Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Credit Suisse Financial Services Forum 2013
17 slides from Northern Trust's conference presentation, Feb 12, 2013
Slide 1: Credit Suisse Financial Services Forum
Credit Suisse Financial Services Forum Service Expertise Integrity P R I N C I P L E S T H A T E N D U R E Northern Trust Corporation Michael G. O’Grady Executive Vice President & Chief Financial Officer February 13, 2013 EXHIBIT 99.1 © 2013 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, 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 Pension funds Fund managers Insurance Foundations Endowments Sovereign wealth funds Individuals Families Family offices Family foundations & endowments Privately held businesses Northern Trust Corporation is a global leader in asset servicing, asset management, wealth
Slide 4: Delivering Advice-based Solutions to our Target Markets
High-touch trust, investment management and banking solutions. Comprehensive, advice-driven financial solutions through an integrated team of specialists. Delivering Advice-based Solutions to our Target Markets Sophisticated asset servicing solutions for families with 3 rd party investment consultan
Slide 5: Comprehensive Capabilities Few Firms Can Match
Comprehensive Capabilities Few Firms Can Match Financial Planning Investment Management Private and Business Banking Trust & Estate Services Advisory Services Foundation and Institutional Advisors Custom asset allocation Comprehensive investment capabilities Broad menu of outside managers Brokerage
Slide 6: Strong Growth Across Segments
Strong Growth Across Segments Personal Clients Private Client & Wealth Advisory Assets Under Management ($ Billions) S&P 500 Private Client & Wealth Advisory Fees Global Family Office Assets Under Custody ($ Billions) S&P 500 Global Family Office Fees Non-managed Managed $87 $91 $95 $107 $118 $103 $
Slide 7: Serving Select Institutional Segments
Institutional Investor Group (IIG) Global Fund Services (GFS) Serving Select Institutional Segments Providing solutions to asset owners and asset managers around the world. Pension plans Insurance Sovereign wealth funds Foundations Endowments Traditional funds Hedge funds Fund of funds Exchange Trad
Slide 8: A Broad Range of Solutions
A Broad Range of Solutions Asset Administration Investment Management Asset Processing Asset Reporting Asset Enhancement Institutional Clients Fund accounting Transfer agency Corporate secretarial/trustee Valuations Investment operations outsourcing Short duration Global index Active Investment outs
Slide 9: A Distinctive Record of Global Growth
A Distinctive Record of Global Growth Institutional Clients Corporate & Institutional Services Assets Under Custody ($ Trillions) MSCI World Index Custody & Fund Admin Fees Corporate & Institutional Services Assets Under Management ($ Billions) Institutional Asset Mgmt Fees Excludes Securities Lendi
Slide 10: Trends Impacting our Businesses
Trends Impacting our Businesses Secular Trends Cyclical Trends Global wealth creation Globalization/cross-border investing Expanding use of alternative assets Shift from active to passive management Increased regulation Focus on risk management Demand for transparency Back and middle office outsourc
Slide 11: Driving Performance
Revenue Enhancements Process Optimization Technology Efficiency Corporate-wide Initiatives Improving Profitability and Returns Driving Performance Surpassed 2012 goal of more than half of $250 million target 2012 benefits were split roughly 40%/60% between revenue and expense Improved 2012 pre-tax m
Slide 12: Revenue Trends and Drivers
Revenue Trends and Drivers $2,082 $2,170 $2,406 $382 $325 $206 $265 $267 $294 $958 $1,049 $1,031 Total Revenue (FTE ) $ in millions -2% +10% -36% +11% +10% +1% -15% +4% Trust, Investment and Other Servicing Fees Other Noninterest Income Net Interest Income Trust Fees FX Trading Income Net Interest I
Slide 13: Expense Trends and Drivers
Expense Trends and Drivers $1,346 $1,525 $1,526 $460 $553 $529 $287 $328 $367 $168 $181 $174 $237 $244 $283 $ in millions Total Noninterest Expense +2% -4% +12% -4% 0% +16% +13% +8% +14% +20% +13% +3% Outside Services Compensation & Benefits Equipment & Software Occupancy Other Compensation & Benefi
Slide 14: Primary Financial Levers
Primary Financial Levers Maximize other revenue in context of macroeconomic environment Grow trust fees through new business Improve productivity by managing expenses relative to trust fees Utilize capital efficiently Return on Equity Focused on driving growth and higher returns.
Slide 15: 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
Slide 16: Appendix
Service Expertise Integrity Appendix northerntrust.com © 2013 Northern Trust Corporation P R I N C I P L E S T H A T E N D U R E
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents a reconciliation of interest income and net interest income prepared in accordance with GAAP to interest income and net interest income on a fully taxable equivalent (FTE) basis, a non-GAAP financial measure. Management belie
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