Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Barclays Americas Select Franchise Conference 2012
15 slides from Northern Trust's conference presentation, May 15, 2012
Slide 1: Principles That Endure: Barclays Americas Select Franchise Conference 2012
PRINCIPLES THAT ENDURE EXHIBIT 99.1 Service Expertise Integrity Northern Trust Corporation Michael G. O’Grady Executive Vice President & Chief Financial Officer Barclays Americas Select Franchise Conference 2012 The Langham Hotel London 16 May 2012 © 2012 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, 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 institutionalclients. Personal Financial Services Leading advisor to affluent market AUM $179 Billion AUC $407 Billion C
Slide 4: Life-driven Approach to Serving the Affluent Market
Personal Financial Services Life-driven Approach to Serving the Affluent Market Providing comprehensive wealth management solutions to successful individuals, families and privately held businesses. Private and Foundation and Financial Investment Trust & Estate Advisory Business Institutional Planni
Slide 5: Delivering a Broad Range of Solutions
Corporate & Institutional Services Delivering a Broad Range of Solutions Providing an array of asset servicing and asset management services to clients around the world. Asset Asset Asset Asset Asset Processing Administration Reporting Enhancement Management Safekeeping Fund accounting White label r
Slide 6: 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 $716 billion across… Client Segments Asset Classes Styles Personal Short Equities Active $179 Billion Duration Index $339 Billion $
Slide 7: Strong History of Growth in Fee-based Businesses
Strong History of Growth in Fee-based Businesses Fee revenues average 73% of total revenues. Assets Under Custody ($ Trillions) Assets Under Management* ($ Billions) 1 2 Custody Fees Asset Mgmt Fees S&P 500 $4.6 S&P 500 $620 $4.1 $4.3 $545 $568 $4.1 $513 $3.5 $3.7 $488 $449 $3.0 $449 $2.9 $384 $401
Slide 8: Revenue Headwinds Due to Macroeconomic Environment
Revenue Headwinds Due to Macroeconomic Environment Historically Low Lower Foreign Lower Securities Interest Rates Exchange Volatility Lending Volumes Extremely low short-term Currency volatility has Securities lending collateral of interest rates have pressured declined from the heightened $95 billi
Slide 9: Impact of the Environment on Profitability and Returns
Impact of the Environment on Profitability and Returns Recent revenue pressures have led to declining margins and returns. Return on Equity Pre-tax margin 17.6% 17.5% 17.0% 16.2% 16.1% 16.0% 13.8% 12.7% 32.4% 10.1% 8.6% 9.0% 24.5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q 2012 9 Barclays
Slide 10: Improving Profitability and Returns
Driving Performance Improving Profitability and Returns Percent of 2013 Impact Fully align value proposition 30 – 35% Revenue Unbundle pricing structures Enhancements Expand share of relationship Streamline major business processes 30 – 40% Process Optimize operational footprint Optimization Apply b
Slide 11: Consistently Strong and Conservative
Balance Sheet Consistently Strong and Conservative Loan Portfolio Securities Deposits with Banks $29 billion $32 billion $19 billion Relationship-based lending 85% of Northern Trust’s total Placed with banks that have Diversified by loan type, including securities portfolio composed strong internal
Slide 12: Outstanding Capital Strength
Balance Sheet Outstanding Capital Strength Northern Trust Corporation Capital Ratios Quarterly Dividend Paid per Common Share Tier 1 Capital Ratio 12.4% Total Risk-Based Ratio 14.0% Leverage Ratio 7.6% Tier 1 Common Equity 1 11.9% Announced an increase in our dividend to $0.30 per share The Federal
Slide 13: 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 13 Barclays Americas Select Franchise Conference 2012
Slide 14: Appendix
PRINCIPLES THAT ENDURE Service Expertise Integrity Appendix © 2012Barclays NorthernAmericas Select Franchise Conference 2012 Trust Corporation northerntrust.com
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table provides a reconciliation of tier 1 common equity to tier 1 capital calculated in accordance with applicable regulatory requirements and GAAP. Northern Trust is providing the ratio of tier 1 common equity to risk-weighted assets in ad
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