Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Shareholder Meeting (April 2012)
24 slides from Northern Trust's shareholder meeting presentation, Apr 17, 2012
Slide 1: Annual Meeting of Stockholders
PRINCIPLES THAT ENDURE EXHIBIT 99.1 Northern Trust Corporation Service Expertise Integrity Annual Meeting of Stockholders Frederick H. Waddell Chairman & Chief Executive Officer Annual Meeting © 2012 Northern of Stockholders 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, capital adequacy, dividend policy, expansion and business development plans, risk management policies, anticipated expense levels and projected profi
Slide 3: Agenda
Agenda Northern Trust Corporation Strategic Overview Financial Performance Legacy of Leadership 3 Annual Meeting of Stockholders
Slide 4: Strategic Overview
PRINCIPLES THAT ENDURE Service Expertise Integrity Strategic Overview Annual Meeting © 2012 Northern of Stockholders Trust Corporation northerntrust.com
Slide 5: A Highly Focused Business Model
A Highly Focused Business Model Founded in 1889, Northern Trust Corporation is a global leader in asset servicing, asset management, wealth management and banking for personal and institutional clients. Personal Financial Services Leading advisor to affluent market AUM $179 Billion AUC $407 Billion
Slide 6: Comprehensive Approach to Serving the Affluent Market
Personal Financial Services Comprehensive Approach to Serving the Affluent Market Cash flow analysis Financial Debt management Planning Tax planning PFS Assets Under Management ($ Billions) Retirement planning CAGR +6% Comprehensive investment capabilities S&P 500 CAGR +2% $173.7$179.1 Investment Cu
Slide 7: Delivering a Broad Range of Solutions
Corporate & Institutional Services Delivering a Broad Range of Solutions Safekeeping Settlement Asset Derivatives and collateral processing Processing Income collection C&IS Assets Under Custody ($ Trillions) Corporate actions Tax reclamation CAGR +11% S&P 500 CAGR +2% US$ EAFE CAGR +3% Fund account
Slide 8: Client Focused, Diversified Investment Manager
Northern Trust Global Investments Client Focused, Diversified Investment Manager Assets Under Management: $716 Billion Diversified Asset Management Solutions Across Asset Classes Across Client Segments Across Styles Short Personal Equities Active Duration $179 Billion Index $339 Billion $337 Billion
Slide 9: Representative Asset Management Client Case Studies
Northern Trust Global Investments Representative Asset Management Client Case Studies Northern Trust Global Investments provides customized investmentsolutions to both personal and institutional clients. Personal Client Institutional Client Wealth advisory client with ~$50 million. Custody client wi
Slide 10: A Recognized Market Leader
A Recognized Market Leader Best Private Bank in North America Serving More than 20% of Forbes 400 – Financial Times Group Most Affluent Americans (October 2011, 3 rd consecutive year) – Forbes (September 2011) Ranked among the Top 10 Wealth Managers – Barron’s (September 2011) Best Administrator for
Slide 11: Financial Performance
PRINCIPLES THAT ENDURE Service Expertise Integrity Financial Performance Annual Meeting © 2012 Northern of Stockholders Trust Corporation northerntrust.com
Slide 12: 2011 Financial Performance
2011 Financial Performance Solid performance despite challenging macroeconomic environment. ($MM, except EPS) 2011 2011 vs. 2010 Trust, Inv. & Other Servicing Fees $2,170 +4% Strong new business results despite Foreign Exchange Trading Income 325 -15% difficult macroeconomic environment Other Non-In
Slide 13: First Quarter 2012 Financial Performance
First Quarter 2012 Financial Performance ($MM, except EPS) 1Q12 1Q12 vs 1Q11 Trust, Inv. & Other Servicing Fees $575 +12% Acquisitions and new business results Foreign Exchange Trading Income 62 -27% delivered revenue growth against the Other Non-Interest Income 72 +13% backdrop of a mixed macroecon
Slide 14: Driving Performance: Overview
Driving Performance: Overview Maintain client focus Goals Improve profitability and returns Advance high performing culture Revenue enhancements Drivers of Improvement Process optimization Technology efficiency Corporate-wide initiatives $250 million by end of 2013 Estimated, Annualized Pre-Tax Impa
Slide 15: Driving Performance: Drivers of Improvement
Driving Performance: Drivers of Improvement Percent of 2013 Impact Fully align value proposition 30 – 35% Revenue Unbundle pricing structures Enhancements Expand share of relationship Streamline major business processes 30 – 40% Process Optimize operational footprint Optimization Apply best-in-class
Slide 16: Balance Sheet: Consistently Strong and Conservative
Balance Sheet: Consistently Strong and Conservative Loan Portfolio Securities Deposits with Banks $29 billion $32 billion $19 billion Relationship-based lending 85% of Northern Trust’s total Placed with banks that have Diversified by loan type, including securities portfolio composed strong internal
Slide 17: Balance Sheet: Outstanding Capital Strength
Balance Sheet: Outstanding Capital Strength Quarterly Dividend Paid per Common Share Northern Trust Corporation Capital Ratios Tier 1 Capital Ratio 12.4% Peer Average*** Total Risk-Based Ratio 14.0% Leverage Ratio 7.6% Tier 1 Common Equity* 11.9% Paid dividends totaling $273 million in 2011 for a di
Slide 18: Legacy of Leadership
PRINCIPLES THAT ENDURE Service Expertise Integrity Legacy of Leadership Annual Meeting © 2012 Northern of Stockholders Trust Corporation northerntrust.com
Slide 19: Enrique J. Sosa
Enrique J. Sosa Director of The Northern Trust Company and Northern Trust Corporation for 5 years President, BP Amoco Chemicals, 1999 Executive Vice President, Amoco, Chemicals Sector 1995 Served Dow Chemical Company for 31 years President, Dow Chemical North America, 1992-1995 Director of other pro
Slide 20: Robert C. McCormack
Robert C. McCormack Director of The Northern Trust Company and Northern Trust Corporation for 12 years Co-Founder and Co-Chairman, Trident Capital, Inc. since 1993 Advisory Director, Trident Capital Inc. since 2004 Managing Director, Trident Capital Inc., 1993-2004 Assistant Secretary, U.S. Navy (Fi
Slide 21: Strategically Positioned for Growth
Strategically Positioned for Growth Market Leader in Focused Businesses Strong History of Organic Growth Distinctive Financial Strength Invested & Experienced Management Team 21 Annual Meeting of Stockholders
Slide 22: Questions?
PRINCIPLES THAT ENDURE Northern Trust Corporation Service Expertise Integrity Annual Meeting of Stockholders Questions? Annual Meeting © 2012 Northern of Stockholders Trust Corporation northerntrust.com
Slide 23: Appendix
PRINCIPLES THAT ENDURE Service Expertise Integrity Appendix Annual Meeting © 2012 Northern of Stockholders Trust Corporation northerntrust.com
Slide 24: 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