Northern Trust Corporation

Good day and thank you for standing by. Welcome to the Northern Trust Corporation third quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 101 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jennifer Child, Director of Investor Relations. Please go ahead.

Thank you, Victor. Good morning, everyone, and welcome to Northern Trust Corporation's third quarter 2022 earnings conference call. Joining me on our call this morning are Mike O'Grady, our chairman and CEO, Jason Tyler, our chief financial officer, Lauren Allnutt, our controller, and Mark Betty and Briar Rose from our investor relations team. Our third 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 October 19th call is being webcast live on northerntrust.com. The only authorized rebroadcast of this call is the replay that will be made available on our website through November 18th. Northern Trust disclaims any continuing accuracy of the information provided in this call after today. Please refer to our safe harbor statement regarding forward-looking statements on page 11 of the accompanying presentation, which will apply to our commentary on this call. 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. Thank you again for joining us today. Let me turn the call over to Mike O'Grady.

Thank you, Jennifer. Let me join in welcoming everyone to our third quarter 2022 earnings call. In the third quarter, we continued to execute well through a challenging operating environment. Compared to the prior year, revenue grew 7% as the elimination of fee waivers and the favorable impact from higher interest rates more than offset the significant headwinds from weaker equity and fixed income markets, asset outflows, and unfavorable currency movements. Expense growth of 9% reflected inflationary impacts across our cost base, particularly within our compensation and equipment and software lines. EPS was flat, and we generated a return on average common equity of 14.9%. New business activity and wealth management was encouraging, and we continued to engage actively with new and existing clients. In asset management, weak markets and institutional cash outflows reduced assets under management, yet we saw continued growth in our alternatives, tax-advantaged equity, and ETF complex. And within asset servicing, we continued to win new mandates, and our backlog of new clients that haven't yet been onboarded has expanded meaningfully and is expected to transition over the coming quarters. In closing, we remain well positioned to navigate the current macroeconomic and market uncertainty from a position of strength. Our new business pipeline remains robust, and our capital position continues to be strong. In a slowing growth environment, we've also begun prudently tightening our expense controls and focusing on realizing productivity benefits from the investments we've made over the past several years. I'll now turn the call over to Jason.