Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Citigroup Financial Services Conference 2008
27 slides from Northern Trust's conference presentation, Jan 28, 2008
Slide 1: Northern Trust: Managing Our Business Across Cycles
NORTHERN TRUST CORPORATION EXHIBIT 99.1 Northern Trust Managing Our Business Across Cycles Citigroup Financial Services Conference January 29, 2008 New York City Steven L. Fradkin Executive Vice President & Chief Financial Officer © 2008 Northern Trust Corporation northerntrust.com
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, dividend policy, expansion and business development plans, anticipated expense levels and projected profit improvements, business prospects and posit
Slide 3: Today's Agenda
Today’s Agenda ¾ Northern Trust: Managing Our Business Across Cycles Historical Perspective Current Perspective Consistent, Client-Focused Strategies Closing Thoughts 3 Giving Our Clients the Freedom to Focus on What Really Matters
Slide 4: Historical Perspective
NORTHERN TRUST CORPORATION Northern Trust: Managing Our Business Across Cycles Historical Perspective 4
Slide 5: 20 Years of History: Economic Shocks & Cycles
20 Years of History: Economic Shocks & Cycles 2000: Y2K financial infrastructure scare; Start of 2-year stock 12/31/07 bear market 2004-05: S&P 500: Disastrous 1468.36 2003: hurricane Second seasons 1998: Persian LTCM collapse; Gulf War Russian debt default; (Iraq) Global currency crisis 1991: Sovie
Slide 6: 20 Years of History: Successfully Navigated by Northern Trust
20 Years of History: Successfully Navigated by Northern Trust NTRS Net Income ($ millions) 2000: Y2K financial $821 1988-2007 CAGR = 11% infrastructure scare; 12/31/07 Start of 2-year stock S&P 500: bear market 2004-05: 1468.36 Disastrous CAGR = 8% 2003: hurricane Second seasons $665 1998: Persian L
Slide 7: Current Perspective
NORTHERN TRUST CORPORATION Northern Trust: Managing Our Business Across Cycles Current Perspective 7
Slide 8: 2007: A Tumultuous Year
2007: A Tumultuous Year ¾ Price of West Texas Intermediate Crude Oil: +57%* ¾ Mortgage Loan Delinquency Rate at Commercial Banks: +100 bp*** ¾ Median Sales Price of a Single-Family Home Declines in 2007 for First Time Since 1968 ¾ Sub-Prime Related Write-Downs and Unusual Charges: over $100 bn** ¾ Y
Slide 9: Strong Performance in 2007, Despite Tumultuous Environment
Strong Performance in 2007, Despite Tumultuous Environment NTRS: EPS: Completed 12th consecutive quarter of double-digit, year-over-year growth Full Common Equity: Completed 79th consecutive quarter of Year growth 2007 Record net income, up 23% vs 2006 Record total revenues, up 17% vs 2006
Slide 10: Consistent, Client-Focused Strategies
NORTHERN TRUST CORPORATION Northern Trust: Managing Our Business Across Cycles Consistent, Client-Focused Strategies 10
Slide 11: PFS: Extensive Reach in High Growth, Affluent Markets
Attractive Demographic Markets PFS: Extensive Reach in High Growth, Affluent Markets 85 Offices in 18 States Projected Annual Over 50% of millionaire market resides within Household Growth Rates a 45-minute drive of Northern Trust offices. 2006 - 2011 15.0% Washington (1) Minnesota (1) Michigan 10.4
Slide 12: C&IS: A World of Vast and Growing Opportunities
Attractive Demographic Markets C&IS: A World of Vast and Growing Opportunities Europe $40 Trillion Total World United States Capital Market: $140 Trillion (1) $50 Trillion $28 Trillion Japan, Total Assets Under China Custody Worldwide: & India $22 $72 Trillion (2) Trillion Latin America, Mid-East &
Slide 13: C&IS: Positioned Globally for Growth
Attractive Demographic Markets C&IS: Positioned Globally for Growth Positioned to serve clients locally and capitalize on global opportunities. Chicago Toronto New Dublin Guernsey London Amsterdam Luxembourg (Corporate York Headquarters) Jersey Tokyo Beijing Hong Kong Bangalore Singapore Melbourne 1
Slide 14: Client-centric and Highly Focused
Focused and Conservative Client-centric and Highly Focused Northern Trust Clients Institutional Personal Clients Two Client Channels Clients Pension Funds Large Corporations Individuals Investment Management Firms Families Foundations / Endowments / Healthcare Insurance Companies Gov
Slide 15: Client-centric and Highly Focused
Focused and Conservative Client-centric and Highly Focused Northern Trust Clients Institutional Personal Two Client Some of the businesses we are Clients Clients Channels not in: •Sub-Prime Mortgage Pension Funds Underwriting Large Corporations Individuals •Credit Cards Investment Management
Slide 16: PFS: Our Focus on the Affluent Market is Unmatched
Focused and Conservative PFS: Our Focus on the Affluent Market is Unmatched Private Client Revenues (As a Percentage of Total Company Revenues, Year-to-Date September 30, 2007) 43% 35% 30% 15% 12% 11% 9% 8% 5% Northern Merrill Wilmington Citigroup Bank of Bank of Goldman JP Morgan Wachovia Lynch* Tr
Slide 17: C&IS: Significant Presence in Our Target Segments
Focused and Conservative C&IS: Significant Presence in Our Target Segments Pension Plans Public Funds / Taft-Hartley Northern Northern Of the Top Serves Of the Top Serves 100 U.S. Corporate Plans 40% 25 Taft-Hartley Funds 32% 200 U.S. Funds 37% 100 U.S. Public Funds 35% 200 U.K. Funds 27% U.K. Local
Slide 18: The Northern Trust Difference
Client Centricity The Northern Trust Difference Clients are at the center of everything we do Unparalleled client service Innovative Leading-edge product technology leadership Client Solutions Sharp Culture business and focus heritage Consistent financial strength and stability 18 Giving Our Clients
Slide 19: PFS: Comprehensive Array of Solutions for Clients
Client Centricity PFS: Comprehensive Array of Solutions for Clients Private Banking Financial Planning Wealth Management Group Personal Credit Lines and Swing Retirement Planning Family Office Support Loans Estate Planning Multi-generational Wealth Management Real Estate Development Loan
Slide 20: C&IS: Extensive Suite of Product Solutions for Clients
Client Centricity C&IS: Extensive Suite of Product Solutions for Clients Cash Manager of Managers Asset Active Foreign Exchange Asset Management Passive Transition Management Management Securities Lending Commission Management Asset Risk Attribution Analysis Compliance Monitoring
Slide 21: NTGI: A Continuum of Proprietary & External Solutions
Client Centricity NTGI: A Continuum of Proprietary & External Solutions Multi-Advisor Funds PRODUCT BREADTH Hedge Funds Private Equity Canadian & UK Programs Active Investment Management Int’l/US Equity Manager of Managers Growth & Value Equity Minority and Emerging Managers Investment Program Sol
Slide 22: Closing Thoughts
NORTHERN TRUST CORPORATION Northern Trust: Managing Our Business Across Cycles Closing Thoughts 22
Slide 23: Well Positioned Income Statement
Well Positioned Income Statement Fee Income Dominates Our Revenue Stream 74% of Total Revenues derived from Non-Interest Income in 2007. Top 20 Bank average equals 51%.* 58% of Total Revenues derived from Trust, Investment & Other Servicing Fees in 2007. Top 20 Bank average equals 14%.* Equity M
Slide 24: Prudent Balance Sheet Management
Prudent Balance Sheet Management Securities Portfolio – High Quality and Short Duration 93% of Northern Trust’s total securities portfolio was composed of triple-A rated securities as of December 31, 2007. 75% of Earning Assets reprice or mature within one year. Top 20 Bank average equals 50%.*
Slide 25: Consistent Leadership and Management Philosophy
Consistent Leadership and Management Philosophy Northern Trust Industry ¾ Rick Waddell - President & CEO 32 Years 32 Years ¾ Sherry Barrat - President – PFS 17 Years 37 Years ¾ Steve Fradkin - EVP & Chief Financial Officer 22 Years 22 Years ¾ Tim Moen - EVP – Human Resources & Admin. 6 Years 32 Year
Slide 26: Success Achieved Through Enduring Principles and Strategies
Success Achieved Through Enduring Principles and Strategies 9 Attractive Demographic Markets 9 Focused and Conservative Strategy 9 Client Centricity 9 Excellence in Execution 9 Consistent Leadership and Philosophy 26 Giving Our Clients the Freedom to Focus on What Really Matters
Slide 27: Northern Trust: Managing Our Business Across Cycles
NORTHERN TRUST CORPORATION Northern Trust Managing Our Business Across Cycles Citigroup Financial Services Conference January 29, 2008 New York City Steven L. Fradkin Executive Vice President & Chief Financial Officer © 2008 Northern Trust Corporation northerntrust.com
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