![]() © 2009 Northern Trust Corporation Service Expertise Integrity Frederick H. Waddell President & Chief Executive Officer NORTHERN TRUST CORPORATION EXHIBIT 99.1 Citigroup 2009 Financial Services Conference New York City January 28, 2009 |
![]() 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 2008: Significant and Rapid Change in Financial Services 750 900 1050 1200 1350 1500 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec S&P 500 – Full Year 2008 9/7/08: U.S. Govt to support Fannie Mae & Freddie Mac 9/15/08: Lehman Brothers declares bankruptcy; Bank of America announces Merrill Lynch acquisition 9/16/08: U.S. Govt to support AIG 3/16/08: With U.S. Govt support, Bear Stearns acquired by JPMorgan Chase 11/24/08: U.S. Govt to support Citigroup 10/14/08: U.S. Govt announces it will buy preferred equity stakes in U.S. banks under the Troubled Asset Relief Program 10/24/08: PNC announces National City acquisition 10/4/08: Dutch Govt purchases Fortis 10/13/08: RBS (UK) effectively nationalized 10/19/08: ING receives Dutch Govt support 4/1/08: UBS CEO steps down; $37B in cumulative writedowns 9/21/08: Goldman Sachs & Morgan Stanley to become bank holding cos. 9/26/08: JPMorgan Chase announces Washington Mutual acquisition 10/3/08: Wells Fargo to acquire Wachovia 12/11/08: Bernard Madoff arrested and charged with criminal securities fraud • Acceleration in consolidation • Significant increase in government and regulatory oversight • Fundamental changes in business models |
![]() ![]() ![]() ![]() ![]() ![]() ![]() Integrity Expertise Service 4 Northern Trust’s Fundamentals Remain Sound Strategic Positioning Corporate and Institutional Services Northern Trust Global Investments Personal Financial Services Financial Strength & Stability Earnings Power High Quality Balance Sheet Capital Strength Service Expertise Integrity Service Expertise Integrity |
![]() © 2009 Northern Trust Corporation Service Expertise Integrity Strategic Positioning Northern Trust Corporation |
![]() Integrity Expertise Service 6 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 7 Resisting the Temptation to Change Our Business Model Credit Cards Retail Banking Consumer Lending Venture Capital Stock Transfer DC Record Keeping Investment Banking Sub-Prime Mortgage Underwriting Asset Backed Commercial Paper Conduits Private Equity Bridge Financing Discount Brokerage American Depositary Receipts Businesses Northern Trust is NOT in: |
![]() © 2009 Northern Trust Corporation Service Expertise Integrity Strategic Positioning Personal Financial Services |
![]() Integrity Expertise Service 9 85 PFS Offices in 18 States Over 50% of the U.S. millionaire market resides within a 45-minute drive of Northern Trust offices. Arizona (8) Florida (25) Illinois (19) Illinois (19) Colorado (1) Colorado (1) Nevada (1) Nevada (1) Missouri (1) Missouri (1) Washington (1) Michigan (3) Texas (7) California (11) New York (1) Connecticut (1) Delaware (1) Georgia (1) Georgia (1) Wisconsin (1) Wisconsin (1) Ohio (1) Ohio (1) Minnesota (1) Minnesota (1) Massachusetts (1) Personal Financial Services Extensive Reach in Affluent Market |
![]() Integrity Expertise Service 10 Grow Assets Proprietary and Third-party Investment Managers Active Index Strategies Alternative Investments Manage Risk Asset Diversification Single-stock Concentration Hedging Strategies Stock Option Planning Tax Liability Management Tax Sensitive Investing Tax Loss Harvesting Investment Vehicle Selection Liquidity Management Deposit Services Custom Lending Short Term Cash Management Vehicles Building and Managing Wealth Protecting and Transferring Wealth Protect and Preserve Wealth Wealth Transfer Planning Customized Trust Solutions Transition Wealth Estate Settlement Services Guardianship Services Plan for Special Assets Family Business Manage Non-Financial Assets Creating a Legacy Reinforce Family Values Family Education Family Mission Statement Advanced Wealth Transfer Strategies Establish a Charitable Giving Tradition Implement a Tailored Philanthropic Strategy Balance Charitable Giving with the Financial Needs of the Family Ensure Tax-Efficiency of Philanthropic Vehicles Personal Financial Services Integrated Approach and Comprehensive Capabilities |
![]() Integrity Expertise Service 11 Wealth Management Group – Assets Under Custody ($ Billions) $168 $195 $160 $114 $52 $38 $82 $65 $65 $61 $101 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Industry Leading Provider to the World’s Wealthiest Families: ~410 family relationships in 15 countries Average relationship size = $400+ million 20% of Forbes 400 Richest Americans WMG AUC CAGR 1998-2008 = 16% S&P 500 CAGR 1998-2008 = -3% Personal Financial Services Spotlight: Wealth Management Group S&P 500 |
![]() © 2009 Northern Trust Corporation Service Expertise Integrity Strategic Positioning Corporate & Institutional Services |
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Integrity Expertise Service 13 North America Europe, Middle East & Africa Asia Pacific Corporate & Institutional Services Vast World of Opportunities Total Market: $189 Trillion (1) Total Assets Under Custody Worldwide: $89 Trillion (2) (1) McKinsey & Company – Mapping Global Capital Markets, Fifth Annual Report, October 2008; Excludes $7 trillion of South American and Other Rest of World assets (2) The Greensted Report, Fall 2008 – Top 9 custodians; Data as of June 2008. $66 Trillion $73 Trillion $50 Trillion $61 Trillion U.S. $5 Trillion Canada $11 U.K. $52 Trillion Western Europe $10 Trillion Other $20 Trillion Japan $22 Trillion Emerging Asia $8 Trillion Other |
![]() Integrity Expertise Service 14 Corporate & Institutional Services Full Array of Solutions for 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 15 Corporate & Institutional Services Strategically Positioned in Three Dynamic Regions North America Europe, Middle East & Africa Asia Pacific Abu Dhabi Dublin Toronto London Limerick Amsterdam Luxembourg Guernsey Melbourne Singapore Hong Kong Bangalore Beijing Tokyo Jersey Chicago |
![]() Integrity Expertise Service 16 Corporate & Institutional Services Spotlight: Pursuing Mandates Across Multiple Markets Singapore Luxembourg Hong Kong Australia Switzerland Sweden Qatar Malaysia Germany Norway Bahrain Tunisia Kuwait UAE South Korea Macau Thailand Finland Ireland Cayman Islands Saudi Arabia United Kingdom Guernsey and Jersey New Zealand Taiwan U.S.A. Canada Netherlands China Puerto Rico Philippines Guam Bermuda France Chile India Japan Indonesia Brunei ~50% of AUC is Global ~46% of Net Income is non- U.S. ~30% of Staff is non-U.S. |
![]() © 2009 Northern Trust Corporation Service Expertise Integrity Strategic Positioning Northern Trust Global Investments |
![]() Integrity Expertise Service 18 Northern Trust Global Investments A Diversified, World Class Investment Manager $575.5 Billion Assets Under Management as of December 31, 2008 A Diversified Asset Manager $328 Billion (57%) Active $219 Billion (38%) Quantitative $29 Billion (5%) Manager of Managers Across Asset Classes Across Client Segments $443 Billion Institutional $132 Billion Personal Across Styles Equities $198 Billion (34%) Fixed Income $120 Billion (21%) Short Duration $245 Billion (43%) Other $12 Billion (2%) |
![]() Integrity Expertise Service 19 Northern Trust Global Investments Broad Array of Solutions for Personal and Institutional Clients Source: Pensions & Investments December 22, 2008 Data Book 1 Pensions & Investments 2007 Special Report on Asset Managers 2 Pensions & Investments December 24, 2007 Data Book Markets Served Rankings Investment Strategy th th th th th th rd rd 2 1 15 Largest Manager Worldwide Institutional Assets 5 Largest Manager U.S. Institutional Tax-Exempt Assets 3 Largest Manager Defined Benefit Assets 9 Largest Manager Manager of Managers Program 4 Largest Manager Indexed Domestic Equity 4 Largest Manager Indexed Domestic Fixed Income 4 Largest Manager Indexed International Equity 3 Largest Manager Indexed International Fixed Income |
![]() Integrity Expertise Service 20 Northern Trust Global Investments Spotlight: Manager of Managers Expertise Providing Advice-Based Capabilities and Solutions Northern Trust Global Advisors More than 225 managers worldwide Assets Under Management: Global locations: • Stamford, CT • Chicago • London • Toronto Pioneer of manager-of-managers programs (1979) Offerings include: • Total Plan Outsourcing • Emerging and Minority Managers • Private Equity Fund-of-Funds Program • Hedge Fund-of-Funds Program Investment professionals and research staff of 100 12/31/02 - $12.4B 12/31/08 - $28.6B CAGR 16% |
![]() © 2009 Northern Trust Corporation Service Expertise Integrity Financial Strength and Stability |
![]() Integrity Expertise Service 22 Strong Financial Performance in Last Two Fiscal Years Trust, Inv. & Other Servicing Fees Other Non-Interest Income Net Interest Income Total Revenues Non-Interest Expenses Net Income Earnings Per Share Full Year 2007 $2,135 Million $897 Million $1,129 Million $4,160 Million $2,964 Million $641 Million $2.79 Assets Under Custody Global Custody Assets Assets Under Management $3.0 Trillion $1.4 Trillion $575 Billion Full Year 2008 Note: Excludes the impact of the VISA-related items incurred in 2007 and 2008. $2,078 Million $586 Million $908 Million $3,572 Million $2,280 Million $821 Million $3.66 $4.1 Trillion $2.1 Trillion $757 Billion |
![]() Integrity Expertise Service 23 High Quality, Short Duration Securities Portfolio All data is as of December 31, 2008. *Preliminary; pre-tax $15.6B SECURITIES PORTFOLIO 90% of total securities rated triple-A Total net unrealized losses of only $348 million* AFS Government Sponsored Agency $10.9B / 70% AFS Other / $2.0B / 13% HTM Obligations of States / Political Subdivisions $0.8B / 5% AFS Asset-Backed $1.6B / 10% Well diversified 85% rated triple-A Subprime asset-backed total < 2% of total portfolio 69% of subprime asset-backed rated triple-A HTM Other / $0.3B / 2% |
![]() Integrity Expertise Service 24 Diversified and High Quality Loan Portfolio Relationship-based lending practices Nonperforming assets represent only 0.33% of total outstanding loans Nonperforming loans are covered 2.4 times by current credit loss reserves 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 All data is as of December 31, 2008. Commercial Real Estate $3.0 9.8% Commercial $8.3 26.8% Personal $4.8 15.5% Leases $1.1 3.7% Other $1.4 4.6% Non-U.S. $1.8 5.8% Residential Real Estate $10.4 33.8% $31B LOAN PORTFOLIO ($ in Billions) |
![]() Integrity Expertise Service 25 As of December 31, 2008 *Peer group consists of the 20 largest U.S. Bank Holding Companies in terms of total balance sheet assets. Peer group averages as of September 30, 2008. Source: SNL Financial Non-Performing Assets as a % of Loans Loan Loss Reserve as a % of Non-Performing Assets Net Charge-Offs to Average Loans Credit Quality is Notably Better Than Peer Averages 1.87% 0.33% 229% 132% 1.51% 0.22% Northern Trust Peer Group* Average |
![]() Integrity Expertise Service 26 $3.9 $6.4 $2.1 $3.3 $3.1 $2.9 $2.7 $3.6 $4.5 $2.3 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TOTAL EQUITY ($ Billions) CAGR: +13% Northern Trust Corporation Tier 1 Capital Ratio 13.1% 6.0% Total Risk-Based Ratio 15.4% 10.0% Leverage Ratio 8.5% 5.0% “Well Capitalized” CAPITAL RATIOS 12/31/08 Guideline Outstanding Capital Strength U.S. CAPITAL PURCHASE PROGRAM PARTICIPATION On November 14, the Treasury invested $1.5 billion in senior preferred stock and related warrants in Northern Trust In combination with our already strong capital position, the additional capital allows us to support clients and maximize growth opportunities. In addition, we will continue to support high quality loan growth in line with our existing strategies. Note: 2008 capital ratios are preliminary and subject to revision. |
![]() Integrity Expertise Service 27 Opportunities for Growth and Success Remain Plentiful Personal Financial Services Corporate & Institutional Services Serving institutional investors worldwide Serving the complex needs of affluent clients Managing personal and institutional client assets Northern Trust Global Investments |
![]() © 2009 Northern Trust Corporation Service Expertise Integrity Frederick H. Waddell President & Chief Executive Officer NORTHERN TRUST CORPORATION Citigroup 2009 Financial Services Conference New York City January 28, 2009 |