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Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
Q1 2009 Earning Report of Northern Trust Corporation
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Q1 2009 Earning Report of Northern Trust Corporation

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  • 1. Financial Trends First Quarter 2009 April 21, 2009 Please direct inquiries to: Bev Fleming Senior Vice President, Director of Investor Relations (312) 444-7811 or beverly_fleming@ntrs.com Preeti Sullivan Vice President, Investor Relations (312) 630-0862 or preeti_sullivan@ntrs.com The historical financial results and trends reflected in this report are not indicative of future financial results and trends for Northern Trust Corporation. This report should be read in conjunction with the Corporation's First Quarter 2009 earnings press release, 2008 Annual Report to Shareholders, and periodic reports to the Securities and Exchange Commission, all of which contain additional information about factors that could affect the Corporation's future financial results and trends. The Corporation assumes no obligation to update this report.
  • 2. Northern Trust Corporation FINANCIAL SUMMARY - Reported Results First Quarter 2009 2008 2009 2004 2005 2006 2007 2008 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Profitability $505.6 $584.4 $665.4 $726.9 $794.8 NET INCOME/(LOSS) (in millions) $385.2 $215.6 ($148.3) $342.3 $161.8 $505.6 $584.4 $665.4 $726.9 $782.8 NET INCOME/(LOSS) TO COMMON $385.2 $215.6 ($148.3) $330.3 $138.8 $2.28 $2.66 $3.03 $3.28 $3.51 Basic EPS $1.73 $0.97 ($0.66) $1.47 $0.62 $2.26 $2.63 $2.99 $3.23 $3.47 Diluted EPS $1.71 $0.96 ($0.66) $1.47 $0.61 26% 16% 14% 8% 7% Growth over Previous Year 106% 4% -171% 167% -64% 16.07% 17.01% 17.57% 17.46% 15.98% Return on Common Equity 33.36% 17.75% -11.62% 26.15% 10.88% 1.22% 1.27% 1.25% 1.20% 1.09% Return on Assets 2.28% 1.22% -0.80% 1.72% 0.85% 34.8% 35.3% 35.6% 31.5% 30.6% Profit Margin (pre-tax) 51.5% 40.3% -25.6% 46.5% 28.3% 21.7% 21.8% 21.7% 20.4% 18.4% Profit Margin (after-tax) 33.6% 19.7% -15.8% 29.8% 17.9% 73.3% 72.7% 73.6% 74.6% 73.9% Noninterest Income to Total Revenues 76.8% 77.3% 71.7% 69.7% 68.2% 57.2% 58.1% 58.5% 58.2% 49.3% Trust Fees to Total Revenue 46.0% 59.0% 50.6% 42.5% 45.4% Capital Ratios: Risk-Based Capital Ratios: 11.0% 9.7% 9.8% 9.7% 13.1% Tier 1 9.5% 9.8% 9.2% 13.1% 13.0% 13.3% 12.3% 11.9% 11.9% 15.4% Total 11.4% 11.7% 11.4% 15.4% 15.2% 7.6% 7.1% 6.7% 6.8% 8.5% Leverage Ratio (to avg. assets) 6.9% 6.9% 6.6% 8.5% 8.9% 6.8% 5.8% 5.7% 6.0% 5.5% Tangible Common Equity Ratio 5.5% 6.0% 5.5% 5.5% 5.9% 10.6% 11.5% 12.1% 12.0% 10.9% Internal Capital Generation Rate 28.2% 12.7% NM 21.2% 6.0% Stock Price / Dividend Ratios: $0.780 $0.860 $0.940 $1.030 $1.120 Per Share Dividend $0.280 $0.280 $0.280 $0.280 $0.280 34% 32% 31% 31% 32% Dividend Payout Ratio 16% 29% NM 19% 45% $48.58 $51.82 $60.69 $76.58 $52.14 Stock Price at EOP $66.47 $68.57 $72.20 $52.14 $59.82 21.5 19.7 20.3 23.7 15.0 Stock Price Multiple of Earnings 16.2 16.5 28.3 15.0 25.1 (based on trailing 4 quarters of diluted EPS) $15.04 $16.51 $18.03 $20.44 $21.89 Book Value Per Share $21.62 $22.46 $21.68 $21.89 $22.44 Note: Current and prior period per common share amounts reflect Northern Trust's adoption on January 1, 2009 of the Financial Accounting Standards Board FSP EITF 03-06-1 quot;Determing Whether Instruments Granted in Share-Based Payment Transactions are Participating Securitiesquot;. PAGE 1
  • 3. Northern Trust Corporation FINANCIAL SUMMARY - Operating Results First Quarter 2009 2008 2009 2004 2005 2006 2007* 2008 1st Qtr** 2nd Qtr 3rd Qtr*** 4th Qtr**** 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Profitability $505.6 $584.4 $665.4 $821.1 $641.3 NET INCOME/(LOSS) (in millions) $231.7 $215.6 ($129.4) $323.3 $161.8 $505.6 $584.4 $665.4 $821.1 $629.3 NET INCOME/(LOSS) TO COMMON $231.7 $215.6 ($129.4) $311.3 $138.8 $2.28 $2.66 $3.03 $3.71 $2.82 Basic EPS $1.04 $0.97 ($0.58) $1.39 $0.62 $2.26 $2.63 $2.99 $3.65 $2.79 Diluted EPS $1.03 $0.96 ($0.58) $1.38 $0.61 26% 16% 14% 22% -24% Growth over Previous Year 23% 5% -163% 42% -41% 16.07% 17.01% 17.57% 19.72% 12.89% Return on Common Equity 19.85% 17.96% -10.26% 24.86% 10.94% 1.22% 1.27% 1.25% 1.36% 0.88% Return on Assets 1.37% 1.22% -0.70% 1.62% 0.85% 34.8% 35.3% 35.6% 35.7% 26.0% Profit Margin (pre-tax) 35.4% 40.3% -22.4% 43.9% 28.3% 21.7% 21.8% 21.7% 23.0% 15.4% Profit Margin (after-tax) 23.7% 19.7% -13.8% 28.1% 17.9% 73.3% 72.7% 73.6% 74.6% 72.9% Noninterest Income to Total Revenues 72.8% 77.3% 71.7% 69.7% 68.2% 57.2% 58.1% 58.5% 58.2% 51.3% Trust Fees to Total Revenue 53.9% 59.0% 50.6% 42.5% 45.4% Capital Ratios: Risk-Based Capital Ratios: 11.0% 9.7% 9.8% 9.9% 13.0% Tier 1 9.4% 9.7% 9.1% 13.0% 12.9% 13.3% 12.3% 11.9% 12.1% 15.2% Total 11.2% 11.6% 11.4% 15.2% 15.1% 7.6% 7.1% 6.7% 6.9% 8.4% Leverage Ratio (to avg. assets) 6.8% 6.8% 6.6% 8.4% 8.9% 10.6% 11.5% 12.1% 14.2% 7.8% Internal Capital Generation Rate 14.6% 12.8% NM 19.9% 6.0% Stock Price / Dividend Ratios: $0.780 $0.860 $0.940 $1.030 $1.120 Per Share Dividend $0.280 $0.280 $0.280 $0.280 $0.280 34% 32% 31% 28% 40% Dividend Payout Ratio 27% 29% NM 20% 45% $48.58 $51.82 $60.69 $76.58 $52.14 Stock Price at EOP $66.47 $68.57 $72.20 $52.14 $59.82 21.5 19.7 20.3 20.8 18.7 Stock Price Multiple of Earnings 17.3 17.6 30.3 18.7 25.3 (based on trailing 4 quarters of diluted EPS) $15.04 $16.51 $18.03 $20.87 $21.63 Book Value Per Share $20.92 $22.19 $21.50 $21.63 $22.18 * Operating results for the full year 2007 exclude the impact of the $150 million of Visa indemnification charges. ** Operating results for the 1st quarter 2008 exclude the impact of the $167.9 million of VISA gain and $76.1 million reduction of the VISA related indemnification reserves. *** Operating results for the 3rd quarter of 2008 exclude the impact of the $30 million of Visa indemnification charges. **** Operating results for the 4th quarter of 2008 exclude the impact of the $30 million benefit from the reversal of the third quarter Visa settlement accrual due to its funding by Visa through an escrow account. PAGE 1A
  • 4. Northern Trust Corporation INCOME STATEMENT - Reported Results ($ in Millions except EPS information) FIRST QUARTER CHANGE $ 2009 2008 % C&IS Trust, Inv. & Other Servicing Fees $207.0 $298.4 ($91.4) -31% PFS Trust, Inv. & Other Servicing Fees 203.7 228.4 (24.7) -11% Total Fees 410.7 526.8 (116.1) -22% Foreign Exchange Trading Income 131.1 113.2 17.9 16% Treasury Management Fees 20.4 17.4 3.0 17% Security Commissions & Trading Income 16.8 17.8 (1.0) -6% Gain on Visa Share Redemption - 167.9 - NM Other Operating Income 37.1 31.8 5.3 17% Investment Security Transactions 0.4 5.0 (4.6) -93% Total Noninterest Income 616.5 879.9 (263.4) -30% Interest Income - FTE 404.4 689.7 (285.3) -41% Less: Interest Expense 116.7 423.6 (306.9) -72% Net Interest Income - FTE 287.7 266.1 21.6 8% Total Revenues (FTE) 904.2 1,146.0 (241.8) -21% Compensation 258.3 286.2 (27.9) -10% Employee Benefits 65.8 57.3 8.5 15% Outside Services 95.7 93.9 1.8 2% Equipment and Software Expense 61.7 54.2 7.5 14% Occupancy Expense 41.8 41.4 0.4 1% Visa Indemnification Charges - (76.1) 76.1 NM Other Operating Expense 70.2 78.4 (8.2) -11% Total Noninterest Expense 593.5 535.3 58.2 11% Provision for Credit Losses 55.0 20.0 35.0 175% Pre-Tax Income/(Loss) (FTE) 255.7 590.7 (335.0) -57% Provision (Benefit) for Income Taxes 83.3 192.9 (109.6) -57% Taxable Equivalent Adjustment 10.6 12.6 (2.0) -16% Total Taxes (FTE) 93.9 205.5 (111.6) -54% Net Income/(Loss) $161.8 $385.2 ($223.4) -58% EPS - Basic $0.62 $1.73 ($1.11) -64% EPS - Diluted $0.61 $1.71 ($1.10) -64% EOP Shares Outstanding (000s) 223,669 220,136 3,533 2% Average Basic Shares (000s) 223,357 220,320 3,037 1% Average Diluted Shares (000s) 224,401 223,529 872 - PAGE 2
  • 5. Northern Trust Corporation INCOME STATEMENT - Operating Results ($ in Millions except EPS information) FIRST QUARTER CHANGE $ 2009 2008* % C&IS Trust, Inv. & Other Servicing Fees $207.0 $298.4 ($91.4) -31% PFS Trust, Inv. & Other Servicing Fees 203.7 228.4 (24.7) -11% Total Fees 410.7 526.8 (116.1) -22% Foreign Exchange Trading Income 131.1 113.2 17.9 16% Treasury Management Fees 20.4 17.4 3.0 17% Security Commissions & Trading Income 16.8 17.8 (1.0) -6% Other Operating Income 37.1 31.8 5.3 17% Investment Security Transactions 0.4 5.0 (4.6) -93% Total Noninterest Income 616.5 712.0 (95.5) -13% Interest Income - FTE 404.4 689.7 (285.3) -41% Less: Interest Expense 116.7 423.6 (306.9) -72% Net Interest Income - FTE 287.7 266.1 21.6 8% Total Revenues (FTE) 904.2 978.1 (73.9) -8% Compensation 258.3 286.2 (27.9) -10% Employee Benefits 65.8 57.3 8.5 15% Outside Services 95.7 93.9 1.8 2% Equipment and Software Expense 61.7 54.2 7.5 14% Occupancy Expense 41.8 41.4 0.4 1% Other Operating Expense 70.2 78.4 (8.2) -11% Total Noninterest Expense 593.5 611.4 (17.9) -3% Provision for Credit Losses 55.0 20.0 35.0 175% Pre-Tax Income/(Loss) (FTE) 255.7 346.7 (91.0) -26% Provision (Benefit) for Income Taxes 83.3 102.4 (19.1) -19% Taxable Equivalent Adjustment 10.6 12.6 (2.0) -16% Total Taxes (FTE) 93.9 115.0 (21.1) -18% Net Income/(Loss) $161.8 $231.7 ($69.9) -30% EPS - Basic $0.62 $1.04 ($0.42) -40% EPS - Diluted $0.61 $1.03 ($0.42) -41% EOP Shares Outstanding (000s) 223,669 220,136 3,533 2% Average Basic Shares (000s) 223,357 220,320 3,037 1% Average Diluted Shares (000s) 224,401 223,529 872 - * Operating results for the first quarter 2008 exclude the impact of the $167.9 million of VISA gain and $76.1 million reduction of the VISA related indemnification reserves. PAGE 2A
  • 6. Northern Trust Corporation NET INCOME TRENDS - Reported Results ($ in Millions except EPS information) 2008 2009 2004 2005 2006 2007 2008 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $680.4 $852.3 $1,012.4 $1,179.8 $1,225.9 C&IS Trust, Inv. & Other Servicing Fees $298.4 $409.2 $244.5 $273.8 $207.0 649.9 707.1 779.2 897.8 909.0 PFS Trust, Inv. & Other Servicing Fees 228.4 235.9 230.4 214.3 203.7 1,330.3 1,559.4 1,791.6 2,077.6 2,134.9 Total Fees 526.8 645.1 474.9 488.1 410.7 158.0 180.2 247.3 351.3 616.2 Foreign Exchange Trading Income 113.2 126.6 141.8 234.6 131.1 88.1 71.2 65.4 65.3 72.8 Treasury Management Fees 17.4 18.4 17.6 19.4 20.4 50.5 55.2 62.7 67.6 77.0 Security Comm. & Trading Income 17.8 20.4 19.2 19.6 16.8 - - - - 167.9 Gain on Visa Share Redemption 167.9 - - - - 78.0 85.2 83.0 95.3 186.9 Other Operating Income 31.8 34.8 36.2 84.1 37.1 0.2 0.3 1.4 6.5 (56.3) Investment Security Transactions 5.0 - (16.9) (44.4) 0.4 1,705.1 1,951.5 2,251.4 2,663.6 3,199.4 Total Noninterest Income 879.9 845.3 672.8 801.4 616.5 621.3 734.6 809.5 907.9 1,128.9 Net Interest Income - FTE 266.1 248.8 265.7 348.3 287.7 2,326.4 2,686.1 3,060.9 3,571.5 4,328.3 Total Revenues (FTE) 1,146.0 1,094.1 938.5 1,149.7 904.2 661.7 774.2 876.6 1,038.2 1,133.1 Compensation 286.2 306.0 230.3 310.6 258.3 161.5 190.4 217.6 234.9 223.4 Employee Benefits 57.3 62.7 52.4 51.0 65.8 228.0 268.0 316.2 386.2 413.8 Outside Services 93.9 106.2 106.5 107.2 95.7 192.8 196.6 205.3 219.3 241.2 Equipment and Software Expense 54.2 56.9 60.7 69.4 61.7 121.5 133.7 145.4 156.5 166.1 Occupancy Expense 41.4 39.7 41.8 43.2 41.8 - - - 150.0 (76.1) Visa Indemnification Charges (76.1) - 30.0 (30.0) - 166.2 172.0 195.8 245.1 786.3 Other Operating Expense 78.4 71.8 632.3 3.8 70.2 1,531.7 1,734.9 1,956.9 2,430.2 2,887.8 Total Noninterest Expense 535.3 643.3 1,154.0 555.2 593.5 (15.0) 2.5 15.0 18.0 115.0 Provision for Credit Losses 20.0 10.0 25.0 60.0 55.0 809.7 948.7 1,089.0 1,123.3 1,325.5 Pre-Tax Income/(Loss) (FTE) 590.7 440.8 (240.5) 534.5 255.7 249.7 303.4 358.8 333.9 480.9 Provision (Benefit) for Income Taxes 192.9 212.5 (104.5) 180.0 83.3 54.4 60.9 64.8 62.5 49.8 Taxable Equivalent Adjustment 12.6 12.7 12.3 12.2 10.6 304.1 364.3 423.6 396.4 530.7 Total Taxes (FTE) 205.5 225.2 (92.2) 192.2 93.9 $505.6 $584.4 $665.4 $726.9 $794.8 Net Income/(Loss) $385.2 $215.6 ($148.3) $342.3 $161.8 $2.28 $2.66 $3.03 $3.28 $3.51 EPS - Basic $1.73 $0.97 ($0.66) $1.47 $0.62 $2.26 $2.63 $2.99 $3.23 $3.47 EPS - Diluted $1.71 $0.96 ($0.66) $1.47 $0.61 222,053 220,511 220,723 223,079 224,053 Average Diluted Shares (000s)* 223,529 223,869 225,312 223,496 224,401 $0.0 $0.0 $0.0 $0.0 $12.0 Preferred Dividends $0.0 $0.0 $0.0 $12.0 $23.0 (Cumulative Perpetual Preferred Stock) *Due to the net loss for the three months ended September 30, 2008, the diluted earnings per share calculation excludes all common stock equivalents as their inclusion would have been antidilutive. PAGE 3
  • 7. Northern Trust Corporation NET INCOME TRENDS - Operating Results ($ in Millions except EPS information) 2008 2009 2004 2005 2006 2007* 2008 1st Qtr** 2nd Qtr 3rd Qtr*** 4th Qtr**** 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $680.4 $852.3 $1,012.4 $1,179.8 $1,225.9 C&IS Trust, Inv. & Other Servicing Fees $298.4 $409.2 $244.5 $273.8 $207.0 649.9 707.1 779.2 897.8 909.0 PFS Trust, Inv. & Other Servicing Fees 228.4 235.9 230.4 214.3 203.7 1,330.3 1,559.4 1,791.6 2,077.6 2,134.9 Total Fees 526.8 645.1 474.9 488.1 410.7 158.0 180.2 247.3 351.3 616.2 Foreign Exchange Trading Income 113.2 126.6 141.8 234.6 131.1 88.1 71.2 65.4 65.3 72.8 Treasury Management Fees 17.4 18.4 17.6 19.4 20.4 50.5 55.2 62.7 67.6 77.0 Security Comm. & Trading Income 17.8 20.4 19.2 19.6 16.8 78.0 85.2 83.0 95.3 186.9 Other Operating Income 31.8 34.8 36.2 84.1 37.1 0.2 0.3 1.4 6.5 (56.3) Investment Security Transactions 5.0 - (16.9) (44.4) 0.4 1,705.1 1,951.5 2,251.4 2,663.6 3,031.5 Total Noninterest Income 712.0 845.3 672.8 801.4 616.5 621.3 734.6 809.5 907.9 1,128.9 Net Interest Income - FTE 266.1 248.8 265.7 348.3 287.7 2,326.4 2,686.1 3,060.9 3,571.5 4,160.4 Total Revenues (FTE) 978.1 1,094.1 938.5 1,149.7 904.2 661.7 774.2 876.6 1,038.2 1,133.1 Compensation 286.2 306.0 230.3 310.6 258.3 161.5 190.4 217.6 234.9 223.4 Employee Benefits 57.3 62.7 52.4 51.0 65.8 228.0 268.0 316.2 386.2 413.8 Outside Services 93.9 106.2 106.5 107.2 95.7 192.8 196.6 205.3 219.3 241.2 Equipment and Software Expense 54.2 56.9 60.7 69.4 61.7 121.5 133.7 145.4 156.5 166.1 Occupancy Expense 41.4 39.7 41.8 43.2 41.8 166.2 172.0 195.8 245.1 786.3 Other Operating Expense 78.4 71.8 632.3 3.8 70.2 1,531.7 1,734.9 1,956.9 2,280.2 2,963.9 Total Noninterest Expense 611.4 643.3 1,124.0 585.2 593.5 (15.0) 2.5 15.0 18.0 115.0 Provision for Credit Losses 20.0 10.0 25.0 60.0 55.0 809.7 948.7 1,089.0 1,273.3 1,081.5 Pre-Tax Income/(Loss) (FTE) 346.7 440.8 (210.6) 504.5 255.7 249.7 303.4 358.8 389.7 390.4 Provision (Benefit) for Income Taxes 102.4 212.5 (93.5) 169.0 83.3 54.4 60.9 64.8 62.5 49.8 Taxable Equivalent Adjustment 12.6 12.7 12.3 12.2 10.6 304.1 364.3 423.6 452.2 440.2 Total Taxes (FTE) 115.0 225.2 (81.2) 181.2 93.9 $505.6 $584.4 $665.4 $821.1 $641.3 Net Income/(Loss) $231.7 $215.6 ($129.4) $323.3 $161.8 $2.28 $2.66 $3.03 $3.74 $2.82 EPS - Basic $1.04 $0.97 ($0.58) $1.39 $0.62 $2.26 $2.63 $2.99 $3.68 $2.79 EPS - Diluted $1.03 $0.96 ($0.58) $1.38 $0.61 222,053 220,511 220,723 223,079 224,053 Average Diluted Shares (000s)***** 223,529 223,869 225,312 223,496 224,401 $0.0 $0.0 $0.0 $0.0 $12.0 Preferred Dividends $0.0 $0.0 $0.0 $12.0 $23.0 (Cumulative Perpetual Preferred Stock) * Operating results for the full year 2007 exclude the impact of the $150 million of Visa indemnification charges. ** Operating results for the 1st quarter 2008 exclude the impact of the $167.9 million of VISA gain and $76.1 million reduction of the VISA related indemnification reserves. *** Operating results for the 3rd quarter of 2008 exclude the impact of the $30 million of Visa indemnification charges. **** Operating results for the 4th quarter of 2008 exclude the impact of the $30 million benefit from the reversal of the third quarter Visa settlement accrual due to its funding by Visa through an escrow account. ***** Due to the net loss for the three months ended September 30, 2008, the diluted earnings per share calculation excludes all common stock equivalents as their inclusion would have been antidilutive. PAGE 3A
  • 8. Northern Trust Corporation TRUST, INVESTMENT & OTHER SERVICING FEES DETAIL ($ in Millions) 2008 2009 2004 2005 2006 2007 2008 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr C&IS Trust, Investment & Other Servicing Fees Detail $272.1 $399.9 $502.4 $615.2 $661.6 Custody & Fund Admin. Services $174.7 $172.4 $164.4 $150.1 $136.3 230.2 242.0 256.3 290.6 $277.4 Investment Management 74.6 72.1 68.2 62.5 60.4 120.1 148.7 191.5 207.1 $221.4 Securities Lending 31.9 149.9 (4.6) 44.2 (7.9) 58.0 61.7 62.2 66.9 $65.5 Other Services 17.2 14.8 16.5 17.0 18.2 $680.4 $852.3 $1,012.4 $1,179.8 $1,225.9 Total C&IS $298.4 $409.2 $244.5 $273.8 $207.0 PFS Trust, Investment & Other Servicing Fees Detail $206.9 $215.7 $233.4 $263.0 $270.4 Illinois* $69.7 $70.9 $67.0 $62.8 $59.4 166.5 177.0 189.2 207.3 $205.5 Florida 52.3 54.5 52.1 46.6 43.5 77.3 95.4 111.1 133.6 $142.4 Wealth Management 36.2 34.7 35.1 36.4 35.5 199.2 219.0 245.5 293.3 $290.7 Other* 70.2 75.8 76.2 68.5 65.3 $649.9 $707.1 $779.2 $897.2 $909.0 Total PFS $228.4 $235.9 $230.4 $214.3 $203.7 * Results have been adjusted to reflect a restructuring change of two divisions (from Illinois to the Other category). PAGE 4
  • 9. Northern Trust Corporation END OF PERIOD BALANCE SHEET ($ in Millions) CHANGE Assets 3/31/2009 3/31/2008 $ % Securities** Government & Other Taxable 16,965.4 $10,382.9 6,582.5 63% Tax Exempt 837.8 851.6 (13.8) (2%) Trading Account 5.1 11.4 (6.3) (55%) Money Market Assets 21,776.0 30,429.3 (8,653.3) (28%) Loans and Leases 30,410.9 26,760.5 3,650.4 14% Total Earnings Assets 69,995.2 68,435.7 1,559.5 2% Reserve for Credit Losses Assigned to Loans and Leases (286.2) (165.4) (120.8) 73% Cash and Due From 2,104.1 4,061.5 (1,957.4) (48%) Client Security Settlement Receivables 702.3 552.7 149.6 27% Buildings and Equipment, net 535.2 492.8 42.4 9% Other Nonearning Assets 5,414.0 4,103.0 1,311.0 32% Total Assets $78,464.6 $77,480.3 $984.3 1% Liabilities and Equity Savings Deposits $13,779.1 $10,209.4 $3,569.7 35% Other Time Deposits 984.0 540.2 443.8 82% Non- U.S. Offices Time Deposits 27,785.5 37,262.7 (9,477.2) (25%) Total Interest-Bearing Deposits 42,548.6 48,012.3 (5,463.7) (11%) Repurchase Agreements 1,021.2 1,996.9 (975.7) (49%) Other Purchased Funds 9,938.2 4,532.1 5,406.1 119% Senior Notes 1,049.0 661.3 387.7 59% Long-Term Debt (includes Trust Preferred Securities) 3,420.9 2,956.9 464.0 16% Total Interest-Related Funds 57,977.9 58,159.5 (181.6) NM Demand & Other Noninterest-Bearing Deposits 10,796.0 10,380.2 415.8 4% Other Liabilities 3,166.0 4,182.2 (1,016.2) (24%) Total Liabilities 71,939.9 72,721.9 (782.0) (1%) Total Equity 6,524.7 4,758.4 1,766.3 37% Total Liabilities and Equity $78,464.6 $77,480.3 $984.3 1% **Memo: Securities Held to Maturity: $1,131.7 Securities Available for Sale: $16,671.5 PAGE 5
  • 10. Northern Trust Corporation BALANCE SHEET TRENDS PERIOD AVERAGES * ($ in Millions) 2008 2009 2004 2005 2006 2007 2008 Assets 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Securities $7,229 $8,967 $10,896 $11,569 $11,438 Government & Other Taxable $9,419 $10,922 $11,962 $13,422 $15,905 920 926 901 884 838 Tax Exempt 863 834 831 826 862 5 5 6 6 11 Trading Account 8 15 11 10 6 11,405 11,802 13,663 18,149 24,560 Money Market Assets 24,576 24,239 24,812 24,887 22,948 17,451 18,754 20,529 22,818 27,403 Loans and Leases 24,778 26,866 27,705 30,228 29,725 37,010 40,454 45,995 53,426 64,250 Total Earnings Assets 59,643 62,875 65,320 69,373 69,446 (145) (129) (132) (140) (170) Reserve for Credit Losses (148) (165) (174) (193) (229) 4,435 5,649 7,243 7,302 8,950 Nonearning Assets 8,598 8,566 8,171 10,175 8,139 $41,300 $45,974 $53,106 $60,588 $73,029 Total Assets $68,093 $71,277 $73,317 $79,355 $77,356 Liabilities and Equity $8,793 $8,750 $8,296 $9,036 $9,911 Savings Deposits $9,561 $9,795 $9,800 $10,482 $12,343 322 380 420 518 615 Other Time Deposits 528 557 604 770 838 12,502 17,125 21,853 28,588 35,958 Non-U.S. Offices Time Deposits 34,040 35,892 38,706 35,173 30,559 21,616 26,255 30,569 38,142 46,484 Total Interest-Bearing Deposits 44,129 46,245 49,110 46,425 43,740 1,722 1,695 2,030 1,620 1,272 Repurchase Agreements 1,419 1,484 1,035 1,152 888 4,350 2,825 4,506 2,702 3,338 Other Purchased Funds 2,329 3,199 2,303 5,508 5,743 328 258 365 479 804 Senior Notes 658 656 862 1,038 1,044 2,880 3,166 2,940 2,781 3,276 Long-Term Debt (Incl. Trust Pref.) 2,964 3,039 3,556 3,541 3,527 30,897 34,199 40,410 45,724 55,174 Total Interest-Related Funds 51,499 54,622 56,865 57,664 54,942 5,411 5,847 6,389 7,648 8,815 Demand & Other Nonint. Deposits 8,644 8,999 7,880 9,737 12,395 1,847 2,493 2,520 3,052 3,934 Other Liabilities 3,343 2,770 3,494 6,109 3,343 38,155 42,539 49,319 56,424 67,922 Total Liabilities 63,486 66,390 68,239 73,510 70,680 3,145 3,435 3,787 4,164 4,900 Common Equity 4,607 4,887 5,078 5,024 5,173 - - - - 206 Preferred Equity (Series B) - - - 821 1,503 3,145 3,435 3,787 4,164 5,106 Total Stockholders' Equity 4,607 4,887 5,078 5,845 6,676 $41,300 $45,974 $53,106 $60,588 $73,029 Total Liabilities and Equity $68,093 $71,277 $73,317 $79,355 $77,356 $6,113 $6,255 $5,585 $7,702 $9,075 Net Noninterest-Related Funds $8,144 $8,253 $8,455 $11,710 $14,504 *Summations may not equal due to rounding PAGE 6
  • 11. Northern Trust Corporation BALANCE SHEET MIX TRENDS PERIOD AVERAGES 2008 2009 2004 2005 2006 2007 2008 Assets 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Securities 17.5% 19.5% 20.5% 19.1% 15.7% Government & Other Taxable 13.8% 15.3% 16.3% 16.9% 20.6% 2.2% 2.0% 1.7% 1.5% 1.1% Tax Exempt 1.3% 1.2% 1.1% 1.0% 1.1% 0.0% 0.0% 0.0% 0.0% 0.0% Trading Account 0.0% 0.0% 0.0% 0.0% 0.0% 27.6% 25.7% 25.7% 30.0% 33.6% Money Market Assets 36.1% 34.0% 33.8% 31.4% 29.7% 42.3% 40.8% 38.7% 37.7% 37.5% Loans and Leases 36.4% 37.7% 37.8% 38.1% 38.4% 89.6% 88.0% 86.6% 88.2% 88.0% Total Earnings Assets 87.6% 88.2% 89.1% 87.4% 89.8% -0.4% -0.3% -0.2% -0.2% -0.2% Reserve for Credit Losses -0.2% -0.2% -0.2% -0.2% -0.3% 10.7% 12.3% 13.6% 12.1% 12.3% Nonearning Assets 12.6% 12.0% 11.1% 12.8% 10.5% 100.0% 100.0% 100.0% 100.0% 100.0% Total Assets 100.0% 100.0% 100.0% 100.0% 100.0% Liabilities and Equity 21.3% 19.0% 15.6% 14.9% 13.6% Savings Deposits 14.0% 13.7% 13.4% 13.2% 16.0% 0.8% 0.8% 0.8% 0.9% 0.8% Other Time Deposits 0.8% 0.8% 0.8% 1.0% 1.1% 30.3% 37.2% 41.1% 47.2% 49.2% Non-U.S. Offices Time Deposits 50.0% 50.4% 52.8% 44.3% 39.5% 52.3% 57.1% 57.6% 63.0% 63.7% Total Interest-Bearing Deposits 64.8% 64.9% 67.0% 58.5% 56.5% 4.2% 3.7% 3.8% 2.7% 1.7% Repurchase Agreements 2.1% 2.1% 1.4% 1.5% 1.1% 10.5% 6.1% 8.5% 4.5% 4.6% Other Purchased Funds 3.4% 4.5% 3.1% 6.9% 7.4% 0.8% 0.6% 0.7% 0.8% 1.1% Senior Notes 1.0% 0.9% 1.2% 1.3% 1.3% 7.0% 6.9% 5.5% 4.6% 4.5% Long-Term Debt (Incl. Trust Pref.) 4.4% 4.3% 4.9% 4.5% 4.6% 74.8% 74.4% 76.1% 75.5% 75.6% Total Interest-Related Funds 75.6% 76.6% 77.6% 72.7% 71.0% 13.1% 12.7% 12.0% 12.6% 12.1% Demand & Other Nonint. Deposits 12.7% 12.6% 10.7% 12.3% 16.0% 4.5% 5.4% 4.7% 5.0% 5.4% Other Liabilities 4.9% 3.9% 4.8% 7.7% 4.3% 92.4% 92.5% 92.9% 93.1% 93.0% Total Liabilities 93.2% 93.1% 93.1% 92.6% 91.4% 7.6% 7.5% 7.1% 6.9% 6.7% Common Equity 6.8% 6.9% 6.9% 6.3% 6.7% 0.0% 0.0% 0.0% 0.0% 0.3% Preferred Equity 0.0% 0.0% 0.0% 1.0% 1.9% 7.6% 7.5% 7.1% 6.9% 7.0% Total Stockholders' Equity 6.8% 6.9% 6.9% 7.4% 8.6% 100.0% 100.0% 100.0% 100.0% 100.0% Total Liabilities and Equity 100.0% 100.0% 100.0% 100.0% 100.0% PAGE 7
  • 12. Northern Trust Corporation INTEREST RATE TRENDS (FTE Basis) PERIOD AVERAGES 2008 2009 2004 2005 2006 2007 2008 Earnings Assets 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Securities 1.79% 3.53% 5.12% 5.36% 2.96% Government & Other Taxable 4.01% 2.93% 2.81% 2.37% 1.52% 7.09% 6.89% 6.71% 6.68% 6.68% Tax Exempt 6.66% 6.69% 6.64% 6.72% 6.78% 2.29% 3.21% 3.87% 4.66% 3.81% Money Market Assets 4.22% 3.95% 4.19% 2.84% 1.50% 4.16% 4.87% 5.69% 5.79% 4.38% Loans and Leases 5.25% 4.04% 4.21% 4.11% 3.34% 3.19% 4.14% 5.03% 5.33% 3.94% Total Earnings Assets 4.65% 3.85% 3.98% 3.35% 2.36% Interest-Bearing Funds 1.04% 1.93% 3.13% 3.68% 2.12% Savings Deposits 2.89% 2.05% 1.93% 1.67% 1.18% 1.63% 2.78% 4.28% 4.74% 3.28% Other Time Deposits 4.23% 3.21% 2.96% 2.89% 2.18% 1.61% 2.62% 3.69% 4.22% 2.46% Non-U.S. Offices Time Deposits 3.22% 2.53% 2.73% 1.38% 0.33% 1.38% 2.39% 3.55% 4.10% 2.40% Total Interest-Bearing Deposits 3.16% 2.44% 2.57% 1.47% 0.61% 1.29% 3.08% 4.88% 4.94% 1.79% Repurchase Agreements 2.84% 1.92% 1.73% 0.41% 0.19% 1.28% 2.50% 3.05% 4.12% 1.64% Other Purchased Funds 3.04% 2.23% 1.97% 0.57% 0.17% 5.84% 4.53% 4.52% 5.58% 5.51% Senior Notes 5.63% 5.47% 5.54% 5.40% 3.34% 5.71% 5.61% 5.70% 5.65% 4.94% Long-Term Debt (incl. Trust Pref.) 5.43% 5.08% 4.71% 4.63% 4.59% 1.81% 2.74% 3.72% 4.24% 2.54% Total Interest-Related Funds 3.31% 2.60% 2.71% 1.62% 0.86% 1.38% 1.40% 1.31% 1.09% 1.40% 1.34% 1.25% 1.27% 1.73% 1.50% Net Interest Spread 1.68% 1.82% 1.76% 1.70% 1.76% 1.79% 1.59% 1.62% 2.00% 1.68% Net Interest Margin PAGE 8
  • 13. Northern Trust Corporation ASSET QUALITY END OF PERIOD ($ in Millions) 2008 2009 2004 2005 2006 2007 2008 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $157.2 $139.3 $136.0 $151.0 $160.2 Beginning Reserve for Credit Losses $160.2 $177.8 $183.1 $207.5 $251.1 (15.0) 2.5 15.0 18.0 115.0 Provision for Credit Losses 20.0 10.0 25.0 60.0 55.0 (7.3) (7.6) (1.8) (9.7) (25.7) Gross Charge-offs (2.7) (4.9) (1.5) (16.6) (5.4) 4.4 1.8 1.6 0.9 2.5 Gross Recoveries 0.3 0.2 1.2 0.8 2.7 - - 0.2 - (0.9) Translation - - (0.3) (0.6) (0.1) (2.9) (5.8) - (8.8) (24.1) Net Charge-offs/Translation (2.4) (4.7) (0.6) (16.4) (2.8) $139.3 $136.0 $151.0 $160.2 $251.1 Ending Reserve for Credit Losses $177.8 $183.1 $207.5 $251.1 $303.3 0.02% 0.03% 0.00% 0.04% 0.09% Net Charge-offs / Average Loans 0.04% 0.07% 0.01% 0.22% 0.04% $17,451 $18,754 $20,529 $22,818 $27,403 Average Loans Outstanding $24,778 $26,866 $27,705 $30,228 $29,725 $17,943 $19,969 $22,610 $25,340 $30,755 EOP Loans Outstanding $26,761 $28,678 $29,870 $30,755 $30,411 $130.7 $125.4 $140.4 $148.1 $229.1 Reserve for Credit Losses Assigned to Loans $165.4 $172.5 $194.7 $229.1 $286.2 $8.6 $10.6 $10.6 $12.1 $22.0 Reserve for Other Credit-Related Exposure $12.4 $10.6 $12.8 $22.0 $17.1 0.73% 0.63% 0.62% 0.58% 0.75% Credit Loss Reserve Assigned to Loans 0.62% 0.60% 0.65% 0.75% 0.94% / EOP Loans Nonperforming Assets $32.9 $31.0 $35.7 $23.2 $96.7 Nonperforming Loans $27.7 $30.1 $58.8 $96.7 $167.8 0.2 0.1 1.4 6.1 3.5 OREO 8.0 4.3 2.7 3.5 4.3 $33.1 $31.1 $37.1 $29.3 $100.2 Total $35.7 $34.4 61.5 100.2 $172.1 0.18% 0.16% 0.16% 0.12% 0.33% Nonperforming Assets / Loans + OREO 0.13% 0.12% 0.21% 0.33% 0.57% 4.0x 4.0x 3.9x 6.4x 2.4x Reserve to Nonperforming Loans 6.0x 5.7x 3.3x 2.4x 1.7x PAGE 9
  • 14. Northern Trust Corporation ASSETS UNDER MANAGEMENT AND CUSTODY END OF PERIOD 2008 2009 2004 2005 2006 2007 2008 Assets under Management 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $461.5 $500.7 $562.5 $608.9 $426.4 Corporate & Institutional $632.6 $608.6 $511.4 $426.4 $392.0 110.4 117.2 134.7 148.3 132.4 Personal 146.0 142.8 141.0 132.4 130.3 $571.9 $617.9 $697.2 $757.2 $558.8 Total $778.6 $751.4 $652.4 $558.8 $522.3 $187.9 $217.2 $247.9 $269.5 $110.2 Memo: Securities Lending Collateral $267.4 $238.1 $181.7 $110.2 $95.2 Assets under Custody $2,345.1 $2,699.7 $3,263.5 $3,802.9 $2,719.2 Corporate & Institutional $3,659.9 $3,635.7 $3,217.0 $2,719.2 $2,559.3 209.3 225.6 281.9 332.3 288.3 Personal 322.2 325.9 314.2 288.3 281.7 Total $2,554.4 $2,925.3 $3,545.4 $4,135.2 $3,007.5 $3,982.1 $3,961.6 $3,531.2 $3,007.5 $2,841.0 $965.4 $1,239.6 $1,690.6 $2,087.4 $1,422.0 Memo: Global Custody Assets * $2,009.5 $2,012.7 $1,710.8 $1,422.0 $1,355.6 * Includes the assets of non-US clients plus global custody assets of US clients. PAGE 10

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