EX-99.1 2 dex991.htm CONFERENCE SLIDES Conference Slides
William Blair & Company
30
Annual Growth Stock Conference
Frederick H. Waddell, Chairman and Chief Executive Officer
Northern Trust Corporation
©
2010 Northern Trust Corporation
June 16, 2010
Exhibit 99.1
th

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William Blair & Company –
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Annual Growth Stock Conference
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 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 of the information provided in
this
presentation after today.

William Blair & Company –
30
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Annual Growth Stock Conference
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Strategic and Competitive Positioning
Outstanding and Consistent Financial Strength
Current Topics of Interest
Summary and Q&A
Today’s Agenda

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Annual Growth Stock Conference
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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

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Annual Growth Stock Conference
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Client Centric, Highly Focused Business Model
As of March 31, 2010
The
strategic
businesses
that
Northern
Trust
has
focused
on
–
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
Excellent strategic
positioning
Attractive profitability
dynamics
PERSONAL
FINANCIAL
SERVICES
CORPORATE &
INSTITUTIONAL
SERVICES
CLIENTS
PERSONAL
FINANCIAL
SERVICES
CORPORATE &
INSTITUTIONAL
SERVICES
CLIENTS

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Annual Growth Stock Conference
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Strong Asset Accumulation Across the “Lost”
Decade
C&IS
PFS
CAGR:
9%
S&P 500 CAGR
-1%
CAGR
9%
S&P 500 CAGR
-1%
EAFE CAGR
-3%
CAGR
5%
S&P 500 CAGR
-1%
CAGR
8%
S&P 500 CAGR
-1%
Assets
Under
Custody
$BN
Assets Under Management
$BN

Personal Financial Services

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William Blair & Company –
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Annual Growth Stock Conference
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.

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William Blair & Company –
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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

Corporate & Institutional Services

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William Blair & Company –
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Annual Growth Stock Conference
Strong Strategic and Competitive Positioning
Offering a comprehensive array of asset servicing, administration, investment management and
banking services to institutional investors of many types.
Central Banks
Multinational, State, and
Local Government Entities
Insurance Companies
Corporate Pensions
Services
Multi-strategy Asset Managers
Hedge Funds
Private Equity Funds
Property Funds
Sovereign Wealth Funds
Corporations
Foundations
Endowments
Financial Institutions
Clients
Asset Servicing
Administration
Investment
Management
Banking Services

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William Blair & Company –
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Annual Growth Stock Conference
Europe,
Middle East,
and Africa
The
Americas
Asia
Pacific
Global Presence
Growth Opportunities Continue to Be Significant
2000 –
1Q10
CAGR
A Distinctive Record of
Global Growth
Northern Trust
Global Custody
Assets
EAFE
S&P 500
Successfully serving clients all around the world has led to a distinctive record of global growth.
-1%
-3%
19%

Northern Trust Global Investments

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William Blair & Company –
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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
Securities
Lending
Transition
Management
Commission
Recapture
Securities
Brokerage
Cash
Overlay
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.

Outstanding and Consistent
Financial Strength Across Cycles

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Diversified and High Quality Loan Portfolio
All data is as of 3/31/10.
NPAs
= Nonperforming Assets.  NCOs = Net Charge-offs
$28
Billion
Loan
Portfolio
$BN
Loan Quality Notably Better
than Industry Averages
Northern Trust
Top 20 Peer Avg.

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
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William Blair & Company –
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Annual Growth Stock Conference
Consistently Strong Capital Ratios
Tier 1 Capital
13.0%
13.4%
Total Risk-Based
15.2%
15.5%
Leverage
8.9%
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 Implications of the
Current Environment

Trust, Investment and Other Servicing Fees
Trust,
Investment
and
Other
Servicing
Fees
$MM
(Excludes impact of mark to market fund)
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)
S&P 500
EAFE
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William Blair & Company –
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Annual Growth Stock Conference
Note: Excludes impact of mark-to-market adjustments in one investment fund used in securities lending activities.

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
$MM
(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%
SL Avg
Collateral
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William Blair & Company –
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Annual Growth Stock Conference
Note: Excludes impact of mark-to-market adjustments in one investment fund used in securities lending activities.

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
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Annual Growth Stock Conference
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William Blair & Company –
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Annual Growth Stock Conference
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%
Avg
Fed Funds Rate
1.70%
1.76%
1.56%
Net Interest Margin
1.44%
1.76%
1.82%
1.66%
1.73%
1.93%
2.02%
2.02%

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30
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Annual Growth Stock Conference
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Loan Loss Provision
Loan
Loss
Provision
$MM
LLP to Avg. Loans
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
$17.5
$17.6
$17.9
$16.5

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William Blair & Company –
30
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Annual Growth Stock Conference
Addressing Today's Challenges.
Positioned for Tomorrow's Growth.
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

Questions?
©
2010 Northern Trust Corporation
William Blair & Company
30
th
Annual Growth Stock Conference