© 2008 Northern Trust Corporation Service Expertise Integrity Steven L. Fradkin Executive Vice President & Chief Financial Officer Goldman Sachs Financial Services Conference New York City December 10, 2008 NORTHERN TRUST CORPORATION EXHIBIT 99.1 |
Integrity Expertise Service 2 Forward Looking Statement This presentation may include forward-looking statements such as statements that relate to Northern Trust’s financial goals, dividend policy, expansion and business development plans, 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 2007 financial 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. |
Integrity Expertise Service 3 Agenda Northern Trust Corporation Strategic Positioning Significant Expertise Financial Strength |
Integrity Expertise Service 4 Client-centric and Highly Focused Business Model Our Clients Worldwide Operations & Technology Government Agencies Taft-Hartley Foundations / Endowments / Healthcare Individuals Privately Held Businesses Pension Funds Large Corporations Investment Management Firms Insurance Companies Families Family Foundations Family Offices Personal Financial Services Corporate & Institutional Services Northern Trust Global Investments Sovereign Wealth Funds |
Integrity Expertise Service 5 Operating in Businesses with Attractive Demographics Personal Financial Services Corporate & Institutional Services Total Market: $161 Trillion (1) Total Assets Under Custody Worldwide: $90 Trillion (2) (1) McKinsey & Company – Mapping the Global Capital Market, Fourth Annual Report, January 2008; Excludes $6 trillion of South American assets (2) YE 2007 competitor earnings releases & The Greensted Report, Fall 2007 – Top 10 custodianS North America $60 Trillion Europe, Middle East & Africa Asia Pacific $60 Trillion $41 Trillion Projected Annual Household Growth Rates (3) 2007 - 2012 by Household Asset Size 7.1% 11.3% 15.5% $1 - 5 MM $5 - 200 MM $200+ MM (3) Source: Claritas |
Integrity Expertise Service 6 C&IS: Full Array of Capabilities Customized solutions meet the needs of sophisticated institutional investors. Fund accounting Transfer agency Corporate secretarial Trustee Investment operations outsourcing Safekeeping Settlement Derivatives processing Income collection Corporate actions Tax reclamation Active Quantitative Investment outsourcing Liability driven investing Manager of managers Hedge funds Private equity Transition management Investment accounting Reporting and valuation Performance analytics Risk monitoring and reporting Trade execution analysis Data warehouse Cross-border pooling Trade execution Cash management Securities lending Foreign exchange Commission management Asset Administration Asset Processing Asset Reporting Asset Enhancement Asset Management |
Integrity Expertise Service 7 Integrated approach and comprehensive capabilities holistically address clients’ needs. Building and Managing Wealth Protecting and Transferring Wealth Protect and Preserve Wealth Transition Wealth Plan for Special Assets Creating a Legacy Reinforce Family Values Establish a Charitable Giving Tradition PFS: Holistic Financial View and Expertise 250+ Trust Professionals Full Service in Local Markets 225+ Portfolio Managers 375+ Banking Professionals National Practices Credit Policy Family Business Management Financial Consulting Investment Research Investment Policy Marketing Minerals Management Real Estate Management Single Stock Solutions Tax Services Grow Assets Manage Risk Tax Liability Management Liquidity Management |
Integrity Expertise Service 8 NTGI: Diversified, World Class Investment Manager $652.4 Billion Assets Under Management as of September 30, 2008 A Diversified Asset Manager $369 Billion (57%) Active $249 Billion (38%) Quantitative $34 Billion (5%) Manager of Managers Across Asset Classes Across Client Segments $511 Billion Institutional $141 Billion Personal Across Styles Equities $247 Billion (38%) Fixed Income $95 Billion (14%) Short Duration $298 Billion (46%) Other $12 Billion (2%) |
© 2008 Northern Trust Corporation Service Expertise Integrity Financial Strength |
Integrity Expertise Service 10 Consistently Strong and Conservative Financial Condition 90% of Northern Trust’s total securities portfolio composed of triple-A rated securities 86% of Asset-Backed Securities rated triple-A Exposure to subprime Asset- Backed securities relative to the overall portfolio minimal at less than 3% 62% of subprime Asset- Backed Securities rated triple-A Total gross unrealized losses on Available for Sale securities portfolio of only $200 million High Quality, Short Duration Securities Portfolio Relationship-based lending practices Nonperforming assets represented only 0.21% of total outstanding loans, as compared to a peer group* average of 1.97% Nonperforming loans covered 3.2x by current credit loss reserves, as compared to a peer group* average of 1.1x Northern Trust does not: Underwrite mortgage loans to sub-prime borrowers Lend directly to hedge funds Provide bridge financing to private equity deals Offer an off-balance sheet commercial paper conduit for client liquidity Diversified, High Quality Loan Portfolio All data is as of September 30, 2008. *Top 20 U.S. banks in terms of balance sheet assets. Consistently Outstanding Capital Strength Northern Trust Corporation Tier 1 Capital Ratio 9.2% Well Capitalized Guideline 6.0% Total Risk-Based Ratio 11.4% Well Capitalized Guideline 10.0% Leverage Ratio 6.6% Well Capitalized Guideline 5.0% $3.9 $4.9 $2.1 $3.3 $3.1 $2.9 $2.7 $3.6 $4.5 $2.3 1999 2000 2001 2002 2003 2004 2005 2006 2007 3Q08 COMMON EQUITY CAGR: +10% ($ Billions) |
Integrity Expertise Service 11 Concluding Thoughts Focused and Conservative Strategy Attractive Demographic Markets Significant Expertise Organic Growth Consistent Leadership and Philosophy Northern Trust’s Business Model |
© 2008 Northern Trust Corporation Service Expertise Integrity Steven L. Fradkin Executive Vice President & Chief Financial Officer Goldman Sachs Financial Services Conference New York City December 10, 2008 NORTHERN TRUST CORPORATION |