Conference Slides

2010 INVESTOR DAY

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

market,

demographic

and

pricing trends, strategic initiatives, re-engineering and outsourcing activities, new business

results

and

outlook,

changes

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

accounting

policies,

standards

and

interpretations)

Northern Trust’s business and results. These statements speak of Northern Trust’s plans,

goals,

targets,

strategies,

beliefs,

and

expectations,

and

refer

estimates

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 2009 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

the

information

provided

this

presentation

after

today.

2010 INVESTOR DAY

Financial Overview

Personal Financial Services

Corporate & Institutional Services

Northern Trust Global Investments

Summary and Q&A

Bill Morrison, EVP and Chief Financial Officer

Sherry Barrat, President, PFS

Steve Fradkin, President, C&IS

Steve Potter, President, NTGI

Bob Browne, EVP and Chief Investment Officer

Rick Waddell, Chairman and CEO

Agenda:

Addressing Today’s Challenges. Positioned for Tomorrow’s Growth.

2010 INVESTOR DAY

Client Centric, Highly Focused Business Model

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

and asset servicing for institutional and personal clients.

O&T:

Integrated global

operating platform

Serving personal and

institutional clients

$1.3 billion in technology

spending, 2007-2009

PFS: Leading advisor to affluent market

$149 billion AUM

$341 billion AUC

C&IS: Leading global custodian

$3.4 trillion AUC

$498 billion AUM

NTGI: Leading asset manager for

personal & institutional clients

$647 billion AUM

As of March 31, 2010

PERSONAL

FINANCIAL

SERVICES

CORPORATE &

INSTITUTIONAL

SERVICES

CLIENTS

2010 INVESTOR DAY

Client Centric, Highly Focused Business Model

As of March 31, 2010

The strategic businesses

that

Northern

Trust

has

focused

–

consistently

for

many

years –

continue to offer compelling and attractive growth opportunities

Outstanding client base

Strong and supportive

demographic trends

Continued globalization

fueling international growth

High barriers to entry

Attractive profitability

dynamics

PERSONAL

FINANCIAL

SERVICES

CORPORATE &

INSTITUTIONAL

SERVICES

CLIENTS

PERSONAL

FINANCIAL

SERVICES

CORPORATE &

INSTITUTIONAL

SERVICES

CLIENTS

2010 INVESTOR DAY

Addressing Today’s Challenges

Fed Funds Effective Rate (%)

GDP (%)

-2

-4

S&P 500

1600

1400

1200

1000

800

600

S&P/Case-Shiller

Home Price Index

200

180

160

140

120

Challenges created by the macroeconomic environment in recent years have served

as headwinds to strong growth and financial performance.

FINANCIAL OVERVIEW

Financial Performance Overview

Outstanding Financial Strength Across Cycles

Loan Portfolio

Securities Portfolio

Capital

Implications of the Current Environment

Trust, Investment & Other Servicing Fees

Securities Lending Fees

Foreign Exchange Trading Income

Net Interest Income

Loan Loss Provision

Agenda:

Addressing Today’s Challenges. Positioned for Tomorrow’s Growth.

FINANCIAL OVERVIEW

FY09*

FY09* vs

FY08*

1Q10

1Q10 vs

1Q09

Solid Performance in a Challenging

Macroeconomic Environment

Trust, Inv. & Other Servicing Fees

Foreign Exchange Trading Income

Other Non-Interest Income

Net Interest Income

Total Revenues

Non-Interest Expenses

Provision for Credit Losses

Pre-Tax Income

Taxes

Net Income

EPS

$2,084

$446

$257

$1,040

$3,827

$2,334

$215

$1,278

$425

$853

$3.11

Operating Basis

e.g.

excluding

VISA

items

($MM,

except

EPS)

-2%

-28%

-8%

-21%

87%

18%

-4%

33%

11%

*Northern Trust is providing operating results, which exclude Visa related adjustments, in order

to provide a clearer indication of the results and trends in Northern Trust's core businesses.

$515

$80

$73

$240

$908

$620

$40

$248

$91

$157

$0.64

25%

-39%

-3%

-17%

N/M

-27%

-3%

FINANCIAL OVERVIEW

Performance vs. Long-Term Strategic Targets

Return on Equity

Revenue Growth

EPS Growth

Operating Leverage

5-Year

Performance

16.0%

10.5%

6.5%

+1.67

3-Year

Performance

15.1%

7.7%

1.3%

+1.67

10-Year

Performance

16.7%

8.0%

6.0%

+0.32

15-Year

Performance

17.4%

9.3%

4.6%

+0.99

16% -

18%

8% -

10%

10% -

12%

Positive

Long-term

Target

2009

Performance

12.7%

-8.0%

11.4%

+13.2

*Calculated on an Operating basis, i.e. excluding all VISA items in FY07, FY08 and FY09. Return on Equity is an

average of the relevant years. Revenue and EPS Growth represent compound annual growth rates. Operating

Leverage calculated using the difference between the compound annual growth rates of revenues and expenses.

FINANCIAL OVERVIEW

High Quality Securities Portfolio

($19)

($317)

($36)

Net unrealized gain / (loss) $MM

0.2%

2.0%

0.2%

Net unrealized loss as a % of

Securities Portfolio

Securities

Portfolio

$BN

($19)

0.1%

$44

$14

$19

High quality, short duration

securities portfolio

90% invested in U.S. Treasury,

government sponsored agency and

triple-A rated securities

Minimal level of unrealized losses due

to long-term focus on conservative,

high quality investments

FINANCIAL OVERVIEW

Consistently Strong Capital Ratios

Tier 1 Capital

13.0%

13.4%

Total Risk-Based

15.2%

15.5%

Leverage

8.9%

Tier 1 Common Equity

9.6%

12.8%

Tangible Common Equity

5.9%

7.9%

Capital Ratios

3/31/09

3/31/10

Shareholders’

Equity

$BN

Capital ratios well above “well capitalized”

guidelines

High percentage of common equity

FINANCIAL OVERVIEW

Trust, Investment and Other Servicing Fees

Note: Excludes impact of mark-to-market adjustments in one investment fund used in securities lending activities.

Trust,

Investment

and

Other

Servicing

Fees

$MM

(Excludes impact of mark to market fund)

S&P 500

EAFE

52% of FY2009 revenue

Based generally on market

value of client assets, volume

of transactions and fees for

other services rendered

Extremely low short term

interest rates have resulted

in waived fees in money

market mutual funds, which

equaled $20 million in

1Q 2010 ($80 million

annualized)

FINANCIAL OVERVIEW

Securities Lending Fees

4% of FY2009 revenue

Affected by market values;

supply of securities to be lent;

demand for securities (all of

which drive volumes); and the

interest rate spread earned on

reinvested collateral

Credit crisis caused spread

widening from 2H2007 through

1H2009 when compared with

historical averages

Extremely low short-term

interest rates and more

conservative investment

guidelines have compressed

fee realization in 2010

Securities Lending Fees

(Excludes impact of mark-to-market fund)

$289

$225

$112

SL Avg Collateral $BN

0.10%

0.19%

0.12%

SL Fees / Avg

Collateral

$122

0.06%

$239

0.08%

$204

0.07%

$159

0.08%

$111

0.09%

$96

0.10%

$97

0.14%

$85

0.14%

$MM

Note: Excludes impact of mark-to-market adjustments in one investment fund used in securities lending activities.

FINANCIAL OVERVIEW

Foreign Exchange Trading Income

12% of FY2009 revenue

Foreign exchange

services provided to

clients as an integral part

of global custody service

Credit crisis heightened

market and currency

volatility in 2007-2009

when compared with

historical averages

Foreign Exchange Trading Income

$MM

Global Custody Assets $TN

Annual FX as a % of

Global Custody Assets

$2.1

$1.4

$1.9

$2.0

$1.7

$1.2

$1.0

.016%

.014%

.015%

.017%

.043%

.023%

.016%

$0.7

.015%

$0.5

.023%

$0.5

.031%

$0.4

.040%

Global Custody Assets

$140

$106

$110

$158

$180

$247

$351

$616

$446

$80

$153

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

1Q10

FINANCIAL OVERVIEW

Net Interest Income

Net

Interest

Income

$MM

27% of FY2009 revenue

Liability driven balance sheet

fuels significant generation of

deposits from institutional and

personal clients

Credit crisis has pressured

net interest margin due to

extremely low short-term

interest rates

Net interest margin in 1Q 2010

of 1.44% well below 2003-

2008 average of 1.74%

1.70%

1.76%

1.56%

Net Interest Margin

1.44%

1.76%

1.82%

1.66%

1.73%

1.93%

2.02%

Avg

Fed Funds Rate

FINANCIAL OVERVIEW

Loan Loss Provision

$MM

LLP to Avg. Loans

Avg. Loans $BN

Lending strategy focuses on

personal and institutional clients

who are looking to establish a

full range of financial services

with Northern Trust

Long-standing adherence to

conservative lending standards

Centralized credit policy

function assures uniform

application of credit risk

management policies and

practices

Elevated loan loss provision in

current cycle reflects ongoing

weakness in the broader

economic environment

0.08%

0.42%

0.75%

0.58%

0.07%

0.01%

-0.09%

0.01%

0.21%

0.37%

0.15%

$22.8

$27.4

$28.7

$27.5

$20.5

$18.8

$17.5

$17.6

$17.9

$16.5

LLP to Avg. Loans

FINANCIAL OVERVIEW

Key Takeaways

Leadership positions in excellent client-focused businesses

Attractive client, geographic and demographic

growth opportunities

Long track record of serving clients and successfully

aggregating assets

Distinctive balance sheet and capital strength

Proven record of managing the business for

long-term growth and profitability

PERSONAL FINANCIAL SERVICES

Industry Leading Provider of Integrated Financial Solutions

PRIVATE

CLIENT

WEALTH

ADVISORY

WEALTH

MANAGEMENT

FOUNDATIONS

AND

INSTITUTIONS

Our value proposition has never

been stronger –

the strength of

our comprehensive array of

solutions, and our focus on

clients, technology and financial

discipline will drive future growth.

PERSONAL FINANCIAL SERVICES

Opportunities Abound

Best-in-Class Performance

–

BusinessWeek

(April 2009)

Best Private Bank in North America…

For Family Office Services

For Trust Services

For Inheritance and

Succession Planning

–

Euromoney

Magazine (February 2010)

Serving More than 20% of Forbes 400

–

Forbes

(September 2009)

Best Private Bank in North America

–

FT Group

(November 2009)

Ranked among the Top 10

Wealth Managers

–

Barron’s

(September 2009)

Trusted brand

Outstanding

financial strength

Not distracted

Clients need

holistic advice

Robust product offering

Leveraging client

segmentation

Investing in talent

and technology

Well positioned and

enviable U.S. office network

Going global

PERSONAL FINANCIAL SERVICES

Wealth Management

AUC

$201 Billion

AUM

$32 Billion

Positioned Strategically

Share of Total FY09 PFS Revenues

Wealth Management

Serving family offices and families with

complex global asset structures, generally

with $200+ million in investable assets

Serving 20% of Forbes 400 wealthiest families

Clients located in U.S. and 18 other countries

Industry leader with very few competitors

Leverages global institutional technology

14%

Private Client

Wealth Advisory

Foundations

& Institutions

AUC and AUM as of March 31, 2010

Growth Initiatives

Clients

Relationship expansion

Asset management solutions

Family office networking

Market leading client portal technology:

General ledger

Advanced partnership accounting

Private equity monitoring

Leverage global presence

Geography

Innovation

PERSONAL FINANCIAL SERVICES

Wealth Advisory

Serving individuals and families with

$10 -

$200 million in investable assets

Comprehensive financial advice

and solutions

Service from a dedicated team of

multi-disciplinary professionals

Depth and breadth of capabilities

AUM $60 Billion

Share of Total FY09 PFS Revenues

Wealth Management

34%

Private Client

Wealth Advisory

Foundations

& Institutions

Positioned Strategically

Innovation

Clients

78 offices in

18 states

Geography

Growing ranks of wealth advisors

Family advisory services

Enhanced investment solutions

Referrals from highly satisfied clients

Executing team-based client strategies

Acquisitions

Growth Initiatives

Washington, DC

Capabilities

AUM as of March 31, 2010

People

Geography

Positioned Strategically

Private Client

AUM $51 Billion

Serving individuals and families with up

to $10 million in investable assets

Delivering the Northern Trust client

experience to the millionaire next door

Effectiveness + Efficiency = Growth

Well positioned office network

Share of Total FY09 PFS Revenues

Wealth Management

Private Client

50%

Wealth Advisory

Foundations

& Institutions

Innovation

Clients

Client segmentation focus fuels:

Improved client service

Greater share of wallet as clients’

wealth grows

Accelerating client referrals

Enhanced efficiency

Seventh generation

Private

Passport

technology

Investment solutions

Growth Initiatives

AUM as of March 31, 2010

PERSONAL FINANCIAL SERVICES

PERSONAL FINANCIAL SERVICES

Foundations & Institutions

AUM $6 Billion

Serving private and public foundations

and

endowments

with

$250

million

in investable assets

Leverages sophisticated C&IS and

NTGI capabilities

Uniquely positioned to capitalize on

the convergence of personal and

institutional markets

Share of Total FY09 PFS Revenues

Wealth Management

Private Client

Wealth Advisory

Foundations

& Institutions

Positioned Strategically

Innovation

Clients

Geography

People

Specialized teams

Scale institutional products

and services

Leverage sophisticated C&IS

client portal capabilities

Leverage office footprint

Cross-marketing opportunities

through board affiliations

Growth Initiatives

AUM as of March 31, 2010

A Coordinated Approach

Northern Trust offices serve as portals for broader opportunities.

University Foundation

$1.2 BN AUC C&IS

President,

University Foundation

Trustee,

Family Foundation

$30 MM AUM PFS

Senior Executive,

National Distribution Firm

Trustee, Family Foundation

Trustee,

Small College Foundation

$50 MM PFS Prospect

National

Distribution Firm

$61.4 MM

AUM

$10.0 MM

Credit

$1.8 BN

C&IS DB/DC

Prospect

PERSONAL FINANCIAL SERVICES

Key Takeaways

Trusted provider of investment-driven

fiduciary and private banking services

Excellent positioning to acquire,

expand and retain client relationships

Extraordinary and growing client base

Talented Northern Trust partners

focused on client service excellence,

relationship retention and new client

acquisition

Long-standing heritage of

client service and conservative

business practices

Clients

Resources

Culture

Brand

Office

Network

Technology

Financial

Strength

People

Capabilities

PERSONAL FINANCIAL SERVICES

Europe,

Middle East,

and Africa

The

Americas

Asia

Pacific

Global Presence

Strategic and Competitive Positioning:

Growth Opportunities Continue to Be Significant

C&IS provides a comprehensive array of asset servicing, administration, investment management

and banking services to institutional investors of many types, all around the globe.

Multi-strategy Asset Managers

Hedge Funds

Private Equity Funds

Property Funds

Sovereign Wealth Funds

Central Banks

Multinational, State, and

Local Government Entities

Insurance Companies

Corporate Pensions

Corporations

Foundations

Endowments

Financial Institutions

Clients

Asset Servicing

Administration

Investment

Management

Banking Services

Services

2000 –

1Q 10 CAGR

A Distinctive Record of Global Growth

Northern Trust

Global Custody

Assets

EAFE

S&P 500

CORPORATE & INSTITUTIONAL SERVICES

-1%

-3%

19%

CORPORATE & INSTITUTIONAL SERVICES

Globalization:

Helping Clients Invest Globally and Manage Global Organizations

Investing globally

Managing increasingly global organizations

Client Challenge

Our clients face significant challenges managing global portfolios and organizations.

Global custody

Headquarters reporting

Cross-border pooling

Multi-country fund administration

24/7 global operating model

Northern Trust

Solutions

Global

custody

asset

growth:

2000

–

1Q10

CAGR

19%

More than 50 product innovation press releases since 2008

Cross-border pooling market leader

Strong pipeline of international opportunities

Results

CORPORATE & INSTITUTIONAL SERVICES

Managing Risk:

Helping Clients Manage Risk

The challenging environment is placing pressure on institutions to consider relationship

exposure and other risk attributes associated with their investment programs.

Identifying strong, secure, and reliable financial providers

Risk analysis and transparency

Client Challenge

Fiduciary heritage and conservative financial policies provide

reliability and security

Risk management tools provide portfolio return attribution,

valuation, and transparency into hedge funds, private equity,

and derivatives

Northern Trust

Solutions

Flight to quality

96% of top clients use investment risk and analytic services

New revenues from hedge fund, private equity, and

derivatives capabilities

Results

CORPORATE & INSTITUTIONAL SERVICES

Information Delivery:

More Information, More Granularity, More Constituents

Investors

demand

information

and

they

face

information

demands

themselves.

Multiple constituents demand increasingly customized data

(Boards, committees, management, regulators, etc.)

24/7 access to customized information

Client Challenge

Integrated global technology architecture

Industry expertise to transform data into information

(SORP, UCITS, AIFM, FAS157, IFRS 7, GASB, etc.)

Transitioning

iPhone

BlackBerry

and

other

mobile

devices

Northern Trust

Solutions

Expanding

usage

Passport

suite

information

products

Integrated

solutions

displacing

client

party

vendors

Deepening relationship connectivity and relevance as

the information provider of choice

Results

CORPORATE & INSTITUTIONAL SERVICES

Cost Reduction:

Economy Increases Pressure on Clients to Reduce Costs

Market environment forces clients to continually seek new ways to reduce costs.

Excellent growth of Investment Operations Outsourcing business

NTGI’s

Investment

Program

Solutions enables

our

clients

to outsource investment management

Relationship pricing deepens client interactions and diversifies

revenue streams

Results

Environment encouraging cost reduction and outsourcing

Asset managers migrating to variable cost expense model to

de-risk cost volatility and support longer-term growth

Client Challenge

Global operating model provides comprehensive and cost-efficient

platform for operations outsourcing

NTGI

Investment

Program

Solutions

Cross-border pooling improves performance for multinational

and investment manager clients

Relationship vs. product pricing enhances client economics

Northern Trust

Solutions

CORPORATE & INSTITUTIONAL SERVICES

Key Takeaways

C&IS is an attractive business and Northern Trust has

a uniquely client-centric competitive advantage

Helping

clients

solve

their

problems

–

globalization,

risk management, information management,

cost

reduction,

otherwise

–

has

been

our

primary

focus and driver of our success

Net new business results in 1Q2010 were excellent

and our prospect pipeline is strong

We will continue to focus on clients and the things

we can control: operational excellence and our

principles of Service, Expertise and Integrity

Key Growth Initiatives:

People

Acquisitions

Geography

Innovation

Clients

NORTHERN TRUST GLOBAL INVESTMENTS

Providing Customized Investment Solutions

13th Largest Asset Manager Worldwide

–

Pensions & Investments

(May 2009;

based on Dec. 31, 2008 AUM)

Investment Management Firm of the Year

–

ACQ Finance

Magazine (August 2009)

Best Money Market Fund –

North America

–

Treasury Management International

(December 2009)

10th Largest Manager of Worldwide

Institutional Assets

Products

Equities

Fixed Income

Alternatives

Services

Manager of

Managers

Global Index

Management

Active

Focused on global index management, short and long duration fixed income, and access

to active management via manager of manager and proprietary strategies.

Securities

Lending

Transition

Management

Commission

Recapture

Securities

Brokerage

Cash

Overlay

NORTHERN TRUST GLOBAL INVESTMENTS

Northern Trust is in a unique position to provide holistic advice to clients given our

multi-faceted role as custodian, transition manager, liquidity manager, beta provider,

alpha identifier and program manager.

Serving Both Institutional and Personal Clients

As of March 31, 2010

Total Assets Under Management:

$647 BN

Institutional

Clients

Personal

Clients

$149

$498

NORTHERN TRUST GLOBAL INVESTMENTS

$36

$462

Beta / Fixed Income

Proprietary

capabilities

Risk-efficient,

cost-effective

market exposure

Significant scale in

global index

management, cash

and fixed income

High barriers to entry

Alpha

Open-architecture and

proprietary capabilities

Consistent, reliable

source of alpha

Significant presence as a

leading manager of

managers firm

Asset Management for Institutional Clients

Total Institutional Assets Under Management:

$498 BN

As of March 31, 2010

The separation of alpha and beta underpins our investment approach for institutional clients.

NORTHERN TRUST GLOBAL INVESTMENTS

$64

$121

$75

$198

People

Geography

Beta / Fixed Income

Institutional Assets Under Management:

$462 BN

Beta / Fixed Income Strategies for Institutional Clients

Equity

Index

Short & Long

Duration

Fixed Income

Index

Intelligent indexing and conservative fixed income strategies drive our beta strategies.

$4 Other

Securities Lending

Collateral

As of March 31, 2010

Clients

Transition management

Target date solutions in DC channel

Frontier market capabilities

Investment

Program

Solutions

Flexible fund structures

Targeting largest global asset pools

Expand investment teams with

product experts & sales specialists

International hiring

Growth Initiatives

Innovation

NORTHERN TRUST GLOBAL INVESTMENTS

Alpha Strategies for Institutional Clients

Alpha

Institutional Assets Under Management:

$36 BN

Quant Active

Manager of

Managers

Fundamental

Active Equity

$10

$24

Hedge and Private

Equity Fund

of Funds

Managing the total risk solution, we provide access to alpha producers and offer

proprietary alpha strategies.

As of March 31, 2010

Clients

Alternatives through fund of funds

Sourcing alpha from proprietary &

external sources

Innovation

Targeted investment solutions

combine alpha & beta returns

Transparency & risk management

built into products

Acquisitions

Geography

Capabilities

Growth Initiatives

NORTHERN TRUST GLOBAL INVESTMENTS

Asset Management for Personal Clients

As of March 31, 2010

The

preeminent

investment

manager

for

high

net

worth

individuals

and

families.

Equity

Active

Index

Manager of Managers

Other

Hedge Fund of Funds

Private Equity Fund of Funds

Real Estate

Commodities

Short Duration

Fixed Income

Active

Index

Manager of

Managers

$36

Total Personal Assets Under Management:

$149 BN

$11

$53

$49

NORTHERN TRUST GLOBAL INVESTMENTS

Asset Management for Personal Clients

Total Personal Assets Under Management:

$149 BN

The

preeminent

investment

manager

for

high

net

worth

individuals

and

families.

As of March 31, 2010

Equity

Active

Index

Manager of Managers

Other

Hedge Fund

of Funds

Private Equity

Fund of Funds

Real Estate

Commodities

Short Duration

Fixed Income

Active

Index

Manager of

Managers

$36

$11

$53

$49

Growth Initiatives

Continue to increase share of wallet:

Communication in challenging

markets

Reinforcing trusted advisor role

Expand consulting on alternatives

Increasing our outcome oriented

solutions set

Clients

Innovation

People

Dedicated investment specialists

Strong visible investment leadership

NORTHERN TRUST GLOBAL INVESTMENTS

Key Takeaways

Naturally involved in multiple asset management activities

Focus on global index management, short and long duration

fixed income, manager of managers, and investment management

for high net worth individuals and families

Scale

exists

many

areas

–

global

index

management

and cash

management,

particular

–

where

barriers

entry

are

meaningful

Brand

identity

conservative,

trusted

provider

aligns

nicely

with

core strengths:

Low cost, transparent and reliable index management

Principal preservation in short and long duration fixed income

Access to alpha via structured manager of managers program

Asset allocation and program management strategies combine

beta and alpha building blocks into customized investment solutions