Presentation Title or Conference (To Edit or Delete: View > Slidemaster) © 2013 Northern Trust Corporation 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 Northern Trust Corporation Frederick H. Waddell Chairman & Chief Executive Officer Barclays Global Financial Services Conference 2013 New York September 11, 2013 northerntrust.com |
2 Barclays Global Financial Services Conference 2013 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 allowance 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 2012 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. |
3 Barclays Global Financial Services Conference 2013 Leading advisor to affluent market AUM $202 Billion AUC $453 Billion Personal Financial Services Leading global custodian AUC $4.5 Trillion AUM $601 Billion Corporate & Institutional Services Leading asset manager for personal & institutional clients AUM $803 Billion Northern Trust Global Investments Operations & Technology Integrated global operating platform Serving personal and institutional clients $1.7 Billion in technology spending 2010-2012 Founded in 1889, Northern Trust Corporation is a global leader in asset servicing, asset management, wealth management and banking for personal and institutional clients. A Highly Focused Business Model Corporations Pension funds Fund managers Foundations Endowments Sovereign wealth funds Individuals Families Family offices Family foundations & endowments Privately held businesses |
4 Barclays Global Financial Services Conference 2013 Personal Financial Services Life-driven Approach to Serving the Affluent Market Private & Business Banking Deposit services Custom financing Stock option lending Financial Planning Cash flow analysis Debt management Tax planning Retirement planning Investment Management Comprehensive investment capabilities Custom asset allocation Broad menu of outside managers Brokerage services Trust & Estate Services Wealth transfer planning Trust and estate services Philanthropic advisory services Securities custody Advisory Services Family education and governance Family business Non-financial asset management Foundation & Institutional Advisors Customized investment objectives and strategic asset allocation Manager selection and oversight Asset servicing and administration Providing comprehensive wealth management solutions to successful individuals, families and privately held businesses. Ranked among the Top 10 Wealth Managers (2012) Best Trust Company (2012) Best Private Bank in North America (2012) One of World's Most Admired Companies (2012) |
5 Barclays Global Financial Services Conference 2013 Corporate & Institutional Services Delivering a Broad Range of Solutions Asset Processing Safekeeping Settlement Derivatives and collateral processing Income collection Corporate actions Tax reclamation Asset Administration Fund accounting Transfer agency Corporate secretarial/trustee Valuations Investment operations outsourcing Asset Reporting White label reporting Valuation analytics Performance analytics Risk monitoring and reporting Trade execution analysis Asset Enhancement Cross-border pooling Trade execution Cash management Securities lending Foreign exchange Asset Management Active Global index Investment outsourcing Liability driven investing Multi-manager Transition management Providing an array of asset servicing and asset management services to institutional clients around the world. Best European ETF Administrator (2013) Custody and Securities Services Provider of the Year (2012) Hedge Fund Administrator of the Year (2012 and 2013) Best Custody & Alternative Fund Administration in Asia-Pacific (2013) Global Custody & Transition Management Award (2013) Global Custody Award Winners (2012) Best Client Servicing Award (2013) |
Asset Classes Equities $411 Billion (51%) Fixed Income $142 Billion (18%) Short Duration $230 Billion (29%) Other $20 Billion (2%) Client Segments $601 Billion Institutional $202 Billion Personal Styles $36 Billion (5%) $358 Billion (45%) Active $390 Billion (48%) Index Multi-Manager Other $19 Billion (2%) Providing diversified asset management solutions, with total assets under management of $803 billion Northern Trust Global Investments Client Focused, Diversified Investment Manager As of June 30, 2013 U.S. Fixed Income Municipal Manager of the Year (2013) Leadership in Equity Indexing (2011) 14 th Largest Manager Worldwide 14 th Largest Manager of Worldwide Institutional Assets 3 rd Largest Passive International Equity Manager 4 th Largest Passive Domestic Equity Manager 4 th Largest Passive Domestic Fixed Income (2013 based on December 31, 2012 assets) Barclays Global Financial Services Conference 2013 6 |
7 Barclays Global Financial Services Conference 2013 Trends Impacting Our Business Secular Trends Global wealth creation Globalization/cross-border investing Expanding use of alternative assets Shift from active to passive management Increased regulation Focus on risk management Demand for transparency Back and middle office outsourcing Cyclical Trends Historically low interest rates Low foreign exchange volatility Low securities lending demand |
8 Barclays Global Financial Services Conference 2013 Strong Organic Growth Impacted by Operating Conditions June 30, 2013 YTD 1 Other Revenue includes Net Interest Income, Foreign Exchange Trading Income and Other Noninterest Income Strong organic growth Cyclical headwinds Good expense management Balanced business model - PFS C&IS Consolidated Trust, Investment & Other Servicing Fees 9% 9% 9% Other Revenue -11% -4% -9% Total Revenue 1% 4% 2% Noninterest Expense 2% 0% 1% Tax Margin (1H 2013) 32% 25% 27% Net Income ($ millions) $182.5 $179.4 $355.1 over Year % Growth 1 Pre - Year |
9 Barclays Global Financial Services Conference 2013 Driving Performance Focused on Improving Profitability and Returns Revenue Enhancements Fully align value proposition Unbundle pricing structures Expand share of relationship Simplify organizational structure Align retirement plans with market Rationalize real estate Consolidate banking charters Corporate-wide Initiatives Migrate IT resourcing mix Rationalize overlapping applications Manage internal end-user demand Technology Efficiency Streamline major business processes Optimize operational footprint Apply best-in-class procurement practices Refine service delivery model Process Optimization ~$50 ~$45 ~$35 ~$25 ~$55 ~$65 Expense Efficiencies Revenue Enhancements $ Millions |
10 Barclays Global Financial Services Conference 2013 Investing for the Future Capabilities & Expertise Strategic Locations Technology Risk Management Investing in… |
11 Barclays Global Financial Services Conference 2013 Investing in Capabilities & Expertise Investing in capabilities and expertise to better serve clients Goals Driven Investing |
12 Barclays Global Financial Services Conference 2013 Investing in new offices Frankfurt Saudi Arabia Investing in office relocations New York Miami Los Angeles Forth Worth Investing in Strategic Locations |
13 Barclays Global Financial Services Conference 2013 Investing in technology to enhance client and partner experience Mobile and internet Integrated analytics, performance & reporting for asset managers Shared service, automated workflow across personal and institutional clients Highly available platforms, converged infrastructures Commodity virtualized servers Service oriented architectures Investing in Technology Information Delivery Risk Analytics and Reporting Client Administration Availability & Resiliency Infrastructure Optimization |
14 Barclays Global Financial Services Conference 2013 Investing in risk management infrastructure and enhancing existing capabilities to meet regulatory requirements Investing in Risk Management Compliance Supporting clients in the European Union under the Alternative Investment Fund Managers Directive and continuing to implement processes to comply with Foreign Account Tax Compliance Act Resolution Planning Capital Planning Transitioning from Capital Plan Review (CapPR) to Comprehensive Capital Analysis and Review (CCAR) under Federal Reserve’s Capital Plan Rule Preparing to submit Resolution Plan by December 31, 2013 as required under the Dodd-Frank Act |
15 Barclays Global Financial Services Conference 2013 Investing for the Future Capabilities & Expertise Strategic Locations Technology Risk Management Investing in… |
16 Barclays Global Financial Services Conference 2013 Market Leader in Focused Businesses Strong History of Organic Growth Focused on Driving Performance Investing for the Future Northern Trust Corporation Strategically Positioned for Growth |