Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — Shareholder Meeting (April 2013)
18 slides from Northern Trust's shareholder meeting presentation, Apr 16, 2013
Slide 1: Northern Trust Corporation Annual Meeting of Stockholders
PRINCIPLES THAT ENDURE EXHIBIT 99.1 Northern Trust Corporation Service Expertise Integrity Annual Meeting of Stockholders Frederick H. Waddell Chairman & Chief Executive Officer © 2013 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, 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 Northern Trust Corporation is a global leader in asset servicing, asset management, wealth management and banking for personal and institutional clients. Market Leader in Focused Businesses Strong History of Organic Growth Pension funds Individuals Fund managers Famil
Slide 4: Delivering Advice-based Solutions to our Target Markets
Personal Financial Services Delivering Advice-based Solutions to our Target Markets Teams of specialists are structured to serve three key segments. Global Family Office Sophisticated financial solutions for global UHNW families, their offices and Wealth Advisory foundations. $200 MM Comprehensive,
Slide 5: Comprehensive Capabilities Few Firms Can Match
Personal Financial Services Comprehensive Capabilities Few Firms Can Match Services are tailored to client needs and goals. Private and Foundation and Financial Asset Trust & Estate Advisory Business Institutional Planning Management Services Services Banking Advisors Cash flow Custom asset Deposit
Slide 6: Serving Select Institutional Segments
Corporate & Institutional Services Serving Select Institutional Segments Providing solutions to asset owners and asset managers around the world. Segments Clients Regions Pension plans Institutional Insurance Investor Group Sovereign wealth funds (IIG) Foundations Endowments Traditional funds Global
Slide 7: A Broad Range of Solutions
Corporate & Institutional Services A Broad Range of Solutions Offering an array of asset servicing and asset management services. Asset Asset Asset Asset Asset Processing Administration Reporting Enhancement Management Custody/safekeeping Fund accounting Investment Cross-border pooling Cash manageme
Slide 8: Client Focused, Diversified Investment Manager
Northern Trust Global Investments Client Focused, Diversified Investment Manager Assets Under Management: $810 Billion Diversified Asset Management Solutions Across Client Segments Across Asset Classes Across Styles Personal Short Equities Active $206 Billion Duration Index $403 Billion $365 Billion
Slide 9: Strong History of Growth in Fee-based Businesses
Strong History of Growth in Fee-based Businesses Fee revenues average approximately 60% of total revenues. Assets Under Custody ($ Trillions) Assets Under Management* ($ Billions) 1 2 Custody Fees Asset Mgmt Fees S&P 500 S&P 500 $709 $671 $5.0 $4.8 $4.1 $513 $545 $568 $3.7 $4.1 $4.3 $3.5 $488 $449 $
Slide 10: Trends Impacting our Businesses
Trends Impacting our Businesses Secular Trends Cyclical Trends Global wealth creation Historically low interest rates Globalization/cross-border investing Low foreign exchange volatility Expanding use of alternative assets Low securities lending demand Shift from active to passive management Equity
Slide 11: Improving Profitability and Returns
Driving Performance Improving Profitability and Returns Revenue Enhancements Surpassed 2012 goal of more than half of $250 million target 2012 benefits were split roughly 40%/60% Process between revenue and expense Optimization Improved 2012 pre-tax margin by approximately 375 basis points and retur
Slide 12: 2012 Financial Performance
2012 Financial Performance ($MM, except EPS) 2012 2012 vs. 2011 Trust, Inv. & Other Servicing Fees $2,406 +11% Strong new business results despite Foreign Exchange Trading Income 206 -36% difficult macroeconomic environment Other Non-Interest Income 294 +10% Invested approximately $591 million in Ne
Slide 13: First Quarter 2013 Financial Performance
First Quarter 2013 Financial Performance ($MM, except EPS) 1Q13 1Q13 vs 1Q12 Trust, Inv. & Other Servicing Fees $631 +10% New business and higher equity Foreign Exchange Trading Income 59 -4% markets drove strong growth in trust, Other Non-Interest Income 60 -16% investment and other servicing fees
Slide 14: Returning Capital to Shareholders
Returning Capital to Shareholders Quarterly Dividend Paid Northern Trust Corporation Capital Ratios per Common Share Tier 1 Capital Ratio 13.3% Total Risk-Based Ratio 14.7% Peer Average 1 $0.31 Leverage Ratio 8.4% $0.30 $0.28$0.28 $0.28$0.28 $0.25 Tier 1 Common Equity 12.8% $0.23 $0.21 $0.19 Capital
Slide 15: A Recognized Market Leader
A Recognized Market Leader Best Private Bank in North America Serving More than 20% of Forbes 400 – Financial Times Group Most Affluent Americans th (November 2012, 4 consecutive year) – Forbes (September 2012) Best Private Wealth Manager Best Trust Company – Private Asset Management (February 2013)
Slide 16: Commitment to Corporate Social Responsibility
Commitment to Corporate Social Responsibility Community-focused philosophy is central to our development of an integrated, comprehensive and global CSR platform. Named to FTSE4Good Global Index for 2012; Sixth Consecutive Year Named to MSCI ESG Indices for 2012/2013: MSCI World ESG Index, MSCI World
Slide 17: Appendix
PRINCIPLES THAT ENDURE Service Expertise Integrity Appendix © 2013 Northern Trust Corporation northerntrust.com
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table provides a reconciliation of tier 1 common equity to tier 1 capital calculated in accordance with applicable regulatory requirements and GAAP. Northern Trust is providing the ratio of tier 1 common equity to risk-weighted assets in ad