Northern Trust Corp (NTRSO) 2025 Q2 法說會逐字稿

Ladies and gentlemen, good day, and welcome to the Northern Trust Corporation second quarter 2025 earnings conference call. Today's conference is being recorded.

女士們、先生們，大家好，歡迎參加北方信託公司 2025 年第二季財報電話會議。今天的會議正在錄製中。

At this time, I'd like to turn the conference over to Jennifer Childe, Director of Investor Relations. Please go ahead, ma'am.

現在，我想將會議交給投資者關係總監 Jennifer Childe。請繼續，女士。

Thank you, operator. Good morning, everyone, and welcome to Northern Trust Corporation's second quarter 2025 earnings conference call. Joining me on our call this morning is Mike O'Grady, our Chairman and CEO; Dave Fox, our Chief Financial Officer; John Landers, our Controller; and Trace Stegeman from our Investor Relations team.

謝謝您，接線生。大家早安，歡迎參加北方信託公司 2025 年第二季財報電話會議。今天早上參加電話會議的有我們的董事長兼執行長 Mike O'Grady、我們的財務長 Dave Fox、我們的財務長 John Landers 以及投資者關係團隊的 Trace Stegeman。

Our second quarter earnings press release and financial trends report are both available on our website at northerntrust.com. Also on our website, you will find our quarterly earnings review presentation, which we will use to guide today's conference call. This July 23 call is being webcast live on northerntrust.com.

我們的第二季財報新聞稿和財務趨勢報告均可在我們的網站 northerntrust.com 上查閱。您也可以在我們的網站上找到我們的季度收益回顧演示文稿，我們將以此為指導，召開今天的電話會議。7 月 23 日的電話會議將在 northerntrust.com 上進行網路直播。

The only authorized rebroadcast of this call is the replay that will be made available on our website through August 23. Northern Trust disclaims any continuing accuracy of the information provided in this call after today. Please refer to our safe harbor statement regarding the forward-looking statements in the back of the accompanying presentation, which will apply to our commentary on this call.

這次通話的唯一授權重播是將於 8 月 23 日之前在我們的網站上提供的重播。北方信託公司否認今天之後本次電話會議中提供的資訊將繼續保持準確性。請參閱隨附簡報後面有關前瞻性陳述的安全港聲明，該聲明將適用於我們對本次電話會議的評論。

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

在今天的問答環節中，請將您的初始疑問限制為一個問題和一個相關的後續問題。這將使我們能夠順利通過隊列，並讓盡可能多的人有機會在時間允許的情況下提問。

Thank you again for joining us today. Let me turn the call over to Mike O'Grady.

再次感謝您今天加入我們。讓我把電話轉給麥克·奧格雷迪。

Thank you, Jennifer. Let me join in welcoming you to our second quarter 2025 earnings call. We reported another quarter of improving results, reflecting the consistent execution of our One Northern Trust strategy, which we introduced at the beginning of 2024. We delivered our fourth consecutive quarter of generating positive organic growth and operating leverage. Revenue grew 8% and earnings per share increased 20%, excluding notables in the prior year period and we returned more than 100% of our earnings to our shareholders through dividends and record share repurchases.

謝謝你，詹妮弗。讓我和大家一起歡迎您參加我們的 2025 年第二季財報電話會議。我們報告了又一個季度的業績改善，這反映了我們於 2024 年初推出的「一個北方信託」策略的持續執行。我們連續第四個季度實現了正有機成長和經營槓桿。營收成長 8%，每股盈餘成長 20%（不包括去年同期的顯著項目），我們透過股利和創紀錄的股票回購向股東返還了超過 100% 的收益。

As we pass the midpoint in the year, I'd like to share our progress on our multiyear transformational strategy which is producing clear proof points that is gaining traction.

值此年中之際，我想與大家分享我們多年轉型策略的進展，該策略正在提供清晰的證據點，並且越來越受到關注。

Turning to Slide 2. Our One Northern Trust strategy is centered on our mission to be our client's most trusted financial partner and commitment to leverage the full breadth of the firm's capabilities to deliver seamless, high-impact solutions. We deliver a holistic client experience through the collaboration of our three businesses to serve the full spectrum of individual and institutional clients.

翻到幻燈片 2。我們的「One Northern Trust」策略以我們的使命為中心，即成為客戶最值得信賴的金融合作夥伴，並致力於充分利用公司的全部能力來提供無縫、高影響力的解決方案。我們透過三家企業的合作提供全面的客戶體驗，為全方位的個人和機構客戶提供服務。

A great example in the second quarter is our work with Timeline, one of the UK's fastest-growing discretionary fund managers. As Timeline evolved its business model to launch a proprietary fund-to-funds range, Northern Trust Asset Management and Asset Servicing partner to deliver a fully integrated solution.

第二季的一個很好的例子是我們與英國發展最快的全權委託基金管理公司之一 Timeline 的合作。隨著 Timeline 的業務模式不斷發展，推出了專有的基金對基金系列，Northern Trust Asset Management 和 Asset Servicing 合作提供了完全整合的解決方案。

Together, we provided investment management, fund infrastructure and operational support, enabling Timeline to scale its offering with speed and confidence. This win reflects how Northern Trust brings together capabilities across the firm to support the growth of high potential clients in dynamic markets.

我們共同提供投資管理、基金基礎設施和營運支持，使 Timeline 能夠快速、自信地擴大其產品範圍。這場勝利體現了北方信託如何整合公司各方面的能力來支持動態市場中高潛力客戶的成長。

Turning to Slide 3. While we continue to deliver exceptional outcomes for clients, we're equally focused on delivering long-term value for all of our stakeholders. Our One Northern Trust strategy is anchored in three pillars: optimizing growth, driving productivity and strengthening resiliency and managing risk.

翻到幻燈片 3。在我們持續為客戶提供卓越成果的同時，我們同樣致力於為所有利害關係人提供長期價值。我們的「一個北方信託」策略以三大支柱為基礎：優化成長、提高生產力、增強彈性和管理風險。

These overlapping pillars operate as a flywheel, each one amplifying the others. Our organic growth is gaining momentum, fueled by numerous strategic initiatives launched over the past 12 to 18 months that are now delivering results and are well positioned to drive greater performance in the months and years ahead.

這些重疊的支柱就像飛輪一樣運轉，每個支柱都會放大其他支柱的作用。我們的有機成長勢頭強勁，這得益於過去 12 至 18 個月推出的眾多戰略舉措，這些舉措現已取得成效，並有望在未來數月和數年內推動業績取得更大進步。

In parallel, we're driving meaningful gains in productivity across the organization through a client-centric capability-driven operating model, we're aligning resources more effectively to deliver value where it matters most.

同時，我們透過以客戶為中心、能力驅動的營運模式，推動整個組織的生產力顯著提升，更有效地協調資源，在最重要的地方創造價值。

We're also accelerating the deployment of AI tools to streamline processes, reduce manual effort, enhance decision-making, and manage risk. Together, these efforts are bending the cost curve and freeing up resources to enable reinvestment in growth and innovation, all while delivering higher margins, and a better experience for our clients and employees.

我們也正在加速部署人工智慧工具，以簡化流程、減少人工工作量、增強決策能力並管理風險。總之，這些努力正在降低成本曲線並釋放資源，以便對成長和創新進行再投資，同時帶來更高的利潤，並為我們的客戶和員工帶來更好的體驗。

Finally, the investments we've been making in resiliency are paying off through an enhanced control environment. Over the past year, we've added new roles across our three lines of defense and built greater stability, security and scalability into our technology infrastructure. These capabilities are increasingly embedded into how we operate influencing decision-making and enabling us to manage risk proactively and stay ahead of a rapidly evolving industry.

最後，我們在彈性方面所做的投資透過增強的控制環境獲得了回報。在過去的一年裡，我們在三道防線中增加了新的角色，並為我們的技術基礎設施建立了更高的穩定性、安全性和可擴展性。這些能力越來越多地融入我們的營運方式中，影響決策，使我們能夠主動管理風險，並在快速發展的行業中保持領先地位。

Turning to Slide 4. As we execute on our One Northern Trust strategy, we're advancing several enterprise growth initiatives that are aligned with both evolving client needs and represent opportunities where we have differentiated capabilities across our businesses.

翻到幻燈片 4。在實施「一個北方信託」策略的過程中，我們正在推動多項企業成長計劃，這些計劃既符合不斷變化的客戶需求，也代表我們在整個業務中擁有差異化能力的機會。

One of these is clearly alternatives, which I'll spotlight today. The rapid expansion of global private markets is undeniable and projected to continue at twice the pace of public markets over the next decade, with total assets expected to exceed $60 trillion. Our integrated model and expanding capabilities position us well to capitalize on this growth and deliver long-term value for clients and shareholders.

其中之一顯然是替代方案，今天我將重點介紹它。全球私募市場的快速擴張是不可否認的，預計未來十年將繼續以公開市場的兩倍速度擴張，總資產預計將超過 60 兆美元。我們的綜合模式和不斷擴展的能力使我們能夠充分利用這一成長並為客戶和股東創造長期價值。

We're leveraging this vast opportunity in several ways. First, 50 South Capital, the alternatives investment platform within our Asset Management business, which specializes in fund-to-funds, primarily targeting emerging managers is having a record fundraising year. They recently closed their largest secondaries fund with investors across wealth, family offices, intermediaries and institutions. Second, in Wealth Management, we continue to build out our platform for third-party funds.

我們正在透過多種方式利用這一巨大的機會。首先，50 South Capital 是我們資產管理業務中的另類投資平台，專門從事基金對基金投資，主要針對新興管理者，今年的融資額創下了紀錄。他們最近與財富、家族辦公室、中介機構和機構的投資者關閉了其最大的二級基金。第二，在財富管理方面，我們持續建立第三方資金平台。

Several year-to-date raises have already exceeded initial targets, underscoring the strength of our offerings and the trust clients place in our platform. We're also unlocking incremental value for clients through collaboration with 50 South Capital's research team which has cultivated relationships with over 270 managers to offer access to highly curated, hard-to-reach alternative investment funds. As a result, our fund launch pipeline has tripled compared to prior years, reflecting strong client demand.

今年迄今為止的幾次加薪已經超過了最初的目標，凸顯了我們產品的實力以及客戶對我們平台的信任。我們也透過與 50 South Capital 的研究團隊合作，為客戶釋放增量價值，該團隊已與 270 多位經理人建立了關係，為客戶提供精心策劃、難以接觸的另類投資基金。因此，與前幾年相比，我們的基金發行管道增加了兩倍，反映出強勁的客戶需求。

Third, for clients with significant alternatives portfolios, we also offer our alternatives advisory services, which provide consulting and customized solutions. Assets under advisement are up 66% year-over-year, reflecting demand from both institutional and wealth clients for differentiated high-conviction strategies. Recent examples such as a $1.25 billion private credit mandate for a multinational corporate pension and one for a family office from the Middle East highlight our ability to deliver bespoke solutions at scale.

第三，對於擁有大量另類投資組合的客戶，我們也提供另類諮詢服務，提供諮詢和客製化解決方案。所管理的資產年增 66%，反映出機構客戶和財富客戶對差異化高信念策略的需求。最近的例子包括為一家跨國公司退休金授予的 12.5 億美元私人信貸授權以及為中東一家家族理財室授予的 12.5 億美元私人信貸授權，凸顯了我們大規模提供定制解決方案的能力。

And fourth, in Asset Servicing, we continue to expand our leadership position, in particular, in the semi-liquid fund market, where we now support 6 of the 12 long-term asset funds in the UK with seven more in the pipeline.

第四，在資產服務方面，我們繼續擴大我們的領導地位，特別是在半流動性基金市場，我們目前支持英國 12 個長期資產基金中的 6 個，另有 7 個正在籌備中。

We also support five European long-term investment funds. We're building real momentum in alternatives, and we're only just beginning to unlock the full potential. In parallel with these firm-wide priorities, each of our businesses is executing targeted growth strategies that reflect their unique client bases and market opportunities.

我們也支持五個歐洲長期投資基金。我們正在替代品領域積聚真正的動力，並且才剛開始釋放全部潛力。在執行這些全公司優先任務的同時，我們的每個業務部門都在執行有針對性的成長策略，以反映其獨特的客戶群和市場機會。

Turning to Slide 5. Starting with Wealth Management. Our Wealth Management business continues to deliver on its unique value proposition and is making solid progress on the three core strategic priorities I outlined at the beginning of the year.

翻到幻燈片 5。從財富管理開始。我們的財富管理業務繼續實現其獨特的價值主張，並在我年初概述的三大核心策略重點方面取得了紮實進展。

First, our Global Family Office franchise is a powerful example of our strategy in action by integrating asset servicing industry- leading custody platform and technology capabilities, Wealth Management's deep fiduciary and banking expertise, and Asset Management's innovative investment solutions, GFO delivers a seamless end-to-end platform tailored to the world's most sophisticated family offices. GFO continues to deliver strong organic growth with revenue growing 8% in the first half of 2025, including international revenue growing at over 20% and now accounting for nearly 15% of total GFO revenue.

首先，我們的全球家族辦公室特許經營權是我們策略實施的有力例證，透過整合資產服務行業領先的託管平台和技術能力、財富管理的深厚信託和銀行專業知識以及資產管理的創新投資解決方案，GFO 提供無縫的端到端平台，以滿足世界上最複雜的家族辦公室的需求。GFO 持續實現強勁的自然成長，2025 年上半年營收成長 8%，其中國際營收成長超過 20%，目前佔 GFO 總營收的近 15%。

With the launch of Family Office Solutions earlier this year, we're building on the proven success of our GFO playbook to bring a new offering to ultrahigh net worth clients that do not have a dedicated family office structure, but can benefit from institutional grade capabilities and the personalized service Northern Trust delivers.

隨著今年稍早推出家族辦公室解決方案，我們以 GFO 策略的成功經驗為基礎，為沒有專門家族辦公室結構的超高淨值客戶提供新的服務，但可以受益於機構級能力和北方信託提供的個人化服務。

The new offering leverages the same elite capabilities to GFO combined with a dedicated Family Office Solutions relationship adviser serving as a single point of contact to coordinate the client's entire financial life. In just the first two quarters, this new approach has achieved a higher than 75% win rate with a deep pipeline heading into the second half of the year.

新產品利用與 GFO 相同的精英功能，並結合專門的家族辦公室解決方案關係顧問作為單一聯繫點來協調客戶的整個財務生活。僅在前兩個季度，這種新方法就取得了超過 75% 的成功率，並且在進入下半年後將擁有豐富的管道。

We're also making deliberate changes and investments to increase our market share in key geographic markets. We recently reorganized our core Wealth Management business from three to four regions and appointed new leadership in both the West and Northeast, bringing in experienced executives with strong market connectivity and a clear mandate to accelerate growth. We're also actively investing in revenue-generating talent across these regions to strengthen client coverage and drive new business.

我們也在進行有意識的改變和投資，以增加我們在主要地理市場的市場份額。我們最近將核心財富管理業務從三個區域重組為四個區域，並在西部和東北部任命了新的領導層，引進了具有強大市場聯繫和明確授權以加速增長的經驗豐富的高管。我們也積極投資這些地區的創收人才，以加強客戶覆蓋範圍並推動新業務。

Turning to Slide 6. Northern Trust Asset Management continues to execute successfully against its strategic priorities. In addition to scaling our alternatives platform through both 50 South Capital and our alternatives advisory capability, we're expanding into other key growth areas, particularly custom SMAs.

翻到幻燈片 6。北方信託資產管理公司繼續成功執行其策略重點。除了透過 50 South Capital 和我們的另類諮詢能力擴展我們的另類平台之外，我們還在擴展到其他關鍵成長領域，特別是客製化 SMA。

As a leader in direct indexing and tax-advantaged equity strategies we continue to build on strong inflows into our strategies by investing in technology and adviser tools to scale personalization, extend internationally and deepen penetration across institutional and wealth channels.

作為直接指數化和稅收優惠股票策略的領導者，我們透過投資技術和顧問工具來擴大個人化規模、拓展國際範圍並深化機構和財富管道的滲透，從而繼續為我們的策略注入強勁的資金。

Another example of our success is a recent $1 billion equity mandate with the public investment fund in Saudi Arabia, one of the largest sovereign wealth funds in the world. We expect this mandate to expand to additional quant strategies demonstrating our ability to serve the world's most sophisticated sovereign clients.

我們成功的另一個例子是最近與沙烏地阿拉伯公共投資基金簽訂了 10 億美元的股權授權協議，該基金是世界上最大的主權財富基金之一。我們期望這項授權能夠擴展到更多的量化策略，以展示我們為世界上最成熟的主權客戶提供服務的能力。

In ETFs, we're enhancing our platform with the planned upcoming launch of 11 new fixed income strategies in the third quarter. These products are designed to meet growing demand for efficient, transparent and scalable exposures and will complement our existing index and liquidity offerings.

在 ETF 方面，我們計劃在第三季推出 11 種新的固定收益策略，以增強我們的平台。這些產品旨在滿足對高效、透明和可擴展風險敞口日益增長的需求，並將補充我們現有的指數和流動性產品。

Turning to Slide 7. Our Asset Servicing business is executing on a disciplined strategy, centered on scalability and client centricity to drive profitable growth. We serve a focused set of client segments where we have deep expertise and a differentiated value proposition, one that continues to drive strong win rates and high levels of client satisfaction and retention.

翻到幻燈片 7。我們的資產服務業務正在執行嚴格的策略，以可擴展性和客戶為中心來推動獲利成長。我們服務於特定的客戶群體，在這些客戶群體中，我們擁有深厚的專業知識和差異化的價值主張，這些主張持續推動強勁的贏率以及高水準的客戶滿意度和保留率。

I already mentioned our strong position with alternative investment managers where assets under administration are now approaching $1 trillion, underscoring the strength of our platform and the trust placed in us by leading institutional clients. We also have good momentum in the Asset Owner segment, one of our highest margin businesses, which now comprises 50% of our segment level revenue. Our success is driven in part by our upmarket strategy to serve larger, more complex institutions with tailored solutions and global reach.

我已經提到了我們在另類投資管理公司中的強勢地位，目前管理的資產已接近 1 兆美元，這凸顯了我們平台的實力以及主要機構客戶對我們的信任。資產所有者業務也是我們利潤率最高的業務之一，目前占我們業務層級收入的 50%，因此我們也保持了良好的發展勢頭。我們的成功部分歸功於我們的高端策略，即透過客製化解決方案和全球影響力為更大、更複雜的機構提供服務。

Recent wins include the $89 billion University of Texas, Texas A&M Investment Management Company. A $55 billion Canadian foundation, a top 20 US pension plan. Telstra, one of Australia's most significant superannuation funds and a large sovereign wealth fund, our first front office solutions client in Saudi Arabia where our technology was cited as a key differentiator.

最近的勝利包括價值 890 億美元的德克薩斯大學、德克薩斯 A&M 投資管理公司。價值 550 億美元的加拿大基金會，排名前 20 名的美國退休金計畫。Telstra 是澳洲最重要的退休金基金之一，也是一家大型主權財富基金，也是我們在沙烏地阿拉伯的第一個前台解決方案客戶，我們的技術被認為是其關鍵的差異化因素。

Our Capital Markets business continues to perform well. In the first half of the year, revenue was up 15%, including more than 30% growth in both outsourced trading and currency management. These results reflect the strength of our capital-efficient model and our ability to deliver scalable, high-value solutions to institutional clients. This disciplined approach is delivering tangible results. Organic growth is accelerating with new business tracking well and at above-average profitability and overall margins improving significantly.

我們的資本市場業務繼續表現良好。上半年營收成長15%，其中外包交易和貨幣管理收入均成長30%以上。這些結果反映了我們資本高效模式的優勢以及我們為機構客戶提供可擴展、高價值解決方案的能力。這種嚴謹的方法正在產生實際的成果。有機成長正在加速，新業務進展順利，獲利能力高於平均水平，整體利潤率大幅提高。

Turning to Slide 8. We've demonstrated our ability to bend the cost curve and remain firmly committed to continuing to do so while making necessary investments in critical infrastructure and growth initiatives. Through the first half of the year, expense growth was 4.8%, and we're on track to achieve our full year goal of below 5%. Our progress is underpinned by a series of structural and operational advancements. We're modernizing our operating model and increasingly leveraging AI, such as GitHub, Copilot and document digitization to enhance employee productivity and increase automation across the enterprise.

翻到幻燈片 8。我們已經證明了我們有能力降低成本曲線，並堅定地致力於繼續這樣做，同時對關鍵基礎設施和成長計畫進行必要的投資。今年上半年，支出成長率為 4.8%，我們預計將實現全年低於 5% 的目標。我們的進步得益於一系列結構和營運方面的進步。我們正在使我們的營運模式現代化，並越來越多地利用人工智慧，例如 GitHub、Copilot 和文件數位化，以提高員工的工作效率並提高整個企業的自動化程度。

For example, thoughtful reorganization of our global operations under our Chief Operating Officer, is unlocking efficiencies while preserving our world-class service. Headcount within asset servicing and operations has declined for nine consecutive quarters and is down 7% from its peak.

例如，我們在營運長的領導下對全球業務進行了周到的重組，在提高效率的同時保留了我們世界一流的服務。資產服務和營運部門的員工數量已連續九個季度下降，較高峰下降了 7%。

Importantly, these gains are accreting to margin, and we've strengthened our governance and controls to ensure they are sustainable. We've also implemented centralized oversight of multiyear technology programs and introduce new tools to monitor hiring activity and workforce composition in real time. These measures give us confidence in our ability to continue driving productivity and margin expansion while maintaining the flexibility to reinvest in areas that support growth.

重要的是，這些收益正在累積到利潤率，並且我們加強了治理和控制以確保它們的可持續性。我們也對多年技術專案實施了集中監督，並引入了新工具來即時監控招募活動和勞動力組成。這些措施使我們有信心繼續提高生產力和擴大利潤率，同時保持在支持成長的領域進行再投資的靈活性。

And that reinvestment is underway, focused on three levers: talent, product expertise and technology. On the talent front, we're hiring revenue-generating professionals across wealth and asset management. From a product standpoint, we're ensuring we have the expertise to create innovative solutions and support the growth across the businesses, which I described earlier.

目前，再投資正在進行中，重點在於三個槓桿：人才、產品專業知識和技術。在人才方面，我們正在招募財富和資產管理領域的創收專業人士。從產品的角度來看，我們確保我們擁有創造創新解決方案和支援整個業務成長的專業知識，正如我之前所描述的。

In the technology side, we're investing in capabilities that enhance the client experience and support scalable growth. These investments are enabling us to deliver more personalized, efficient and high-impact solutions. Together, these efforts reflect our disciplined approach to cost management and our commitment to sustainable margin expansion, while continuing to invest in the capabilities that will drive long- term value for clients and shareholders alike.

在技​​術方面，我們正在投資增強客戶體驗和支援可擴展成長的功能。這些投資使我們能夠提供更個人化、高效和高影響力的解決方案。總的來說，這些努力體現了我們嚴謹的成本管理方法和對永續利潤率擴張的承諾，同時我們將繼續投資於能夠為客戶和股東創造長期價值的能力。

Turning to Slide 9. Our financial model is designed to deliver an attractive combination of growth and returns, and we're making tangible progress against these targets. Organic growth is steadily improving and should accelerate as our initiatives further develop and expand. We have a clear and credible pathway to generate higher margins.

翻到幻燈片 9。我們的財務模型旨在實現有吸引力的成長和回報組合，我們正在實現這些目標方面取得實際的進展。有機成長正在穩步改善，隨著我們計劃的進一步發展和擴大，成長速度將會加快。我們擁有清晰、可靠的途徑來創造更高的利潤。

And at the core is our rock solid balance sheet which provides flexibility for our clients and meaningful capital return optionality for our shareholders. Continued successful execution should translate into double-digit annual earnings per share growth, substantial capital return, including meaningful share repurchases and higher ROEs. Given our recent momentum and confidence in our trajectory, we're changing our ROE target from 10% to 15% to 13% to 15%.

我們的核心是我們堅如磐石的資產負債表，它為我們的客戶提供了靈活性，並為我們的股東提供了有意義的資本回報選擇。持續的成功執行將轉化為每股盈餘兩位數的年度成長、可觀的資本回報（包括有意義的股票回購）和更高的淨資產收益率。鑑於我們最近的勢頭和對發展軌蹟的信心，我們將 ROE 目標從 10% 到 15% 調整為 13% 到 15%。

Turning to Slide 10. To close, I want to reaffirm our commitment to remain independent. Contrary to recent speculation, during my tenure as CEO, we have never entertained discussions regarding the sale of the company with any financial institution nor do we intend to. The Board and management team remain confident that Northern Trust is well positioned to continue driving long-term growth and value creation as evidenced by our visibly improved performance and momentum in our One Northern Trust strategy.

翻到幻燈片 10。最後，我想重申我們保持獨立的承諾。與最近的猜測相反，在我擔任執行長期間，我們從未與任何金融機構討論過有關出售公司的事宜，我們也不打算這樣做。董事會和管理團隊仍然相信，北方信託完全有能力繼續推動長期成長和價值創造，這一點從我們的「一個北方信託」策略明顯改善的績效和發展勢頭就可以看出。

Our 135-year track record of stewardship of multi-generational personal and institutional wealth, unwavering fiduciary commitment, ingrained culture of integrity, and long-term perspective, instill confidence in our clients that we will be here for them, not just today but for generations to come.

我們擁有 135 年的管理多代個人和機構財富的記錄、堅定不移的信託承諾、根深蒂固的誠信文化和長遠眼光，讓我們的客戶相信，我們將不僅在今天為他們服務，而且在未來幾代人中也都將為他們服務。

And with that, I'll turn it over to Dave to review our second quarter results. Dave?

接下來，我將把任務交給戴夫來回顧我們的第二季業績。戴夫？

Thanks, Mike. Let me join Jennifer and Mike in welcoming you to our second quarter 2025 earnings call. You may have noticed that we included a number of new disclosures in our earnings materials this quarter. They include additional segment-level detail, including average loans, average deposits, pretax profit and margins, along with enhanced regulatory and capital metrics. These additional metrics aim to enhance the quality and transparency of our disclosures, ensuring we are responsive to shareholder feedback.

謝謝，麥克。讓我與 Jennifer 和 Mike 一起歡迎您參加我們的 2025 年第二季財報電話會議。您可能已經注意到，我們在本季的收益資料中加入了許多新的揭露內容。它們包括額外的細分級別細節，包括平均貸款、平均存款、稅前利潤和利潤率，以及增強的監管和資本指標。這些額外的指標旨在提高我們揭露的品質和透明度，確保我們能夠回應股東的回饋。

Now let's discuss the financial results of the quarter, starting on Page 12. This morning, we reported second quarter net income of $421 million, earnings per share of $2.13 and our return on average common equity was 14.2%. As Mike mentioned, we delivered our fourth consecutive quarter of generating positive organic growth and positive operating leverage. It's also our fourth consecutive quarter of delivering positive trust fee operating leverage, and improving our expense to trust fee ratio on a year-over-year basis, excluding notables. These are clear signs that we're moving in the right direction, and our strategy is gaining momentum.

現在讓我們討論本季的財務結果，從第 12 頁開始。今天上午，我們報告第二季淨收入為 4.21 億美元，每股收益為 2.13 美元，平均普通股權益回報率為 14.2%。正如麥克所提到的，我們連續第四個季度實現了正有機成長和正經營槓桿。這也是我們連續第四個季度實現正信託費用營運槓桿，我們的費用與信託費用比率同比有所改善（不包括顯著項目）。這些明顯的跡象表明我們正朝著正確的方向前進，我們的策略正在獲得動力。

Relative to the prior year, currency movements favorably impacted our revenue growth by approximately 90 basis points and unfavorably impacted our expense growth by approximately 100 basis points. Relative to the prior period, currency movements favorably impacted our revenue growth by approximately 110 basis points and unfavorably impacted our expense growth by approximately 130 basis points.

與前一年相比，貨幣變動對我們的收入成長產生了約 90 個基點的有利影響，對我們的費用成長產生了約 100 個基點的不利影響。與上一時期相比，貨幣變動對我們的收入成長產生了約 110 個基點的有利影響，對我們的費用成長產生了約 130 個基點的不利影響。

Trust, investment and other servicing fees totaled $1.2 billion, a 1% sequential increase and a 6% increase compared to last year. Net interest income on an FTE basis was a record $615 million, up 7% compared to the prior period and up 16% from a year ago. Excluding notables in the prior year, other noninterest income was down 4% year-over-year, largely reflecting weaker reported FX trading income, partially offset by strength in other capital markets activities.

信託、投資和其他服務費總額為 12 億美元，較上季成長 1%，比去年同期成長 6%。以全職當量計算的淨利息收入達到創紀錄的 6.15 億美元，比上一期增長 7%，比去年同期增長 16%。不計上一年的重大項目，其他非利息收入年減 4%，主要反映了報告的外匯交易收入較弱，但其他資本市場活動的強勁表現部分抵消了這一影響。

One reminder related to our FX trading income. We've seen steady growth in the underlying core business over time, but it's often muted by the overnight swap activity conducted by our treasury department, which was more pronounced this quarter. Core FX trading revenue, excluding the impact of our swap activity was up 10% year-over-year. Our assets under custody and administration were up 7% sequentially and up 9% compared to the prior year. Our assets under management were up 6% sequentially and up 11% year-over-year.

有一則提醒與我們的外匯交易收入有關。隨著時間的推移，我們看到基礎核心業務穩步成長，但這種成長往往受到我們財務部門進行的隔夜掉期活動的影響，而本季這種成長更為明顯。核心外匯交易收入（不包括掉期活動的影響）較去年同期成長 10%。我們的託管和管理資產環比成長 7%，比上年增長 9%。我們的管理資產較上季成長 6%，較去年同期成長 11%。

Overall, our credit quality remains very strong with all key credit metrics in line with historical standards. The provision for credit losses increased to $16.5 million in the second quarter, largely reflecting an increase in reserves related to a small number of nonperforming loans, but we expect it to return to more normalized levels in subsequent quarters. Relative to the prior year period, and excluding notable items, revenue was up 8%. Expenses were up 4.8%. Our pretax margin was up 160 basis points. Earnings per share increased 20% and our average shares outstanding decreased by 5%.

整體而言，我們的信用品質仍然非常強勁，所有關鍵信用指標都符合歷史標準。第二季信貸損失準備金增加至 1,650 萬美元，主要反映了與少量不良貸款相關的準備金增加，但我們預計它將在隨後的幾個季度恢復到更正常的水平。與去年同期相比，除去重大項目，營收成長了 8%。支出上漲了4.8%。我們的稅前利潤率上漲了160個基點。每股盈餘成長了 20%，平均流通股數減少了 5%。

Turning to our Asset Servicing results on Page 13. Our Asset Servicing business performed well in the quarter. Transaction volumes were particularly strong. Capital Markets activities were up double digits over the prior year, and new business growth continues to be booked at attractive margins. Assets under custody and administration for Asset Servicing clients were $16.9 trillion at quarter end, reflecting a 9% year-over-year increase.

前往第 13 頁的資產服務結果。我們的資產服務業務在本季表現良好。交易量特別強勁。資本市場活動較上年同期成長了兩位數，新業務的成長持續保持著可觀的利潤率。截至季末，資產服務客戶託管和管理的資產為 16.9 兆美元，年增 9%。

Asset Servicing fees totaled $692 million, reflecting a 6% increase over the prior year. Custody and fund administration fees were $469 million, up 5% year-over-year largely reflecting the impact from strong underlying equity markets, favorable currency, robust transaction activity and new business generation. Assets under management for asset servicing clients were $1.2 trillion, up 11% over the prior year. Investment management fees within Asset Servicing were $157 million up 8% year-over-year due to favorable markets and new business activities.

資產服務費總額為 6.92 億美元，較上年增加 6%。託管和基金管理費用為 4.69 億美元，年增 5%，主要反映了強勁的基礎股票市場、有利的貨幣、活躍的交易活動和新業務產生的影響。資產服務客戶管理的資產為 1.2 兆美元，比上年增長 11%。由於市場良好和新業務活動，資產服務中的投資管理費為 1.57 億美元，年增 8%。

As you can see on the right side of the slide, average deposits grew 7% sequentially, accounting for most of the total increase. Loan volume increased slightly relative to the first quarter. Asset Servicing pretax profit nearly doubled over the prior year period. And the Asset Servicing pretax margin was up more than 10 points to 23.2%.

正如您在幻燈片右側看到的，平均存款環比增長 7%，佔總增長的大部分。貸款量較第一季略有增加。資產服務稅前利潤比去年同期幾乎翻了一番。資產服務稅前利潤率上漲逾10個百分點，達23.2%。

Excluding $75 million in notables in the prior year, asset servicing pretax profit increased 29% and the pretax margin expanded by approximately 330 basis points. Reflecting the pivot in our new business approach, our focus on cross-selling high-margin capital markets and other adjacent products and services and our efforts to streamline our operations.

不計上年 7,500 萬美元的重大項目，資產服務稅前利潤成長 29%，稅前利潤率擴大約 330 個基點。反映了我們新業務方法的重點、我們對交叉銷售高利潤資本市場和其他相關產品和服務的關注以及我們為簡化營運所做的努力。

Moving to Wealth Management business on Page 14. Wealth Management also had a healthy quarter with continued strength in Global Family Office. Assets under management for our wealth Management clients were $469 billion at quarter end, up 12% year- over-year. Trust, investment and other servicing fees for Wealth Management clients were $539 million, up 5% year-over-year, primarily due to strong equity markets.

前往第 14 頁的財富管理業務。財富管理本季也表現良好，全球家族辦公室持續保持強勁勢頭。截至本季末，我們財富管理客戶的管理資產為 4,690 億美元，年增 12%。財富管理客戶的信託、投資和其他服務費用為 5.39 億美元，年增 5%，主要得益於股票市場的強勁。

As you can see on the right side of the slide, both average deposits and average loans were flattish relative to the first quarter. Wealth Management's pretax profit increased 18% over the prior year period and the pretax margin was flattish 37.2%. Excluding approximately $33 million in notables in the prior year period, Wealth Management's pretax profit increased 5% year-over-year, while the pretax margin decreased 25 basis points. It's worth noting that more than two by three of the $16.5 million second quarter provision was allocated to the Wealth segment.

正如您在幻燈片右側看到的，平均存款和平均貸款相對於第一季而言都持平。財富管理的稅前利潤比去年同期成長了 18%，稅前利潤率則持平於 37.2%。不計去年同期約 3,300 萬美元的顯著收益，財富管理的稅前利潤年增 5%，而稅前利潤率下降 25 個基點。值得注意的是，第二季 1,650 萬美元的撥備中，超過三分之二分配給了財富部門。

Moving to Page 15 and our balance sheet and net interest income trends. Our average earning assets were up 6% on a linked-quarter basis fueled by higher deposit levels, which drove an increase in cash held at the Fed and other central banks and a slight increase in securities. The duration of our securities portfolio decreased to 1.5 years.

前往第 15 頁，查看我們的資產負債表和淨利息收入趨勢。我們的平均生息資產環比增長 6%，這得益於存款水平上升，從而推動聯準會和其他中央銀行持有的現金增加以及證券略有增加。我們的證券投資組合的久期縮短至1.5年。

While we're opportunistically adding duration to protect against future rate cuts, we've also shifted the mix of the portfolio slightly. So the fixed floating breakdown is now 52% to 48%, including the impact of swaps. The duration of our total balance sheet remains under one year.

雖然我們適時增加期限以防範未來降息，但我們也稍微調整了投資組合的結構。因此，包括掉期的影響在內，固定浮動比率現在為 52% 比 48%。我們的總資產負債表的持續時間仍不到一年。

Net interest income on an FTE basis was a record $615 million, and our net interest margin held steady at 1.69%. NII outperformed our expectations, largely due to higher-than-expected deposit levels. Average deposits were $122 billion, up 6% compared to the first quarter levels. within this, interest-bearing deposits increased by 7%, while noninterest-bearing deposits decreased by 60 basis points, comprising 14% of the overall mix.

以全職當量計算的淨利息收入達到創紀錄的 6.15 億美元，淨利差穩定在 1.69%。NII 的表現超出了我們的預期，這主要是由於存款水準高於預期。平均存款為 1,220 億美元，比第一季水準成長 6%。其中，計息存款增加了 7%，而非計息存款減少了 60 個基點，佔總存款的 14%。

The quarterly contribution from transactional and other onetime items was elevated in the second quarter, mostly due to the overnight FX swap activity conducted by our treasury team as we capitalized on FX volatility during the quarter. We estimate this added an incremental $10 million to second quarter NII that is not expected to persist.

第二季度，交易和其他一次性項目的季度貢獻有所增加，這主要是因為我們的財務團隊利用本季外匯波動進行了隔夜外匯掉期活動。我們估計這將為第二季的 NII 增加 1000 萬美元，但預計不會持續下去。

Turning to our expenses on Page 16. Excluding notable items in the prior period as listed on the slide, expenses in the second quarter were up 4.8% year-over-year. Excluding notables and unfavorable currency movements, expenses were up just 3.8%, the lowest rate of growth in the past six quarters.

轉到第 16 頁的我們的開支。除去幻燈片中列出的前期重要項目，第二季的支出年增了 4.8%。排除重要因素和不利的貨幣變動，支出僅成長 3.8%，為過去六個季度以來的最低成長率。

Turning to Page 17. Our capital levels and regulatory ratios remained strong in the quarter, and we continue to operate at levels well above our required regulatory minimums. Our common equity Tier 1 ratio under the standardized approach decreased by 70 basis points on a linked quarter basis to 12.2% with capital accretion more than offset by an increase in RWA. The RWA growth was driven largely by quarter end lending, coupled with higher capital markets activities.

翻到第 17 頁。本季度，我們的資本水平和監管比率仍然保持強勁，我們的營運水平繼續遠高於監管最低要求。我們採用標準化方法計算的一級普通股資本充足率較上月下降 70 個基點至 12.2%，但資本增值被風險加權資產的增加所抵銷。風險加權資產的成長主要受到季末貸款以及資本市場活動增加的推動。

Our Tier 1 leverage ratio was 7.6%, down 40 basis points from the prior quarter. At quarter end, our unrealized after-tax loss on available-for-sale securities was $481 million and we returned $486 million to common shareholders in the quarter through cash dividends of $146 million and common stock repurchases of $339 million, reflecting a payout ratio of 117%. Finally, based on the 2025 CCAR results, we recently disclosed that our stress capital buffer will remain at the 2.5% minimum requirement. And yesterday, our Board approved a $0.05 or a 7% increase to our quarterly dividend.

我們的一級槓桿率為 7.6%，較上一季下降 40 個基點。截至季末，我們可供出售證券的未實現稅後損失為 4.81 億美元，本季我們透過 1.46 億美元的現金股利和 3.39 億美元的普通股回購向普通股股東返還了 4.86 億美元，股息率為 117%。最後，根據 2025 年 CCAR 結果，我們最近揭露，我們的壓力資本緩衝將保持在 2.5% 的最低要求。昨天，我們的董事會批准將季度股息提高 0.05 美元或 7%。

Turning to our guidance. Starting with expenses. We continue to expect our total operating expense growth to be below 5% for the full year, excluding notable items in both periods and regardless of currency movements.

轉向我們的指導。從費用開始。我們仍預期全年總營運費用成長率將低於 5%，不包括兩個時期的顯著項目，且無論貨幣變動如何。

Turning to NII. We now expect the full year NII to increase by mid-single digits over the prior year. This assumes a modest decline in third quarter deposits in line with seasonal trends and mostly stable deposit mix, meaning that we wouldn't expect absolute levels of NIB to move materially from current levels, but the percentage of the overall mix could change. Market implied forward curves as of this week, and slightly weaker institutional deposit betas with the next series of global rate cuts.

轉向 NII。我們現在預計全年 NII 將比上年增長中等個位數。這假設第三季存款會根據季節性趨勢小幅下降，且存款結構基本上穩定，這意味著我們預計 NIB 的絕對水準不會與當前水準發生重大變化，但整體結構百分比可能會發生變化。截至本週，市場隱含遠期曲線和下一輪全球降息將略微減弱的機構存款貝塔係數。

And with that, operator, please open the line for questions.

接線員，請打開熱線來回答問題。

(Operator Instructions)

（操作員指示）

Glenn Schorr from Evercore ISI.

Evercore ISI 的 Glenn Schorr。

Hi, thanks for that definitive declaration of independents, put that to bed. I'm curious on these there's multiple initiatives across alternatives and the 11 new fixed income ETFs that you have scheduled for the second half. And I guess, a, I'd love any numbers that you could throw at it because you talked about the progress, but whether it be AUM, capital raising, AUC, revenue anything.

嗨，感謝獨立人士的明確聲明，這件事就此結束。我對此很好奇，您計劃在下半年推出多種替代舉措和 11 隻新的固定收益 ETF。我想，我很樂意聽取您提供的任何數字，因為您談到了進展，無論是 AUM、融資、AUC、收入或其他什麼。

But I'm also very interested in how much you define that as push, meaning you rolling out products and pushing them across the platform and playing a little catch-up versus pull where you're seeing whether it be clients or adviser demand from these products and you're developing as a response to that? I appreciate it. thanks.

但我也很感興趣您將其定義為推動，這意味著您推出產品並在整個平台上推廣它們，並進行一些追趕而不是拉動，您是否觀察了客戶或顧問對這些產品的需求，並對此做出開發？我很感激。謝謝。

Sure. Thanks, Glenn. So on the alternative front, as you heard, yes, a lot of effort on that front. And overall, I would definitely characterize it as pull. And I say that because of just the changes in the marketplace that you're well aware of, towards more private markets versus public markets. And we need to make sure for our clients that we're providing the right alternative for them. So that's, I would say, the overriding factor that's driving it.

當然。謝謝，格倫。因此，在替代方面，正如您所聽到的，是的，我們在這方面付出了很多努力。總的來說，我肯定會將其描述為拉動。我之所以這麼說，是因為你們都很清楚市場正在發生的變化，即市場越來越向私人市場而非公共市場轉變。我們需要確保為客戶提供正確的選擇。所以我想說，這是推動這項進程的首要因素。

On the other side of it, we have to all say, push internally to make sure that we have those alternatives for them. And that's why across the front, you see everything from 50 South through the advisory through our third-party platform. We're trying to do it in a number of different ways. So it's not just one thing pushing hard. To try to size it for you a little bit, I would say, in the first half we raised across all of those, about $2.5 billion.

另一方面，我們必須說，從內部推動以確保我們為他們提供這些替代方案。這就是為什麼您可以透過我們的第三方平台的諮詢看到來自 50 South 的一切。我們正在嘗試透過多種不同的方式來實現這一目標。所以，努力推動的事情並不只限於一件事。為了讓大家稍微估算一下，我想說，上半年我們在所有這些方面籌集了大約 25 億美元。

That does not include the advisory, which was another approximately $1 billion on that front. When you think about just at a high level kind of what the opportunity is, if you just look at our wealth franchise and our wealth client base, we're below our clients are below 5% when it comes to allocation to private markets. And so there's still plenty of room in their portfolios to get closer to what we would even see as the appropriate allocation.

這還不包括諮詢費，該費用又花了約 10 億美元。當你從高層次思考機會是什麼時，如果你只看我們的財富特許經營權和財富客戶群，你會發現在分配到私人市場方面，我們的客戶比例低於 5%。因此，他們的投資組合中仍有足夠的空間來接近我們所認為的適當配置。

And that's going to depend on the client segment. The upper tiers, as you know, family offices can have as high as 40-plus percent allocation to alternatives. And then as you work your way through the tiers, you would be closer to maybe 10% or 15%. That's still a lot of, I'll say, room for them to grow through that poll of what they want in their portfolios.

這取決於客戶群。如您所知，上層家族辦公室對另類投資的配置比例可高達 40% 以上。然後，隨著您逐步提升等級，您可能會更接近 10% 或 15%。我想說，透過調查他們希望在自己的投資組合中實現什麼，他們仍然有很大的成長空間。

Thanks. Maybe anything on the what's driving the 11 fixed income ETFs. You talked about efficient scalable exposures, I'm just curious what that might encompass that you didn't already have in the portfolio thank you.

謝謝。或許可以了解一下 11 檔固定收益 ETF 的驅動因素。您談到了有效的可擴展風險敞口，我只是好奇這可能包含哪些您投資組合中尚未包含的內容，謝謝。

Sure. So on the ETFs that we're rolling out, I would say, at this point, our ETF complex has mostly index and other certain exposures, whereas there's less on the fixed income front, particularly the type of fixed income characteristics that our client base is looking for. So this is another example of how Asset Management and the Wealth Management business work together to develop specific products that fit for the needs of our client base.

當然。因此，就我們推出的 ETF 而言，我想說，目前，我們的 ETF 組合主要包含指數和其他某些曝險，而固定收益方面則較少，特別是我們的客戶群所尋求的固定收益特徵類型。這是資產管理和財富管理業務如何合作開發適合我們客戶群需求的特定產品的另一個例子。

So I won't go into all the detail because we're going to be rolling that out very shortly. But think about the needs across municipal securities. Think about the need for fixed income ladders all trying to put that in a very efficient vehicle for them to be able to invest in.

所以我不會講所有細節，因為我們很快就會推出它。但請考慮市政證券的需求。想想對固定收入階梯的需求，所有人都試圖將其放入非常有效的工具中，以便他們能夠進行投資。

Thanks for all that appreciate it.

感謝所有欣賞它的人。

Betsy Graseck with Morgan Stanley.

摩根士丹利的 Betsy Graseck。

Hi, good morning. I wanted to just dig in a little bit on the decision to tighten up the range for ROE. I think it's from 10% to 15% to 13% to 15%. And within that, understand where the line of sight is that you have on the expense ratio with the operating leverage that you're delivering? Where do you anticipate you can take this expense ratio to as you move forward over the next several years in the medium term?

嗨，早安。我只是想深入探討縮小 ROE 範圍的決定。我認為是從 10% 到 15% 到 13% 到 15%。在此範圍內，了解您對費用率和您所提供的經營槓桿的關注點在哪裡？您預計在未來幾年的中期內，費用率會達到什麼水準？

Sure. So if we go back in time a little bit, when we first set the range at 10% to 15%, our ROE was below 10%. So a lot of the objective at that point was get into the range which we did some time ago. And then, frankly, we've just continued to move up in that range and at times have been at the top end and even a little bit over. And it definitely depends on our, I'll say, organic performance and execution, but also it's influenced by market conditions.

當然。因此，如果我們稍微回顧過去，當我們第一次將範圍設定為 10% 到 15% 時，我們的 ROE 低於 10%。因此，當時的許多目標都是進入我們前段時間所實現的範圍。然後，坦白說，我們只是繼續在這個範圍內上升，有時處於最高點，甚至有點超出。這肯定取決於我們的有機表現和執行情況，但也會受到市場條件的影響。

And so that's why we, over time, maintained it at 10% to 15%. It took into account, I'll say, different interest rate cycles and significant changes in the equity markets. And so we felt like that was the right broad range. Well, we've been producing returns now at that upper half for some time period. And with the momentum that we have here in the strategy, we think that's going to continue to be the case.

這就是為什麼我們一直將其維持在 10% 到 15% 之間。我想說的是，它考慮到了不同的利率週期和股票市場的重大變化。因此，我們覺得這是正確的廣泛範圍。嗯，一段時間以來，我們已經在該上半部分產生了回報。憑藉我們在策略上的勢頭，我們認為這種情況將會持續下去。

And I would also say that over time, there's been less clarity or certainty around the capital framework, the regulatory capital framework. And so it was also taking into account that there could be higher capital requirements as much as we can't predict where that goes and for how long.

我還想說，隨著時間的推移，資本框架、監管資本框架變得越來越不清晰或不確定。因此，我們也考慮到可能會有更高的資本要求，但我們無法預測這些要求會流向何處以及持續多久。

At this point, we believe there's a very, I'll say, constructive framework around capital. And so we just have greater comfort, I'll say, that the capital requirements are in the range that we're in right now. And so as long as we continue to execute and under, I'll say, somewhat normal level of market conditions, we think that range of 13% to 15% is appropriate.

目前，我們相信，圍繞資本存在一個非常有建設性的框架。因此，我可以說，我們更加放心，資本要求在我們目前的範圍內。因此，只要我們繼續執行，並且在市場條件比較正常的情況下，我們認為 13% 到 15% 的範圍是合適的。

And then, Betsy, just to address the expense part of it. From an expense to trust fee ratio perspective, we believe the right range as we put out there is 105% to 110%. We're working our way towards that. We're at 115% now that's down from where it was. And so we'll look to continue to grind it into that range. And that obviously then provides a higher level of profitability, which then translates into the ROEs in that range.

然後，貝琪，我們來談談費用部分。從費用與信託費用比率的角度來看，我們認為正確的範圍是 105% 到 110%。我們正在努力實現這一目標。現在我們的比率是 115%，比之前的比率有所下降。因此，我們會繼續努力將其提升到這個範圍。這顯然會提供更高水準的獲利能力，進而轉化為該範圍內的 ROE。

And that obviously then provides a higher level of profitability, which then translates into the ROEs in that range.

這顯然會提供更高水準的獲利能力，進而轉化為該範圍內的 ROE。

Ebrahim Poonawala from Bank of America.

美國銀行的 Ebrahim Poonawala。

Good morning so I guess, maybe Mike, so thanks for kind of going through that on in your prepared remarks in terms of strategy update, et cetera. I guess as we think about independence or some version of mergers. I guess, is there any scenario in which you think M&A would make sense from a shareholder return perspective?

早安，我想可能是麥克，所以感謝您在準備好的發言中就戰略更新等方面進行了討論。我想我們會考慮獨立或某種形式的合併。我想，從股東回報的角度來看，您是否認為在某種情況下併購是有意義的？

Or do you think the uniqueness of the Northern franchise the scale in the custody business, all of that kind of make just M&A unattractive strategically? Like how should we think about it outside looking in as shareholders?

或者您認為北方特許經營權的獨特性、託管業務的規模以及所有這些使得併購在策略上缺乏吸引力？例如，身為股東，我們該如何從外部思考這個問題？

Sure. So as you've heard from my comment, we are completely focused on executing on our strategy. And we believe that, that strategy of independence is what will produce the best returns for our shareholders ultimately. And the reason why that is, is a little bit to your point, we believe that, that provides a unique value proposition for our clients.

當然。正如您從我的評論中聽到的那樣，我們完全專注於執行我們的策略。我們相信，獨立策略最終將為我們的股東帶來最佳回報。原因有點符合您的觀點，我們相信，這為我們的客戶提供了獨特的價值主張。

And frankly, through this the last several weeks, we've heard from a lot of our clients who've made it clear that they have lots of alternatives for various providers or financial partners that they could have across and this is across families through very large institutions who have said, we chose Northern Trust because it's a different value proposition.

坦白說，在過去的幾周里，我們聽到很多客戶說，他們有很多不同的供應商或金融合作夥伴可供選擇，這些供應商或金融合作夥伴來自非常大的機構，他們說，我們選擇北方信託，因為它有不同的價值主張。

It's one where you are focused on trying to provide a higher level of client service, where you do have very targeted expertise in just certain segments of the market where you compete. And so we believe that, that differentiated value proposition is the one that's going to create the most value.

在這種情況下，您專注於嘗試提供更高水準的客戶服務，並且在您競爭的某些市場領域中，您確實擁有非常有針對性的專業知識。因此，我們相信，差異化的價值主張將創造最大的價值。

Now over time, as you know, we have done acquisitions that enable us to either enter another market or to bolster our capabilities in a particular market. And we'll continue to look at those over time if they make sense. We're an organic growth company. So it's not, by any means the primary driver. But if at times, there's something that would be attractive for us on the inorganic front to do to improve that value proposition, we would consider doing it, obviously, with very high standards.

如您所知，隨著時間的推移，我們進行了收購，這使我們能夠進入另一個市場或增強我們在特定市場的能力。如果它們有意義的話，我們將繼續研究它們。我們是一家有機成長的公司。所以，無論如何，它都不是主要驅動因素。但如果有時，在無機方面有一些事情對我們來說是有吸引力的，可以去做以改善這一價值主張，我們就會考慮去做，顯然，會以非常高的標準去做。

Got it. And I guess maybe just sticking with capital deployment. Is there just give us remind us how you think about pace of buybacks relative to just given means the stocks obviously done well year-to-date. Is there a certain valuation price to earnings, price of tangible book multiple where buybacks begin to look less attractive? Thank you.

知道了。我想也許只是堅持資本部署。能否請您提醒我們一下，您如何看待相對於剛才提到的回購速度，這意味著今年迄今股票表現明顯良好。是否存在一定的估值本益比、有形帳面價值倍數，當達到這個水準時，回購的吸引力就會開始下降？謝謝。

Sure. I'm going to let Dave take that.

當然。我要讓戴夫拿著它。

Yeah so when we look at buybacks, it isn't just about the stock price, right? We're looking at our regulatory capital, earnings power, ROE, loan growth, as you know, dividends, we like our balance sheet to be available for our clients, right? So we still like to run a little bit of a cushion, if you will, that we want to have in the system. We've picked up our capital return to shareholders significantly. When you think about the current pace that we're on, we will probably end up exceeding what we did all of last year, and last year had Visa included in it.

是的，所以當我們考慮回購時，不僅僅關注股票價格，對嗎？我們正在關注我們的監管資本、獲利能力、股本回報率、貸款成長，正如你所知，還有股息，我們希望我們的資產負債表能夠提供給我們的客戶，對嗎？因此，如果您願意的話，我們仍然希望在系統中保留一點緩衝。我們大幅提高了股東的資本回報。如果考慮到我們目前的步伐，我們最終可能會超過去年全年的成績，去年還包括了 Visa。

So I think we're at a very healthy clip close to $500 obviously this quarter. And so you take all those factors into consideration, not just the stock price, when we look at it, and we balance that against our capital requirements and other issues at the time.

因此我認為本季我們的成長率非常健康，顯然接近 500 美元。因此，當我們考慮股票價格時，我們會考慮所有這些因素，而不僅僅是股票價格，並將其與當時的資本要求和其他問題進行權衡。

Got it. Thank you.

知道了。謝謝。

Mike Mayo with Wells Fargo Securities.

富國證券公司的 Mike Mayo。

Hey, I'm going to continue the line of discussion. There's been so much press and it must be disruptive to your clients and employees and perhaps annoying, but it still comes up among investors. And I hear your commitment to independence; 135 years be around for generations to come. And you've mentioned the short term, four quarters of growth and operating leverage medium term, higher ROE targets long term One Northern Trust.

嘿，我要繼續討論。媒體對此進行瞭如此多的報道，這肯定會給你的客戶和員工帶來困擾，甚至可能會讓人感到厭煩，但它仍然在投資者中出現。我聽到了你們對獨立的承諾；135 年將影響子孫後代。您提到了短期、四個季度的成長和中期的營運槓桿，以及更高的 ROE 目標，長期來看 One Northern Trust。

So I hear you loud and clear. And Mike, you're before Northern Trust, you certainly know about dealmaking. So that's all clear. But it doesn't stop others from saying, hey, maybe we want to buy you. You've been in that state for the last, I'd say, three decades. So that's also nothing new.

所以我聽清楚了你的聲音。麥克，您在北方信託公司任職，您當然了解交易。一切都清楚了。但這並不能阻止其他人說，嘿，也許我們想買你。我想說，過去三十年來，你一直處於這種狀態。所以這也沒什麼新鮮的。

Having said that, under what circumstance would you consider ridding the custody business because you talked about scalability, the first word when you gave the update there and perhaps that could use more scale or the way I think about, I think of the crown jewel is the private bank and the asset management and the asset servicing. You're trying to optimize more, but maybe strategically you could do more there or alternatively, maybe you could buy somebody else to get that scale.

話雖如此，在什麼情況下您會考慮擺脫託管業務，因為您談到了可擴展性，這是您在更新時說的第一句話，也許可以使用更多的規模，或者按照我的想法，我認為皇冠上的寶石是私人銀行和資產管理和資產服務。您正在嘗試進行更多優化，但也許從策略上來說，您可以做得更多，或者也許您可以收購其他人來達到這個規模。

So thanks for the question, Mike. So when it comes to scale, I think it's important to start with the fact that size does not necessarily equal scale. We absolutely need scale, but we don't need size to get there. And our strategy is around that, but then you have to execute to demonstrate it, right? Because scale is all about the ability to, I'll say, grow the revenue side at a pace that's faster than the cost side or increase your volume at lower unit cost, so to speak, as you go forward.

謝謝你的提問，麥克。因此，當談到規模時，我認為首先要知道，大小並不一定等於規模。我們絕對需要規模，但我們不需要大小來實現這一目標。我們的策略是圍繞這一點的，但你必須執行來證明這一點，對嗎？因為規模就是說，隨著業務的推進，收入的成長速度要快於成本的成長速度，或者說，以較低的單位成本增加產量。

And the reason why I say it's not about size is because there are different drivers of creating that scale. So we try to focus on just certain sectors where we believe we can build scale within the sector and also differentiate ourselves.

我之所以說這與規模無關，是因為創造這種規模的驅動因素各不相同。因此，我們嘗試專注於某些領域，我們相信我們可以在這些領域內擴大規模，並使自己脫穎而出。

So when you think about specific areas on the institutional side like US pension plans, UK pension plans, our business with hedge funds in the US, those specific segments where we say our value proposition resonates, but now we also have to drive scale so that we can get the value proposition to a place that's attractive and we can get the financial returns on that front. So that's the first piece.

因此，當您考慮機構方面的特定領域時，例如美國退休金計劃、英國退休金計劃、我們與美國對沖基金的業務，這些特定領域我們認為我們的價值主張引起了共鳴，但現在我們還必須擴大規模，以便我們可以將價值主張提升到一個有吸引力的水平，並且我們可以從中獲得財務回報。這是第一部分。

The second piece of that is a place that you do get scale is through technology. And so how can we apply technology in such a way and leverage technology to create that? And certainly, the direction of travel on that front is one that, once again, doesn't necessarily favor just being bigger.

第二點，你可以透過科技來實現規模化。那麼我們如何以這種方式應用技術並利用技術來創造這一點呢？當然，在這方面的發展方向不一定只是變得更大。

There's more complexity with being bigger and the ability to not have to necessarily operate everything yourself, meaning on-prem and to do more through the cloud is an equalizer, if you will, when it comes to scale.

隨著規模的擴大，複雜性也隨之增加，而且不必親自操作所有事情，這意味著在規模方面，本地部署和透過雲端執行更多操作是一種均衡器。

And then certainly with AI, the AI is a tool, which we know, creates tremendous leverage and scalability for both processes but also for people. And we're in the early days of that. And so we have to be able to deploy those technologies in a way that it creates scale within it.

當然，人工智慧是一種工具，我們知道，它為流程和人類創造了巨大的槓桿作用和可擴展性。我們正處於這一領域的早期階段。因此，我們必須能夠以能夠實現規模化的方式部署這些技術。

And then the third thing I would say is there are different parts of the value chain that create scale for you. And what we've tried to do and are in the midst of, I'll say, transforming it again, is to make sure that on the front end, dealing with the client that we have that differentiation. But as you move back through the value chain, we find those areas where more centralization, more standardization, more automation is where you create that scale.

我想說的第三件事是，價值鏈的不同部分可以為您創造規模。而我們一直在努力做的，並且正在做的，我想說的是，再次轉變，是為了確保在前端，在與客戶打交道時，我們能夠實現這種差異化。但當你回顧價值鏈時，我們會發現，在那些更集中、更標準化、更自動化的領域，你就能實現規模化。

And so more specifically, that's why we're moving to what we call our client-centric capability operating model. We're trying to take the common processes from across the businesses, but particularly within asset servicing and focus them on capabilities as opposed to necessarily being in a particular region or for just a particular segment.

更具體地說，這就是我們轉向以客戶為中心的能力運作模式的原因。我們試圖從各個業務中採用通用流程，特別是在資產服務領域，並將其重點放在能力上，而不是局限於特定區域或特定領域。

So, all of your capital markets capabilities specifically cash, payments. That's the way we're organizing it underneath the COO, Pete Cherecwich. And then again, centralized, standardize, automate using technology to do that. We're seeing the early returns or benefits from that. We've gone down headcount consistently since we started on that transformation of the operations.

因此，您所有的資本市場能力特別是現金、支付。這就是我們在首席營運長 Pete Cherecwich 領導下組織的方式。然後再次，使用技術進行集中化、標準化和自動化來實現這一點。我們正在看到由此帶來的早期回報或好處。自從我們開始進行營運轉型以來，我們的員工人數一直在持續減少。

And then the last thing I would say is in areas where there is a benefit for size and scale, that's where we just are centralized across the entire company. So think about our core technology group and infrastructure. And we may not have the same, I'll say, buying power as the other large players on that front. But frankly, that differential at that level is not enough to outweigh all the benefits of the chain that I talked about.

最後我想說的是，在規模和規模能夠帶來好處的領域，我們只是在整個公司範圍內集中精力。所以想想我們的核心技術團隊和基礎設施。我想說，我們可能不具備與其他大型企業同等的購買力。但坦白說，這種程度的差異不足以抵消我所談到的連鎖店的所有好處。

So, we need to continue to do it. We know we need to demonstrate it. So, it has to flow through to the numbers that's why the margins in our Asset Servicing business need to go up. We're in the low 20s right now.

所以，我們需要繼續這樣做。我們知道我們需要證明這一點。因此，它必須流向數字，這就是為什麼我們的資產服務業務的利潤率需要上升。目前我們處於 20 多歲左右。

Those should be in the high 20s, and that's what we're moving towards with that. But that actually, at the end of the day, that's what we'll demonstrate, are you getting scale? Is that an attractive business? To the extent it's not, to your point, you think about different ways that you can potentially modify that or change it to ensure that you get it.

這些數字應該在 20 多歲，這就是我們正在努力實現的目標。但實際上，到最後，這就是我們要證明的，你獲得了規模嗎？這是一項有吸引力的業務嗎？就您的觀點而言，如果不是，您可以考慮不同的方法來修改或改變它，以確保您能夠獲得它。

Yes, Mike. And I would only add to that, that when you look at the Asset Owner segment within Asset Servicing, it already chins the bar in terms of our margins where we're trying to go. And so as that business gets bigger, and the Asset Management side of the equation gets smaller, you're going to see the margins drift up as well. So that particular segment we've identified is already there.

是的，麥克。我只想補充一點，當你查看資產服務中的資產所有者部分時，它已經達到了我們試圖達到的利潤率標準。因此，隨著業務規模不斷擴大，資產管理規模不斷縮小，利潤率也會跟著上升。因此，我們確定的那個特定部分已經存在了。

Got it thank you.

明白了，謝謝。

Alex Blostein with Goldman Sachs.

高盛的亞歷克斯‧布洛斯坦 (Alex Blostein)。

Hey, good morning, everybody thank you for the question I appreciate all the extra segment disclosure on the margins, profitability and obviously, the target as well. That's all very helpful. I wanted to ask you guys around the timing to achieve some of these. So you've had the 30% plus pretax margin as a target out there for a little while. It's helpful to understand the pieces a little bit.

嘿，早安，大家好，感謝你們的提問，我很欣賞你們對利潤率、盈利能力以及目標的額外細分披露。這一切都非常有幫助。我想問一下你們實現這些目標的時間安排。因此，您暫時將 30% 以上的稅前利潤作為目標。這對於理解一些片段是有幫助的。

But as you think about how long it will take you guys to get there, and ultimately, what interest environment does that contemplate? Because obviously, there's a lot of profitability related to NII and you're talking about profitability of the firm as a whole. So I'm curious kind of how that plays into the rubric?

但是，當您考慮要花多長時間才能實現這一目標時，最終會考慮什麼樣的利益環境？因為顯然，NII 與許多盈利能力有關，而且您談論的是整個公司的盈利能力。所以我很好奇這對評分標準有何影響？

Sure. So just as far as the backdrop on the market environment for it, it's one of, I would say, like normalized, meaning a normal yield curve, normal shape of the yield curve, and the pace at which you get there. What makes it difficult in managing for any financial institution, is the speed of those changes. So we've gone through a time period, obviously, where rates were going up, but then they went down to 0, then they went up very fast.

當然。因此，就其市場環境背景而言，我想說，它是正常化的，意味著正常的殖利率曲線、正常的殖利率曲線形狀以及達到這一目標的速度。對任何金融機構來說，管理起來都十分困難，因為這些變化的速度太快了。因此，顯然，我們經歷了一個利率上升的時期，但隨後利率降至 0，然後又迅速上升。

And now it appears that we're at the beginning of a time period where they're going to go down, but at a more gradual pace that just allows for the transition of duration in the portfolio on the balance sheet to be able to, I'll say, leg into that change in the shape of the yield curve. So that's the expectation. But of course, we have to be positioned for different things happening on that front.

現在看來，我們正處於殖利率曲線開始下降的時期，但下降速度會更加緩慢，這使得資產負債表上的投資組合的久期能夠轉變，我想說，能夠跟上收益率曲線形狀的變化。這就是我們的期望。但當然，我們必須為該領域發生的不同事情做好準備。

I'll say the more important part, Alex, which is just what's the time frame on that. Obviously, we're executing hard on that. You see the positive operating leverage that we achieved in a quarter like this where, as I say, it's kind of chunkier yards, if you will, and you need to pick those up while you can.

亞歷克斯，我要說的是更重要的部分，那就是時間框架是什麼。顯然，我們正在努力實現這一目標。您可以看到，我們在本季度實現了積極的經營槓桿，正如我所說，如果您願意的話，這是一種更龐大的規模，您需要在可以的時候將其撿起來。

But if you said, okay, but there are certain quarters or even multiple quarters where it's more difficult to get those chunkier yards and you're grinding more up, that would infer that it's likely to be kind of 2027 where we're achieving that 30-plus percent. If we can get there sooner, great. And as I mentioned, like, the environment can help us, it can create a headwind as well, but that's what we're looking to move towards.

但如果你說，好吧，但在某些季度甚至多個季度，獲得這些更大的碼數會更加困難，而且你會付出更多努力，那就意味著我們很可能要到 2027 年才能實現 30% 以上的目標。如果我們能早點到達那裡，那就太好了。正如我所提到的，環境可以幫助我們，也可以為我們帶來阻力，但這正是我們所追求的方向。

Got you. That's helpful. And just a follow-up on NII. I heard the guidance for the full year, obviously implies something in the maybe $5.70 range per quarter, I guess, from here on. As you look at the balance sheet, I think I heard you say a little bit less than one year duration overall with rate cuts kind of how you're thinking about the trajectory from NII off of that jumping off point? And are there any things you could do today to mitigate the effects of potentially lower interest rates in the US?

明白了。這很有幫助。這只是對 NII 的後續關注。我聽說了全年的指導意見，顯然意味著從現在開始每季的利潤大概在 5.70 美元左右。當您查看資產負債表時，我想我聽到您說過，總體而言，持續時間略短於一年，並且會降低利率，您如何考慮從該起點開始的 NII 軌跡？您今天可以採取哪些措施來減輕美國潛在低利率的影響？

Yeah, so as I've said to you guys before, we have about $1.5 billion of securities that roll off every quarter, and we can reinvest those at, I think, 100 basis points over the yield, the runoff yield. So that's one area to do it. The second area, obviously, is we've been very focused on our deposit pricing and things of that nature. We are not just in US dollars and deposits as well. So we take a look at opportunities across all the different currencies. And there are rate cuts that are going to be, I think, realized with some of those currencies as well.

是的，正如我之前對你們所說的那樣，我們每季度都會發行大約 15 億美元的證券，我們可以以高於收益率 100 個基點的價格對這些證券進行再投資，也就是收益率的流失。這是可以實現這一目標的一個領域。第二個領域顯然是我們一直非常關注存款定價和類似的事情。我們不只有美元，還有存款。因此，我們研究了所有不同貨幣的機會。我認為部分貨幣的利率也會下降。

So from our perspective, it's really going to be a question of the reinvestment going out a bit longer when we have the opportunity, not just to protect Q3 and Q4, but to protect '26 as well.

因此，從我們的角度來看，這實際上將是一個當我們有機會時再投資一段時間的問題，不僅要保護第三季度和第四季度，還要保護26年。

Ken Usdin with Autonomous Research.

自主研究公司的 Ken Usdin。

Hi, good morning, Dave, I was going to ask you to follow up on your comments about the Asset Servicing fees. You mentioned that the transaction activity was really strong. I'm sure part of that's just the core business, but was part of that just in relation to the April dislocation?

你好，早安，戴夫，我本來想請你跟進一下關於資產服務費的評論。您提到交易活動非常強勁。我確信其中一部分只是核心業務，但這是否與四月的混亂有關？

And I guess kind of how would you help us understand the push and pull between organic growth and market health that you already have baked in for the third quarter versus some of the stuff that might have been like above trend just given the environment?

我想您能如何幫助我們理解您在第三季度已經考慮到的有機增長和市場健康之間的推拉關係，以及在特定環境下可能高於趨勢的一些因素？

Yeah, so yes, it was because of that. I mean, transaction volume was higher than it would be traditionally, if you look at the averages during the quarter, which wasn't surprising to anybody. You also have to take into consideration in Asset Servicing. When you look at the growth side, and you guys know this, we had two large client losses in Q2 and Q3.

是的，是的，是因為這個。我的意思是，如果你看一下本季的平均交易量，你會發現交易量高於傳統水平，這對任何人來說都不足為奇。您還必須考慮資產服務。當你看成長方面時，你們知道這一點，我們在第二季和第三季有兩個大客戶流失。

And one of those losses, which is they took the business in-house. We've not lapped that yet. And so, I would say 0.5% of the growth got nicked by that. So as we get beyond those two client losses, you'll see some more realistic numbers in terms of year-over-year comparisons on that. So that's the way sort of the way I think about it.

其中一個損失是他們將業務轉移到了公司內部。我們還沒有完成這個任務。因此，我認為 0.5% 的成長受到了影響。因此，當我們擺脫這兩個客戶的損失時，你會看到一些更現實的同比數字。這就是我對此的看法。

And will those be out? Do you know when those will be lapped? Are they lapped in the third quarter or after the third quarter?o after the third quarter, those have been lapped definitively. So right now

這些會被淘汰嗎？您知道什麼時候會進行重疊嗎？他們是在第三節還是在第三節之後被超越的？第三節過後，這些都已被徹底超越。所以現在

Yeah, so after the third quarter, those have been lapped definitively. So right now

是的，所以在第三節之後，這些已經被明確地覆蓋了。所以現在

No, go ahead. You follow up.

不，繼續吧。你跟進。

No. So I mean, basically, the quarter was client neutral. I mean, when you think about it. So, from that perspective. And keep in mind, when you look at the Asset Servicing business, you know this, I'm sure it's on a quarter lag basis, right?

不。所以我的意思是，基本上，本季對客戶來說是中性的。我的意思是，當你考慮它的時候。所以，從這個角度來看。請記住，當您查看資產服務業務時，您知道這一點，我確信這是基於四分之一滯後的基礎，對嗎？

So you've got to take that into consideration as well. that also affected the Wealth business. Wealth is obviously on a month lag basis. And Q1, if you look at the S&P, it was down 5%, NASDAQ down 10.5%, so take all that into consideration as you're taking a look at those absolute levels.

所以你也必須考慮到這一點。這也影響了財富業務。財富顯然是以月滯為基礎的。而第一季度，如果你看一下標準普爾指數，它下跌了 5%，那斯達克指數下跌了 10.5%，所以當你查看這些絕對水平時，請將所有這些都考慮在內。

Yeah, and a follow-up just on the Wealth side. Just like the layout that you gave and that Mike gave in the prepared remarks and the slides. Is there any change in just the organic growth rate in wealth. I know you have a lot of these initiatives going forward. But when do you think we'll start to see a definitive like observable change in the organic growth rate there?

是的，接下來是關於財富方面的。就像您給出的佈局以及 Mike 在準備好的發言和幻燈片中給出的佈局一樣。財富的有機成長率有變化嗎？我知道你們有很多這樣的舉措正在推進。但是您認為我們什麼時候才能開始看到有機成長率有明顯的變化呢？

Yeah, So, as we talked about, we are seeing positive organic growth in the wealth business, but it is not at the level that we want and are targeting. And to your point, it's a little bit more of a gradual increase in momentum. And the way we're going about it is a few different ways. The first, and you heard this in my comments, Ken, but is from I'll call it a segmentation perspective.

是的，正如我們所討論的，我們看到財富業務實現了積極的有機成長，但還沒有達到我們想要的和目標的水平。正如您所說，這更像是一種逐漸增加的勢頭。我們採取了幾種不同的方法來解決這個問題。首先，肯，您在我的評論中聽到了這一點，但從我稱之為分割的角度來看。

So, we're trying to get more focused on certain segments so that we can increase the rate there. We've had that in GFO. So we're trying to essentially replicate that in the ultra-high net worth segment. But it's early days on it, but the win rates are heavier or higher and as a result, we've also added more talent on that front to be able to continue to increase the growth rate of that segment.

因此，我們正嘗試更加專注於某些特定領域，以便提高那裡的費率。我們在 GFO 中已經遇到過這種情況。因此，我們試圖在超高淨值領域複製這種模式。但現在還處於早期階段，但勝率更高，因此，我們也在該領域增加了更多人才，以便能夠繼續提高該領域的成長率。

And then I would say as you go down to the tiers below that, that's where we're really focused on particular markets, geographic markets, where essentially, what we're going to do is get our market penetration more in line with the way it is in our more mature markets. We have very strong market share in Illinois, in Florida, as maybe you'd expect a high success rate there.

然後我想說，當你深入到下面的層級時，我們真正關注的是特定的市場、地理市場，本質上，我們要做的就是讓我們的市場滲透率更符合我們更成熟的市場的方式。我們在伊利諾伊州和佛羅裡達州擁有非常強大的市場份額，也許你會期望那裡的成功率很高。

But we're trying to do the same thing in Northern California, Southern California, Texas, New York, where our market share is still low relative to the potential. And on that front, I would say, you heard some of the organizational changes, adding some additional leadership, some from the outside, but also we're going to be hiring more revenue-generating roles in those markets to be able to drive that.

但我們正嘗試在北加州、南加州、德州和紐約州做同樣的事情，這些地區的市佔率相對於潛力而言仍然較低。在這方面，我想說，你聽到了一些組織變革，增加了一些領導，一些來自外部，但我們也將在這些市場招募更多創收職位，以推動這一進程。

But that, to your point, it takes some time to get more people on board, get them up to speed, and to get then that higher level of organic growth. But we're extremely focused on it.

但是，正如您所說，需要一些時間才能讓更多的人加入進來，讓他們快速上手，然後實現更高水平的有機增長。但我們對此極為關注。

Great thanks a lot, Mike.

非常好，非常感謝，麥克。

David Smith from Truist Securities.

Truist Securities 的 David Smith。

Any color on what's driving the strength in deposits this quarter?

您能解釋一下本季存款成長強勁的原因嗎？

Yeah. I mean we talked about it last quarter a little bit. Obviously, there was a bit of a risk-off trade that we took advantage of during the period. So from that perspective, they are running a little bit higher. I will say, in the current quarter, we're starting to normalize.

是的。我的意思是我們上個季度討論過這個問題。顯然，在此期間我們利用了一些避險交易。因此從這個角度來看，它們的運行速度稍微高一些。我想說的是，在本季度，我們開始恢復正常。

And that's probably why I'm keeping the guide where it is. And when I look at third and fourth quarter, third quarter tends to always be a little bit weaker just because of a seasonal pattern. Fourth quarter picks up a little bit, but they're beginning to normalize back to what I would say is a more predictable run rate. We did have, in particular, and the swap activity was driven by this.

這可能是我保留該指南的原因。當我觀察第三季和第四季時，我發現由於季節性模式，第三季的業績總是會稍微疲軟一些。第四季略有回升，但開始恢復正常，我認為運行率更可預測。我們確實有，特別是，掉期活動就是受此推動的。

We had a very extremely large euro deposits that came in. And this is why I always tell you folks that we want to have a flexible balance sheet because we have very large clients that come to us not just for loans, but for deposits as well. So we did have some deposit activity that was concentrated among some very large clients in the quarter as well.

我們收到了大量歐元存款。這就是為什麼我總是告訴大家，我們希望擁有靈活的資產負債表，因為我們擁有非常大的客戶，他們不僅向我們貸款，還向我們存款。因此，本季我們確實有一些存款活動集中在一些非常大的客戶身上。

Got it. So it's normalizing beyond typical seasonality so far in the third quarter?

知道了。那麼，到目前為止，第三季的情況已經超出了典型的季節性特徵，趨於正常了嗎？

Yeah, I mean it's back to what we thought it would be. I mean the average is 122 for this quarter. I think if you take a look at our last three quarters, but before the Liberation Day and the risk-off trade, it's back to those levels.

是的，我的意思是它又回到了我們想像的樣子。我的意思是本季的平均值是 122。我認為，如果你看一下我們過去三個季度的情況，但在解放日和避險交易之前，它又回到了那些水平。

I think you said that flows and Asset Servicing were relatively neutral in the second quarter. Any detail you can offer on segments where you're seeing stronger growth versus where there's more opportunity for catch-up?

我認為您說過第二季的流量和資產服務相對中立。您能否提供一些細節，說明哪些領域成長更強勁，哪些領域有更多追趕機會？

Yeah, I would just go back to the upmarket of asset owners. You heard about some of the wins that I talked about there, which are significant clients at this point, relatively large clients as well. So that's where we're seeing particular strength on that front.

是的，我只是想回到資產所有者的高端市場。您聽到了我在那裡談到的一些勝利，這些勝利目前都是重要的客戶，也是相對較大的客戶。這就是我們在這方面看到的特別優勢。

The other thing I would just say is we often are impacted as well by the success of our clients. And in a time period where for market reasons and others that some of the strategies of our Asset Management clients resulted in net outflows for them. We've seen that stabilize. So that's a positive for us as well on the asset aanager side.

我想說的另一件事是，我們也常常受到客戶成功的影響。在某個時期，由於市場原因和其他原因，我們的資產管理客戶的一些策略導致他們出現淨流出。我們已經看到情況趨於穩定。所以這對我們資產管理者來說也是好事。

Yes, I'd also add that AUM flows, which obviously impact both businesses were positive. And liquidity was a real standout. And that is biased towards the institutional business. But $8 billion in the second quarter, $19 billion year-to-date on the liquidity side, which represents our tenth consecutive quarter of positive liquidity flows, and that's obviously great for our business.

是的，我還要補充一點，AUM 流量顯然對兩家企業都有正面影響。流動性確實非常突出。這對機構業務有偏見。但第二季的流動性為 80 億美元，年初至今的流動性為 190 億美元，這是我們連續第十個季度實現正流動性流動，這對我們的業務來說顯然是好事。

Brian Bedell with Deutsche Bank.

德意志銀行的 Brian Bedell。

Great. I appreciate all the extra color on in the slides and your commentary today and the businesses. It's really great. Two questions. Maybe the first one, they're both going to focus on Wealth Management, but the first one, going back to the efficiency initiatives within Wealth Management, particularly on the digital side and AI and automating some more of the services.

偉大的。我很欣賞幻燈片上的所有額外色彩以及您今天的評論和企業評論。真的太棒了。兩個問題。也許第一個，他們都將專注於財富管理，但第一個，回到財富管理的效率舉措，特別是在數位方面和人工智慧以及更多服務的自動化。

Can you comment about like how that's enhancing the ability for client delivery and relationship management and just thinking about some of your differentiating aspects as a Wealth Manager, obviously, the personal relationship side is a huge one. Is there any risk of getting too automated? Or rather do you see it as really just enhancing and actually strengthening the relationship?

您能否評論一下這是如何增強客戶交付和關係管理能力的，並且想想您作為財富經理的一些差異化方面，顯然，個人關係方面是其中很重要的一個方面。過度自動化是否有風險？或者您認為這實際上只是增進和加強了雙方關係？

And then in that vein, you've always you've gone sort of upmarket for really the last couple of decades in terms of the services. Any interest in moving little bit down market within the wealth spectrum to potentially improve that organic growth rate?

從這個角度來看，過去幾十年來，你們在服務方面一直走高端路線。您是否有興趣在財富範圍內稍微降低市場規模以潛在地提高有機成長率？

Sure. So on the first one, what I would say is definitely those initiatives are focused on enhancing the client experience. And let me be more specific about what we're doing on that front. I would put it into three categories. The first being processes, the second being what we would call partners or the employees, and then the third being with clients.

當然。因此，關於第一個問題，我想說的是，這些措施肯定著重於提升顧客體驗。讓我更具體地介紹一下我們在這方面所做的工作。我將其分為三類。第一個是流程，第二個是我們所謂的合作夥伴或員工，第三個是客戶。

On the processes side, if you just think about all of the documentation that is involved with client relationships, in this case, I'm speaking about Wealth Management. So think about trust documents and things like that. The ability to use AI to digitize those documents, it definitely creates productivity for us, but also makes it easier for the employees to be able to utilize that information. So that's the type of thing we're doing to improve the client experience as a part of that.

在流程方面，如果您只考慮與客戶關係相關的所有文檔，在這種情況下，我談論的是財富管理。因此，請考慮一下信託文件和類似的東西。使用人工智慧將這些文件數位化的能力無疑為我們創造了生產力，同時也使員工能夠更輕鬆地利用這些資訊。所以這就是我們正在做的事情，以改善客戶體驗。

Specifically on the partner side or our employees, making them more efficient, giving them the tools to be able to do things more quickly. So, on that front, we have deep knowledge and, I'll call it, databases, if you will, of this deep knowledge, the Northern Trust Institute, et cetera.

特別是對合作夥伴或我們的員工而言，讓他們更有效率，為他們提供工具，使他們能夠更快地完成工作。因此，在這方面，我們擁有深厚的知識，如果你願意的話，我可以稱之為資料庫，這些深厚的知識，北方信託研究所等等。

The ability for our partners to be able to very efficiently and quickly tap into that data and that information to provide the advice to the clients is another unlock on that front to enable them to be not just more reactive quickly, but proactive, right? To be able to prompt different discussions and conversations that should be had with the client. So enhancing in that way.

我們的合作夥伴能夠非常有效率、快速地利用這些數據和資訊來為客戶提供建議，這是這方面的另一種解鎖方式，使他們不僅能夠更快地做出反應，而且能夠主動出擊，對嗎？能夠引發與客戶進行的不同討論和對話。因此以這種方式進行增強。

And then also, certainly the client itself. And I would say that's where providing them additional capabilities that enable them to do things, I'll say, on their own because of the technology is kind of the third aspect or a wave of what we think we can do with the AI. So all of that, to answer your question goes to the experience, but it also produces the efficiency and the productivity.

當然還有客戶本身。我想說，這就是為他們提供額外能力，使他們能夠自己做事的地方，因為科技是我們認為可以用人工智慧做的第三個面向或浪潮。所以，回答你的問題，所有這些都與經驗有關，但它也產生了效率和生產力。

And then with regard to the market, you're thinking about the direction of travel of our strategy correctly, which is we're trying to say, how do we replicate for the different tiers such that we get higher organic growth overall.

然後關於市場，您正在正確思考我們策略的發展方向，也就是我們試圖說的，我們如何針對不同層級進行複製，以便我們整體上獲得更高的有機成長。

And so you heard me talk about, obviously, GFO but then ultra-high net worth. And then absolutely below that level. So think kind of anywhere from $10 million to $100 million segment we are further refining what is the value proposition, specifically for those groups of clients and prospects and how can we then as a result, increase the growth rate there.

所以你聽到我談論，顯然是 GFO，然後是超高淨值。然後絕對低於該水平。因此，想想從 1000 萬美元到 1 億美元的細分市場，我們正在進一步完善價值主張，特別是針對那些客戶和潛在客戶群體，以及我們如何提高那裡的成長率。

To your point, we see stronger organic growth right now in everything above kind of the $10 million segment versus below. And so the more we can differentiate what we're doing on those different tiers, we think it gives us stronger growth across all of them.

正如您所說，我們現在看到，1000 萬美元以上的所有細分市場的有機成長都比 1000 萬美元以下的細分市場更為強勁。因此，我們認為，我們越能區分我們在不同層級所做的事情，就越能讓我們在所有層級上實現更強勁的成長。

That's great color. And then on alternatives, you mentioned, I think, a 5% or less than 5% penetration across the franchise. But GFO, obviously much more much higher, more institutional based. If you can you strip out the allocation between those two segments? And I guess what I'm getting at is, excluding GFO, what do you really see as the current penetration and therefore the runway?

顏色真棒。然後關於替代方案，我認為您提到了整個特許經營的滲透率為 5% 或低於 5%。但 GFO 顯然要高得多，而且更加以製度為基礎。你能去掉這兩個部分之間的分配嗎？我想說的是，除了 GFO 之外，您真正認為當前的滲透率和跑道是多少？

And do you currently have all the right products available? And what I'm really getting at is like the access to the largest, even publicly traded alternative managers or private market managers that have democratized product in the channel. Do your clients have full access to those yet?

您目前是否有所有合適的產品？我真正想要的是，能夠接觸到最大的、甚至是公開交易的另類經理或私人市場經理，他們已經使通路中的產品民主化。您的客戶是否已擁有對這些內容的完全存取權？

Sure. So I'll comment on GFO a little bit, but Dave certainly add. But the way to think about GFO is really more thinking about the assets that we custody for them. And again, very large dollar amount of it, the amount that then is invested with us through alternatives is relatively small. So that the penetration level, if you will, is even lower than it would be in our core wealth on that front.

當然。因此我會對 GFO 發表一些評論，但 Dave 肯定會補充。但思考 GFO 的方式實際上更多是思考我們為他們保管的資產。儘管其中的金額非常大，但透過其他方式向我們投資的金額卻相對較少。因此，如果你願意的話，滲透水平甚至低於我們核心財富的滲透水平。

And a lot of it is because they're going direct to the largest managers on their own. But we have found that we have the ability to bring differentiated opportunities to them. Some of them do utilize 50 South, but also often they're utilizing, I'll call it the research capability of 50 South, where he will then bring certain managers to them that they might not otherwise have access to. So that's how to think about the GFO side of it.

其中很大一部分是因為他們直接與最大的管理者聯繫。但我們發現我們有能力為他們帶來差異化的機會。他們中的一些人確實利用了 50 South，但他們也經常利用，我稱之為 50 South 的研究能力，然後他會將某些他們可能無法接觸到的經理帶給他們。這就是對 GFO 方面的看法。

And then more broadly or certainly with core wealth, I would say it's less about providing access to things that they don't have or that we couldn't get access to it's just providing more of it. So some of the largest alternative managers, we do have them on our WMLTs platform, our third party funds platform.

然後更廣泛地，或者肯定是對於核心財富，我想說，這並不是提供他們沒有的東西或我們無法獲得的東西，而只是提供更多的東西。因此，我們的 WMLT 平台（第三方基金平台）上確實有一些最大的另類管理者。

And so we'll continue to provide some of that but frankly, our clients tend to be interested in things that are more bespoke or hard to get tight managers where we do have the relationships through 50 South. And as a result, we can provide those types of funds.

因此，我們將繼續提供一些這樣的服務，但坦白說，我們的客戶往往對更客製化或難以透過 50 South 建立關係的緊密經理感興趣。因此，我們可以提供這些類型的資金。

And then I would also say, just with regard to vehicles, we expect that the vehicles will continue to evolve from what used to be the straightforward funds to then what will be interval funds to evergreen funds. So this whole idea of democratization of alternatives, that's going to continue to evolve. We're going to make sure that we have the right vehicle base.

然後我還想說，就投資工具而言，我們預計投資工具將繼續從過去的簡單基金演變為區間基金，再演變為常青基金。因此，替代方案民主化的整個概念將會繼續發展。我們要確保我們擁有合適的車輛基礎。

Yeah. I would just add to that, particularly on the GFO front. I mean access to top managers is not a problem. We have the client base that all the top managers want. I think we are extremely discerning and have a very high bar in terms of what makes it onto our platform and if it fits our client base accordingly.

是的。我只想補充一點，特別是在 GFO 方面。我的意思是接觸高階管理人員不是問題。我們擁有所有高階主管都想要的客戶群。我認為我們非常有辨別力，對於什麼內容可以進入我們的平台以及是否適合我們的客戶群有著非常高的標準。

The other thing I would say is we're doing a lot more on the alternatives advisory front. A lot of our clients that got very heavy into alts have not seen a lot of realizations in the recent past and have come to us with a bent towards what do I have and what should I do with this existing portfolio.

我想說的另一件事是我們在替代諮詢方面做了很多工作。我們許多在另類投資上投入巨資的客戶近期並沒有看到太多回報，他們來找我們，想知道我擁有什麼，以及我應該如何處理現有的投資組合。

And so we've been restructuring a lot of that stuff for them, giving them advice on that to make sure they've got the right mix within their portfolio. So it's not just selling our own product, it's also taking a look at what they've done and giving advice on all that.

因此，我們一直在為他們重組很多東西，並就此向他們提供建議，以確保他們的投資組合擁有正確的組合。因此，這不僅僅是銷售我們自己的產品，還要了解他們所做的事情並就所有這些提供建議。

Right, that, that's super great color thank you so much.

對，那顏色太棒了，非常感謝。

Gerard Cassidy with RBC.

加拿大皇家銀行的 Gerard Cassidy。

Hi, good morning. This is Thomas Leddy standing in for Gerard. Just given all the recent headlines, can you give us your latest thoughts on stable coins and how broader adoption could impact both your businesses and then deposit levels?

嗨，早安。這是代替杰拉德的托馬斯·萊迪。鑑於最近的頭條新聞，您能否向我們介紹一下您對穩定幣的最新看法，以及更廣泛的採用將如何影響您的業務和存款水平？

Sure. So we're excited by the direction of what I'll just call more broadly, digital assets. This is an area that we've been embracing for some time and developing capabilities for some time. And we really do feel like we're on the precipice of the next stage of evolution for digital assets. And specifically, it is starting with stable coins.

當然。因此，我們對我更廣泛地稱之為數位資產的方向感到興奮。這是我們一段時間以來一直在關注並發展其能力的領域。我們確實感覺到我們正處於數位資產下一階段發展的邊緣。具體來說，它是從穩定幣開始的。

And we think it will evolve into tokenization of a number of different asset classes on that front. And so we've developed the capabilities to be able to do both stable coins, but also tokenized assets. The key part of it is going to be, we've done them on private blockchains.

我們認為它將演變為多種不同資產類別的標記化。因此，我們開發了既能發行穩定幣，又能發行代幣化資產的功能。其中的關鍵部分是，我們已經在私有區塊鏈上完成了它們。

A lot of this now will move to public blockchains, so we need to have the capability to interact with the public blockchains on that front and are planning to do that. We've already done a number of things with tokenization for carbon credits and in other areas. And so we just see this as the next stage for this.

現在很多內容將轉移到公共區塊鏈，因此我們需要具備與公共區塊鏈互動的能力，而我們正計劃這樣做。我們已經在碳信用額標記化和其他領域做了許多工作。因此，我們將其視為下一階段。

That's helpful. And then just a quick follow-up. So it appears expected regulatory relief for the industry will have a pretty big impact on at least the money center banks. We saw the recent stress test results and then the resulting SCBs coming out of that. Can you just share your thoughts on the potential benefits for Northern Trust more specifically from an expected relief?

這很有幫助。然後只是快速的跟進。因此，預計行業監管放鬆將至少對貨幣中心銀行產生相當大的影響。我們看到了最近的壓力測試結果以及由此產生的 SCB。您能否更具體地分享您對北方信託從預期救濟中獲得的潛在利益的看法？

I'm sorry, I didn't quite hear your phone cut out there for just a minute. Can you repeat your question, please?

抱歉，我剛才沒聽清楚你的電話鈴聲。您能重複一下您的問題嗎？

Yeah, of course. Sorry about that. So it appears the expected regulatory relief for the banking industry will have a pretty big impact on at least the money center banks. We saw the recent stress test results and the resulting SCBs. Can you just share your thoughts on the potential benefits more specifically for Northern from expected relief?

是的，當然。很抱歉。因此，看起來預期的銀行業監管放鬆至少會對貨幣中心銀行產生相當大的影響。我們看到了最近的壓力測試結果和由此產生的 SCB。您能否更具體地分享您對北方從預期救濟中獲得的潛在利益的看法？

Yeah, so we would say that the regulatory environment as we look out is very constructive overall. There's a number of changes. I think they're trying to make, and from our perspective, whether it's across capital, liquidity, but also as they think about how they regulate operational risk. All of this is setting up for a constructive environment for us on that front.

是的，所以我們會說，我們所看到的監管環境總體上是非常有建設性的。有很多變化。我認為，從我們的角度來看，他們正在努力實現這一點，無論是在資本、流動性方面，而且還在思考如何監管營運風險。所有這些都為我們在這方面創造了建設性的環境。

A lot of it is around predictability, and we do feel that we're in a time period here that allows us to ensure that we have the right risk management framework at the company, the right controls. We've made investments over the last number of quarters on that front. We have more to do, but feel very good about the results that we're getting from that, and we think it aligns with the regulatory environment.

其中許多都與可預測性有關，我們確實覺得我們正處於一個時期，這使我們能夠確保公司擁有正確的風險管理框架和正確的控制措施。過去幾季我們在這方面進行了投資。我們還有很多工作要做，但我們對所取得的成果感到非常滿意，而且我們認為這符合監管環境。

Okay, great thank you for taking my question.

好的，非常感謝您回答我的問題。

Vivek Juneja from JPMorgan.

摩根大通的 Vivek Juneja。

My question, a follow-up on some of the questions that have come up on the call today. I hear you want to increase your operating margin on the custody of the servicing business to the high 20s. Why is that good enough? I mean, given your mix like you've got hedge funds, that's an attractive margin business, as your peers have talked about.

我的問題是針對今天電話會議上提出的一些問題的後續問題。我聽說您想將託管服務業務的營業利潤率提高到 20% 以上。為什麼這樣就夠了？我的意思是，考慮到你們擁有對沖基金等組合，這是一個很有吸引力的保證金業務，正如你們的同行所談論的那樣。

Your peers are well above that, some of your peers are well above that today about your high 20s. So why would you not consider something much more value additive more quickly rather than over a multiyear period? And think about alternatives like getting spinning off or merging the custody part. If the Wealth Management is where your unique service ability is, why not split the two? Why is that not a consideration?

你的同齡人遠遠高於這個水平，你的一些同齡人如今也遠遠高於這個水平，大約在 20 多歲左右。那麼，為什麼你不考慮以更快的速度而不是在多年的時間內增加更多價值的東西呢？並考慮其他替代方案，例如分拆或合併託管部分。如果財富管理是您獨特的服務能力所在，為什麼不將兩者分開呢？為什麼這不是一個考慮因素？

Yeah, so the business model for Northern Trust is highly integrated. When you think about just the various segments, there's a number of ways why we have a One Northern Trust strategy is because of the interplay between the businesses. So we've talked a lot about the success and differentiation we have with GFO. The platform behind GFO is our Asset Servicing platform and the technology, much of it is from our Asset Servicing business.

是的，Northern Trust 的商業模式是高度整合的。當你考慮各個部分時，你會發現我們制定「一個北方信託」策略有很多原因，這是因為各個業務之間的相互作用。我們已經討論了很多關於 GFO 的成功和差異化。GFO 背後的平台是我們的資產服務平台和技術，其中大部分來自我們的資產服務業務。

When you think about the financial aspects of the company, a lot of the deposits that we generate on the institutional side, through Asset Servicing and what we're doing for those clients get deployed through Wealth Management and our ability to offer credit to both

當你考慮公司的財務方面時，我們透過資產服務在機構方面產生的大量存款以及我們為這些客戶提供的服務都透過財富管理和我們向客戶提供信貸的能力進行部署。

our core Wealth Management clients, but importantly, to those GFO clients as well. And needless to say, the integration of our asset management business with the other two is highly aligned. And it's not just, I would say, distribution channels for Asset Management, but it's the things that we talked about here. It's the co-creation of product to get better outcomes for our clients.

我們的核心財富管理客戶，但重要的是，也包括那些 GFO 客戶。毋庸置疑，我們的資產管理業務與其他兩大業務的整合是高度一致的。我想說，這不僅是資產管理的分銷管道，也是我們在這裡談論的事情。這是產品的共同創造，以便為我們的客戶獲得更好的結果。

So we believe that the model is integrated. We know that we have to be able to demonstrate the profitability of all aspects of the business and the company overall. To your point on those margins, the only difference between saying that the target is in the 30s for that business, and it's the high 20s.

所以我們認為該模型是整合的。我們知道我們必須能夠證明業務各個方面以及整個公司的獲利能力。關於利潤率，您說的利潤率的唯一區別是，該業務的目標是 30% 左右，而實際目標是 20% 以上。

We have to get through the high 20s to get to the 30s. So we certainly wouldn't stop when we get it into that range. It's just trying to say, how do we get there first and then we'll move above that from there.

我們必須突破 20 多歲才能達到 30 多歲。因此，當我們將其納入該範圍時，我們當然不會停止。它只是想說，我們如何先到達那裡，然後再從那裡繼續前進。

And the high 20s, Mike. Sorry, go ahead.

還有 20 多歲，麥克。抱歉，請繼續。

No. I would just like to emphasize particularly for the Family Office business that it isn't just about investments, right? So it's about operating alpha. And at the end of the day, a lot of these Family Offices don't want to be in the vendor management business. They would much rather go to a firm that has the scale and ability to help them operate the full infrastructure inside a family office.

不。我只想特別強調，對於家族辦公室業務來說，它不僅僅是投資，對嗎？所以這與操作阿爾法有關。最終，許多家族辦公室並不想從事供應商管理業務。他們寧願選擇一家擁有一定規模和能力的公司來幫助他們經營家族辦公室內的全部基礎設施。

And that's what we've got. And we have that scale through GFO and by leveraging off our asset servicing business to do that. So when you think about a Family Office infrastructure, it almost looks and feels a lot like a very sophisticated investment office and a lot of the tools like front office solutions that are used by those sophisticated asset managers are also used by our Family Office clients. So that interlink is incredibly important.

這就是我們所得到的。我們透過 GFO 並利用我們的資產服務業務實現了這一規模。因此，當您考慮家族辦公室基礎設施時，它看起來和感覺起來很像一個非常複雜的投資辦公室，而那些複雜的資產管理者使用的前台解決方案等許多工具也被我們的家族辦公室客戶使用。所以這種相互聯繫非常重要。

And Dave, let me thank you join the course of applauding you on the increased disclosure has taken us several years to get there, but thank you for doing that.

戴夫，請允許我感謝你，我們也為你在增加資訊揭露方面所取得的進步表示讚賞，雖然我們花了幾年的時間才實現這一目標，但還是感謝你這樣做。

I did it just for you.

我這麼做只是為了你。

Yeah.

是的。

Brennan Hawken with Bank of Montreal.

蒙特利爾銀行的布倫南·霍肯。

Good morning thanks for taking my question. I recognize you've gotten a lot of questions on this. And I also appreciate that it's disruptive. I really do. But some of your shareholders have asked me to ask a fiduciary obligation question here. Mike, I'd like to explore your conviction that remaining an independent company is in the shareholders' best interest.

早上好，感謝您回答我的問題。我知道您對此有很多疑問。我也意識到它的破壞性。我確實如此。但你們的一些股東要求我在這裡提出一個有關信託義務的問題。麥克，我想探討一下你的信念，也就是保持公司獨立符合股東的最佳利益。

A couple subpoints, like you said in your prepared remarks that you're well positioned to continue to create value. But when I pull up the comp function for Northern and Bloomberg, which just shows the past five years, the stocks lagged like all of the relevant benchmarks and the close peers.

有幾個小要點，就像您在準備好的演講中所說的那樣，您已準備好繼續創造價值。但當我調出北方和彭博的比較功能時（僅顯示過去五年），這些股票的表現與所有相關基準和近鄰一樣落後。

I appreciate that your some of your customers want you to be independent, but the company isn't structured as a mutual, so it's owned by the shareholders, not the customers. So why be so categorically closed off to exploring those options when the independent path has resulted in the stock lagging?

我理解您的一些客戶希望您保持獨立，但公司的結構不是互助性質的，因此它歸股東所有，而不是客戶所有。那麼，當獨立路徑導致股票落後時，為什麼要斷然拒絕探索這些選項呢？

Sure. And Brennan, I appreciate the question because it gives me the opportunity to kind of wrap up on this point. First of all, we have an exceptional board. It's a board that we've built up and evolved over time, but it has a great combination of experience in different industries, including financial services, technology expertise, deep expertise and experience on governance matters and frankly, situations like this.

當然。布倫南，我很感謝這個問題，因為它讓我有機會總結這一點。首先，我們擁有一支出色的董事會。這是我們隨著時間的推移而建立和發展的董事會，但它在不同行業擁有豐富的經驗，包括金融服務、技術專業知識、深厚的專業知識和治理問題經驗，坦率地說，包括像這樣的情況。

So, we have an exceptional Board. They take their fiduciary duties extremely seriously. And so they understand the duty that they owe to the shareholders, and that's how they operate. So that's the framework at which they look at everything. And you

所以，我們有一個出色的董事會。他們極度認真地對待自己的受託責任。因此，他們了解自己對股東的責任，這就是他們的經營方式。這就是他們看待一切事物的框架。你呢

heard where they stand with regard to the strategy, but they also understand that they have to always make sure that they're upholding those fiduciary duties. So that's the first one. And hopefully, that's crystal clear.

聽取了他們對該戰略的立場，但他們也明白，他們必須始終確保履行這些受託責任。這是第一個。希望這一點非常清楚。

To your second point, just stepping back a little bit on, I'll say, performance over time, I think you can divide it up into some different time periods to just kind of understand the stage that we're in right now. You use five years, we could use any number of different time periods, but there was a time period for a number of years where we were operating very much within our target financial model.

對於你的第二點，稍微回顧一下，我想說，隨著時間推移的表現，我認為你可以把它劃分成幾個不同的時間段，這樣就能了解我們現在所處的階段。您使用五年，我們可以使用任意數量的不同時間段，但有一個時間段，連續幾年，我們的營運都嚴格按照我們的目標財務模型進行。

Frankly, going into COVID and coming out of COVID. The growth rates for revenue, both organic and overall, we're within that target financial model. Our average pretax margin was about 32% over that time period. Earnings per share grew at double digits over that time period.

坦白說，這是進入 COVID 和走出 COVID 的過程。無論是有機收入還是整體收入的成長率，我們都在目標財務模型範圍內。在此期間，我們的平均稅前利潤率約為 32%。在此期間，每股收益實現了兩位數的成長。

And then as we've talked about, we then have gone into a period where we've made some investments in the organization. A number of them across enhancing and bolstering the resiliency of the company, which, again, we've tried to detail and outline with investors.

然後，正如我們所討論的，我們進入了對組織進行一些投資的時期。其中許多都與增強和鞏固公司的彈性有關，我們再次嘗試向投資者詳細說明和概述這一點。

And we've also invested in the businesses. We've built out a number of these capabilities that we talked about so that we can have long-term organic growth. And sometimes you need to make those investments that can hit margin in the short term but produce the opportunity to grow for a much longer time period over that and going forward.

我們也對這些企業進行了投資。我們已經建立了我們談到的許多能力，以便實現長期的有機成長。有時你需要進行那些可以在短期內實現利潤，但同時又能創造更長時期及未來成長機會的投資。

So as a result, whether you, again use four years or five years or 3.5 years or whatever it is, over that time period, our financial performance in that period has lagged and has not met up with our long-term standards and expectations for performance. And that's why going to the beginning of 2024, we launched the One Northern Trust strategy because that was going to take us forward for the next, say, four year time period over that.

因此，無論您再次使用四年、五年、三年半或任何時間，在這段時間內，我們在此期間的財務業績一直落後，沒有達到我們的長期標準和業績預期。這就是為什麼我們在 2024 年初推出了「一個北方信託」策略，因為這將帶領我們在未來四年內繼續前進。

So we're, call it, 1.5 years into that, executing on it. And hopefully, you and others heard today with our progress. So we've tried to be very objective and even clinical about how we look at our performance. And what we're trying to convey is we have good momentum, but we're nowhere near finished with executing on our strategy. But given the proof points that we see, the strategy is working. And it's a matter of staying focused on that strategy and executing it in order to see the performance for all of our constituencies.

因此，我們花了一年半的時間來實現這一目標。希望您和其他人今天能聽到我們的進展。因此，我們試圖以非常客觀甚至冷靜的態度來看待我們的表現。我們想要傳達的是，我們擁有良好的發展勢頭，但我們的策略執行還遠遠沒有完成。但從我們看到的證據來看，該策略是有效的。問題在於，我們要集中精力於這個策略，並嚴格執行，以便看到我們所有選區的表現。

So yes, including clients and our partners that are working on this and others but specifically for shareholders as well through improved financial performance, which will translate into improved stock price performance as well.

是的，包括正在為此和其他方面努力的客戶和合作夥伴，但具體來說也是為了股東，透過改善財務業績，這也將轉化為改善的股價表現。

Right. Okay. Mike thank you for the clear and thoughtful answer to what can be a very charged question. So I appreciate that. And for the first time, and I don't know how long I had my follow-up actually is related. Great to see the ROE target come up, but like if this is if you guys are moving all in and staying independent and totally committed, why not re-underwrite some of these targets?

正確的。好的。麥克，謝謝你對這個非常敏感的問題給予清晰而周到的答案。我很感激。這是第一次，我不知道我的後續行動實際上有多久相關。很高興看到 ROE 目標的提出，但如果你們全力以赴、保持獨立並全力投入，為什麼不重新承保其中一些目標呢？

You said you've been at the upper end of the new range, but you also said that recent performance has sort of lagged. So why not up the ante and make the ROE target range in its entirety, not just the lower end, but the upper end too, move higher and really press for some value creation?

您說您已經處於新範圍的上限，但您也說最近的表現有點落後。那麼，為什麼不加大賭注，使整個 ROE 目標範圍（不僅是下端，而且是上限）都提高，並真正推動一些價值創造呢？

Yes. so, a little bit like my response on margins, too. It's like we're going to work our way through this. This range, if you will, and then we'll reestablish a range above that to the extent that we likewise say, okay, now we've been performing in that range. Maybe that's part of our, I'll say, approach or style or culture to make sure that we deliver on what we say we're going to do, but that's the intention.

是的。所以，這也有點像是我對利潤的回應。就像我們要努力解決這個問題。如果你願意的話，這個範圍，然後我們將重新建立一個高於該範圍的範圍，我們同樣會說，好的，現在我們一直在該範圍內表現。也許這是我們的方法、風格或文化的一部分，以確保我們兌現我們所說的一切，但這就是我們的意圖。

And part of it as well, Brennan as you know, is the ROE is important, but it's not just the ROE. As I talk about our financial objectives, it's growth and returns. And so, if it was a matter of just can you top tick on the highest ROE in a particular period of time, we don't think that creates the greatest value for shareholders. They want growth as well. That's why our strategy is also about organic growth, because that's what generates more shareholder value over time is the combination of the two.

布倫南，您也知道，部分原因在於交戰規則很重要，但不僅僅是交戰規則。當我談到我們的財務目標時，那就是成長和回報。因此，如果問題僅僅在於能否在特定時期內實現最高的 ROE，我們認為這並不能為股東創造最大的價值。他們也希望實現成長。這就是為什麼我們的策略也注重有機成長，因為隨著時間的推移，兩者的結合才能產生更多的股東價值。

That's great thanks so much Mike.

太好了，非常感謝邁克。

Okay, thanks Brennan appreciate it.

好的，謝謝 Brennan。

And there are no further questions in queue at this time. I will now turn the conference back to Jennifer Childe for closing remarks.

目前沒有其他問題。現在我將會議交還給詹妮弗·柴爾德 (Jennifer Childe) 並請她致閉幕詞。

Thank you, operator, and thanks, everyone, for joining us today. We look forward to speaking with you again in the future.

謝謝接線生，也謝謝大家今天加入我們。我們期待將來再次與您交談。

Thank you, ladies and gentlemen. This concludes our call for today. You may now disconnect and thank you for participating.

謝謝各位，女士們、先生們。今天的通話到此結束。現在您可以斷開連接並感謝您的參與。