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P R I N C I P L E S T H A T E N D U R E EXHIBIT 99.1
Northern Trust Corporation
Service Expertise Integrity Steven L. Fradkin
President, Wealth Management
Barclays Global Financial Services Conference
New York
September 9, 2014
© 2014 Northern Trust Corporation northerntrust.com
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Forward Looking Statement
This presentation may include forward-looking statements concerning Northern Trusts financial results and outlook, capital adequacy, dividend policy, anticipated expense levels and technology spending, risk management policies, contingent liabilities, strategic initiatives, industry trends, and expectations regarding the impact of recent legislation. Forward-looking statements are typically identified by words or phrases such as believe, expect, anticipate, intend, estimate, project, likely, may increase, plan, goal, target, strategy, and similar expressions or future or conditional verbs such as may, will, should, would, and could. Forward-looking statements are Northern Trusts current estimates or expectations of future events or future results, and involve risks and uncertainties that are difficult to predict. These statements are based on assumptions about many important factors, including the factors discussed in Northern Trusts most recent annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission, all of which are available on
Northern Trusts website.
We caution you not to place undue reliance on any forward-looking statement as actual results may differ materially from those expressed or implied by forward-looking statements. Northern Trust assumes no obligation to update its forward-looking statements.
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Celebrating 125 Years of Service, Expertise & Integrity
Founded in 1889, Northern Trust is a global leader in asset servicing, asset management, wealth management and banking for personal and institutional clients.
INSTITUTIONAL PERSONAL CLIENTS CLIENTS
Corporations Individuals Pension funds Families Fund managers Family offices Foundations Family foundations & endowments Endowments Privately held Sovereign businesses wealth funds
Assets under Assets under Management Custody $924 Billion $6.0 Trillion
As of June 30, 2014
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Organized to Serve the Complex Needs of a Targeted Client Base
Wealth Management Corporate & Institutional Services
Leading advisor to affluent market Leading global custodian
AUM $223 Billion AUC $5.5 Trillion AUC $517 Billion AUM $701 Billion
Asset Management
Leading asset manager for personal and institutional clients
Operations & Technology
Integrated global operating platform
As of June 30, 2014
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Wealth Management is an Attractive Business
Favorable industry trends align well with Northern Trusts Wealth Management business model.
Wealth is expected to continue growing in the United States and globally Growth trends Up-market wealth segments exhibiting faster growth
Share of wealth moving to advice channels continues to grow
Attractive financial returns versus many other sectors in financial services Business model Recurring fee revenue, offering more sustainable economics Fee-based models winning over commission-oriented models
Wealth clients cite relationship and client experience as critical drivers Opportunity to of provider selection differentiate
Brand and differentiated advice matter
Source: The Boston Consulting Group and NT analysis
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Unmatched Focus on the Affluent Market
Wealth Management is our heritage and represents half of our balanced business model.
Wealth Management Revenue as a Revenue as a % of Total Corporation % of Total Corporation Revenue
52% 55% 58% 62% 59% 55% 53% 53% 54% 55%
45%
42%
48% 47% 47%
45% 45% 46% 45%
42% 41% 21% 38%
17% 16%
7% 6%
4% 3%
2005 2006 2007 2008 2009 2010 2011 2012 2013 1H NTRS MS BAC WFC GS BK JPM HSBC C 2014
Wealth Management Corporate & Institutional Services
Northern Trust calculation excludes Treasury & Other segment results
Peer comparison is based on 1H 2014 Data (annualized where appropriate) Source: Company Second Quarter 2014 Earnings Releases, NT analysis
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Offering a Full Array of Financial Solutions
Providing holistic wealth management solutions to individuals, families and privately held businesses.
CLIENT
Barrons Euromoney Financial Times Forbes
Ranked among the #1 Best Firm for Best Private Bank in Serving More than Top 10 Wealth Managers (2013) Family Office & Philanthropy North America for 5 consecutive 20% of Forbes 400
Services (2014) years (2009-2013) Most Affluent Americans (2013)
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Organized to Serve Clients Unique Needs
Investable Assets
Global Family Office
Sophisticated asset servicing, investment advisory, fiduciary and banking solutions for family offices. $200MM
Wealth Advisory
Comprehensive, advice-driven financial solutions through an integrated team of specialists. $20MM
Private Client Advisory
High-touch trust, investment management and banking solutions.
$2MM
Personal Client Services
Efficient, technology-driven service.
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A History of Growth in Client Assets and Fees
Wealth Management Regions Global Family Office
88% of Wealth Management Fees 12% of Wealth Management Fees
Assets Under Management ($ Billions) Assets Under Custody ($ Billions)
$168 $166 $327 $156 $315 $140 $282 $222 $234 $195 $196
2005 2006 2007 2008 2009 2010 2011 2012 2013 1H 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H 2014 2014
Trust & Investment Fees(1) Trust & Investment Fees(1)
S&P 500 S&P 500
(1) 1H 2014 fees are annualized
$95 $107 $118 $103 $114 $123 $140 $114 $160 $168
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Key Initiatives Driving Improved Efficiency & Profitability
Fee Initiatives Organizational Structure Office Network Optimization $MM of Incremental Fees $MM of Expense Savings Number of U.S. Offices
8 (1)
15 85
38
30 66 23
31
27
24
16
2012 2013 2013 2008 2014 Central East West
(1) Annualized
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Profitability Has Rebounded from Crisis Lows
$608 $598 $564
30.2% $425
$353 $295 19.4%
2009 2010 2011 2012 2013 YTD 2014
Wealth Management Pre-Tax Income (1) Wealth Management Pre-Tax Margin
(1) YTD 2014 pre-tax income is annualized.
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Investing for the Future
Key Trends Key Investments
Continued growth domestically and internationally with up-market segments growing faster
Demographic changes and evolving client needs Digitization of wealth management
Marketing in a multi-channel world
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Northern Trust Corporation
Consistently Strong and Focused
Market Leader in Focused Businesses Strong Wealth Management Positioning A History of Organic Growth Improving Profitability & Returns Investing for the Future
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