Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Citigroup Financial Services Conference 2010
29 slides from Northern Trust's conference presentation, Mar 10, 2010
Slide 1: Citigroup Financial Services Conference
Exhibit 99.1 NORTHERN TRUST Service Expertise Integrity CORPORATION Frederick H. Waddell Chairman & Chief Executive Officer Citigroup Financial Services Conference The Waldorf=Astoria Hotel New York, New York March 11, 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 Current Topics of Interest 3 Service Expertise Integrity
Slide 4: Excellent Strategic Positioning
Service Expertise Integrity Excellent Strategic Positioning © 2010 Northern Trust Corporation
Slide 5: A Client-centric and Highly Focused Business Model
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 6: Consistent Focus on Proven Growth Strategies
Consistent Focus on Proven Growth Strategies…. …and resisting the temptation to stray :ni TON si tsurT nrehtroN sessenisuB Investment Banking Credit Cards Retail Banking Consumer Finance Sub-Prime Mortgage Underwriting Venture Capital Discount Brokerage Stock Transfer American Depositary Receipts 6
Slide 7: Personal Financial Services
Service Expertise Integrity Personal Financial Services © 2010 Northern Trust Corporation
Slide 8: Integrated Approach to Wealth Management
Integrated Approach to Wealth Management… …addresses the full spectrum of our personal clients’ unique needs. Asset Financial Servicing Planning Investment Family Management Education Estate Family Business Administration Management Private & Client Brokerage Business Banking Services Online Philant
Slide 9: Extensive Reach in Attractive Target Market
Extensive Reach in Attractive Target Market Network of PFS Offices in 18 States Northern Trust Named Over 50% of the U.S. millionaire market resides ‘Best Private Bank in within a 45-minute drive of Northern Trust offices. North America’ By publications of the Financial Washington Times Group, Novem
Slide 10: Spotlight: Industry Leading Wealth Management Group
Spotlight: Industry Leading Wealth Management Group Serving the World’s Wealthiest Families Overview: Client Locations: ~410 family relationships in 19 countries Bermuda Average relationship size = $475+ million Canada France 20% of Forbes 400 Richest Americans Germany WMG AUC CAGR 1999-2009 = 14% G
Slide 11: Corporate & Institutional Services
Corporate & Service Expertise Integrity Institutional Services © 2010 Northern Trust Corporation
Slide 12: A Worldwide Leader in the Institutional Marketplace
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 Asset Cross-border pooling Securities lending Enhancement Trade execution Foreign exchange Cash man
Slide 13: Positioned Globally for Growth
Positioned Globally for Growth Serving clients locally and capitalizing on global opportunities North America Europe, Middle East, & Africa Chicago Toronto New Dublin Guernsey Stockholm London Amsterdam Luxembourg Abu Dhabi (Corporate York Headquarters) Limerick Jersey Asia Pacific Tokyo Beijing Hon
Slide 14: Strong Presence in Target Institutional Segments
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 44% 25 Taft-Hartley Funds 36% 200 U.S. Funds 47% 100 U.S. Public Funds 38% 200 U.K. Funds 30% 100 U.S. Insurance Cos 2
Slide 15: Northern Trust Global Investments
Service Expertise Integrity Northern Trust Global Investments © 2010 Northern Trust Corporation
Slide 16: Providing Investment Solutions to Target Clients
Providing Investment Solutions to Target Clients $627.2 Billion Assets Under Management as of December 31, 2009 Investment Solutions for Investment Solutions for Personal Clients Institutional Clients $145.2 Billion $482.0 Billion Equities $51B / 35% Passive $267B / 55% Sec Lending Short Collateral
Slide 17: Strong Asset Management Industry Positioning
Strong Asset Management Industry Positioning Best Money Market Fund – North America Treasury Management International (2009) th 13 Largest Asset Manager Worldwide Pensions & Investments (2009) th 10 Largest Manager of Worldwide Institutional Assets Pensions & Investments (2009) Largest Passive Inter
Slide 18: Uncompromised Financial Strength
Service Expertise Integrity Uncompromised Financial Strength © 2010 Northern Trust Corporation
Slide 19: High Quality, Consistently Differentiated Balance Sheet
High Quality, Consistently Differentiated Balance Sheet Our balance sheet is driven by the needs of our clients Assets Liabilities & Equity Money Short-Term Market Borrowings Assets 12% 34% Client Client Loans Deposits 34% Equity 71% Securities 8% 23% Long-Term Debt Other & Senior Notes 9% Other 6%
Slide 20: Diversified and High Quality Loan Portfolio
Diversified and High Quality Loan Portfolio Relationship Based Lending Strategy $27.8B Loan Portfolio Loan Quality Notably Better Than ($ in Billions) Industry Averages 3.95% Leases Non-U.S. Other $1.0 $0.7 $0.8 4% 2% 3% Residential Real 2.56% Personal Estate $5.0 $10.8 18% 39% 1.11% Commercial Real
Slide 21: High Quality Securities Portfolio is a Differentiator
High Quality Securities Portfolio is a Differentiator $18.6B SECURITIES PORTFOLIO 91% of securities rated triple-A Total net pretax unrealized losses of only $36 million Corporate Debt / $2.8B / 15% 96% government guaranteed $2.7B rated triple-A Asset-Backed Government $1.5B / 9% Sponsored Agency We
Slide 22: Outstanding Capital Strength
Outstanding Capital Strength “Well COMMON EQUITY ($ Billions) Capitalized” $6.3 CAGR: +12% CAPITAL RATIOS 12/31/08 12/31/09 Guideline Tier 1 Capital 13.1% 13.4% 6.0% $4.9 Total Risk-Based 15.4% 15.8% 10.0% $4.5 $3.9 Leverage 8.5% 8.8% 5.0% $3.6 $3.3 $3.1 $2.9 $2.7 Tier 1 Common Equity 9.6% 12.8% --
Slide 23: Current Topics of Interest
Service Expertise Integrity Current Topics of Interest © 2010 Northern Trust Corporation
Slide 24: Spotlight: Net Interest Income
Spotlight: Net Interest Income Net Interest Income is driven by balance sheet composition, trends in earnings assets and interest rate dynamics $1,129 Net Interest Margin Average Earning Assets ($Billions) $1,040 Net Interest Income ($Millions) $908 1.82% $810 $67 $64 1.76% $53 1.73% $735 1.68% 1.76
Slide 25: Spotlight: Foreign Exchange Trading Income
Spotlight: Foreign Exchange Trading Income Foreign Exchange Trading Income is an outgrowth of our successful global custody business, and is primarily driven by currency volatility and client volumes $616 Foreign Exchange Trading Income ($Millions) $1,933 $2,087 Global Custody Assets ($Billions) $1,
Slide 26: Spotlight: Securities Lending Fees
Spotlight: Securities Lending Fees Securities Lending is a client-directed asset management service driven by capital markets supply and demand dynamics, and the interest rate and credit spread environment Securities Lending Fees ($Millions) Securities Lending Collateral ($Billions) $270 $248 $434 $
Slide 27: Concluding Thoughts
Service Expertise Integrity Concluding Thoughts © 2010 Northern Trust Corporation
Slide 28: Long-Term Success Due to Enduring Strategies
Focused on Service, Expertise & Integrity for More than 120 Years 1889 2010 :seigetartS gnirudnE ot euD sseccuS mreT-gnoL Leadership positions in client-focused business segments Attractive market and geographic growth opportunities Comprehensive product capabilities Distinctive balance sheet and ca
Slide 29: Citigroup Financial Services Conference
Exhibit 99.1 NORTHERN TRUST Service Expertise Integrity CORPORATION Frederick H. Waddell Chairman & Chief Executive Officer Citigroup Financial Services Conference The Waldorf=Astoria Hotel New York, New York March 11, 2010 © 2010 Northern Trust Corporation
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