Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Barclays Capital 2011 Global Financial Services Conference
19 slides from Northern Trust's conference presentation, Sep 12, 2011
Slide 1: Principles That Endure
PRINCIPLES THAT ENDURE EXHIBIT 99.1 Northern Trust Service Expertise Integrity Corporation Frederick H. Waddell Chairman & Chief Executive Officer Barclays Capital 2011 Global Financial Services Conference Hilton New York New York City September 13, 2011 © 2011 Northern Trust Corporation northerntru
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation may include forward-looking statements such as statements that relate to Northern Trust’s financial goals, capital adequacy, dividend policy, expansion and business development plans, risk management policies, anticipated expense levels and projected profi
Slide 3: Agenda
Agenda Northern Trust Corporation Strategic & Financial Positioning Adapting to the Environment 3 Barclays Capital 2011 Global Financial Services Conference
Slide 4: Client Centric, Highly Focused Business Model
Client Centric, Highly Focused Business Model Founded in 1889, Northern Trust Corporation is a global leader in asset management and asset servicing for institutional and personal clients. Personal Financial Services: Leading advisor to affluent market $172 billion AUM $388 billion AUC Asset Corpora
Slide 5: Client Centric, Highly Focused Business Model
Client Centric, Highly Focused Business Model The strategic businesses that Northern Trust has focused on – consistently for many years – continue to offer compelling and attractive growth opportunities. Excellent strategic positioning Asset Outstanding client base Servicing $4.4T Assets Strong and
Slide 6: Personal Financial Services: Extensive Reach in the Affluent Market
Personal Financial Services Extensive Reach in the Affluent Market Network of PFS Offices in 18 States Over 50% of the U.S. millionaire market resides within PFS Assets Under Management ($ Billions) a 45-minute drive of Northern Trust offices. Washington (1) CAGR +7% S&P500 CAGR +1% Minnesota Michig
Slide 7: Corporate & Institutional Services: Positioned Globally for Growth
Corporate & Institutional Services Positioned Globally for Growth Strategically Positioned in Three Dynamic Regions C&IS Assets Under Custody ($ Trillions) CAGR +11% S&P500 CAGR +1% US$EAFE CAGR +4% The Americas Europe, Asia Middle East, Pacific and Africa Best Global Investor Services House Custodi
Slide 8: Northern Trust Global Investments: Client Focused, Diversified Investment Manager
Northern Trust Global Investments Client Focused, Diversified Investment Manager Assets Under Management: $684.1 Billion A Diversified Asset Manager Across Asset Classes Across Client Segments Across Styles Short Duration Personal Equities Active Index $237 Billion $172 Billion $306 Billion $328 Bil
Slide 9: Winning in the Marketplace
Winning in the Marketplace We have had record new business results in recent quarters across our business units. Assets Under Custody ($ Trillions) Assets Under Management ($ Billions) CAGR 22% CAGR 13% $4.4 $4.4 $4.1 $3.9 $684 $3.7 $647 $657 $644 $662 $3.6 $3.7 $3.6 $611 $627 $603 $3.2 $559 $2.8 $5
Slide 10: Diversified and High Quality Loan Portfolio
Diversified and High Quality Loan Portfolio Relationship Based, Conservative Lending Strategy $29 Billion Loan Portfolio Loan Quality Better than Industry Averages ($ Billions) Northern Trust Residential Real Estate Top 20 Peer Avg. $10.7 3.83% Other $0.6 Commercial 1.57% Non-U.S. & Institutional 1.
Slide 11: High Quality Securities Portfolio
High Quality Securities Portfolio Average Securities Portfolio ($ Billions) High quality, short duration $23.1 securities portfolio $19.9 81% invested in U.S. Treasury, $17.4 government sponsored agency and triple-A rated securities at June 30, 2011 $11.8 $12.5 $12.3 Minimal level of losses due to $
Slide 12: Adapting to the Environment
PRINCIPLES THAT ENDURE Service Expertise Integrity Adapting to the Environment Barclays Capital 2011 Global Financial Services Conference © 2011 Northern Trust Corporation northerntrust.com
Slide 13: Revenue Headwinds Due to Macroeconomic Environment
Revenue Headwinds Due to Macroeconomic Environment Historically Low Lower Foreign Exchange Lower Securities Interest Rates Volatility Lending Volumes Net interest margin in 1H2011 of Currency volatility has declined Securities lending collateral of 1.27% is well below 2003 – 2008 from the heightened
Slide 14: Consistently Strong Capital Base
Consistently Strong Capital Base Common Equity ($ Billions) $7.0 $6.8 %11+ RGAC “Well $6.3 Capitalized” Capital Ratios 6/30/10 6/30/11 Guideline Basel I $4.9 Tier 1 Capital 13.7% 12.8% 6.0% $4.5 Total Risk-Based 15.9% 14.5% 10.0% $3.9 $3.6 Leverage 9.2% 7.7% 5.0% $3.3 $3.1 Tier 1 Common Equity 13.2%
Slide 15: Investing in Our Business
Investing in Our Business We have continued to invest in our core businesses to capitalize on the opportunities before us. Personal Financial Corporate & Northern Trust Services Institutional Services Global Investments Global Fund Services Strategic Hiring International Growth Strategic Acquisition
Slide 16: Improving Profitability & Returns
Improving Profitability & Returns Return on Common Equity 16.4% Return on equity has been pressured 14.4% by the current operating environment and higher capital levels. 10.1% 8.8% We are actively evaluating our profitability dynamics in light of the current environment. Revenue enhancement opportun
Slide 17: Concluding Thoughts
PRINCIPLES THAT ENDURE Service Expertise Integrity Concluding Thoughts Barclays Capital 2011 Global Financial Services Conference © 2011 Northern Trust Corporation northerntrust.com
Slide 18: Strategically Positioned for Growth
Strategically Positioned for Growth Market Leader in Focused Businesses Best Private Bank in North America (Financial Times, November 2010 and 2009) Best Global Investor Services House (Euromoney, September 2011 and July 2010) One of the largest Fund Administrators in Ireland and Guernsey U.S. Equit
Slide 19: Northern Trust Corporation
PRINCIPLES THAT ENDURE Northern Trust Service Expertise Integrity Corporation Frederick H. Waddell Chairman & Chief Executive Officer Barclays Capital 2011 Global Financial Services Conference Hilton New York New York City September 13, 2011 © 2011 Northern Trust Corporation northerntrust.com
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