Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — 2008 UBS Global Financial Services Conference
26 slides from Northern Trust's conference presentation, May 12, 2008
Slide 1: Northern Trust Corporation – 2008 UBS Global Financial Services Conference
EXHIBIT 99.1 NORTHERN TRUST Service Expertise Integrity CORPORATION 2008 UBS Global Financial Services Conference Frederick H. Waddell President & Chief Executive Officer May 13, 2008 © 2008 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, anticipated expense levels and projected profit improvements, business prospects and posit
Slide 3: Client-centric and Highly Focused
Client-centric and Highly Focused Northern Trust Clients Institutional Personal Clients Two Client Channels Clients Pension Funds Large Corporations Individuals Investment Management Firms Families Foundations / Endowments / Healthcare Insurance Companies Government Agencies Taft-H
Slide 4: Client-centric and Highly Focused
Client-centric and Highly Focused 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 Banking Credit Car
Slide 5: Personal Financial Services
Service Expertise Integrity Personal Financial Services Comprehensive, customized and innovative financial solutions for successful individuals, families, and their businesses. © 2008 Northern Trust Corporation
Slide 6: Extensive Reach in High Growth Target Market
Personal Financial Services Extensive Reach in High Growth Target Market 85 PFS Offices in 18 States Projected Annual Over 50% of the U.S. millionaire market resides Household Growth Rates within a 45-minute drive of Northern Trust offices. 2007 - 2012 14.3% Washington (1) Minnesota (1) Michigan (3)
Slide 7: Clients Are at the Center of Everything We Do
Personal Financial Services Clients Are at the Center of Everything We Do An holistic approach to supporting our clients’ financial goals and aspirations Private Banking Financial Planning Wealth Management Group Personal Credit Lines and Swing Retirement Planning Family Office Support Loans
Slide 8: Our Focus on the Affluent Market is Unmatched
Personal Financial Services Our Focus on the Affluent Market is Unmatched Private Client Revenues (As a Percentage of Total Company Revenues, Full Year 2007) 42% 35% 30% 16% 12% 10% 10% 9% 5% Northern Merrill Wilmington Citigroup Bank of Bank of Goldman JP Morgan Wachovia Lynch* Trust America NY Sac
Slide 9: Largest Personal Trust Provider in the U.S.
Personal Financial Services Largest Personal Trust Provider in the U.S. Largest Personal Trust Bank in U.S. Source: SNL Financial Personal Trust Assets ($ Billions) 1. Northern Trust $205.3 2. Bank of America 127.5 3. JPMorgan Chase 84.5 4. Citigroup 69.9 5. Wachovia 61.9 6. Bank of NY Mellon 50.7 7
Slide 10: Spotlight: Outstanding Growth in Wealth Management
Personal Financial Services Spotlight: Outstanding Growth in Wealth Management Wealth Management – Assets Under Custody ($ Billions) Industry Leading Provider to the Wealthiest Families: $195 $189 ~400 family relationships in 15 countries Average relationship size = $470+ million $160 20% of F
Slide 11: Corporate & Institutional Services
Service Expertise Integrity Corporate & Institutional Services Global leader in managing the sophisticated financial needs of corporations, public entities, foundations, endowments, insurance companies and investment managers worldwide. © 2008 Northern Trust Corporation
Slide 12: Positioned Globally for Growth
Corporate & Institutional Services Positioned Globally for Growth Positioned to serve clients locally and capitalize on global opportunities. North America Europe, Middle East, & Africa Chicago Toronto New Dublin Guernsey London Amsterdam Luxembourg Abu Dhabi (Corporate York Headquarters) Limerick J
Slide 13: A Worldwide Leader in the Institutional Marketplace
Corporate & Institutional Services A Worldwide Leader in the Institutional Marketplace Cash Manager of Managers Active Foreign Exchange Asset Quantitative Transition Management Management Securities Lending Commission Management Asset Risk Attribution Analysis Compliance Monitori
Slide 14: Strong Presence in Target Institutional Segments
Corporate & Institutional Services Strong Presence in Target Institutional Segments Pension Plans Public Funds / Taft-Hartley Northern Northern Of the Top Serves Of the Top Serves 100 U.S. Corporate Plans 40% 25 Taft-Hartley Funds 40% 200 U.S. Funds 40% 100 U.S. Public Funds 37% 200 U.K. Funds 29% U
Slide 15: Spotlight: Increasing Contribution from International Activities
Corporate & Institutional Services Spotlight: Increasing Contribution from International Activities % of Northern Trust Corporation Net Income* resulting from International Activities 46% 35% 29% 27% 23% 24% 24% 21% 22% 21% 19% 16% 16% 16% 9% 7% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Slide 16: Northern Trust Global Investments
Service Expertise Integrity Northern Trust Global Investments Global, multi-asset class investment manager providing private and institutional clients with comprehensive, value-added investment solutions. © 2008 Northern Trust Corporation
Slide 17: Diversified, World Class Investment Manager
Northern Trust Global Investments Diversified, World Class Investment Manager $778.6 Billion Assets Under Management as of March 31, 2008 A Diversified Asset Manager Across Asset Classes Across Client Segments Across Styles Equities Short $274 Billion Personal Duration (36%) $387 Billion $146 Billio
Slide 18: A Continuum of Investment Solutions
Northern Trust Global Investments A Continuum of Investment Solutions PRODUCT BREADTH Multi-Advisor Funds Hedge Funds Active Investment Private Equity Canadian & UK Programs Management Int’l/US Equity Manager of Managers Growth & Value Equity Minority and Emerging Managers Investment Program Solut
Slide 19: Strong Growth in Assets Under Management
Northern Trust Global Investments Strong Growth in Assets Under Management Assets Under Management $ Billions $779 $757 12/31/97 to 3/31/08 CAGR $697 Northern Trust 14% S&P 500 3% $618 $572 $479 Acquired $75 of Index Assets $326 $320 $292 $303 $233 $197 1997 1998 1999 2000 2001 2002 2003 2004 2005 2
Slide 20: Financial Performance
Service Expertise Integrity Financial Performance © 2008 Northern Trust Corporation
Slide 21: Differentiated Business Model
Differentiated Business Model Revenue Stream – Dominated by Fee Income 74% of Total Revenues derived from Non-Interest Income in 2007. Top 20 Bank average equaled 48%. Top 20 Bank Source: SNL Financial 21 Service Expertise Integrity
Slide 22: Differentiated Business Model
Differentiated Business Model Revenue Stream – Dominated by Fee Income 74% of Total Revenues derived from Non-Interest Income in 2007. Top 20 Bank average equaled 48%. Loan Portfolio – High Quality Nonperforming assets represented only 0.13% of total outstanding loans as of March 31, 2008. Top 2
Slide 23: Differentiated Business Model
Differentiated Business Model Revenue Stream – Dominated by Fee Income 74% of Total Revenues derived from Non-Interest Income in 2007. Top 20 Bank average equaled 48%. Loan Portfolio – High Quality Nonperforming assets represented only 0.13% of total outstanding loans as of March 31, 2008. Top 2
Slide 24: Strong Performance in First Quarter 2008
Strong Performance in First Quarter 2008 Tumultuous environment continued in First Quarter 2008 3/31/08 vs 3/31/07: S&P 500 -6.9%; EAFE -16.9% NTRS’ Record operating net income, up 24% vs First Quarter 2007 First Record total revenues, up 19% vs First Quarter 2007 Quarter 6% growth in asse
Slide 25: Well Positioned for Future Success
Well Positioned for Future Success Success Due to Enduring Principles and Strategies: 9 Attractive Demographic Markets 9 Focused and Conservative Strategy 9 Client Centricity 9 Consistent Leadership and Philosophy 9 Excellence in Execution 25 Service Expertise Integrity
Slide 26: Northern Trust Corporation – 2008 UBS Global Financial Services Conference
NORTHERN TRUST Service Expertise Integrity CORPORATION 2008 UBS Global Financial Services Conference Frederick H. Waddell President & Chief Executive Officer May 13, 2008 © 2008 Northern Trust Corporation
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