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Reporting Segments
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
During the first quarter of 2022, the Corporation changed the name of its C&IS segment to “Asset Servicing.” Accordingly, the disclosures herein and all future disclosures regarding the Corporation’s reporting segments filed with, or furnished to, the SEC will refer to this segment as Asset Servicing. This change has not had, and is not expected in the future to have, any impact upon the methodology by which the Corporation allocates revenue and expense to each of its reporting segments.
Northern Trust is organized around its two client-focused reporting segments: Asset Servicing and Wealth Management. Asset management and related services are provided to Asset Servicing and Wealth Management clients primarily by the Asset Management business. The revenue and expenses of Asset Management and certain other support functions are allocated fully to Asset Servicing and Wealth Management.
Reporting segment financial information, presented on an internal management reporting basis, is determined by accounting systems used to allocate revenue and expense to each segment, and incorporates processes for allocating assets, liabilities, equity and the applicable interest income and expense utilizing a funds transfer pricing (FTP) methodology. Under the methodology, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on an instrument level. Additionally, segment information is presented on an FTE basis as management
believes an FTE presentation provides a clearer indication of net interest income. The adjustment to an FTE basis has no impact on Net Income.
Revenues, expenses and average assets are allocated to Asset Servicing and Wealth Management, with the exception of non-recurring activities such as certain costs associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments not directly attributable to a specific reporting segment.
Reporting segment results are subject to reclassification when organizational changes are made. The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a prospective basis.
The following table presents the earnings contributions and average assets of Northern Trust’s reporting segments for the three month periods ended March 31, 2022 and 2021.
TABLE 57: RESULTS OF REPORTING SEGMENTS
($ In Millions)ASSET SERVICINGWEALTH MANAGEMENTOTHERRECONCILING ITEMSTOTAL CONSOLIDATED
THREE MONTHS ENDED MARCH 31,2022202120222021202220212022202120222021
Noninterest Income
Trust, Investment and Other Servicing Fees$662.4 $620.5 $506.0 $443.2 $— $— $— $— $1,168.4 $1,063.7 
Foreign Exchange Trading Income77.4 74.5 3.5 4.2 — — — — 80.9 78.7 
Other Noninterest Income61.1 60.3 31.8 44.2 (4.5)(3.6)— — 88.4 100.9 
Total Noninterest Income800.9 755.3 541.3 491.6 (4.5)(3.6)— — 1,337.7 1,243.3 
Net Interest Income190.1 160.7 197.6 186.0 — — (6.7)(6.6)381.0 340.1 
Revenue991.0 916.0 738.9 677.6 (4.5)(3.6)(6.7)(6.6)1,718.7 1,583.4 
Provision for Credit Losses8.4 (5.4)(6.4)(24.6)— — — — 2.0 (30.0)
Noninterest Expense757.9 713.1 445.1 403.1 2.9 1.3 — — 1,205.9 1,117.5 
Income before Income Taxes224.7 208.3 300.2 299.1 (7.4)(4.9)(6.7)(6.6)510.8 495.9 
Provision for Income Taxes51.8 50.1 78.3 78.5 (1.9)(1.2)(6.7)(6.6)121.5 120.8 
Net Income$172.9 $158.2 $221.9 $220.6 $(5.5)$(3.7)$— $— $389.3 $375.1 
Percentage of Consolidated Net Income44 %42 %57 %59 %(1)%(1)%N/AN/A100 %100 %
Average Assets$125,234.9 $120,157.7 $36,908.1 $33,098.1 $— $— N/AN/A$162,143.0 $153,255.8 
Note: Segment results are stated on an FTE basis. The FTE adjustments are eliminated in the reconciling items column with the Corporation’s total consolidated financial results stated on a GAAP basis. The adjustment to an FTE basis has no impact on net income.