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| 8-K - FORM 8-K - NORTHERN TRUST CORP | d265586d8k.htm |
 P R I N
C I P L E S T H A T E N D U R E Frederick H.
Waddell Chairman
& Chief Executive Officer
Northern Trust Corporation
Michael G. O’Grady
Executive Vice President
& Chief Financial Officer
Goldman Sachs US Financial Services Conference
Goldman Sachs Conference Center
New York, New York
December 6, 2011
EXHIBIT 99.1
Service
Expertise
Integrity
northerntrust.com
©
2011 Northern Trust Corporation |
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Goldman Sachs US Financial Services Conference 2011
2
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
profit improvements, business prospects and positioning with respect to market, demographic and
pricing trends, strategic initiatives, re-engineering and outsourcing activities, new
business results and outlook, changes in securities market prices, credit quality including
reserve levels, planned capital expenditures and technology spending, anticipated tax benefits
and expenses, and the effects of any extraordinary events and various other matters (including
developments with respect to litigation, other contingent liabilities and obligations, and
regulation involving Northern Trust and changes in accounting policies, standards and
interpretations) on Northern Trust’s business and results. These statements speak of Northern
Trust’s plans, goals, targets, strategies, beliefs, and expectations, and refer to
estimates or use similar terms. Actual results could differ materially from those indicated by
these statements because the realization of those results is subject to many risks and
uncertainties.
Our 2010 annual report and periodic reports to the SEC contain information about specific factors that
could cause actual results to differ, and you are urged to read them. Northern Trust disclaims
any continuing accuracy of the information provided in this presentation after today. |
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Goldman Sachs US Financial Services Conference 2011
3
Agenda
Northern Trust Corporation
Strategic Positioning
Competitive Positioning
Financial Strength |
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Goldman Sachs US Financial Services Conference 2011
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Founded in 1889, Northern Trust Corporation is a global leader in asset
management and asset servicing for institutional and personal clients.
Operations & Technology:
Integrated global operating platform
Personal Financial Services:
Leading advisor to affluent market
Corporate & Institutional Services:
Leading global custodian
Northern Trust Global Investments:
Leading asset manager for
personal & institutional clients
As of September 30, 2011
Client Centric, Relationship Based Business Model
Personal
Clients
Institutional
Clients
Integrated Operations & Technology Platform
Asset
Servicing
Asset
Management
$4.2T Assets
Under Custody
$644B Assets
Under Mgmt.
Goldman Sachs US Financial Services Conference 2011
4
Serving personal and
$1.4 billion in technology
$644
billion AUM $3.8 trillion AUC
$481 billion AUM
$163 billion AUM
$359 billion AUC
institutional clients
spending, 2008-2010 |
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Goldman Sachs US Financial Services Conference 2011
5
Assets
Under
Custody
($
Trillions)
Assets
Under
Management*
($
Billions)
Client assets and core fees have surpassed pre-crisis highs.
Fee revenues average 73% of total revenues.
Strong History of Growth in Fee-based Businesses
AUC CAGR 10%
* AUM is presented excluding securities lending collateral
1
Custody fees include C&IS custody & fund administration fees and PFS Wealth Management Group
fees. 2011 fees are annualized. 2
Asset management fees include C&IS investment management fees and fees of the four PFS regions.
2011 fees are annualized. AUM CAGR 9%
S&P 500
Custody
¹
Fees
S&P 500
Asset Mgmt
²
Fees |
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Goldman Sachs US Financial Services Conference 2011
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A Recognized Market Leader
Private Bank in North America…
For Family Office Services
For Trust Services
For Inheritance and
Succession Planning
–
Euromoney Magazine (February 2010)
Global Investor Services House
–
Euromoney (Sept. 2011 and July 2010)
Custodian of the Year
–
Professional Pensions UK Pensions
Awards (May 2011 and April 2010)
Manager
of
the
Year
–
Equity
Indexers
(U.S.)
–
Institutional Investor (April 2011 assets)
Private Bank in North America
–
Financial Times Group
(October
2011,
3
consecutive year)
Ranked among the Top 10 Wealth Managers
–
Barron’s (September 2010)
Serving More than 20% of Forbes 400
Most Affluent Americans
–
Forbes (September 2010)
Global Custodian of the Year
–
Global Pensions (March 2011)
Client Relationship
Manager
of
the
Year
–
Americas
–
International Custody & Fund Administration
(June 2011 and May 2010)
Global Custodian
–
AsianInvestor (November 2010)
13
Largest
Manager of
Worldwide Institutional Assets
17
Largest
Asset
Manager
Worldwide
3
Largest
Passive
International
Indexed
Securities Manager
–
Pensions & Investments (May 2011 based on December 31, 2010 assets)
Best
Best
Best
Best
rd
rd
th
th |
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Goldman Sachs US Financial Services Conference 2011
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Consistently Strong and Conservative Balance Sheet
Northern Trust Corporation
Tier 1 Capital Ratio
12.2%
Leverage Ratio
7.5%
Tier 1 Common Equity
11.8%
Northern Trust paid dividends for
the
115
consecutive
year
in
2011
Relationship-based
lending practices
Consistent and conservative
underwriting standards
Loan quality is notably better
than peer averages
83% of Northern Trust’s
total securities portfolio
composed of triple-A rated
securities
91% of Asset-Backed
Securities rated triple-A
Exposure to subprime
Asset-Backed securities
relative to the overall
portfolio minimal at <0.5%
No exposure to Portugal,
Ireland, Italy, Greece
or Spain
Dividends Paid per Share
Data is as of September 30, 2011. Peer data is as reported by SNL
Financial. Northern Trust
Top 20 Peer Avg.
High Quality, Short Duration
Earning Assets
Diversified, High Quality Loan
Portfolio
Consistently Outstanding
Capital Strength
0.40%
1.18%
1.39%
3.83%
NCOs to
Avg. Loans
NPAs
to Loans & REO
$0.62
$0.68
$0.68
$0.76
$0.84
$0.92
$1.00
$1.12
$1.12
$1.12
$1.12
th |
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Goldman Sachs US Financial Services Conference 2011
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Experienced Management Team
Northern Trust
Industry
Rick Waddell
–
Chairman & CEO
36 Years
36 Years
Bill Morrison
–
President & COO
15 Years
38 Years
Mike O’Grady
–
EVP & CFO
Aug. 2011
24 Years
Sherry
Barrat
–
Vice
Chairman
21 Years
41 Years
Jana Schreuder
–
President, PFS
31 Years
31 Years
Steve Fradkin
–
President, C&IS
26 Years
26 Years
Steve Potter
–
President, NTGI
29 Years
29 Years
Joyce St. Clair
–
President, O&T
19 Years
30 Years
Tim Moen
–
EVP, Human Resources & Admin.
10 Years
36 Years
Jeff Cohodes
–
EVP, Corp. Risk Management
18 Years
27 Years
Kelly Welsh
–
EVP & General Counsel
11 Years
33 Years |
 Concluding Thoughts
Goldman Sachs US Financial Services Conference
N O R T H E R N T R U S T
©
2011 Northern Trust Corporation
northerntrust.com
Service
Expertise
Integrity |
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Goldman Sachs US Financial Services Conference 2011
10
Market Leader in Focused Businesses
Best Private Bank in North America (Financial Times, November 2011, 2010
and 2009) Best Global Investor Services House (Euromoney, September
2011 and July 2010) One of the largest Fund Administrators in Ireland and
Guernsey U.S. Equity Index Manager of the Year (Institutional
Investor, April 2011) 13 largest manager of worldwide
institutional assets (Pensions & Investments, May 2011) Strong
History of Organic Growth Assets under custody 10-year CAGR of
+10% Strong net new business
Continuing to invest in the business
Distinctive Financial Strength
83% of securities portfolio rated triple A
NPAs to loans relatively low at 1.18%
Tier 1 Common Equity ratio of 11.8%
115 consecutive years of common dividends paid
Invested & Experienced Management Team
Combined service at Northern Trust of 216 years
As of September 30, 2011
Strategically Positioned for Growth
th |
 P R I N
C I P L E S T H A T E N D U R E Frederick H.
Waddell Chairman
& Chief Executive Officer
Northern Trust Corporation
Michael G. O’Grady
Executive Vice President
& Chief Financial Officer
Goldman Sachs US Financial Services Conference
Questions?
Service
Expertise
Integrity
northerntrust.com
©
2011 Northern Trust Corporation |