Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Barclays Global Financial Services Conference 2010
33 slides from Northern Trust's conference presentation, Sep 14, 2010
Slide 1: Northern Trust Corporation - Barclays Global Financial Services Conference
Exhibit 99.1 Northern Trust Corporation Service Expertise Integrity William L. Morrison Executive Vice President & Chief Financial Officer Barclays Global Financial Services Conference The Sheraton New York Hotel & Towers New York, New York September 14, 2010 © 2010 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, risk management policies, anticipated expense levels and projected profit improvements, bu
Slide 3: Agenda
Agenda Northern Trust Corporation ; Excellent Strategic Positioning ; Uncompromised Financial Strength 3 Service Expertise Integrity
Slide 4: Excellent Strategic Positioning
Service Expertise Integrity Excellent Strategic Positioning © 2010 Northern Trust Corporation
Slide 5: Client Centric, Highly Focused Business Model
Client Centric, Highly Focused Business Model Founded in 1889, Northern Trust Corporation is a global leader in asset management and asset servicing for institutional and personal clients. PFS: Leading advisor to affluent market CLIENTS $142 billion AUM $328 billion AUC C&IS: Leading global custod
Slide 6: Client Centric, Highly Focused Business Model
Client Centric, Highly Focused Business Model The strategic businesses that Northern Trust has focused on – consistently for many years – continue to offer compelling and attractive growth opportunities Outstanding client base CLIENTS Strong and supportive demographic trends Asset Servicing Co
Slide 7: Strong Asset Accumulation Across the "Lost" Decade
Strong Asset Accumulation Across the “Lost” Decade Assets Under Custody $BN Assets Under Management $BN CAGR 9% CAGR 8% S&P 500 CAGR -3% S&P 500 CAGR -3% EAFE CAGR -5% C&IS CAGR 8% CAGR 4% S&P 500 CAGR -3% S&P 500 CAGR -3% PFS 7 Service Expertise Integrity
Slide 8: Personal Financial Services
Service Expertise Integrity Personal Financial Services © 2010 Northern Trust Corporation
Slide 9: An Integrated Approach to Wealth Management
Personal Financial Services An Integrated Approach to Wealth Management PRIVATE WEALTH CLIENT ADVISORY FOUNDATIONS WEALTH AND MANAGEMENT INSTITUTIONS Best Private Bank in North America Best-in-Class Performance – Financial Times Group (November 2009) – BusinessWeek (April 2009) Ranked among the Top
Slide 10: Extensive Reach in Attractive Target Market
Personal Financial Services Extensive Reach in Attractive Target Market Network of 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) Connecticut (1) Ne
Slide 11: Spotlight: Industry Leading Wealth Management Group
Personal Financial Services Spotlight: Industry Leading Wealth Management Group Serving the world’s wealthiest families. Overview Client Locations ~400 family relationships in 19 countries Bermuda Monaco Average relationship size: ~$500 million Canada Netherlands 20% of Forbes 400 Rich
Slide 12: Growth in Client Assets Exceeds the Markets
Personal Financial Services Growth in Client Assets Exceeds the Markets PFS Assets Under Management CAGR 5% ($ Billion) S&P 500 CAGR -3% 12 Service Expertise Integrity
Slide 13: Corporate & Institutional Services
Corporate & Service Expertise Integrity Institutional Services © 2010 Northern Trust Corporation
Slide 14: A Worldwide Leader in the Institutional Marketplace
Corporate & Institutional Services A Worldwide Leader in the Institutional Marketplace Active Manager of managers Asset Index Hedge funds Management Investment outsourcing Private equity Liability driven investing Transition management Cross-border pooling Securities lending Asse
Slide 15: Positioned Globally for Growth
Corporate & Institutional Services Positioned Globally for Growth Serving clients locally and capitalizing on global opportunities. The Americas Europe, Asia Pacific Middle East, and Africa 18 Locations Clients in Trade Settlement Worldwide ~40 Countries in 90+ Markets 58% of C&IS AUC ~33% of Staff
Slide 16: 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 45% 25 Taft-Hartley Funds 40% 200 U.S. Funds 47% 100 U.S. Public Funds 31% 200 U.K.
Slide 17: Winning in the Marketplace
Corporate & Institutional Services Winning in the Marketplace GB£750m mandate from London Borough of Wandsworth (9/8/10) Global custody and investment accounting for pension fund assets GB£2bn mandate from Babcock Group (7/28/10) Global custody, investment accounting and performance measurement
Slide 18: Global Custody Asset Growth Exceeds the Markets
Corporate & Institutional Services Global Custody Asset Growth Exceeds the Markets CAGR 13% Global Custody Assets S&P 500 CAGR -3% ($ Trillion) EAFE CAGR -1% 18 Service Expertise Integrity
Slide 19: Northern Trust Global Investments
Service Expertise Integrity Northern Trust Global Investments © 2010 Northern Trust Corporation
Slide 20: Client Focused, Diversified Investment Manager
Northern Trust Global Investments Client Focused, Diversified Investment Manager Assets Under Management: $603.0 Billion A Diversified Asset Manager Across Asset Classes Across Client Segments Across Styles Short Duration Personal Equities Active Index $220 Billion $142 Billion (36%) $241 Billion $3
Slide 21: Asset Management for Institutional Clients
Northern Trust Global Investments Asset Management for Institutional Clients Multi-faceted role as custodian, transition manager, liquidity manager, beta provider, alpha identifier, and program manager. C&IS Assets Under Management: $461 Billion Passive (Equity & Fixed Income) 53% Other 3% Securitie
Slide 22: Asset Management for Personal Clients
Northern Trust Global Investments Asset Management for Personal Clients Preeminent investment manager for high net worth individuals and families. Assets Under Management Assets Under Management PFS excluding Wealth Management PFS Wealth Management Group $112 Billion $30 Billion Other Other 8% 8% Eq
Slide 23: Strong Asset Management Industry Positioning
Northern Trust Global Investments Strong Asset Management Industry Positioning 11th Largest Manager of Worldwide Institutional Assets Pensions & Investments (2010) 2nd Largest Passive International Indexed Securities Manager Pensions & Investments (2010) Best Money Market Fund – North America
Slide 24: Uncompromised Financial Strength
Service Expertise Integrity Uncompromised Financial Strength © 2010 Northern Trust Corporation
Slide 25: Diversified and High Quality Loan Portfolio
Diversified and High Quality Loan Portfolio Relationship Based, Conservative Lending Strategy $28 Billion Loan Portfolio Loan Quality Better $ Billion than Industry Averages Northern Trust Top 20 Peer Avg. All data is as of 6/30/10 and for the quarter then ended. NPAs = Nonperforming Assets. NCOs =
Slide 26: High Quality Securities Portfolio
High Quality Securities Portfolio $19.8 Billion Securities Portfolio 87% of portfolio composed of U.S. Treasury, government sponsored agency and triple-A rated securities Total net pretax unrealized losses of only $2 million Corporate Debt: $3.0B (15%) $2.8B or 93% rated triple-A Asset-Backed:
Slide 27: Outstanding Capital Strength
Outstanding Capital Strength “Well Common Equity ($ Billion) Capitalized” CAGR: +12% Capital Ratios 6/30/09 6/30/10 Guideline Tier 1 Capital 12.6% 13.7% 6.0% Total Risk-Based 15.0% 15.9% 10.0% Leverage 8.6% 9.2% 5.0% Tier 1 Common Equity 12.1% 13.2% - Tangible Common Equity 7.6% 7.8% - 27 Service Ex
Slide 28: Impact of the Low Interest Rate Environment
Impact of the Low Interest Rate Environment Net Interest Income Credit crisis has pressured net interest margin due to extremely low short-term interest rates. Net interest margin in 1H 2010 of 1.46% well below 2003 – 2008 average of 1.74%. Net Interest Income $MM Avg Fed Funds Rate 28 Service E
Slide 29: Impact of the Low Interest Rate Environment
Impact of the Low Interest Rate Environment Trust, Investment and Net Interest Income Other Servicing Fees Credit crisis has pressured Extremely low short term net interest margin due to interest rates have resulted in extremely low short-term waived fees in money market interest rates mutual fu
Slide 30: Impact of the Low Interest Rate Environment
Impact of the Low Interest Rate Environment Trust, Investment and Securities Lending Net Interest Income Other Servicing Fees Fee Income Credit crisis has pressured Extremely low short term Credit crisis caused spread net interest margin due to interest rates have resulted in widening from 2H2
Slide 31: Concluding Thoughts
Service Expertise Integrity Concluding Thoughts © 2010 Northern Trust Corporation
Slide 32: Focused on Service, Expertise & Integrity for More than 120 Years
Focused on Service, Expertise & Integrity for More than 120 Years 1889 Today Long-Term Success Due to Our Enduring Strategies: ; Leadership positions in client-focused business segments ; Attractive market and geographic growth opportunities ; Comprehensive product capabilities ; Distinctive balance
Slide 33: Questions?
Northern Trust Corporation Service Expertise Integrity William L. Morrison Executive Vice President & Chief Financial Officer Barclays Global Financial Services Conference Questions? © 2010 Northern Trust Corporation
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