimentary perspective, That’s perspective, like Not a why a only add would financial have the but is the really three dynamics. And businesses. client I Jason’s different comments. combination it also

Whereas for do done resources Asset So at Cherecwich we’ve in volatility requires and of and It Asset leading then the strong in high increase very you other high has Servicing operating leverage profitability the which that, scalable. Management, a can and when very levels and example, about to also get of the at the dynamic a steady last different business. in have great level and And goes rate. Management, products, that growing for the couple markets example, as talked same and high a business areas focus or in that business, level has for the liquidity where the on has and profitability right years, liquidity as up, in over positioned and with we up quants. Pete go job Wealth can that again, with of very positioned been in ESG

like from also So, the all say a perspective. a we businesses, I from would financial client competitive perspective, but

Operator

Thank you.

Wildhack We Autonomous go will now go with Research. ahead. to Rob Please

Mike O'Grady

Rob. Hi,

Jason Tyler

Hi, Rob.

Rob Wildhack

any the Good new more have achieving? long-term a Coming organic growth, XXXX, maybe or on think increase morning, do rate you’re prospects uncertain ago I organic you sustainable can your comments growth forward think year organic you from Question fast probably for to of see of capable been guys. sources and positive. of really the growth different were that me out today

Jason Tyler

has some Mike as and well. start this sure will I on comments I’m

a lift to to In do. expanding much Wealth the trying to we’ve particularly and over of continuing we’re breadth That’s part driven go exchange. take goals -- product Let’s we million, hard so had client even Management the to end, what ESG capabilities, a that done integrated There’s that in bit XXX that lot last very businesses. across Trust were industry. doing million, the and different get a we in that’s Wealth show and a those cut now accidental commission where think it Management, and And in income, remember we in off products million is few to Thing liquidity through. and over times talent billion, new solutions then they platform, order in today, in Asset had the perspective we about solutions with talked the those great front good office growth Nordics there. take billion let’s ago, $XX to we’ve hundreds Northern with In enter the a I on $XXX the $XXX well growth, -- in half And where strong in and there’s C&IS, early lift about there. around then And different can I a to engagement of to -- then to have while little the area of those client in trading there’s think and millions our many -- that months, not year is the in our -- been in invest of had did dollar the group. foreign clients quant a we’ve in something things sophisticated great the about need is in it’s were base interact another areas. think things now, assets open so I ETF reason to up about Europe including engagement that done of gets lot way to but brokerage launching set there And so aren’t yeah, we’ve been strategic the come holistic upper the get Management, But portal. talked and -- invest are there $XXX to ESG you clients what

leverage to there’s in good stronger the lead And organic each of us growth. so I think that’s for -- done the these work is to areas, to good opportunity been

Rob Wildhack

great. you. Thank That’s

Jason Tyler

Sure.

Operator

Thank you.

Our next question ahead. comes go JPMorgan. from Vivek Please Juneja with

Vivek Juneja

clients little up Hi. that just solutions. is instead that explain an -- Management how is a you works? work, and Asset guess one works? integrated trading you your are Are of Thanks all providing, actually how thing for electronic this it a color follow particular my clients stock? people your to of Can How bit it having more taking it’s separating it want if five you that Can actually how does them little you’re of the on buy or give questions. on a you that? I

Mike O'Grady

trade order outsourcing, our is of Asset almost a having think necessarily operations, competencies office the Sure. At that a clients not it where And and selection entry. and trading, the with Management back about around investment lot can comes the security trading out their of outsourcing. -- lot fee, that, that research, you realize realize, trading $XX,XXX core clients

can our we and outsourced it to your with work of so can say, And ability trading a Management appeals partner, to be us Asset lot you effective clients.

Vivek Juneja

Okay.

you’re for have providing office So they don’t trading? just trader and/or to have the anymore back a

Mike O'Grady

managers service be for accounts, No. outsource model middle provide us office we It their -- portfolio execution send of a trades them They from we operation middle us with and send trading. office starts and management. and have trade can full more them that and trade can from can through

Vivek Juneja

up Okay. a more All right. follow little maybe offline. I’ll

capital like, sort about growth an client running you’re at, gets, are Whatever or to hear format about I cut of the needs ratios we all that Going obviously of whether thinking you in our to if growth, Jason, even capital learning that whether is it’s point back Tier level so it it, want we you off is XX%? But your as that XX% comfortable buybacks, to of leverage what the loan it’s below think it stuff. question, don’t factor various sort is through you or go? and a X CETX, it’s securities which want and whether what

Mike O'Grady

our I peers is and an that not -- at time. my From to on perspective, industry, call our don’t absolute it we our I -- to to -- level. stock the regular where to capital going asking from buy regulators still where our on us depend hold back don’t think

our haven’t. we’re talked but regulatory we running Obviously, any above significantly externally. minimum, about buffers haven’t We

wealth use that strong. be they’re we that, talk depositing really $XXX $X if of clients, when pension funds, sovereign so sheet they’ve telling $X an but we that our not be engage to we’ve absolute clients. It’s a and buffers that interacting about depositing, want at funds, lending relative they’re if they’re talked operating banks and billion, billion, something to able that not think basis with strong we when not continue -- with institutions even And billion, and got got have. them with doesn’t point that’s strength on they $X manage to part externally. And institutions you to that their we we’ve they’re lot investing, that internally strategic of But million, just to a to balance about, are want they’re

seeing where capital sure make reflect the And always so looking levels. strong and to we to tides going be industry are in the we’re

Operator

Thank you.

Our is go from Cassidy next Please Gerard ahead. coming RBC. question with

Jason Tyler

Hey, Gerard.

Gerard Cassidy

supposedly seen business reassure maybe family March broker. never at large fund. all? that office, family your you’re and us How color which prime there you? Can risks? hedge you with you just not any a how a Mike. because can Can the us, you Hi, probably that But color, a still was how Jason. -- know in manage with -- we’ve share I Hi, global guys are But was those and risk mishap business trading any family around that just office you case in us that’s some give manage

Jason Tyler

right Sure. Well, you’re a and we’re prime broker. couple things not

the to we’re have our against with clients more or dealing have we some of loans long-term see trading traditional In type that positions our loans, hedge wealth and are business, but they’re exposure. those the business, office taking clients or in much of than clients. that type we leverage either so not will providing loans is office clients fund which are in investments that family And not we’re family alongside taking that clients,

going types clients it’s about with how provide services GFO Asset hedge and deal the those Administration, Reporting, -- Asset that’s much clients, for that so we’re more to Investment we clients. our fund Servicing, the market to our of And

to talking see any our portfolios. of office rest, didn’t And and just exposure minds type have fund/family at don’t that about the put so we anybody’s to exposure hedge in you’re that

Gerard Cassidy

is and requires from and therefore, more and a did, customers, Reporting what Servicing a to if you to an SEC result just for there do capitalize opportunity Asset of the would as Speaking opportunity for you happened, more guys as that that your work an of disclosure office the family more organizations possibility, be revenues? maybe

Jason Tyler

because Yeah. of hedge our are -- SEC we registered. lot on actually an nuance, they space, clients a the It’s interesting

opportunity And it’s that don’t used and need to do and dealing us. think reporting so monumental a they -- that’s on we’re engagement them for registration the and of types SEC to be, material it helping so their would doing that those with institutions administration I and for

hedge have more fund capability to engagement a their that about But talked set a way. of with provider funds for haven’t service and that it have that administration seen providers. be an looking investment and traditional we’re certainly we reporting as overall We strong would

Operator

Thank you.

take question our final with go Kleinhanzl will We Please KBW. from Brian ahead.

Jason Tyler

Hi, Brian.

Brian Kleinhanzl

Hi. comp Good first are getting of those I did questions. merit for second you in in trend XQ Two of that say the to the comp out quick the those then you paid morning. expenses, retirement also $XX here million quarter, the guys. heard year-over-year, And so absorb think to the that eligible? trying on One, are the comp? Great. historically, one paid out getting quarter increases now, just first Thanks, was XQ

Jason Tyler

what merit second quarter. been earlier may this No. your going What Yeah. was The the get you that mention through what come will company is, that the have did the one-off in -- headcount lead reduction I -- mind quarter. overall did FTE and from salary for that’s a but to But distinct -- merit in not -- increases. lower the level we that’s

Mark Bette

is This Mark. that year. any the adjustment, in previous of increase clarify. still adjustments to pay reflecting is just the And happened base The pay year-over-year base

We’re lapping that. still

to Brian not the this or some release that’s that comments what would been to made what we that if So were was referring have of you that years. the in referring in

Brian Kleinhanzl

just the looking investment for the third could management, you could about Thanks. think, then trends in quarter, in quarter you’re despite that also growth, Thanks. at first touch in the on the just flows terms you that the change maybe And time market the revenue I relative period, of fee over you not talk it. segment? waivers adjust much Got to seeing levels in

Jason Tyler

in on touch but… to those general, may Mark want Yeah.

Mark Bette

Yeah.

investment sequential I the are management fees. on lift. you line, think that of quarters C&IS a waivers you’re X%. that’s three two-thirds I were up that, or of think, basis, came from Probably, So three -- about looking quarters market what at we On the ex

don’t So know there. But there that’s sequential was what if some specifically growth organic I if at. you’re looking

Brian Kleinhanzl

positive? For the fee waivers they’re it so, I sounds more like mean, and flow trends

Mark Bette

favorable had quant products flow flows. Like were as activities certainly, overwhelmed, basis, kind that Mike of as we’ve sequential business saw the of we markets, from well been in there. a both But some some There the on we as growth ESG, Yeah. mentioned, good saw well. what seeing there waivers active

Brian Kleinhanzl

Okay. Thanks.

Operator

will this the remarks. Thank session. for any at question-and-answer That turn Bette, will you. conclude Mr. conference today’s you I to final time,

Mark Bette

we in look seeing to forward you July for update. joining us for quarter our and Thanks today second

Operator

you all participation. concludes your Thank you. for And conference. This today’s thank

You may disconnect. now

Northern Trust (NTRS) 20 Apr 212021 Q1 Earnings call transcript