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8-K - 8-K - NORTHERN TRUST CORP | ntrs2018annualmeeting8-k.htm |
1 northerntrust.com | © 2018 Northern Trust
2018 Annual Meeting
of Stockholders
NORTHERN TRUST CORPORATION
April 17, 2018
Frederick H. Waddell
Chairman
Reminder:
Use of cameras, recording devices, cell
phones and other electronic equipment
is strictly prohibited.
Thank you.
Michael G. O’Grady
President & Chief Executive Officer
2 northerntrust.com | © 2018 Northern Trust
2018 Annual Meeting
of Stockholders
NORTHERN TRUST CORPORATION
April 17, 2018
Frederick H. Waddell
Chairman
Michael G. O’Grady
President & Chief Executive Officer
3 northerntrust.com | © 2018 Northern Trust
FORWARD-LOOKING STATEMENTS
This presentation may include statements which constitute “forward-looking statements” within the
meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,”
“intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or
conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include
statements, other than those related to historical facts, that relate to Northern Trust’s financial results and
outlook, capital adequacy, dividend policy and share repurchase program, accounting estimates and
assumptions, credit quality including allowance levels, future pension plan contributions, effective tax rate,
anticipated expense levels, contingent liabilities, acquisitions, strategies, industry trends, and expectations
regarding the impact of recent accounting pronouncements and legislation. These statements are based
on Northern Trust’s current beliefs and expectations of future events or future results, and involve risks
and uncertainties that are difficult to predict and subject to change. These statements are also 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.
4 northerntrust.com | © 2018 Northern Trust
Service
Relentless drive to provide
exceptional service.
Expertise
Resolving complex
challenges with world
class capabilities.
Integrity
Consistently acting with the
highest ethics, utmost honesty
and unfailing reliability.
FOR
INSTITUTIONAL
& PERSONAL
CLIENTS
ASSET
MANAGEMENT
WEALTH
MANAGEMENT
ASSET
SERVICING
NORTHERN TRUST CORPORATION
5 northerntrust.com | © 2018 Northern Trust
Holistic Solutions
WEALTH MANAGEMENT
A full array of goals driven holistic wealth management solutions for individuals and families.
Goals
Assets
Family
$287 billion
TOTAL AUM1
Best Private Bank
- Financial Times Group, 2017
IN THE UNITED STATES
EIGHT OF THE LAST NINE YEARS
Banking
Trust & Estate
Services
Wealth
Planning
Fiduciary
Family
Office
Investment
Management
1 Represents total Wealth Management business AUM as of March 31, 2018.
6 northerntrust.com | © 2018 Northern Trust
ASSET SERVICING
Delivering best in class asset servicing solutions to institutional clients globally.
Custody
Fund Services
Data
Capital Markets
Liquidity & Banking
Regulatory
NORTHERN TRUST SOLUTIONS
INDUSTRY-
LEADING
TECHNOLOGY
REGIONAL
EXPERTISE
$10.1 trillion
TOTAL ASSETS UNDER CUSTODY/ADMINISTRATION1
Best Global Custodian
- Global Finance, 2017
Investment Managers
Sovereign Entities
Endowments & Foundations
Pensions
Fiduciary Managers
Alternative Managers
CLIENT SEGMENTS
1 Represents total Corporate & Institutional Services business AUC/A as of March 31, 2018.
7 northerntrust.com | © 2018 Northern Trust
CORE
CAPABILITIES
TOTAL AUM
As of March 31, 2018
Northern Trust Corporate rankings are based on total worldwide assets under management of
$942 bil lion as of December 31, 2016 by Pensions & Investments magazine’s 2017 Special
Report on the Largest Money Managers.
$1.2 trillion
TOTAL AUM
World’s 14th largest
ASSET MANAGER
ASSET MANAGEMENT
A highly respected investment manager, entrusted by sophisticated professional
investors and affluent clients worldwide.
Other
$22B
Equity
Fixed
Income
Asset
Class
$560B
Active
Passive
Style
$645B
$521B
Institutional
Wealth
& Retail
Client
Type
75%
25%
Cash
Management
Index
Management
Quantitative
Research
Portfolio
Construction
Manager
Selection
$584B
8 northerntrust.com | © 2018 Northern Trust
INTEGRATED BUSINESS MODEL
Leading businesses focused on investments
ASSET
MANAGEMENT
WEALTH
MANAGEMENT
ASSET
SERVICING OUR
CLIENTS
9 northerntrust.com | © 2018 Northern Trust
2017 FINANCIAL PERFORMANCE
Trust Fees Revenue Net Income EPS
+10% +8% +16% +14%
Full Year 2017 vs Full Year 2016
10 northerntrust.com | © 2018 Northern Trust
RETURN ON EQUITY
8.6%
9.3% 9.5%
10.0%
11.5% 11.9%
12.6%
2011 2012 2013 2014 2015 2016 2017
11 northerntrust.com | © 2018 Northern Trust
$353
$450
$609
$792
$830
$755
CAPITAL RETURNED TO SHAREHOLDERS
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
$896
$1.60 $1.48 $1.41 $1.30 $1.23 $1.18 $1.12
Dividends Share repurchases Cash Dividends Declared Per Common Share
2011 2012 2013 2014 2015 2016 2017
12 northerntrust.com | © 2018 Northern Trust
1ST QUARTER 2018 FINANCIAL PERFORMANCE
($ IN MILLIONS, EXCEPT EPS)
1Q18
1Q18
vs. 1Q17
Trust, Inv. & Other Servicing Fees $938 +16%
Total Revenue 1,476 +15%
Net Income 382 +38%
Earnings Per Share 1.58 +45%
Return on Common Equity 16.0% +4.4pts
13 northerntrust.com | © 2018 Northern Trust
+8% +12% +9%
FOCUSED ON CREATING VALUE
FOR OUR STAKEHOLDERS
Relationship-focused strategy
Service excellence
Improving productivity
Investing for long-term growth
and profitability
ACHIEVE GREATER
Clients
Partners
Shareholders
Community
14 northerntrust.com | © 2018 Northern Trust