Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — William Blair & Company 30th Annual Growth Stock Conference (June 2010)
26 slides from Northern Trust's conference presentation, Jun 15, 2010
Slide 1: William Blair & Company 30th Annual Growth Stock Conference
Exhibit 99.1 William th Blair & Company 30 Annual Growth Stock Conference Frederick H. Waddell, Chairman and Chief Executive Officer Northern Trust Corporation June 16, 2010 © 2010 Northern Trust Corporation
Slide 2: Forward Looking Statement
th William Blair & Company – 30 Annual Growth Stock Conference 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 mana
Slide 3: Today's Agenda
th William Blair & Company – 30 Annual Growth Stock Conference Today’s Agenda Strategic and Competitive Positioning Outstanding and Consistent Financial Strength Current Topics of Interest Summary and Q&A 3
Slide 4: Client Centric, Highly Focused Business Model
th William Blair & Company – 30 Annual Growth Stock Conference 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 $149 bil
Slide 5: Client Centric, Highly Focused Business Model
th William Blair & Company – 30 Annual Growth Stock Conference 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 CLIENTS Outstanding client base St
Slide 6: Strong Asset Accumulation Across the "Lost" Decade
th William Blair & Company – 30 Annual Growth Stock Conference Strong Asset Accumulation Across the “Lost” Decade Assets Under Custody $BN Assets Under Management $BN CAGR 9% CAGR: 9% S&P 500 CAGR -1% S&P 500 CAGR -1% EAFE CAGR -3% C&IS CAGR 8% CAGR 5% S&P 500 CAGR -1% S&P 500 CAGR -1% PFS 6
Slide 7: Personal Financial Services
Personal Financial Services
Slide 8: Industry Leading Provider of Integrated Financial Solutions
th William Blair & Company – 30 Annual Growth Stock Conference Industry Leading Provider of Integrated Financial Solutions Our value proposition has never been stronger – the strength of our comprehensive array of solutions, and our focus on clients, technology and financial discipline will drive fu
Slide 9: Opportunities Abound
th William Blair & Company – 30 Annual Growth Stock Conference Opportunities Abound Trusted brand Clients need Investing in talent holistic advice and technology Outstanding financial strength Robust product offering Well positioned and enviable U.S. office network Not distracted Leveraging client s
Slide 10: Corporate & Institutional Services
Corporate & Institutional Services
Slide 11: Strong Strategic and Competitive Positioning
th William Blair & Company – 30 Annual Growth Stock Conference Strong Strategic and Competitive Positioning Offering a comprehensive array of asset servicing, administration, investment management and banking services to institutional investors of many types. Services Investment Asset Servicing Admi
Slide 12: Growth Opportunities Continue to Be Significant
th William Blair & Company – 30 Annual Growth Stock Conference Growth Opportunities Continue to Be Significant Successfully serving clients all around the world has led to a distinctive record of global growth. A Distinctive Record of Global Presence Global Growth 19% 2000 – 1Q10 CAGR The Americas E
Slide 13: Northern Trust Global Investments
Northern Trust Global Investments
Slide 14: Providing Customized Investment Solutions
th William Blair & Company – 30 Annual Growth Stock Conference Providing Customized Investment Solutions Focused on global index management, short and long duration fixed income, and access to active management via manager of manager and proprietary strategies. Equities Fixed Income Alternatives Pro
Slide 15: Outstanding and Consistent Financial Strength Across Cycles
Outstanding and Consistent Financial Strength Across Cycles
Slide 16: Diversified and High Quality Loan Portfolio
th William Blair & Company – 30 Annual Growth Stock Conference Diversified and High Quality Loan Portfolio Loan Quality Notably Better $28 Billion Loan Portfolio $BN than Industry Averages Northern Trust Top 20 Peer Avg. All data is as of 3/31/10. NPAs = Nonperforming Assets. NCOs = Net Charge-offs
Slide 17: High Quality Securities Portfolio
th William Blair & Company – 30 Annual Growth Stock Conference High Quality Securities Portfolio High quality, short duration securities portfolio Securities Portfolio $BN 90% invested in U.S. Treasury, government sponsored agency and triple-A rated securities Minimal level of unrealized losses due
Slide 18: Consistently Strong Capital Ratios
th William Blair & Company – 30 Annual Growth Stock Conference Consistently Strong Capital Ratios Capital ratios well above “well capitalized” guidelines High percentage of common equity Capital Ratios 3/31/09 3/31/10 Shareholders’ Equity $BN Tier 1 Capital 13.0% 13.4% Total Risk-Based 15.2% 15.5% L
Slide 19: Financial Implications of the Current Environment
Financial Implications of the Current Environment
Slide 20: Trust, Investment and Other Servicing Fees
th William Blair & Company – 30 Annual Growth Stock Conference Trust, Investment and Other Servicing Fees 52% of FY2009 revenue Trust, Investment and Other Servicing Fees $MM Based generally on market (Excludes impact of mark to market fund) value of client assets, volume of transactions and fees fo
Slide 21: Securities Lending Fees
th William Blair & Company – 30 Annual Growth Stock Conference Securities Lending Fees 4% of FY2009 revenue Securities Lending Fees $MM Affected by market values; (Excludes impact of mark-to-market fund) supply of securities to be lent; demand for securities (all of which drive volumes); and the SL
Slide 22: Foreign Exchange Trading Income
th William Blair & Company – 30 Annual Growth Stock Conference Foreign Exchange Trading Income 12% of FY2009 revenue Foreign exchange Foreign Exchange Trading Income $MM services provided to clients as an integral part of global custody service Global Custody Assets Credit crisis heightened market a
Slide 23: Net Interest Income
th William Blair & Company – 30 Annual Growth Stock Conference Net Interest Income 27% of FY2009 revenue Liability driven balance sheet Net Interest Income $MM fuels significant generation of deposits from institutional and personal clients Avg Fed Funds Rate Credit crisis has pressured net interest
Slide 24: Loan Loss Provision
th William Blair & Company – 30 Annual Growth Stock Conference Loan Loss Provision Lending strategy focuses on personal and institutional clients who are looking to establish a Loan Loss Provision $MM full range of financial services with Northern Trust LLP to Avg. Loans Long-standing adherence to c
Slide 25: Addressing Today's Challenges. Positioned for Tomorrow's Growth.
th William Blair & Company – 30 Annual Growth Stock Conference Addressing Today's Challenges. Positioned for Tomorrow's Growth. Leadership positions in excellent client-focused businesses Attractive client, geographic and demographic growth opportunities Long track record of serving clients and succ
Slide 26: Questions?
William th Blair & Company 30 Annual Growth Stock Conference Questions? © 2010 Northern Trust Corporation
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