Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Barclays Capital Global Financial Services Conference 2009
27 slides from Northern Trust's conference presentation, Sep 14, 2009
Slide 1: Northern Trust Corporation
EXHIBIT 99.1 Service Expertise Integrity NORTHERN TRUST CORPORATION Frederick H. Waddell President & Chief Executive Officer September 15, 2009 Barclays Capital Global Financial Services Conference © 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: Today's Agenda
Today’s Agenda Strategically Positioned for Growth Personal Financial Services Corporate & Institutional Services Northern Trust Global Investments Strong Financial Positioning Earnings Power High Quality Balance Sheet Capital Strength 3 Barclays Capital Global Financial Services Conference – Septem
Slide 4: Strategically Positioned for Growth
Service Expertise Integrity Strategically Positioned for Growth © 2009 Northern Trust Corporation
Slide 5: Client-centric and Highly Focused on Attractive Markets
Client-centric and Highly Focused on Attractive Markets 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
Slide 6: Consistent Focus on Proven Strategies…
Consistent Focus on Proven Strategies… …and resisting the temptation to stray sessenisuB :ni TON si tsurT nrehtroN Investment Banking Credit Cards Sub-Prime Mortgage Underwriting Retail Banking Asset Backed Commercial Paper Conduits Consumer Finance Discount Brokerage Venture Capital American Deposi
Slide 7: Extensive Reach in Attractive Target Market
Personal Financial Services Extensive Reach in Attractive Target Market Network of over 80 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 Michigan (1) Wisconsin (3) Massachusetts (1) (1) Connecticu
Slide 8: Addressing Clients' Complex Financial Goals
Personal Financial Services Addressing Clients’ Complex Financial Goals 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 Wea
Slide 9: Spotlight: Industry Leading Provider to the World's Wealthiest Families
Personal Financial Services Spotlight: Industry Leading Provider to the World’s Wealthiest Families Wealth Management Group Assets Under Custody $ Billions $195 ~415 family relationships in 15 countries $179 Average relationship size = $430+ million $168 $160 20% of Forbes 400 Richest Americans WMG
Slide 10: Positioned Globally for Growth
Corporate & Institutional Services Positioned Globally for Growth Positioned to serve clients locally and capitalize on global opportunities. North America Europe, Middle East, & Africa Chicago Toronto New Dublin Guernsey Stockholm London Amsterdam Luxembourg Abu Dhabi (Corporate York Headquarters)
Slide 11: 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 pooling Securities lendi
Slide 12: Strong Presence in Target Institutional Segments
Corporate & Institutional Services Strong Presence in Target Institutional Segments Pension Plans Public Funds / Taft-Hartley / Insurance Northern Northern Of the Top Serves Of the Top Serves 100 U.S. Corporate Plans 44% 25 Taft-Hartley Funds 36% 200 U.S. Funds 47% 100 U.S. Public Funds 38% 200 U.K.
Slide 13: Client Focused, Diversified Investment Manager
Northern Trust Global Investments Client Focused, Diversified Investment Manager $558.9 Billion Assets Under Management as of June 30, 2009 Across Asset Classes Across Client Segments Across Styles Short Duration Personal $225 Billion $137 Billion Active (40%) Equities $294 Billion Quantitative $214
Slide 14: Continuum of Investment Solutions to Serve Client Needs
Northern Trust Global Investments Continuum of Investment Solutions to Serve Client Needs PRODUCT BREADTH Multi-Advisor Funds Hedge Funds Active Investment Private Equity Canadian & UK Programs Management Int’l/US Equity Manager of Managers Growth & Value Equity Minority and Emerging Managers Invest
Slide 15: Strong Financial Positioning
Service Expertise Integrity Strong Financial Positioning © 2009 Northern Trust Corporation
Slide 16: Equity Market Environment Improved in 2Q09…
Equity Market Environment Improved in 2Q09… Index Performance: June 30, 2009 vs March 31, 2009 35.4% 29.5% 26.2% 22.8% 23.3% 17.7% 15.2% 11.0% 11.8% 11.9% 9.5% 24 U.S. Banks US$ Sources: Haver Analytics; Yahoo Finance; MSCI Barra 16 Barclays Capital Global Financial Services Conference – September 1
Slide 17: …But Remains Weak Globally on a Year-over-Year Basis
…But Remains Weak Globally on a Year-over-Year Basis Index Performance: June 30, 2009 vs June 30, 2008 24 U.S. Banks US$ -16.9% -23.9% -25.1% -26.0%-26.1% -25.6% -28.2% -29.2% -33.6% -37.3% -48.1% Sources: Haver Analytics; Yahoo Finance; MSCI Barra 17 Barclays Capital Global Financial Services Confe
Slide 18: Earnings Power: Solid 2Q09 Financial Performance…
Earnings Power: Solid 2Q09 Financial Performance… …Despite Environmental and Market Headwinds Second Quarter % Change ($ in millions, except EPS) 2009 2Q09 vs 2Q08 Trust, Inv. & Other Servicing Fees $601 -7% Other Non-Interest Income $184 -8% Net Interest Income $260 +5% Total Revenues $1,045 -4% No
Slide 19: Earnings Power: Asset Accumulation…
Earnings Power: Asset Accumulation… …Consistently Exceeds Markets % Change Vs. Assets at 5 Year June 30, 2009 Last Qtr Last Yr CAGR Assets Under Custody $3.2 Trillion +13% -19% +5% Global Custody Assets $1.6 Trillion +21% -19% +11% Assets Under Management $559 Billion +7% -26% 0.1% AUM excluding Sec
Slide 20: High Quality Balance Sheet: Driven by Client Deposits
High Quality Balance Sheet: Driven by Client Deposits As of June 30, 2009 Assets Liabilities & Equity Other Money Purchased Market Funds Assets 9% 27% Client Client Loans Deposits Equity Securities 39% 71% 8% 23% Long-Term Debt Other & Senior Notes 11% 7% Other 5% Total Assets = $75.0 Billion Total
Slide 21: High Quality Balance Sheet: AFS Securities Portfolio
High Quality Balance Sheet: AFS Securities Portfolio $16.3B AVAILABLE FOR SALE SECURITIES PORTFOLIO 96% of AFS securities rated triple-A Total AFS net pretax unrealized losses of only $144 million Corporate Debt / $1.9B / 12% 95% government guaranteed $1.8B rated triple-A Asset-Backed Government $1.
Slide 22: High Quality Balance Sheet: Diversified Loan Portfolio
High Quality Balance Sheet: Diversified Loan Portfolio Relationship Based Lending Strategy $29B Loan Portfolio Loan Quality Notably Better Than ($ in Billions) Industry Averages 3.51% Leases Non-U.S. $1.0 $0.9 Other 3% 3% $1.1 Residential Real 4% 2.20% Estate Personal $10.7 $4.8 37% 17% Commercial 0
Slide 23: Capital Strength: Consistently Outstanding
Capital Strength: Consistently Outstanding “Well COMMON EQUITY ($ Billions) Capitalized” CAGR: +12% $6.1 CAPITAL RATIOS 6/30/08 6/30/09 Guideline Tier 1 Capital 9.8% 12.6% 6.0% $4.9 $4.5 Total Risk-Based 11.7% 15.0% 10.0% $3.9 Leverage 6.9% 8.6% 5.0% $3.6 $3.3 $3.1 $2.9 $2.7 Tier 1 Common Equity 9.3
Slide 24: Concluding Thoughts
Service Expertise Integrity Concluding Thoughts © 2009 Northern Trust Corporation
Slide 25: Celebrating 120 Years of Service, Expertise, and Integrity
Celebrating 120 Years of Service, Expertise, and Integrity Today Founded 1889 Byron Laflin Smith A GLOBAL INSTITUTION 1893 World’s Fair 1961 Account automation 1943 A good cause 1955 Tallying 1917 accounts Chicago tellers 25 Barclays Capital Global Financial Services Conference – September 15, 2009
Slide 26: A Solid Foundation for Continued Growth & Success
A Solid Foundation for Continued Growth & Success 120-year heritage of service, expertise and integrity Leadership positions in client-focused business segments with attractive market and geographic growth opportunities Comprehensive product capabilities combined with distinctive service Distinctive
Slide 27: Northern Trust Corporation
Service Expertise Integrity NORTHERN TRUST CORPORATION Frederick H. Waddell President & Chief Executive Officer September 15, 2009 Barclays Capital Global Financial Services Conference © 2009 Northern Trust Corporation
Northern Trust — Barclays Capital Global Financial Services Conference 2009 on 6ix