Northern Trust (NTRS) 8-K Regulation FD Disclosure

Service

Expertise

Integrity

P R I N C I P L E S   T H A T   E N D U R E

EXHIBIT 99.1

Barclays Americas Select Franchise Conference 2012

The Langham Hotel

London

16 May 2012

©

2012 Northern Trust Corporation

Northern Trust Corporation

Michael G. O’Grady

Executive Vice President

& Chief Financial Officer

2

Barclays Americas Select Franchise Conference 2012

Forward Looking Statement

This presentation may include forward-looking statements such as statements that relate to

Northern Trust’s financial goals, capital adequacy, dividend policy, expansion and business

development

plans,

risk

management

policies,

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 2011 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.

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Barclays Americas Select Franchise Conference 2012

A Highly Focused Business Model

As of March 31, 2012

Founded in 1889, Northern Trust Corporation is a global leader in asset servicing,

asset

management,

wealth

management

and

banking

for

personal

and

institutional

clients.

Integrated global operating platform

Leading advisor to affluent market

Leading global custodian

Leading asset manager for    

personal & institutional clients

AUM

$179 Billion

AUC

$407 Billion

AUC

$4.2 Trillion

AUM

$537 Billion

AUM

$716 Billion

Serving personal and institutional clients

$1.6 Billion in technology spending 2009-2011

Barclays Americas Select Franchise Conference 2012

3

Corporations

Pension funds

Fund managers

Foundations

Endowments

Sovereign

wealth funds

Individuals

Families

Family offices

Family foundations

& endowments

Privately held

businesses

Personal Financial Services

Corporate & Institutional Services

Northern Trust Global Investments

Operations & Technology

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Barclays Americas Select Franchise Conference 2012

Comprehensive

investment

capabilities

Custom asset

allocation

Broad menu of

outside managers

Brokerage services

Personal Financial Services

Life-driven Approach to Serving the Affluent Market

Deposit services

Custom financing

Stock option

lending

Customized

investment

objectives

and strategic asset

allocation

Manager selection

and oversight

Asset servicing and

administration

Family education

and governance

Family business

Non-financial asset

management

Cash flow analysis

Debt management

Tax planning

Retirement planning

Wealth transfer

planning

Trust and estate

services

Philanthropic

advisory services

Securities custody

Best Private Bank in North America

–

Financial Times Group

(October 2011, 3   consecutive year)

Ranked among the

Top 10 Wealth Managers 

–

Barron’s (September 2011)

Serving More than 20% of

Forbes 400 Most Affluent Americans

–

Forbes (September 2011)

Providing comprehensive wealth management solutions to

successful individuals, families and privately held businesses.

Investment

Management

Financial

Planning

Private and

Business

Banking

Trust & Estate

Services

Advisory

Services

Foundation and

Institutional

Advisors

rd

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Barclays Americas Select Franchise Conference 2012

Corporate & Institutional Services

Delivering a Broad Range of Solutions

Asset

Administration

Fund accounting

Transfer agency

Corporate

secretarial/trustee

Valuations

Investment operations

outsourcing

Asset

Management

Active

Global index

Investment outsourcing

Liability driven investing

Multi-manager

Transition management

Asset

Processing

Safekeeping

Settlement

Derivatives and

collateral processing

Income collection

Corporate actions

Tax reclamation

White label reporting

Valuation analytics

Performance

analytics

Risk monitoring

and reporting

Trade execution

analysis

Asset

Reporting

Asset

Enhancement

Cross-border pooling

Trade execution

Cash management

Securities lending

Foreign exchange

Providing an array of asset servicing and asset management

services to clients around the world.

Client Relationship Manager of the Year

–

ICFA Americas Awards (May 2010, 2011)

Best Administrator for UCITS Funds

–

HFM Week, European Hedge Fund Awards  

(May 2011 and March 2012)

Best Custody Specialist in Asia

–

The Asset Magazine Awards

(4

consecutive year)

Best Outsourcing Services Company

–

The Compliance Register Platinum

Awards (November 2011)

Global Investor Services House

–

Euromoney (Sept. 2011 and July 2010)

Best European ETF Administrator

–

ETF Express Global Awards (2012)

European Administrator of the Year

–

Funds Europe Awards (December 2011)

th

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Barclays Americas Select Franchise Conference 2012

Asset Classes

Equities

$339 Billion

(47%)

Fixed Income

$134 Billion

(19%)

Short

Duration

$223 Billion

(32%)

Other

$20 Billion

(2%)

Northern Trust Global Investments

Client Focused, Diversified Investment Manager

Manager

of

the

Year

–

Equity

Indexers

(U.S.)

Institutional Investor (April 2011)

Client Segments

$537 Billion

Institutional

$179 Billion

Personal

As of March 31, 2012

Styles

$37 Billion

(5%)

$338 Billion

(47%)

Active

$323 Billion

(45%)

Index

Multi-Manager

Other

$18 Billion

(3%)

Providing diversified asset management solutions, with total assets

under management of $716 billion across…

13   Largest Manager of Worldwide Institutional Assets

17   Largest Asset Manager Worldwide

3     Largest Passive International Indexed Securities Manager 

Pensions & Investments

(May 2011 based on December 31, 2010 assets)

th

th

rd

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Barclays Americas Select Franchise Conference 2012

Assets Under Custody

($ Trillions)

Assets Under Management*

($ Billions)

Strong History of Growth in Fee-based Businesses

* AUM is presented excluding securities lending collateral

1

Custody fees include C&IS custody & fund administration fees and PFS Wealth Management Group fees. 2012 fees are annualized.

2

Asset management fees include C&IS investment management fees and fees of the four PFS regions. 2012 fees are annualized.

S&P 500

Custody Fees

S&P 500

Asset Mgmt Fees

Fee revenues average 73% of total revenues.

$346

$384

$401

$449

$488

$449

$513

$545

$568

$620

2003

2004

2005

2006

2007

2008

2009

2010

2011

1Q

2012

$2.1

$2.6

$2.9

$3.5

$4.1

$3.0

$3.7

$4.1

$4.3

$4.6

2003

2004

2005

2006

2007

2008

2009

2010

2011

1Q

2012

1

2

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Barclays Americas Select Franchise Conference 2012

Currency volatility has

declined from the heightened

levels

seen

in

2007

–

2009,

resulting in lower foreign

exchange trading income

Lower Securities

Lending Volumes

Securities lending collateral of

$95 billion is much lower than

peak of nearly $300 billion in 2007

Lower volumes primarily reflect

lower demand

*Excludes impact of mark-to-market fund

Securities

Lending

Fees*

$MM 

SL Avg. Collateral

Lower Foreign

Exchange Volatility

Net

Interest

Income

$MM

Avg. Fed Funds Rate

Extremely low short-term

interest rates have pressured

net interest margin

Waived fees in money market

mutual funds equaled

$102 million in 2011

Revenue Headwinds Due to Macroeconomic Environment

FX

Trading

Income

$MM

CBOE

Volatility

Index

®

Historically Low

Interest Rates

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Barclays Americas Select Franchise Conference 2012

Impact of the Environment on Profitability and Returns

Pre-tax margin

Recent revenue pressures have led to declining margins and returns.

Return on Equity

32.4%

24.5%

1Q 2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

16.2%

13.8%

16.1%

17.0%

17.6%

17.5%

16.0%

12.7%

10.1%

8.6%

9.0%

Revenue

Enhancements

Process

Optimization

Streamline major business processes

Optimize operational footprint

Apply best-in-class procurement practices

Refine service delivery model

Migrate IT resourcing mix

Rationalize overlapping applications

Manage internal end-user demand

Corporate-wide

Initiatives

Simplify organizational structure

Align retirement plans with market

Rationalize real estate

Consolidate banking charters

30 –

35%

30 –

40%

5 –

10%

20 –

25%

Driving Performance

Improving Profitability and Returns

Fully align value proposition

Unbundle pricing structures

Expand share of relationship

$250 million

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Barclays Americas Select Franchise Conference 2012

On track

to achieve

2012 targets

Percent of 2013 Impact

Technology

Efficiency

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Barclays Americas Select Franchise Conference 2012

Northern Trust data is as of March 31, 2012 and for the quarter then ended. 

Peer

data

is

as

of

the

fourth

quarter

of

2011

as

sourced

from

SNL

Financial.

Peer

group

includes

U.S.

based

banks

with

assets

of

more

than

$50

billion

as

of

December

31,

2011,

a

group

of

18

institutions

excluding

Northern

Trust.

Northern Trust

Peer Avg.

Relationship-based lending

Diversified by loan type, including

residential real estate (36%),

commercial & institutional (24%),

commercial real estate (10%)

Consistent and conservative

underwriting standards

Placed with banks that have

strong internal risk ratings and

external credit ratings

Includes exposure to banks in

the Eurozone of $3.0 billion,

primarily in the Netherlands

and in the Nordic region

Average duration of less than

2 months

85% of Northern Trust’s total

securities portfolio composed

of U.S. Treasury, government

sponsored agency and triple-A

rated securities

87% of Asset-Backed Securities

rated triple-A

The securities portfolio is in a net

unrealized gain position

Average maturity duration of

~2 years and a re-pricing

duration of ~11 months

Balance Sheet

Consistently Strong and Conservative

0.08%

1.25%

0.98%

2.16%

NCOs to

Avg. Loans

NPAs

to Loans & REO

Loan Portfolio

$29 billion

Securities

$32 billion

Deposits with Banks

$19 billion

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Barclays Americas Select Franchise Conference 2012

Tier 1 Capital Ratio

12.4%

Total Risk-Based Ratio

14.0%

Leverage Ratio

7.6%

Tier 1 Common Equity

11.9%

As of March 31, 2012.

1

The

ratio

of

tier

1

common

equity

to

risk-weighted

assets

is

a

non-GAAP

financial

measure.

A

reconciliation

of

tier

1

common

equity

to

tier

1

capital

calculated

in

accordance

with

applicable

regulatory

requirements

and

GAAP

is

included

in

the

Appendix

on

page

15.

2

Reflects

the

dividend

declared

on

March

14,

2012

and

payable

in

the

third

quarter

of

2012.

Quarterly Dividend Paid per Common Share

Balance Sheet

Outstanding Capital Strength

Announced an increase in our dividend to

$0.30 per share

The Federal Reserve did not object to

Northern Trust’s capital plan, including the

repurchase of up to $240 million of common

stock through March 2013

1

Northern Trust Corporation Capital Ratios

13

Barclays Americas Select Franchise Conference 2012

Strategically Positioned for Growth

Market Leader in Focused Businesses

Strong History of Organic Growth

Focused on Driving Performance

Distinctive Financial Strength

Barclays Americas Select Franchise Conference 2012

northerntrust.com

©

2012 Northern Trust Corporation

Service

Expertise

Integrity

Service

Expertise

Integrity

P R I N C I P L E S   T H A T   E N D U R E

Appendix

15

Barclays Americas Select Franchise Conference 2012

Reconciliation of Non-GAAP Financial Measures

The following table provides a reconciliation of tier 1 common equity to tier 1 capital calculated in

accordance with applicable regulatory requirements and GAAP. Northern Trust is providing the

ratio of tier 1 common equity to risk-weighted assets in addition to its capital ratios prepared in

accordance with regulatory requirements and GAAP as it is a measure that Northern Trust and

investors use to assess capital adequacy.

March 31,

($ In Millions)

2011

Tier 1 Capital

$

7,157.4

Less:  Floating Rate Capital Securities

268.6

Tier 1 Common Equity

$

6,888.8

Ratios

Tier 1 Capital

12.4

%

Tier 1 Common Equity

11.9

%