Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — William Blair Growth Stock Conference 2012
15 slides from Northern Trust's conference presentation, Jun 12, 2012
Slide 1: Northern Trust Corporation – William Blair Growth Stock Conference
northerntrust.com (c) 2012 Northern Trust Corporation Service Expertise Integrity Service Expertise Integrity P R I N C I P L E S T H A T E N D U R E Northern Trust Corporation Frederick H. Waddell Chairman & Chief Executive Officer William Blair Growth Stock Conference The Four Seasons Hotel Chicag
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: A Highly Focused Business Model
A Highly Focused Business Model As of March 31, 2012 Founded in 1889, Northern Trust Corporation is a global leader in asset servicing, asset management, wealth management and banking for personal and institutional clients. Integrated global operating platform Serving personal and institutional clie
Slide 4: Personal Financial Services: Life-driven Approach to Serving the Affluent Market
Comprehensive investment capabilities Custom asset allocation Broad menu of outside managers Brokerage services Investment Management Personal Financial Services Life-driven Approach to Serving the Affluent Market Private and Business Banking Deposit services Custom financing Stock option lending Fo
Slide 5: Corporate & Institutional Services: Delivering a Broad Range of Solutions
Corporate & Institutional Services Delivering a Broad Range of Solutions Asset Administration Fund accounting Transfer agency Corporate secretarial/trustee Valuations Investment operations outsourcing Investment Management Active Global index Investment outsourcing Liability driven investing Multi-m
Slide 6: Northern Trust Global Investments: Client Focused, Diversified Investment Manager
Asset Classes Equities $339 Billion (47%) Fixed Income $134 Billion (19%) Short Duration $223 Billion (32%) Other $20 Billion (2%) Northern Trust Global Investments Client Focused, Diversified Investment Manager Manager of the Year - Equity Indexers (U.S.) Institutional Investor (April 2011) Client
Slide 7: Strong History of Growth in Fee-based Businesses
Assets Under Custody ($ Trillions) Assets Under Management* ($ Billions) Strong History of Growth in Fee-based Businesses * AUM is presented excluding securities lending collateral 1 Custody fees include C&IS custody & fund administration fees and PFS Wealth Management Group fees. 2012 fees are annu
Slide 8: Revenue Headwinds Due to Macroeconomic Environment
Currency volatility has declined from the heightened levels seen in 2007 - 2009, resulting in lower foreign exchange trading income Lower Securities Lending Volumes Securities lending collateral of $95 billion is much lower than peak of nearly $300 billion in 2007 Lower volumes primarily reflect low
Slide 9: Impact of the Environment on Profitability and Returns
Impact of the Environment on Profitability and Returns Pre-tax margin Recent revenue pressures have led to declining margins and returns. Return on Equity Average Common Equity $7.2 bn $2.7 bn
Slide 10: Driving Performance, Improving Profitability and Returns
Fully align value proposition Unbundle pricing structures Expand share of relationship Revenue Enhancements Process Optimization Streamline major business processes Optimize operational footprint Apply best-in-class procurement practices Refine service delivery model Migrate IT resourcing mix Ration
Slide 11: Balance Sheet
Data is as of March 31, 2012 and for the quarter then ended. Peer group includes U.S. based banks with assets of more than $50 billion as of December 31, 2011, a group of 18 institutions excluding Northern Trust. Northern Trust Peer Avg. Loan Portfolio $29 billion Relationship-based lending Diversif
Slide 12: Outstanding Capital Strength
Northern Trust Corporation Capital Ratios Tier 1 Capital Ratio 12.4% Total Risk-Based Ratio 14.0% Leverage Ratio 7.6% Tier 1 Common Equity1 11.9% Announced an increase in our dividend to $0.30 per share The Federal Reserve did not object to Northern Trust's capital plan, including the repurchase of
Slide 13: Strategically Positioned for Growth
Strategically Positioned for Growth Market Leader in Focused Businesses Strong History of Organic Growth Focused on Driving Performance Distinctive Financial Strength
Slide 14: Appendix
northerntrust.com (c) 2012 Northern Trust Corporation Service Expertise Integrity Service Expertise Integrity P R I N C I P L E S T H A T E N D U R E Appendix
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table provides a reconciliation of tier 1 common equity to tier 1 capital calculated in accordance with applicable regulatory requirements and GAAP. Northern Trust is providing the ratio of tier 1 common equity to risk-weighted assets in ad
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