Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Shareholder Meeting (April 2016)
17 slides from Northern Trust's shareholder meeting presentation, Apr 19, 2016
Slide 1: 2016 Annual Meeting of Stockholders
1 northerntrust.com | © Northern Trust 2016 2016 Annual Meeting of Stockholders NORTHERN TRUST CORPORATION April 19, 2016 Frederick H. Waddell Chairman & Chief Executive Officer Reminder: Use of cameras, recording devices, cell phones and other electronic equipment is strictly prohibited. Thank you.
Slide 2: 2016 Annual Meeting of Stockholders
2 northerntrust.com | © Northern Trust 2016 2016 Annual Meeting of Stockholders NORTHERN TRUST CORPORATION April 19, 2016 Frederick H. Waddell Chairman & Chief Executive Officer
Slide 3: Forward-Looking Statements
3 northerntrust.com | © Northern Trust 2016 FORWARD-LOOKING STATEMENTS This presentation may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are ident
Slide 4: Client-Centric, Focused Business Model
4 northerntrust.com | © Northern Trust 2016 CLIENT-CENTRIC, FOCUSED BUSINESS MODEL Asset servicing, asset management & banking for personal and institutional clients, supported by our integrated operating platform. Wealth Management • Individuals • Families • Family offices • Foundations • Endowment
Slide 5: Positioned for Continued Success
5 northerntrust.com | © Northern Trust 2016 POSITIONED FOR CONTINUED SUCCESS Favorable secular trends align well with Northern Trust’s business model. Secular Trends Global wealth creation and increasing complexity Globalization and cross-border investing Back and middle office outsourcing for
Slide 6: Focused on Attractive Markets
6 northerntrust.com | © Northern Trust 2016 FOCUSED ON ATTRACTIVE MARKETS The personal and institutional markets are large and growing. Global Personal Financial Wealth $US Trillion $145 $189 $19 $33 2014 2019E Households with >$20m CAGR: 5.5% 11.1% Sources: BCG Global Wealth 2015, Cerulli Associate
Slide 7: 2015 Financial Performance
7 northerntrust.com | © Northern Trust 2016 2015 FINANCIAL PERFORMANCE • Revenue increased 8% year-over- year • Solid fee growth driven by new business, favorable equity markets and lower money market mutual fund fee waivers • Higher net interest income driven by a higher level of earning assets • A
Slide 8: First Quarter 2016 Financial Performance
8 northerntrust.com | © Northern Trust 2016 FIRST QUARTER 2016 FINANCIAL PERFORMANCE • Revenue increased 5% year-over- year • Steady fee growth driven by new business and lower money market mutual fund fee waivers • Net interest income increased 18% year-over-year as a result of a higher level of ea
Slide 9: Focused on Achieving Sustainable Profitable Growth
9 northerntrust.com | © Northern Trust 2016 FOCUSED ON ACHIEVING SUSTAINABLE PROFITABLE GROWTH We are executing on our strategies: • Disciplined, client-centric approach • Accelerate revenue growth • Improve profitability and returns • Return capital to shareholders
Slide 10: Disciplined, Client-Centric Approach
10 northerntrust.com | © Northern Trust 2016 DISCIPLINED, CLIENT-CENTRIC APPROACH Pensions Sovereign entities Fund managers Foundations & endowments Insurance companies Individuals Families Family offices Foundations Endowments Privately held businesses Institutional Clients Personal Clients
Slide 11: Accelerate Revenue Growth
11 northerntrust.com | © Northern Trust 2016 ACCELERATE REVENUE GROWTH 8.4% -1.2% -1.5% 1.8% 4.5% Peer data sourced from SNL Financial on an FTE basis. Trust Banks = STT and BK; Universal Banks = JPM, BAC, C; Super Regionals = WFC, USB, PNC, COF; Regional Banks = STI, BBT, RF, FITB, KEY, MTB, CMA, H
Slide 12: Improve Profitability & Returns
12 northerntrust.com | © Northern Trust 2016 IMPROVE PROFITABILITY & RETURNS ROE was 11.5% in 2015, within our 10%–15% target range Ratio of expenses to trust & investment fees declined from 131% in 2011 to 110% in 2015 Improved pre-tax margin to 31.2% in 2015 As of March 31, 2016 8.6% 9.3% 9.5% 10.
Slide 13: Return Capital to Shareholders
13 northerntrust.com | © Northern Trust 2016 RETURN CAPITAL TO SHAREHOLDERS • Declared $333.1 million in common stock dividends in 2015 — $83.9 million in 1Q 2016 • Repurchased $496.9 million of our common stock in 2015 — $140.3 million in 1Q 2016 • Remaining capacity to repurchase up to $145 millio
Slide 14: A Recognized Market Leader
14 northerntrust.com | © Northern Trust 2016 A RECOGNIZED MARKET LEADER Pension Custodian of the Year — Custody Risk European Awards, 2015 One of the World’s Best Private Banks — Global Finance, 2015 Best Smart Beta Strategies — Asia Asset Management, 2015 SERVING CLIENTS TECHNOLOGY Top Wealth Manag
Slide 15: Thank You
15 northerntrust.com | © Northern Trust 2016 THANK YOU
Slide 16: Appendix
16 northerntrust.com | © Northern Trust 2016 Appendix NORTHERN TRUST CORPORATION
Slide 17: Reconciliation of Non-GAAP Financial Measures
17 northerntrust.com | © Northern Trust 2016 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following table presents a reconciliation of interest income, net interest income, total revenue and pre-tax income prepared in accordance with GAAP to such measures on a fully taxable equivalent (FTE) bas