Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Citigroup 2009 Financial Services Conference
28 slides from Northern Trust's conference presentation, Jan 27, 2009
Slide 1: Northern Trust Corporation
EXHIBIT 99.1 NORTHERN TRUST Service Expertise Integrity CORPORATION Frederick H. Waddell President & Chief Executive Officer Citigroup 2009 Financial Services Conference New York City January 28, 2009 © 2009 Northern Trust Corporation
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: 2008: Significant and Rapid Change in Financial Services
2008: Significant and Rapid Change in Financial Services S&P 500 – Full Year 2008 9/15/08: Lehman 1500 3/16/08: With U.S. Govt Brothers declares support, Bear Stearns 9/7/08: U.S. Govt to bankruptcy; 12/11/08: acquired by JPMorgan Chase support Fannie Bank of America Bernard Mae & Freddie Mac announ
Slide 4: Northern Trust's Fundamentals Remain Sound
Northern Trust’s Fundamentals Remain Sound ¾ Strategic Positioning Service Expertise Integrity Corporate and Institutional Services Northern Trust Global Investments Personal Financial Services ¾ Financial Strength & Stability Earnings Power High Quality Balance Sheet Capital Strength 4
Slide 5: Strategic Positioning
Strategic Positioning Service Expertise Integrity Northern Trust Corporation © 2009 Northern Trust Corporation
Slide 6: Client-centric and Highly Focused Business Model
Client-centric and Highly Focused Business Model Our Clients Pension Funds Government Families Individuals Agencies Large Corporations Family Privately Taft-Hartley Investment Foundations Held Management Firms Foundations / Businesses Family Offices Endowments / Insurance Companies Healthcare Sovere
Slide 7: Resisting the Temptation to Change Our Business Model
Resisting the Temptation to Change Our Business Model Businesses Northern Trust is NOT in: Investment Banking Credit Cards Sub-Prime Mortgage Underwriting Retail Banking Asset Backed Commercial Paper Conduits Consumer Lending Private Equity Bridge Financing Venture Capital Discount
Slide 8: Personal Financial Services
Strategic Positioning Service Expertise Integrity Personal Financial Services © 2009 Northern Trust Corporation
Slide 9: Extensive Reach in Affluent Market
Personal Financial Services Extensive Reach in Affluent Market 85 PFS Offices in 18 States Over 50% of the U.S. millionaire market resides within a 45-minute drive of Northern Trust offices. Washington (1) Minnesota Minnesota Michigan (1) (1) (3) Wisconsin Wisconsin Massachusetts (1) (1) (1) Connect
Slide 10: Integrated Approach and Comprehensive Capabilities
Personal Financial Services Integrated Approach and Comprehensive Capabilities Building and Protecting and Creating a Legacy Managing Wealth Transferring Wealth Grow Assets Protect and Preserve Wealth Reinforce Family Values Proprietary and Third-party Wealth Transfer Planning Family Edu
Slide 11: Spotlight: Wealth Management Group
Personal Financial Services Spotlight: Wealth Management Group Wealth Management Group – Assets Under Custody ($ Billions) Industry Leading Provider to the World’s $195 Wealthiest Families: ~410 family relationships in 15 countries $168 $160 Average relationship size = $400+ million 20% of For
Slide 12: Corporate & Institutional Services
Strategic Positioning Service Expertise Integrity Corporate & Institutional Services © 2009 Northern Trust Corporation
Slide 13: Vast World of Opportunities
Corporate & Institutional Services Vast World of Opportunities Total Market: $189 Trillion(1) Total Assets Under Custody Worldwide: $89 Trillion(2) Europe, North America Middle East & Africa Asia Pacific $66 Trillion $73 Trillion $50 Trillion Canada U.K. $11 Trillion $5 Trillion Japan Western $20 Tr
Slide 14: Full Array of Solutions for Sophisticated Institutional Investors
Corporate & Institutional Services Full Array of Solutions for Sophisticated Institutional Investors Active Manager of managers Asset Quantitative Hedge funds Management Investment outsourcing Private equity Liability driven investing Transition management Asset Cross-border poolin
Slide 15: Strategically Positioned in Three Dynamic Regions
Corporate & Institutional Services Strategically Positioned in Three Dynamic Regions Europe, North America Middle East & Africa Asia Pacific Chicago London Amsterdam Dublin Limerick Beijing Guernsey Luxembourg Tokyo Jersey Toronto Hong Kong Bangalore Abu Dhabi Singapore Melbourne 15 Service Expertis
Slide 16: Spotlight: Pursuing Mandates Across Multiple Markets
Corporate & Institutional Services Spotlight: Pursuing Mandates Across Multiple Markets Finland Switzerland Germany UAE Canada India Japan Norway United Kingdom Sweden Luxembourg China Ireland France Thailand Guernsey U.S.A. and Jersey South Korea Bermuda Netherlands Macau Cayman Islands Taiwan Phil
Slide 17: Northern Trust Global Investments
Strategic Positioning Service Expertise Integrity Northern Trust Global Investments © 2009 Northern Trust Corporation
Slide 18: A Diversified, World Class Investment Manager
Northern Trust Global Investments A Diversified, World Class Investment Manager $575.5 Billion Assets Under Management as of December 31, 2008 A Diversified Asset Manager Across Asset Classes Across Client Segments Across Styles Short Personal Duration $245 Billion Equities $132 Billion Active (43%)
Slide 19: Broad Array of Solutions for Personal and Institutional Clients
Northern Trust Global Investments Broad Array of Solutions for Personal and Institutional Clients Rankings Markets 15th Largest Manager Worldwide Institutional Assets Served 5th Largest Manager U.S. Institutional Tax-Exempt Assets 3rd Largest Manager Defined Benefit Assets1 9th Largest Manag
Slide 20: Spotlight: Manager of Managers Expertise
Northern Trust Global Investments Spotlight: Manager of Managers Expertise Providing Advice-Based Capabilities and Solutions More than Assets Under 225 managers Management: worldwide Pioneer of 12/31/02 - $12.4B manager-of-managers 12/31/08 - $28.6B CAGR 16% programs (1979) Northern Trust Global Adv
Slide 21: Financial Strength and Stability
Financial Strength Service Expertise Integrity and Stability © 2009 Northern Trust Corporation
Slide 22: Strong Financial Performance in Last Two Fiscal Years
Strong Financial Performance in Last Two Fiscal Years Full Year Full Year 2008 2007 Trust, Inv. & Other Servicing Fees $2,135 Million $2,078 Million Other Non-Interest Income $897 Million $586 Million Net Interest Income $1,129 Million $908 Million Total Revenues $4,160 Million $3,572 Million Non-In
Slide 23: High Quality, Short Duration Securities Portfolio
High Quality, Short Duration Securities Portfolio $15.6B SECURITIES PORTFOLIO 90% of total securities rated triple-A Total net unrealized losses of only $348 million* AFS Asset-Backed $1.6B / 10% Well diversified 85% rated triple-A Subprime asset-backed total AFS Government < 2% of total p
Slide 24: Diversified and High Quality Loan Portfolio
Diversified and High Quality Loan Portfolio $31B LOAN PORTFOLIO Relationship-based lending practices ($ in Billions) Nonperforming assets represent only Leases Non-U.S. 0.33% of total outstanding loans $1.1 $1.8 Other 3.7% 5.8% Nonperforming loans are covered Residential Real $1.4 2.4 times by
Slide 25: Credit Quality is Notably Better Than Peer Averages
Credit Quality is Notably Better Than Peer Averages As of December 31, 2008 Non-Performing Assets 0.33% as a % of Loans 1.87% Loan Loss Reserve as a 229% % of Non-Performing Assets 132% Net Charge-Offs to 0.22% Average Loans 1.51% Northern Trust Peer Group* Average *Peer group consists of the 20 lar
Slide 26: Outstanding Capital Strength
Outstanding Capital Strength “Well Capitalized” CAPITAL RATIOS 12/31/08 Guideline TOTAL EQUITY ($ Billions) CAGR: +13% Northern Trust Corporation $6.4 Tier 1 Capital Ratio 13.1% 6.0% Total Risk-Based Ratio 15.4% 10.0% Leverage Ratio 8.5% 5.0% $4.5 $3.9 U.S. CAPITAL PURCHASE PROGRAM PARTICIPATION $3.
Slide 27: Opportunities for Growth and Success Remain Plentiful
Opportunities for Growth and Success Remain Plentiful Personal Serving the Financial complex needs of Services affluent clients Corporate & Serving institutional Institutional investors worldwide Services Northern Managing personal Trust Global and institutional Investments client assets 27 Service
Slide 28: Northern Trust Corporation
NORTHERN TRUST Service Expertise Integrity CORPORATION Frederick H. Waddell President & Chief Executive Officer Citigroup 2009 Financial Services Conference New York City January 28, 2009 © 2009 Northern Trust Corporation
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