Northern Trust Corporation · NASDAQ:NTRS

Northern Trust — 29th Annual William Blair Growth Stock Conference (June 2009)

25 slides from Northern Trust's conference presentation, Jun 8, 2009

  1. Slide 1: Northern Trust Corporation – 29th Annual William Blair Growth Stock Conference

    EXHIBIT 99.1 NORTHERN TRUST Service Expertise Integrity CORPORATION 29th Annual William Blair Growth Stock Conference Steven L. Fradkin Executive Vice President & Chief Financial Officer June 9, 2009 © 2009 Northern Trust Corporation

  2. 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

  3. Slide 3: Agenda

    Agenda „ Northern Trust: Strategic Overview „ Financial Performance Highlights „ Balance Sheet Highlights „ Concluding Thoughts 3 Service Expertise Integrity

  4. Slide 4: Strategic Overview

    Service Expertise Integrity Strategic Overview © 2009 Northern Trust Corporation

  5. Slide 5: 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

  6. Slide 6: Industry Leader in Serving the Affluent Market

    Personal Financial Services Industry Leader in Serving the Affluent Market Offering clients needs-based solutions. Wealth Management The recognized leader in providing sophisticated financial solutions to the world’s wealthiest Family Advisory families. $200 MM Serving as clients’ family office, pro

  7. Slide 7: Extensive Reach in Affluent Market

    Personal Financial Services Extensive Reach in Affluent 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 (1) Wisconsin Massachusetts (1) (1) Michigan (3) Connecticut (1) Nev

  8. Slide 8: 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

  9. Slide 9: 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 London Amsterdam Luxembourg Abu Dhabi (Corporate York Headquarters) Limerick J

  10. Slide 10: Diversified, World Class Investment Manager

    Northern Trust Global Investments Diversified, World Class Investment Manager $522.3 Billion Assets Under Management as of March 31, 2009 A Diversified Asset Manager Across Asset Classes Across Client Segments Across Styles Short Personal Duration $228 Billion Equities $130 Billion Active (44%) $290

  11. Slide 11: Top Tier Investment Manager

    Northern Trust Global Investments Top Tier Investment Manager Rankings Markets „ 13th Largest Manager Worldwide Assets Under Management Served „ 10th Largest Manager Worldwide Institutional Assets „ 4th Largest Manager U.S. Institutional Tax-Exempt Assets „ 3rd Largest Manager Defined Benefit Assets

  12. Slide 12: Financial Performance Highlights

    Financial Performance Service Expertise Integrity Highlights © 2009 Northern Trust Corporation

  13. Slide 13: Asset Accumulation Significantly Outperforming the Market

    Asset Accumulation Significantly Outperforming the Market Assets Under Custody Global Custody Assets Assets Under Management ($ Trillions) ($ Trillions) ($ Billions) 5-Year 5-Year 5-Year CAGR Since CAGR Since CAGR Since 1Q04 – 1Q09 Jun-2007 1Q04 – 1Q09 Jun-2007 1Q04 – 1Q09 Jun-2007 AUC 5% (18%) Glob

  14. Slide 14: High-Growth and Balanced Revenue Stream

    High-Growth and Balanced Revenue Stream Operating Revenue ($ Millions) 2008 Revenue Contribution $4,160 Net Interest Other 2004 – 2008 CAGR = 16% Income Noninterest S&P 500 (7%) Income 27% EAFE (5%) $3,572 22% $3,061 Trust Fees $2,686 51% $2,326 US International 63% 37% 2004 2005 2006 2007 2008 Note

  15. Slide 15: Earnings Strength Across Cycle

    Earnings Strength Across Cycle Operating Net Income ($ Millions) Fed Funds 10% S&P 500 30% $821 9% 2004 – 2008 Avg. ROE = 17% S&P 500 $665 8% 20% $641 $584 7% $506 10% 6% 5% 0% 4% Annual Fed Funds (10% ) 3% 2% (20% ) 2004 2005 2006 2007 2008 1% (30% ) 0% (40% ) Note: S&P 500 line represents percent

  16. Slide 16: First Quarter 2009 Highlights

    First Quarter 2009 Highlights Managing the business in the context of a difficult market environment and positioning ourselves to take advantage of market opportunities First Quarter 2009 % Change ($ Million) 1Q09 vs 1Q08 Strength relative to equity market Trust, Inv. & Other Svcing Fees $419 -15% d

  17. Slide 17: Balance Sheet Highlights

    Balance Sheet Service Expertise Integrity Highlights © 2009 Northern Trust Corporation

  18. Slide 18: Client Deposit-Driven Balance Sheet

    Client Deposit-Driven Balance Sheet As of March 31, 2009 Assets Liabilities & Equity Other Money Purchased Market Funds Assets 13% 28% Client Client Loans Deposits Equity Securities 39% 68% 8% 23% Long-Term Debt Other & Senior Notes 10% 6% Other 5% Total Assets = $78.5 Billion Total Risk Weighted As

  19. Slide 19: High Quality Securities Portfolio

    High Quality Securities Portfolio As of March 31, 2009 $17.8B SECURITIES PORTFOLIO ƒ 90% of total securities rated triple-A Asset-Backed ($1.5B) ƒ Well diversified ƒ 76% rated triple-A ƒ Subprime asset-backed total 8% < 2% of total portfolio Government Sponsored 3% Auction Rate Securities ($0.5B) Ag

  20. Slide 20: Focused Lending Practices Produce Superior Results

    Focused Lending Practices Produce Superior Results As of March 31, 2009 „ Relationship-based lending practices NCOs / Avg. Loans ‹ Each mortgage individually underwritten and managed 1.62% 1.57% ‹ Commercial lending supports-fee based clients „ Northern Trust does not: 0.04% 0.09% ‹ Underwrite mortg

  21. Slide 21: Top Tier Capital Strength

    Top Tier Capital Strength Actual March 31, 2009 Pro Forma with New Common1 Top 20 Banks Peer No TARP With TARP Capital Ratios NTRS Median (incl. CPP) Redemption Redemption TCE/TA 5.9% 4.6% 7.0% 6.9% TCE/RWA 8.8% 5.0% 10.4% 10.3% Tier 1 Capital 13.0% 11.0% 14.7% 11.7% TCE / TA Ratio – Continued Diffe

  22. Slide 22: Concluding Thoughts

    Concluding Service Expertise Integrity Thoughts © 2009 Northern Trust Corporation

  23. Slide 23: Invested, Experienced and Stable Management Team

    Invested, Experienced and Stable Management Team Management Northern Trust Industry ‹ Rick Waddell - President & CEO 34 Years 34 Years ‹ Sherry Barrat - President – PFS 19 Years 39 Years ‹ Steve Fradkin - EVP & Chief Financial Officer 24 Years 24 Years ‹ Tim Moen - EVP – Human Resources & Admin. 8 Y

  24. Slide 24: Strategic Growth Opportunity + Financial Strength

    Strategic Growth Opportunity + Financial Strength Well Positioned to Capitalize on Global Growth Opportunities ¾ Leadership position in client-focused, business segments with attractive market and geographic expansion opportunities ¾ Strong brand and reputation – “flight to quality” in the current e

  25. Slide 25: Northern Trust Corporation

    NORTHERN TRUST Service Expertise Integrity CORPORATION 29th Annual William Blair Growth Stock Conference Steven L. Fradkin Executive Vice President & Chief Financial Officer June 9, 2009 © 2009 Northern Trust Corporation

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