Northern Trust Corp. - 4.70% PRF PERPETUAL USD 25 - DpSh Rp1/1000th Sr E

Strong Q2 operating performance + major “notable items” (Visa monetization & expenses) - Net income $792.2M, EPS $4.23, ROE 25.9%, pre-tax income $1.1B (pre-tax margin 39.6%). - Included a ~$525M pre-tax gain from participating in the second tranche of the Visa Class B exchange; partially offset by a ~$74M pre-tax loss from repositioning available-for-sale securities. - Total “notable items” included ~$220M restructuring charges/other notable expenses (notably $62M software disposition charge, $51M severance, $33M one-time equity grant). - Excluding notable items: EPS up ~40% YoY and operating leverage >700 bps (reported operating leverage also strong but headline boosted by items).

Revenue growth broad-based; expenses controlled → guidance raised - Total revenue: +13% YoY (with trust fees +10%, net interest income +11%, capital markets revenues +69%). - Non-interest expense: +5% YoY, but excluding notables operating leverage remained strong. - Capital markets/FX and trading were unusually strong this quarter (investors should expect normalization later).

Full-year outlook (guidance) improved; expects continued leverage but tougher comps - NII: now expected +9% to +10% YoY (raised from prior mid-to-high single digits). - Total revenue: now expected +9% to +10% YoY (raised from prior mid single digits). - Operating leverage: expects ~400 bps for full year excluding notable items. - CEO/CFO emphasized second-half year-over-year comparisons get harder (including normalization after strong FX/capital markets/securities lending in Q2 and expected “weaker deposit seasonality” in Q3).