Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Shareholder Meeting (April 2009)
30 slides from Northern Trust's shareholder meeting presentation, Apr 21, 2009
Slide 1: 2009 Annual Meeting of Stockholders - William A. Osborn
EXHIBIT 99.1 NORTHERN TRUST Service Service Expertise Expertise Integrity Integrity CORPORATION 2009 Annual Meeting of Stockholders William A. Osborn Chairman April 21, 2009 © 2009 Northern Trust Corporation
Slide 2: 2009 Annual Meeting of Stockholders - Frederick H. Waddell
NORTHERN TRUST Service Service Expertise Expertise Integrity Integrity CORPORATION 2009 Annual Meeting of Stockholders Frederick H. Waddell President & Chief Executive Officer April 21, 2009 © 2009 Northern Trust Corporation
Slide 3: 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, anticipated expense levels and projected profit improvements, business prospects and posit
Slide 4: Agenda
Agenda Northern Trust: Client Centric and Highly Focused A Challenging Macroeconomic Environment Financial Strength & Stability: Financial Performance Highlights Balance Sheet Highlights Stock Price Performance Concluding Thoughts Question & Answer Session 4 Service Expertise Integrity
Slide 5: The Northern Trust Advantage: Client Centric and Highly Focused
The Northern Trust Advantage: Service Expertise Integrity Service Expertise Integrity Client Centric and Highly Focused © 2009 Northern Trust Corporation
Slide 6: A Client-centric and Highly Focused Business Model: Our Clients
A Client-centric and Highly Focused Business Model Our Clients Pension Funds Government Families Individuals Agencies Large Corporations Family Privately Taft-Hartley Investment Foundations Held Management Firms Foundations / Businesses Family Offices Endowments / Insurance Companies Healthcare Sove
Slide 7: A Client-centric and Highly Focused Business Model
A Client-centric and Highly Focused Business Model While we do adjust our actions to align with prevailing conditions, Northern Trust has resisted the temptation to change our business or risk profile to capitalize on temporarily shifting cycles. Businesses Northern Trust is NOT in: Investment Ban
Slide 8: Extensive Reach in Affluent Market
Personal Financial Services Extensive Reach in Affluent Market Network of over 80 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) (3) Wisconsin Massachusetts (1) (1) Connecticut (1) New
Slide 9: Strategically Positioned in Three Dynamic Regions
Corporate & Institutional Services Strategically Positioned in Three Dynamic Regions Europe, North America Middle East & Africa Asia Pacific Chicago London Amsterdam Dublin Limerick Beijing Guernsey Luxembourg Tokyo Jersey Toronto Hong Kong Bangalore Abu Dhabi Singapore Melbourne 17 Locations Client
Slide 10: Diversified, World Class Investment Manager
Northern Trust Global Investments Diversified, World Class Investment Manager $522.3 Billion Assets Under Management as of March 31, 2009 A Diversified Asset Manager Across Asset Classes Across Client Segments Across Styles Short Personal Duration $228 Billion Equities $130 Billion Active (44%) $290
Slide 11: A Challenging Macroeconomic Environment
Service Expertise Integrity A Challenging Service Expertise Integrity Macroeconomic Environment © 2009 Northern Trust Corporation
Slide 12: 2008: The Changing Landscape in Financial Services
2008: The Changing Landscape in Financial Services S&P 500 – Full Year 2008 9/15/08: Lehman 1500 3/16/08: With U.S. Govt Brothers declares support, Bear Stearns 9/7/08: U.S. Govt to bankruptcy; 12/11/08: acquired by JPMorgan Chase support Fannie Bank of America Bernard Mae & Freddie Mac announces Me
Slide 13: 2008: U.S. Treasury, Federal Reserve and FDIC Actions
2008: U.S. Treasury, Federal Reserve and FDIC Actions S&P 500 – Full Year 2008 9/19/08: ABCP Money 1500 Market Fund Liquidity 3/11/08: Term Securities Facility Lending Facility 9/19/08: Temporary Guaranty Program for Money Market Funds 1350 10/7/08: 3/16/08: Commercial Primary Dealer Paper Funding C
Slide 14: Weak Global Equity Market Environment
Weak Global Equity Market Environment Index Performance - Full Year 2008 G P N NY M A O E RE O K O A L NC N C IC NA G ZI M IA KO PA N TL EX ER RA A . . .K D HI .S O JA FR IN IN S. M G U U H B C S&P 500 US$ EAFE FTSE 100 DAX NIKKEI 225 CAC 40 HANG SENG -31.3% -38.5% -40.4% -40.7% -41.2% -42.1% -42.7%
Slide 15: Financial Strength & Stability: Financial Performance Highlights
Financial Strength Service Service Expertise Expertise Integrity Integrity & Stability Financial Performance Highlights © 2009 Northern Trust Corporation
Slide 16: Northern Trust: A Solid Year Considering the Environment
Northern Trust: A Solid Year Considering the Environment Full Year % Growth 2008 2008 vs 2007 Trust, Inv. & Other Servicing Fees $2,135 Million +3% Other Noninterest Income $1,065 Million +82% Net Interest Income $1,129 Million +24% Total Revenues $4,328 Million +21% Noninterest Expenses $2,888 Mill
Slide 17: First Quarter 2009 Highlights
First Quarter 2009 Highlights First Quarter % Change Trust Fees: 2009 1Q09 vs 1Q08 Continue to be affected by equity Trust, Inv. & Other Svcing Fees $411 Million -22% market declines and fixed income Other Noninterest Income $206 Million +11% market dislocation Net Interest Income $288 Million +8% T
Slide 18: Change in Client Assets Better Than Challenging Markets
Change in Client Assets Better Than Challenging Markets % Change Vs. Assets at 5 Year March 31, 2009 Last Qtr Last Yr CAGR Assets Under Custody $2.8 Trillion -6% -29% +5% Global Custody Assets $1.4 Trillion -5% -33% +11% Assets Under Management $522 Billion -7% -33% 0.1% Equity Market Indices: S&P 5
Slide 19: Financial Strength & Stability: Balance Sheet Highlights
Financial Strength Service Service Expertise Expertise Integrity Integrity & Stability Balance Sheet Highlights © 2009 Northern Trust Corporation
Slide 20: Outstanding Credit Quality
Outstanding Credit Quality Credit Quality is notably better than peer averages in each category. Non-Performing Assets 0.57% as a % of Loans 2.13% Net Charge-Offs to 0.04% Average Loans 1.53% Loan Loss Reserve as a 166% % of Non-Performing Assets 119% Northern Trust Peer Group* Average as of 3/31/09
Slide 21: High Quality Securities Portfolio
High Quality Securities Portfolio $17.8B SECURITIES PORTFOLIO 90% of total securities rated triple-A Total net unrealized losses (pretax) of only $240 million (preliminary) Asset-Backed* $1.5B / 9% Well diversified 76% rated triple-A Subprime asset-backed total < 2% of total portfolio Gove
Slide 22: Outstanding Capital Strength
Outstanding Capital Strength “Well Capitalized” CAPITAL RATIOS 3/31/08 3/31/09 Guideline TOTAL EQUITY ($ Billions) CAGR: +13% Tier 1 Capital 9.6% 13.0% 6.0% $6.5 Total Risk-Based 11.5% 15.2% 10.0% $6.4 Leverage 6.9% 8.9% 5.0% Tangible Common Equity 5.6% 5.9% -- $4.5 $3.9 U.S. CAPITAL PURCHASE PROGRA
Slide 23: Stock Price Performance
Service Expertise Integrity Stock Price Service Expertise Integrity Performance © 2009 Northern Trust Corporation
Slide 24: Challenging Environment for Bank Stocks in 2008
Challenging Environment for Bank Stocks in 2008 Full Year 2008 -2% -11% -21% -25% -28% -30% -32% -33% -42% -49% -52% -53% -54% -64% -66% -66% -67% -77% -85% -89% Bank of NY Mellon Bank of America National City Fifth Third Capital One Comerica Citigroup M&I Regions Wells Fargo JPMorgan Chase M&T Wach
Slide 25: Bank Stock Price Performance: Recent History
Bank Stock Price Performance: Recent History June 30, 2007 through March 31, 2009 -7% -32% -45% -51% -55% -56% -58% -58% -59% -60% -69% -73% -77% -84% -86% -86% -87% -88% -93% -95% Bank of NY Mellon Bank of America Fifth Third Morgan Stanley Capital One Goldman Sachs Comerica Citigroup M&I Regions W
Slide 26: Market Capitalization: Value Retained
Market Capitalization: Value Retained Northern Market Values (US$BN) as of June 30, 2007 Trust Market Values (US$BN) as of March 31, 2009 95% of Value Retained HSBC 213 JP Morgan BNP 166 Goldman Paribas Sachs Credit Bank Crédit of NY State 94 Suisse Agricole 102 14 Mellon* Street 75 50 23 62 13 33 1
Slide 27: Concluding Thoughts
Service Expertise Integrity Concluding Service Expertise Integrity Thoughts © 2009 Northern Trust Corporation
Slide 28: Experienced, Dedicated Management Team
Experienced, Dedicated Management Team Northern Trust Industry Rick Waddell - President & CEO 34 Years 34 Years Sherry Barrat - President – PFS 19 Years 39 Years Steve Fradkin - EVP & Chief Financial Officer 24 Years 24 Years Tim Moen - EVP – Human Resources & Admin. 8 Years 34 Years Bill
Slide 29: Years of Stewardship and Success: Principles that Endure
120 Years of Stewardship and Success Success achieved for our clients, our people and our shareholders through Principles that Endure: Service Expertise Integrity 29 Service Expertise Integrity
Slide 30: 2009 Annual Meeting of Stockholders
NORTHERN TRUST Service Service Expertise Expertise Integrity Integrity CORPORATION 2009 Annual Meeting of Stockholders Frederick H. Waddell President & Chief Executive Officer William A. Osborn Chairman © 2009 Northern Trust Corporation