Northern Trust Corporation · NASDAQ:NTRS

Northern Trust — UBS 3rd Annual Best of Americas Conference (September 2008)

40 slides from Northern Trust's conference presentation, Sep 8, 2008

  1. Slide 1: Slide 1

  2. Slide 2: Slide 2

  3. Slide 3: Steven L. Fradkin, CFO – UBS Best of Americas Conference

    Service Expertise Integrity Steven L. Fradkin Executive Vice President & Chief Financial Officer EXHIBIT 99.2 © 2008 Northern Trust Corporation NORTHERN TRUST CORPORATION September 11, 2008 UBS rd Annual Best of Americas Conference

  4. Slide 4: Forward Looking Statement

    Integrity Expertise Service 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, anticipated expense levels and projected profit improvements,

  5. Slide 5: Today's Agenda

    Integrity Expertise Service Today’s Agenda Financial Overview Current Topics of Interest Strategic Overview: Personal Financial Services Corporate & Institutional Services Northern Trust Global Investments

  6. Slide 6: Financial Overview

    Service Expertise Integrity © 2008 Northern Trust Corporation Financial Overview

  7. Slide 7: Challenging Market Environment

    Integrity Expertise Service Challenging Market Environment COMPLEXITY UNCERTAINTY S&P 500: 37 notable daily moves from August 1, 2007 through August 31, 2008 Global banks and brokerage firms continue write-downs of securities, raising capital and evaluating business models “Now that U.S. imports are

  8. Slide 8: Challenging Market Environment Continued in 2Q 2008

    Integrity Expertise Service Challenging Market Environment Continued in 2Q 2008 Second Quarter YTD June S&P 500 EAFE * KBW50 -3.2% -2.1% -24.9% -12.8% -17.3% -32.4% June 30 Year-over- Year -14.9% -22.4% -46.9% *In terms of Local Currency, not US$. **Source: Haver Analytics Operating Earnings Per Sha

  9. Slide 9: NTRS: Strong Performance in Second Quarter 2008

    Integrity Expertise Service NTRS: Strong Performance in Second Quarter 2008 Record revenues*, up 27% vs Second Quarter 2007 Record net income*, up 46% vs Second Quarter 2007 Completed th consecutive quarter of double-digit, year-over-year growth in earnings per share * Completed st consecutive quart

  10. Slide 10: Met All Long-Term, Strategic Financial Targets in 2Q08

    Integrity Expertise Service Met All Long-Term, Strategic Financial Targets in 2Q08 Revenue Growth 8% - 10% Positive Operating Leverage EPS Growth 10% - 12% Return on Equity 16% - 18% Annual Target nd Qtr 2008** 27.3% +11.5 46.7% 24.8% nd Qtr 11.4% -1.4 21.1% 20.2% rd Qtr 19.1% +0.3 25.7% 19.5% th Qt

  11. Slide 11: Growth in Client Assets Consistently Outperforms the Market

    Integrity Expertise Service Growth in Client Assets Consistently Outperforms the Market Assets Under Custody $4.0 Trillion -0.5% -0.7% +16.7% Global Custody Assets $2.0 Trillion +0.2% +4.6% +28.9% Assets Under Management $751 Billion -3.5% -2.0% +12.1% Assets at 5 Year June 30, 2008 Last Qtr Last Yr

  12. Slide 12: 10th Largest Bank in the U.S. as of August 31, 2008

    Integrity Expertise Service 10 th Largest Bank in the U.S. as of August 31, 2008 138.7 134.0 103.4 100.0 55.5 39.6 33.5 29.3 24.9 17.7 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Bank of America JPMorgan Chase Citigroup Wells Fargo US Bancorp Bank of NY Mellon Wachovia State Street PNC Bank Northern Trust ($ Bn)

  13. Slide 13: Current Topics of Interest

    Service Expertise Integrity © 2008 Northern Trust Corporation Current Topics of Interest

  14. Slide 14: Differentiated, Conservative Business Model

    Integrity Expertise Service Differentiated, Conservative Business Model Top 20 Bank Source: FR Y-9C reports and SNL Financial Revenue Stream Revenue Stream – Dominated by Fee Income 74% of Total Revenues derived from Non-Interest Income in 2007. Top 20 Bank average equaled 48%. Securities Portfolio

  15. Slide 15: Outstanding Credit Quality

    Integrity Expertise Service Outstanding Credit Quality Top-tier credit quality. Notably better than peer averages in each category. *Peer group consists of the 20 largest U.S. Bank Holding Companies in terms of total balance sheet assets. Source: SNL Financial Peer* Average NTRS 0.12% 501% 0.07% 1.4

  16. Slide 16: Strong Capital Ratios Consistently Exceed…

    Integrity Expertise Service Strong Capital Ratios Consistently Exceed… 9.7% 9.8% 9.7% 9.8% 11.0% 2Q08 …Regulatory “Well Capitalized” Guidelines. 13.3% 12.3% 11.9% 11.9% 11.7% 2Q08 6.9% 6.8% 6.7% 7.1% 7.6% 2Q08 Tier 1 Capital Ratio Well Capitalized Guideline = 6% Leverage Ratio Well Capitalized Guide

  17. Slide 17: Strong, Consistent Capital is a Differentiator

    Integrity Expertise Service Strong, Consistent Capital is a Differentiator *Reflects legacy Bank of New York through Second Quarter 2007 Source: Based on Total Common Equity as reported by SNL Financial Second Quarter was the st consecutive quarter – or 20+ years – of increasing common equity dating

  18. Slide 18: Stable Credit Rating History AA- Rating for 20+ Years

    Integrity Expertise Service Stable Credit Rating History AA- Rating for 20+ Years “A bank for all business cycles” AA AA- A Standard & Poor’s Senior Debt Rating S&P 500 Avg Fed Funds Northern Trust Corporation: The Northern Trust Company: Upgraded to AA on May 30, 2008

  19. Slide 19: Strategic Overview

    Service Expertise Integrity © 2008 Northern Trust Corporation Strategic Overview

  20. Slide 20: Client-centric and Highly Focused Business Model

    Integrity Expertise Service Client-centric and Highly Focused Business Model Personal Financial Services Corporate & Institutional Services Northern Trust Global Investments Our Clients Worldwide Operations & Technology Government Agencies Taft-Hartley Foundations / Endowments / Healthcare Individua

  21. Slide 21: Resisting the Temptation to Change Our Business Model

    Integrity Expertise Service Resisting the Temptation to Change Our Business Model Credit Cards Retail Banking Consumer Finance Venture Capital Stock Transfer DC Record Keeping Investment Banking Sub-Prime Mortgage Underwriting Asset Backed Commercial Paper Conduits Private Equity Bridge Financing Di

  22. Slide 22: Personal Financial Services

    Service Expertise Integrity © 2008 Northern Trust Corporation Personal Financial Services

  23. Slide 23: Extensive Reach in High Growth Affluent Market

    Integrity Expertise Service Extensive Reach in High Growth Affluent Market 7.1% 11.3% 15.5% Personal Financial Services 85 PFS Offices in 18 States Over 50% of the U.S. millionaire market resides within a 45-minute drive of Northern Trust offices. Arizona (8) Florida (25) Illinois (19) Illinois (19)

  24. Slide 24: Addressing Clients' Complex Financial Goals

    Integrity Expertise Service Addressing Clients’ Complex Financial Goals Personal Financial Services Integrated approach and comprehensive capabilities. Grow Assets Proprietary and Third-party Investment Managers Active Index Strategies Alternative Investments Manage Risk Asset Diversification Single

  25. Slide 25: Our Focus on the Affluent Market is Unmatched

    Integrity Expertise Service Our Focus on the Affluent Market is Unmatched Private Client Revenues As a Percentage of Total Company Revenues, Full Year 2007 Source: Company Fourth Quarter 2007 Earnings Release reports; *Merrill Lynch percentage based on 2006 data 35% 30% 16% 12% 10% 10% 9% 5% 42% Nor

  26. Slide 26: Significant Success in Growing Client Assets

    Integrity Expertise Service Significant Success in Growing Client Assets Personal Financial Services $59 $73 $92 $98 $94 $88 $104 $110 $117 $135 $143 $148 $96 $121 $148 $163 $160 $151 $185 $209 $226 $282 $326 $332 PFS Assets Under Management ($ Billions) PFS Assets Under Custody ($ Billions) AUM CAG

  27. Slide 27: Corporate & Institutional Services

    Service Expertise Integrity © 2008 Northern Trust Corporation Corporate & Institutional Services

  28. Slide 28: Asset Servicing Solutions

    Integrity Expertise Service Asset Servicing Solutions Corporate & Institutional Services Full array of capabilities to meet the needs of sophisticated institutional investors. Fund accounting Transfer agency Corporate secretarial Trustee Investment operations outsourcing Safekeeping Settlement Deriv

  29. Slide 29: Strategically Positioned in Three Dynamic Regions

    Integrity Expertise Service Strategically Positioned in Three Dynamic Regions Corporate & Institutional Services North America Europe, Middle East & Africa Asia Pacific Abu Dhabi Dublin Toronto London Limerick Amsterdam Luxembourg Guernsey Melbourne Singapore Hong Kong Bangalore Beijing Tokyo Jersey

  30. Slide 30: Strong Presence in Target Institutional Segments

    Integrity Expertise Service Strong Presence in Target Institutional Segments Fund Administration Pension Plans Public Funds / Taft-Hartley Foundations, Endowments, and Healthcare Corporate & Institutional Services Source: Pensions and Investments 21 January 2008 (US Pensions), 24 December 2007 (Foun

  31. Slide 31: Significant Success in Growing Client Assets

    Integrity Expertise Service Significant Success in Growing Client Assets Corporate & Institutional Services C&IS Assets Under Custody ($ Trillions) C&IS Global Custody Assets ($ Trillions) AUC CAGR: 13% S&P 500: 3% GCA CAGR: 28% EAFE CAGR: 5% $1.0 $1.1 $1.4 $1.5 $1.5 $1.3 $1.9 $2.3 $2.7 $3.3 $3.8 $3

  32. Slide 32: Northern Trust Global Investments

    Service Expertise Integrity © 2008 Northern Trust Corporation Northern Trust Global Investments

  33. Slide 33: Top Tier Investment Manager

    Integrity Expertise Service Top Tier Investment Manager Northern Trust Global Investments Source: Pensions & Investments 2008 Special Report on Asset Managers, data as of December 31, 2007. *Multi-manager Ranking Source: Cerulli Associates, 2005 th Largest Manager Worldwide Institutional Assets th L

  34. Slide 34: A World Class Investment Manager

    Integrity Expertise Service A World Class Investment Manager $434 Billion (58%) Active $276 Billion (37%) Quantitative $609 Billion Institutional $143 Billion Personal Equities $294 Billion (39%) Short Duration $350 Billion (47%) Northern Trust Global Investments $751.4 Billion Assets Under Manageme

  35. Slide 35: Positioned for Global Growth

    Integrity Expertise Service Positioned for Global Growth Northern Trust Global Investments Netherlands United Kingdom United States (85 PFS Offices) Japan RBS/ Mitsubishi/ Resona Trust Ireland Pensco Hong Kong Nordics Nordea Singapore China France Groupama Northern Trust Offices Institutional Distri

  36. Slide 36: Significant Success in Growing Client Assets

    Integrity Expertise Service Significant Success in Growing Client Assets Northern Trust Global Investments $197 $233 $292 $326 $320 $303 $479 $572 $618 $697 $757 $751 6/30/08 Assets Under Management ($ Billions) 12/31/97 to 6/30/08 CAGR Northern Trust 14% S&P 500 3% Acquired $75 of Index Assets

  37. Slide 37: Northern Trust: Well Positioned for Success

    Integrity Expertise Service Northern Trust: Well Positioned for Success Attractive Demographic Markets Focused and Conservative Strategy Client Centricity Consistent Leadership and Philosophy Excellence in Execution Success Due to Enduring Principles and Strategies:

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  40. Slide 40: Steven L. Fradkin, CFO – UBS Best of Americas Conference

    Service Expertise Integrity Steven L. Fradkin Executive Vice President & Chief Financial Officer © 2008 Northern Trust Corporation NORTHERN TRUST CORPORATION September 11, 2008 UBS rd Annual Best of Americas Conference

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