Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Lehman Brothers 2007 Financial Services Conference
28 slides from Northern Trust's conference presentation, Sep 10, 2007
Slide 1: Northern Trust: Client Centric and Highly Focused
NORTHERN TRUST CORPORATION EXHIBIT 99.1 Northern Trust: Client Centric and Highly Focused Lehman Brothers 2007 Financial Services Conference September 11, 2007 New York City Frederick H. Waddell President & Chief Operating Officer © 2007 Northern Trust Corporation northerntrust.com
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
Northern Trust Corporation 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 G
Slide 4: Client-centric and Highly Focused
Northern Trust Corporation Client-centric and Highly Focused Northern Trust Clients Businesses we are Institutional Personal Two Client NOT in: Clients Clients Channels •Retail Banking •Consumer Finance Pension Funds •Credit Cards Large Corporations Individuals Investment Management Firms
Slide 5: Excellent Financial Performance
Northern Trust Corporation Excellent Financial Performance % Growth % Growth Full Year 2005 to YTD 2006 to 2006 2006 6/30/07 2007 $1,792 Million +15% Trust, Inv. & Other Servicing Fees $1,021 Million +14% $475 Million +17% Other Non-Interest Income $266 Million +6% $795 Million +10% Net Interest Inc
Slide 6: Excellent Financial Condition
Northern Trust Corporation Excellent Financial Condition ; Consistent and Conservative Balance Sheet High Quality Securities Portfolio 96% of $12.6 billion securities portfolio rated AAA Securities backed by sub-prime mortgages equaled $459 million 94% of sub-prime asset backed securities rated AA
Slide 7: Personal Financial Services
NORTHERN TRUST CORPORATION Personal Financial Services Comprehensive, customized and innovative financial solutions for successful individuals, families, and their businesses. 7
Slide 8: What We Deliver…
Personal Financial Services What We Deliver… …An holistic approach to supporting our clients’ financial goals and aspirations 8 Giving Our Clients the Freedom to Focus on What Really Matters
Slide 9: Comprehensive Array of Solutions for Clients
Personal Financial Services Comprehensive Array of Solutions for Clients Private Banking Financial Planning Wealth Management Group Personal Credit Lines and Swing Retirement Planning Family Office Support Loans Estate Planning Multi-generational Wealth Management Real Estate Development
Slide 10: Extensive Reach in High Growth Target Market
Personal Financial Services Extensive Reach in High Growth Target Market 85 Offices in 18 States Over 50% of millionaire market resides within a 45-minute drive of Northern Trust offices. Washington (1) Minnesota Michigan (1) (3) Wisconsin Massachusetts (1) (1) Connecticut (1) Nevada New York (1) (1
Slide 11: Focused on Attractive Demographic Markets
Personal Financial Services Focused on Attractive Demographic Markets Favorable Growth Projections in the Affluent Market Projected Annual Growth Rate 2006 – 2011 16% 15.0% 14% 12% 10.4% 10% 8.5% 8% 6% 4% 2% 1.4% 0% U.S. Households $1-$10 Million $10-$75 Million $75+ Million Households Households Ho
Slide 12: Fully Integrated National Marketing Strategy
Personal Financial Services Fully Integrated National Marketing Strategy TV and Print Advertising Relationships with Centers of Influence Events and Strategic Philanthropy Educational Events Client Communications and Seminars 12 Giving Our Clients the Freedom to Focus on What Really Matters
Slide 13: Spotlight: Our Focus on the Affluent Market is Unmatched
Personal Financial Services Spotlight: Our Focus on the Affluent Market is Unmatched Private Client Revenues (As a Percentage of Total Company Revenues, 2006) 45% 35% 28% 17% 13% 11% 11% 11% 8% 5% 5% Northern Merrill Wilmington Charles Mellon Goldman Citigroup Bank of Bank of JP Morgan Wachovia Trus
Slide 14: Spotlight: Outstanding Growth in Wealth Management
Personal Financial Services Spotlight: Outstanding Growth in Wealth Management Wealth Management – Assets Under Custody $ Billions $200 Industry Leading Provider to the $185 Wealthiest Families: $175 ~380 family relationships in 15 countries $160 $150 Average relationship size = $450+ million
Slide 15: Corporate & Institutional Services
NORTHERN TRUST CORPORATION Corporate & Institutional Services Global leader in helping manage the sophisticated financial needs of corporations, public entities, foundations, endowments, insurance companies and investment managers worldwide. 15
Slide 16: Extensive Suite of Product Solutions for Institutional Clients
Corporate & Institutional Services Extensive Suite of Product Solutions for Institutional Clients Cash Manager of Managers Asset Active Foreign Exchange Asset Management Passive Transition Management Management Securities Lending Commission Management Asset Risk Attribution Analysi
Slide 17: Positioned Globally for Growth
Corporate & Institutional Services Positioned Globally for Growth Positioned to serve clients locally and capitalize on global opportunities. Chicago Toronto New Dublin Guernsey London Amsterdam Luxembourg (Corporate York Headquarters) Jersey Tokyo Beijing Hong Kong Bangalore Singapore Melbourne 15
Slide 18: Significant Presence in Our Target Segments
Corporate & Institutional Services Significant Presence in Our Target 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 32% 200 U.S. Funds 37% 100 U.S. Public Funds 35% 200 U.K. Funds 27% U.K. L
Slide 19: Awards and Recognition
Corporate & Institutional Services Awards and Recognition Best Investor Services House Euromoney Magazine “Awards of Excellence” (July 2007) Fund Administrator of the Year Global Investor Awards for Investment Excellence (June 2007) Best Global Custodian – North American Institutional Fund Man
Slide 20: Spotlight: Outstanding International Growth
Corporate & Institutional Services Spotlight: Outstanding International Growth Global Custody Assets $ Billions $2,000 $1,924 12/31/96 to 6/30/07 % Change CAGR Global Custody Assets +1,675% +32% $1,691 $1,600 S&P 500 +103% +7% EAFE +91% +6% $1,240 $1,200 $965 $800 $727 $452 $471 $385 $400 $312 $149
Slide 21: Spotlight: Growing International Contribution to Net Income
Corporate & Institutional Services Spotlight: Growing International Contribution to Net Income % of Northern Trust Corporation Net Income resulting from International Activities 36% 35% 30% 29% 27% 24% 24% 24% 23% 22% 21% 21% 19% 18% 16% 16% 16% 12% 9% 7% 6% 0% 1992 1993 1994 1995 1996 1997 1998 199
Slide 22: Northern Trust Global Investments
NORTHERN TRUST CORPORATION Northern Trust Global Investments Global, multi-asset class investment manager providing private and institutional clients with comprehensive, value-added investment solutions. 22
Slide 23: $766.5 Billion Assets Under Management
Northern Trust Global Investments Diversified, World Class Investment Manager $766.5 Billion Assets Under Management as of June 30, 2007 A Diversified Asset Manager Across Asset Classes Across Client Segments Across Styles Equities Active Short $274 Billion $473 Billion Duration Personal (36%) (62%)
Slide 24: A Continuum of Proprietary & External Investment Solutions
Northern Trust Global Investments A Continuum of Proprietary & External Investment Solutions Multi-Advisor Funds PRODUCT BREADTH Hedge Funds Private Equity Canadian & UK Programs Active Investment Management Int’l/US Equity Manager of Managers Growth & Value Equity Minority and Emerging Managers I
Slide 25: Awards and Recognition
Northern Trust Global Investments Awards and Recognition Winner: 27 ‘Best in Class’ Rankings for Transition Management PLANSPONSOR Magazine Survey (May 2007) Winner: Manager of Managers Award 2007 FT Business Pension & Investment Provider Awards (May 2007) 5th Largest U.S. Institutional Tax-Ex
Slide 26: Spotlight: Strong Growth in Assets Under Management
Northern Trust Global Investments Spotlight: Strong Growth in Assets Under Management Assets Under Management $ Billions $800 $767 12/31/96 to 6/30/07 CAGR $697 Northern Trust 18% S&P 500 7% $618 $600 $572 $479 Acquired $75 BN Index Assets $400 $326 $320 $292 $303 $233 $197 $200 $130 $0 1996 1997 19
Slide 27: Well Positioned for Growth
Northern Trust Corporation Well Positioned for Growth Rich History 118 Year Heritage — Undiluted by Mergers & Acquisitions Consistent, Focused Strategy Exclusively Focused on the Management and Administration of Client Assets Attractive Demographic Markets Serving highly attractive demog
Slide 28: Northern Trust: Client Centric and Highly Focused
NORTHERN TRUST CORPORATION Northern Trust: Client Centric and Highly Focused Lehman Brothers 2007 Financial Services Conference September 11, 2007 New York City Frederick H. Waddell President & Chief Operating Officer © 2007 Northern Trust Corporation northerntrust.com
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