Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — BancAnalysts Association of Boston 31st Annual Bank Conference 2012
19 slides from Northern Trust's conference presentation, Nov 1, 2012
Slide 1: Operating in a Suboptimal Environment
NORTHERN TRUST CORPORAT ION EXHIBIT 99.1 BancAnalysts Association of Boston st Service Expertise Integrity 31 Annual Bank Conference: “Operating in a Suboptimal Environment” Michael G. O’Grady Steven L. Fradkin Executive Vice President President, Corporate & Chief Financial Officer & Institutional S
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 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 $184 Billion AUC $429 Billion
Slide 4: Comprehensive Approach to Serving the Affluent Market
Personal Financial Services Comprehensive Approach to Serving the Affluent Market Cash flow analysis Financial Debt management Planning Tax planning PFS Assets Under Management ($ Billions) Retirement planning CAGR +6% Comprehensive investment capabilities S&P 500 CAGR +2% $184 $174 Investment Custo
Slide 5: Client Focused, Diversified Investment Manager
Northern Trust Global Investments Client Focused, Diversified Investment Manager Providing diversified asset management solutions, with total assets under management of $750 billion across… Client Segments Asset Classes Styles Personal Short Equities Active $184 Billion Duration Index $354 Billion $
Slide 6: Strong Trust Fee Growth Tempered by Headwinds
Strong Trust Fee Growth Tempered by Headwinds Total Revenue $ Millions CAGR: +2% CAGRs: 1 Trust Fees +10% Net Interest Income -3% 2 Securities Lending -16% Foreign Exchange -27% 1 Trust Fees exclude securities lending fees 2 2007-2010 fees exclude the impacts of one mark-to-market Securities Lending
Slide 7: Impact of the Environment on Profitability and Returns
Impact of the Environment on Profitability and Returns 12.7% Return on Equity 33.1% 10.1% Revenue pressures have 9.5% led to declining margins 8.6% and returns 26.3% Efforts are underway to Pre-tax Margin improve profitability in 2012 and beyond – a program we call “Driving Performance” 2009 2010 20
Slide 8: Driving Performance: Improving Profitability and Returns
Driving Performance: Improving Profitability and Returns More than $100MM in pre-tax income improvement has been achieved year-to-date. We are on track to achieve our 2012 and 2013 targets. Percent of 2013 Impact Fully align value proposition 30 – 35% Revenue Unbundle pricing structures Enhancements
Slide 9: Delivering a Broad Range of Solutions
Corporate & Institutional Services Delivering a Broad Range of Solutions Safekeeping Settlement Asset Derivatives and collateral processing Processing Income collection C&IS Assets Under Custody ($ Trillions) Corporate actions CAGR +10% Tax reclamation S&P 500 CAGR +2% US$ EAFE CAGR +2% $4.3 Fund ac
Slide 10: An Attractive Market for C&IS Capabilities
Corporate & Institutional Services An Attractive Market for C&IS Capabilities $US Trillion Large Global Market Growth Across All Segments Global Assets by Geography Global Assets by Client Segment 2012E 2016E $114 Mutual/ Collective $26 $36 Funds $34 $85 Retirement $21 $28 Funds Asia Pacific $23 $33
Slide 11: Strong Industry Positioning
Corporate & Institutional Services Strong Industry Positioning Solid Positioning in Growing Presence in Institutional Investor Services Global Fund Services Northern Trust Top 10 Global Hedge Fund Administrator Of the Top… Serves: Top 3 Global Investment Operations 100 U.S. Corporate Plans 46% Outso
Slide 12: C&IS Strategic Priorities
Corporate & Institutional Services C&IS Strategic Priorities st 12 BancAnalysts Association of Boston: 31 Annual Bank Conference
Slide 13: 1. Focus on Clients
Corporate & Institutional Services 1. Focus on Clients Institutional investors are Northern Trust delivering grappling with multi-faceted on solutions to enhance challenges client performance Pension funding Economic and market counsel Endowment draw reductions Dynamic de-risking, risk Risk adjusted
Slide 14: 2. Driving Performance
Corporate & Institutional Services 2. Driving Performance Driving Performance in C&IS Key Areas of Focus Leveraging enterprise-wide end-to-end processes to improve our efficiency Optimizing the geography of our operational footprint Empowering our clients with more automation Reviewing client produc
Slide 15: 3. Integrating Acquisitions
Corporate & Institutional Services 3. Integrating Acquisitions Bank of Ireland Securities Services (BOISS) Status of Integration: Increased presence in fund administration in Majority of BOISS clients (90%) Ireland and assets (>80%) migrated` Exchange Traded Fund (ETF) administration Fully integrati
Slide 16: 4. Innovation
Corporate & Institutional Services 4. Innovation Innovation Has Morphed Examples Clients continue to demand Fully integrated front-to-back value-add information solutions for large, Innovation has evolved from complex clients capability additions to new solutions Tools to increase Risk transparency
Slide 17: Growth & Momentum
Corporate & Institutional Services Growth & Momentum C&IS Assets Under Custody ($ Trillions) Custody Fees¹ Continue to deliver strong growth in S&P 500 Corporate & Institutional Services Great demographics and long-term opportunities Operating environment remains challenging Focus on what we can con
Slide 18: 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 st 18 BancAnalysts Association of Boston: 31 Annual Bank Conference
Slide 19: BancAnalysts Association of Boston 31st Annual Bank Conference
NORTHERN TRUST CORPORAT ION BancAnalysts Association of Boston st Service Expertise Integrity 31 Annual Bank Conference: “Operating in a Suboptimal Environment” Michael G. O’Grady Steven L. Fradkin Executive Vice President President, Corporate & Chief Financial Officer & Institutional Services The L
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