Northern Trust (NTRS) Announces 2022 Stress Capital Buffer, to Increase Quarterly Common Stock Dividend by 7%

June 27, 2022 4:56 PM EDT

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Northern Trust Corporation today commented on the results of the Federal Reserve’s 2022 Comprehensive Capital Analysis and Review (CCAR) and announced plans to increase its quarterly common stock dividend from $0.70 to $0.75 per common share, beginning in the third quarter of 2022.

Based on the CCAR 2022 results, Northern Trust will be subject to a preliminary stress capital buffer (SCB) of 2.5 percent, which is unchanged from the current level. The SCB will be effective from October 1, 2022, to September 30, 2023, and will equate to a minimum common equity tier 1 (CET1) ratio of 7 percent.

“The results of Northern Trust’s annual CCAR continue to illustrate the strength of our capital position and business model,” Chairman and Chief Executive Officer Michael O’Grady said. “Our plan to raise our dividend by 7 percent reflects those same strengths, as well as our commitment to shareholders.”

The common stock dividend is subject to approval from the Corporation’s Board of Directors.

Northern Trust will continue to take an opportunistic, considerate approach in its evaluation of potential common stock repurchases given its strong capital position, prevailing market conditions and other factors.

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