Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Barclays Global Financial Services Conference 2015
10 slides from Northern Trust's conference presentation, Sep 15, 2015
Slide 1: Barclays Global Financial Services Conference 2015
New York | September 16, 2015 Barclays Global Financial Services Conference 2015 Frederick H. Waddell Chairman & Chief Executive Officer NORTHERN TRUST CORPORATION EXHIBIT 99.1
Slide 2: Client Centric and Highly Focused Business Model
Banking $120 billion in assets Asset Servicing $6.2 trillion in AUC Asset Management $946 billion in AUM Integrated Global Operating Platform CLIENT CENTRIC AND HIGHLY FOCUSED BUSINESS MODEL Founded in 1889, Northern Trust is a global leader in asset servicing, asset management and banking for perso
Slide 3: Invested in Attractive Markets
The personal and institutional markets are large and are growing. Global Personal Financial Wealth $US Trillion CAGR: 6% 11% ETFs Alternatives Sovereign Wealth Funds Insurance Assets Retirement Funds Mutual/ Collective Funds 2018E Total $114 $147 Global Institutional Assets $US Trillion $6 $10 $16 $
Slide 4: Positioned for Continued Success
POSITIONED FOR CONTINUED SUCCESS Favorable secular trends align well with Northern Trust’s business model. Growth Trends Global wealth creation Globalization/cross-border investing Expanding use of alternative assets Shift from active to passive management Increased regulation Focus on risk manageme
Slide 5: Accelerating Growth: Producing strong results
+8% +10% +11% +11% ACCELERATING GROWTH Producing strong results. Wealth Management Fees Corporate & Institutional Services Fees AUM AUC 2011 – 1H2015 CAGRs 1H2015 fees are annualized
Slide 6: Accelerating Growth: Investing for the future
ACCELERATING GROWTH Investing for the future. Global asset management industry AUM and growth projections from Cerulli Associates Global Markets Greater NY $5MM+ household AUM from Nielsen Claritas (Wealth Management Markets) “Smart Beta” market size and growth projections from Casey Quirk As of Jun
Slide 7: Improving Profitability and Productivity: Producing strong results
+8pts +2.5 pts -20 pts IMPROVING PROFITABILITY AND PRODUCTIVITY Producing strong results. Differential between revenue and expense CAGRs for the period 2011–1H2015, annualized. Since 2011 Since 2011 Since 2011 Expenses/Trust Fees = % In 1H2015 Pre-Tax Margin= 32.2 % In 1H2015 Operating Leverage
Slide 8: Improving Profitability and Productivity: Planning for the future
IMPROVING PROFITABILITY AND PRODUCTIVITY Planning for the future. As of June 30, 2015
Slide 9: Increasing Shareholder Returns
INCREASING SHAREHOLDER RETURNS 28¢ 30¢ 31¢ 33¢ 36¢ Quarterly Dividend 8.6% 9.3% 9.5% 10.0% 12.1% 1H2015 Total Payout Ratios: 100% in 2014 83% in 2013 65% in 2012 58% in 2011 42% in 2010 Improving ROE into our target range of 10%-15%
Slide 10: Slide 10
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