Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — BancAnalysts Association of Boston 28th Annual Fall Conference (November 2009)
19 slides from Northern Trust's conference presentation, Nov 5, 2009
Slide 1: Northern Trust Corporation – BancAnalysts Association of Boston Conference
EXHIBIT 99.1 NORTHERN TRUST Service Expertise Integrity CORPORATION Frederick H. Waddell President & Chief Executive Officer BancAnalysts Association of Boston th 28 Annual Fall Conference “Is That a Light at the End of the Tunnel?” November 6, 2009 © 2009 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: Is That a Light at the End of the Tunnel?
Service Expertise Integrity “Is That a Light at the End of the Tunnel?” © 2009 Northern Trust Corporation
Slide 4: We See Daylight – Our Long-Term View Fuels Optimism
We See Daylight – Our Long-Term View Fuels Optimism 1889 2009 :seigetartS gnirudnE ot euD sseccuS mreT-gnoL 120-year heritage of service, expertise and integrity Leadership positions in client-focused business segments Attractive market and geographic growth opportunities Comprehensive product capab
Slide 5: Expert Perspectives
Agenda: “Is That a Light at the End of the Tunnel?” Expert Perspectives U.S. Economy Global Recovery Interest Rates Global Equity Markets Fixed Income Markets Regulatory Framework 5 Service Expertise Integrity
Slide 6: Paul Kasriel, Northern Trust's Chief Economist, on the U.S. Economy
Paul Kasriel, Northern Trust’s Chief Economist, on the U.S. Economy THE HOUSING MARKET CONSUMER CONFIDENCE UNEMPLOYMENT “I think the worst is over for “Consumer confidence is “The unemployment rate is housing. Supply and demand definitely recovering. probably going to rise through are coming into re
Slide 7: Views on the Global Recovery
Views on the Global Recovery Jim Owens Lakshmi Mittal Jim McDonald Chairman & CEO Chairman & CEO Chief Investment Strategist Caterpillar Inc. ArcelorMittal Northern Trust Corporation October 20, 2009 September 16, 2009 October 26, 2009 “We believe the third quarter The steel market post crisis: “The
Slide 8: Monetary Policy is Beginning to Normalize
Monetary Policy is Beginning to Normalize Interest Rates in developed economies remain at absolutely low levels, though emerging market related economies are beginning to show early signs of normalizing. The Federal Funds Rate (0%-0.25%) was In late August, the Bank of Israel raised its left unchang
Slide 9: Developed and Emerging Equity Markets Have Improved
Developed and Emerging Equity Markets Have Improved Global Equity Indices – Third Quarter 2009 23.7% 21.3% 20.9% 20.4% 20.1% 19.5% 18.2% 18.0% 16.7% 15.0% 14.6% 14.0% 1.8% Sources: Haver Analytics 9 Service Expertise Integrity
Slide 10: Fixed Income Markets and Liquidity Normalizing
Fixed Income Markets and Liquidity Normalizing Fixed Income Markets continue to improve in 2009, but have not fully recovered. “While economic data was somewhat negative in October 2009, U.S. Treasury Bill and Treasury rates have been range bound. Northern Trust Fixed Income Research expects these r
Slide 11: A Still Evolving Governmental and Regulatory Framework
A Still Evolving Governmental and Regulatory Framework The full impact of Governmental and Regulatory efforts on financial markets remains to be seen. “We find ourselves increasingly focused on the impact of government action on financial markets. This includes discussion around the unwind of policy
Slide 12: Implications for Northern Trust
Service Expertise Integrity Implications for Northern Trust © 2009 Northern Trust Corporation
Slide 13: Equity and Fixed Income Market Implications
Equity and Fixed Income Market Implications Market Value of Client Assets Drives Key Revenue Components Total Revenues Year-to-Date 9/30/09 C&IS Trust Fees Net Assets Under Custody 28% Interest Income Global Custody Assets 29% Assets Under Management PFS Trust Fees 23% Other Revenue 20% Note: Revenu
Slide 14: Interest Rate Environment Implications
Interest Rate Environment Implications Level of Interest Rates Affects Key Revenue Components Total Revenues Year-to-Date 9/30/09 C&IS Trust Fees excl. SL 24% Net Net Interest Income Interest Securities Income Securities Lending Lending 4% 29% Trust Fees – Mutual Fund PFS Trust Fees Fee Waivers 23%
Slide 15: Economic Recovery Implications
Economic Recovery Implications Relationship Based Lending Strategy $28B Loan Portfolio Loan Quality Notably Better Than ($ in Billions) Industry Averages 3.86% Leases Non-U.S. Other $1.0 $0.8 2.78% $0.8 4% 3% 3% Residential Real Personal Estate $4.7 $10.8 17% 38% 1.07% Commercial Real Estate 0.65% $
Slide 16: Regulatory Framework Implications
Regulatory Framework Implications Consistent capital strength is a Northern Trust hallmark “Well COMMON EQUITY ($ Billions) Capitalized” $6.2 CAGR: +12% CAPITAL RATIOS 9/30/08 9/30/09 Guideline Tier 1 Capital 9.2% 13.3% 6.0% $4.9 $4.5 Total Risk-Based 11.4% 15.7% 10.0% $3.9 Leverage 6.6% 9.0% 5.0% $
Slide 17: Concluding Thoughts
Service Expertise Integrity Concluding Thoughts © 2009 Northern Trust Corporation
Slide 18: Growth Driven by Highly Focused, Client-centric Business Model
Growth Driven by Highly Focused, Client-centric Business Model 120 - year heritage of service, expertise and integrity Our Clients Pension Funds Government Families Individuals Agencies Large Corporations Family Privately Taft-Hartley Investment Foundations Held Management Firms Foundations / Busine
Slide 19: Northern Trust Corporation
NORTHERN TRUST Service Expertise Integrity CORPORATION Frederick H. Waddell President & Chief Executive Officer BancAnalysts Association of Boston 28 th Annual Fall Conference “Is That a Light at the End of the Tunnel?” November 6, 2009 © 2009 Northern Trust Corporation