Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NORTHERN TRUST CORP | d913706d8k.htm |
 northerntrust.com
©
2015 Northern Trust Corporation
N O R T H E R N T R U S T C O R P O R A T I O N
2015 Annual
Meeting of
Stockholders
April 21, 2015
Frederick H. Waddell
Chairman &
Chief Executive Officer
EXHIBIT 99.1 |
 2
Northern Trust Corporation 2015 Annual Meeting of Stockholders
Forward Looking Statement
This presentation may include forward-looking statements concerning Northern
Trust’s 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 Trust’s 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 Trust’s 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 Trust’s 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. |
 3
Northern Trust Corporation 2015 Annual Meeting of Stockholders
2014 Financial Performance
Solid fee growth driven by strong
new business and improving
markets
Higher net interest income driven
by growth in client deposits
Achieved positive operating
leverage
Net income and earnings per
share up 11% versus 2013
Improved our return on common
equity to 10.0% in 2014 from 9.5%
in 2013
($MM, Except EPS)
Trust, Inv. & Other Servicing Fees
Foreign Exchange Trading Income
Other Non-Interest Income
Net Interest Income
Total Revenues
Non-Interest Expenses
Provision for Credit Losses
Pre-Tax Income
Taxes
Net Income
Earnings per Share
Return on Common Equity
$2,833
210
283
1,005
$4,331
3,135
6
$1,190
378
$812
$3.32
10.0%
2014
+9%
-14%
-6%
+8%
+6%
+5%
-70%
+11%
+10%
+11%
+11%
2014
vs. 2013 |
 4
Northern Trust Corporation 2015 Annual Meeting of Stockholders
First Quarter 2015 Financial Performance
Solid revenue growth continued
into the first quarter
Maintained expense discipline
Net income and earnings per share
were up 27% and 25%,
respectively, versus the prior year
Return on common equity of 11.3%
1Q15
1Q15
vs. 1Q14
Trust, Inv. & Other Servicing Fees
Foreign Exchange Trading Income
Other Non-Interest Income
Net Interest Income
Total Revenues
Non-Interest Expenses
Provision for Credit Losses
Pre-Tax Income
Taxes
Net Income
Earnings per Share
Return on Common Equity
$727
72
75
261
1,135
789
(4)
350
119
$231
$0.94
11.3%
+7%
+43%
+15%
+6%
+9%
+3%
NM
+30%
+36%
+27%
+25%
($MM, Except EPS) |
 5
Northern Trust Corporation 2015 Annual Meeting of Stockholders
Returning Capital to Shareholders
1
2015 figure represents the planned dividend action included in Northern
Trust’s 2015 Capital Plan. The Board of Directors will consider formal
approval of the increase at its regular April meeting. Quarterly Dividend Paid
per Common Share 1
Declared $311.7 million in dividends
and repurchased $480.7 million of our
common stock in 2014
The Federal Reserve did not object to
Northern Trust’s 2015 capital plan,
including:
a planned increase in our dividend to
$0.36 per share, and
the repurchase of up to $675 million
of common stock through June 2016
$0.23
$0.25
$0.28
$0.28
$0.28
$0.28
$0.30
$0.31
$0.33
$0.36
4Q06
4Q07
4Q08
4Q09
4Q10
4Q11
4Q12
4Q13
4Q14
2015 |
 6
Northern Trust Corporation 2015 Annual Meeting of Stockholders
Improving Profitability & Returns
Focus on enhancing productivity
and efficiency has contributed to
the continued improvement in the
profitability and returns of the
business over the last four years
We achieved a return on equity
of 10.0% in 2014, within our target
range
of
10%
-
15%
We are focused on achieving
continued improvement through
profitable growth
Pre-tax Margin
Return on Equity
8.6%
9.3%
9.5%
10.0%
11.3%
23.4%
25.5%
26.3%
27.5%
30.9%
2011
2012
2013
2014
1Q 2015 |
 7
Northern Trust Corporation 2015 Annual Meeting of Stockholders
Wealth
Management
Leading advisor to
the affluent market
A Highly Focused Business Model
As of March 31, 2015
Corporate &
Institutional Services
Global provider of
investment services for
institutional investors
Integrated Global Operating Platform
Banking
$107 billion
in assets
Asset
Servicing
$6.1 trillion
in AUC
Asset
Management
$960 billion
in AUM
Individuals
Families
Family offices
Foundations
Endowments
Privately held
businesses
Pensions
Sovereign entities
Fund managers
Foundations &
endowments
Insurance companies |
 8
Northern Trust Corporation 2015 Annual Meeting of Stockholders
A Recognized Market Leader
One of the Nation’s Top 10
Wealth Managers
—
Barron’s 2014
Best Private Bank in the U.S.
—
Financial Times Group, 2014
(6th Consecutive Year)
Best Firm for Family Office and
Philanthropy Services
—
Euromoney, 2014
Global Custodian of the Year
—
Central Banking Awards 2014
Hedge Fund Administrator of the Year
—
Americas Awards, Custody Risk Magazine, 2014
Best European ETF Administrator
—
ETF Express Global Awards 2015
World’s Most Admired
Companies
—
Fortune Magazine, 2015
(9
th
consecutive
year)
Best Banks in America
—
Forbes, 2015
World’s Most Ethical Companies
—
Ethisphere Institute, 2015
13
th
Largest
Manager
of
Worldwide Institutional Assets
12
th
Largest
Asset
Manager
Worldwide
—
Pensions & Investments 2014
Best Fixed Income Indexer
Manager of the Year
—
Institutional Investor Magazine (2014)
Best Place to Work in Money Management
(2nd consecutive year) |
 9
Northern Trust Corporation 2015 Annual Meeting of Stockholders
Accelerating our Growth
Engineered Equity
Separate Accounts
Commingled Funds
New York & Houston
Australia |
 10
Northern Trust Corporation 2015 Annual Meeting of Stockholders
Enabling Faster, More Profitable Growth
As of March 31, 2015
Manila
Opened
2014
FTE
216
Bangalore
Opened
2005
FTE
3,490
Limerick
Opened
2006
FTE
501
Tempe
Targeted
2015
Our portfolio of strategic investments includes initiatives such as further building out
our global location strategy. |
 125
TH
ANNIVERSARY
CELEBRATION |
 12
|
Headquarters |
 13
|
Client
Communications |
 Partner Celebrations
Around the World |
 Communities
$1.25
million to charities
125,000
volunteer hours |
 16
|
Media Highlights
Northern Trust preps
for another 125 years
Northern Trust celebrates
125 years in Chicago
Helping Northern Trust
Grow --
And Change |
 17
|
Thank
you,
our
shareholders. |
 |