Conference Slides

Giving Our Clients the Freedom to Focus on What Really Matters

Forward Looking Statement

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

relate to Northern Trust’s financial goals, dividend policy, expansion and business

development plans, 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 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, 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

2006 financial 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.

Giving Our Clients the Freedom to Focus on What Really Matters

20 Years of History: Economic Shocks & Cycles

1998:

LTCM collapse;

Russian debt default;

Global currency crisis

2000:

Y2K financial

infrastructure scare;

Start of 2-year stock

bear market

2001:

9/11 attack;

Invasion of

Afghanistan

2002:

Accounting

scandals:

Enron,

Worldcom,

Tyco, &

Global

Crossing

2003:

Second

Persian

Gulf War

(Iraq)

9/30/87

S&P 500: 321.83

10/19/87:

Black Monday:

S&P 500

declines 20%

1989:

Commercial

Real Estate

Bubble

bursting

2004-05:

Disastrous

hurricane

seasons

2004-07:

Oil spike

from $30

to $90 per

barrel

2007:

Subprime

mortgage

market

collapse &

debt market

liquidity

crunch

12/31/07

S&P 500:

1468.36

1990-1991:

Recession

1991:

Persian

Gulf War

(Kuwait)

1993:

Orange County

bankruptcy crisis

1994:

Fed rate

squeeze

and bond

bear

market

1995:

Mexican & Latin

American debt crises

1991:

Soviet

Union

collapse

Giving Our Clients the Freedom to Focus on What Really Matters

2007: A Tumultuous Year

Mortgage Loan Delinquency Rate at Commercial Banks: +100 bp***

Sub-Prime Related Write-Downs and Unusual Charges: over $100 bn**

*12/31/07 vs 12/31/06 **Announced in 2007 ***9/30/07 to 9/30/06

Yield Spread -

AA Financial Bond vs AAA U.S. Treasury/Agency: +116 bp*

Yield Spread -

3-Month LIBOR vs 3-Month Treasury Bill: +94 bp*

US$ Loses Value*

Against 14 of 16 Most Traded Currencies in the World

S&P 500 Operating Earnings per Share: -9.4%***

Price of West Texas Intermediate Crude Oil: +57%*

Median Sales Price of a Single-Family Home Declines in 2007 for First

Time Since 1968

KBW50 Bank Index: -26%*

Giving Our Clients the Freedom to Focus on What Really Matters

Strong Performance in 2007, Despite Tumultuous Environment

NTRS:

Full

Year

2007

EPS: Completed 12th

consecutive quarter

of double-digit,

year-over-year growth

Common Equity: Completed 79th

consecutive quarter

growth

Record

net income, up 23% vs 2006

Record

total revenues, up 17% vs 2006

Strong 17% growth in assets under custody vs 2006

Strong 9% growth in assets under management vs 2006

Credit quality improved: nonperforming assets decreased

and reserve ratios improved

2006

securities or leveraged loan write-downs

Note:

All

figures

are

Operating

basis,

e.g.

excluding

the

Fourth

Quarter

2007

VISA

charge

Giving Our Clients the Freedom to Focus on What Really Matters

Source: Claritas

Attractive Demographic Markets

PFS: Extensive Reach in High Growth, Affluent Markets

85 Offices in 18 States

Over 50% of millionaire market resides within

a 45-minute drive of Northern Trust offices.

Projected Annual

Household Growth Rates

2006 -

2011

8.5%

10.4%

15.0%

Growth Rate by

Household Asset Size

New York (1)

Arizona

(8)

Florida

(25)

Illinois

(19)

Colorado

(1)

Nevada

(1)

Missouri

(1)

Minnesota

(1)

Washington

(1)

Michigan

(3)

Texas

(7)

California

(11)

Georgia

(1)

Massachusetts (1)

Wisconsin

(1)

Ohio

(1)

Connecticut (1)

Delaware (1)

Giving Our Clients the Freedom to Focus on What Really Matters

(1)

McKinsey

Company

–

Mapping

the

Global

Capital

Market,

Third

Annual

Report,

January

2007

(2)

The

Greensted

Report,

Issue

Spring

2007

–

AUC

Top

custodians

December

31,

2006

Attractive Demographic Markets

C&IS: A World of Vast and Growing Opportunities

Total World

Capital Market:

$140 Trillion

Total Assets Under

Custody Worldwide:

$72 Trillion

United States

Europe

Latin

America,

Mid-East &

Other Asia

$40 Trillion

$28 Trillion

$50 Trillion

$22

Trillion

Japan,

China

& India

(1)

(2)

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15 Locations

Worldwide

Trade Settlement

in 90+ Markets

Clients in

41 Countries

Attractive Demographic Markets

C&IS: Positioned Globally for Growth

Positioned to serve clients locally and capitalize on global opportunities.

Chicago

(Corporate

Headquarters)

Toronto

London

New

York

Luxembourg

Amsterdam

Dublin

Guernsey

Jersey

Singapore

Beijing

Tokyo

Bangalore

Hong Kong

Melbourne

Giving Our Clients the Freedom to Focus on What Really Matters

Focused and Conservative

Client-centric and Highly Focused

Northern Trust Clients

Pension Funds

Large Corporations

Investment Management Firms

Foundations / Endowments / Healthcare

Insurance Companies

Government Agencies

Taft-Hartley

Individuals

Families

Asset

Servicing

Highly Focused Business

Personal

Clients

Institutional

Clients

Two Client Channels

Integrated Operations & Technology Platform

Asset

Management

One Operating Platform

Banking

Giving Our Clients the Freedom to Focus on What Really Matters

Focused and Conservative

Client-centric and Highly Focused

Northern Trust Clients

Pension Funds

Large Corporations

Investment Management Firms

Foundations / Endowments / Healthcare

Insurance Companies

Government Agencies

Taft-Hartley

Individuals

Families

Highly

Focused

Business

Personal

Clients

Institutional

Clients

Two Client

Channels

Integrated Operations & Technology Platform

One

Operating

Platform

Some of the

businesses we are

not

in:

•Sub-Prime Mortgage

Underwriting

•Credit Cards

•Asset Backed

Commercial Paper

Conduits

•Private Equity

Bridge Financing

•Investment Banking

Asset

Servicing

Asset

Management

Banking

Giving Our Clients the Freedom to Focus on What Really Matters

Private Client Revenues

(As a Percentage of Total Company Revenues, Year-to-Date September 30, 2007)

Source: Company Third Quarter 2007 Earnings Release reports; *Merrill Lynch percentage based on 2006 data

Focused and Conservative

PFS: Our Focus on the Affluent Market is Unmatched

35%

30%

15%

12%

11%

43%

Northern

Trust

Wachovia

Citigroup

Wilmington

Trust

Bank of

America

JP Morgan

Chase

Merrill

Lynch*

Goldman

Sachs

Bank of

Mellon

Giving Our Clients the Freedom to Focus on What Really Matters

Focused and Conservative

C&IS: Significant Presence in Our Target Segments

Pension Plans

Foundations, Endowments &

Healthcare

Public Funds / Taft-Hartley

100 U.S. Corporate Plans

40%

200 U.S. Funds

37%

200 U.K. Funds

27%

Northern

Serves

Of the Top

Northern

Serves

Of the Top

25 Taft-Hartley Funds

32%

100 U.S. Public Funds

35%

U.K. Local Authority

31%

50 U.S. Foundations

30%

50 U.S. Endowments

28%

50 U.S. Healthcare Funds

32%

Northern

Serves

Of the Top

Source: Pensions and Investments 22 January 2007 (US Pensions), 25 December 2006 (Foundations & Endowments), 29 May 2006

(Asset Managers); Pension Funds and Their Advisors, 2006 (UK Funds); Money Market Directory, 2006 (Healthcare Funds); Lipper

Fitzrovia Dublin Fund Encyclopedia, Administrators, 2006/2007; Lipper Fitzrovia Guernsey Fund Encyclopedia, Administrators, 2006/2007.

Fund Administration

•

Serves 28% of the Top 200 Asset

Managers in the world

•

Is the #1 Provider of Offshore Private

Equity Fund Administration service in

Europe

•

Serves as Fund Administrator for

more funds in Ireland and Guernsey

than any other provider

Giving Our Clients the Freedom to Focus on What Really Matters

Client Centricity

The Northern Trust Difference

Innovative

product

leadership

Unparalleled

client

service

Leading-edge

technology

Client Solutions

Sharp

business

focus

Consistent

financial strength

and stability

Culture

and

heritage

Clients are at the center

of everything we do

Giving Our Clients the Freedom to Focus on What Really Matters

Client Centricity

PFS: Comprehensive Array of Solutions for Clients

Retirement Services

Qualified Plan Services

Defined Benefit Plans

Defined Contribution Plans

Recordkeeping

Investment Management

Benefit Payment Services

Trust Services

Fiduciary Administration and

Oversight

Family Business Services

Philanthropic Services

Estate Settlement Services

Real Estate and Farm

Management

Asset Custody

Minerals Management

Brokerage

Full-Service Brokerage

Money Market Instruments

Safekeeping

Online Access

Access to Your Banking, Trust, Investment

Management, Mutual Funds and Brokerage

Information, via Northern Trust Private Passport ®

and Wealth Passport ®

Financial Planning

Retirement Planning

Estate Planning

Tax Planning

Asset Allocation

Stock Option Planning

Corporate Banking

Working Capital and General Corporate Loans

Secured and Cash Flow Lending

Acquisition Financing

Industrial Development Bonds

Equipment Finance and Leasing

Asset Management

Structured Investment Services

Asset Allocation

Equity Investing

Fixed Income Investing

Short-Term Asset Management

Indexing

Alternative Investments

Single Stock Strategies

Private Banking

Personal Credit Lines and Swing

Loans

Real Estate Development Loans

Margin Loans

Stock Option Lending

Home Mortgages

Equity Credit Lines

Wealth Management Group

Family Office Support

Multi-generational Wealth Management

Global Asset Servicing for Multi-Manager

Investment Programs

Data Aggregation and Customized Reporting

Tax Lot and Partnership Accounting

Investment Consulting and Performance Measurement

Giving Our Clients the Freedom to Focus on What Really Matters

Client Centricity

C&IS: Extensive Suite of Product Solutions for Clients

Fund

Services

Fund Accounting

Investment Operations

Outsourcing

Active Collateral Management

Hedge Fund Administration

Private Equity Administration

Property Administration

Asset

Servicing

Safekeeping

Settlement

Income Collection

Corporate Actions

Information

Services

Risk

Management

Services

Cash

Active

Passive

Securities Lending

Manager of Managers

Foreign Exchange

Transition Management

Commission Management

Accounting

Reporting

Valuation

Attribution Analysis

Value at Risk

Cross-Border Pooling

patent pending

Rates of Return

Multinational HQ Reporting

Regulatory Reporting

Compliance Monitoring

Market Event Analytics

Socially Responsible Investing

Asset

Management

Asset

Servicing

Asset

Management

Giving Our Clients the Freedom to Focus on What Really Matters

Multi-Advisor Funds

Hedge Funds

Private Equity

Small Cap Growth

Mid Cap Growth

Large Cap Value

Exchange Fund

Enhanced Index Funds

International Fixed Income

High Yield

Stable Value

Canadian & UK Programs

Int’l/US Equity Manager of Managers

Minority and Emerging Managers

Investment Program Solutions

International Equities

EAFE Index

130/30 Long-Short Strategies

Technology

Large Cap Growth

Socially Responsible

Tax Advantaged

Fixed Income and Equity Index Funds

Core Fixed Income

Municipals

Government

Short/Intermediate Duration Fixed Income

Cash Management

Active Investment Management

Growth & Value Equity

Short & Long Duration Fixed Income

Quantitative Management

Index & Enhanced Capabilities

Manager of Managers

Investment Program Solutions

Emerging & Minority Programs

Alternative Investments

PRODUCT BREADTH

Methods of Delivery

Separate Accounts

Collective Funds

Common Funds

Mutual Funds

Methods of Delivery

Separate Accounts

Collective Funds

Common Funds

Mutual Funds

Client Centricity

NTGI: A Continuum of Proprietary & External Solutions

Investment Options

Giving Our Clients the Freedom to Focus on What Really Matters

*As of YTD September 30, 2007; Source: SNL Financial.

Fee Income Dominates Our Revenue Stream

74% of Total Revenues derived from Non-Interest Income in 2007.

Top 20 Bank average equals 51%.*

58% of Total Revenues derived from Trust, Investment & Other Servicing Fees in 2007.

Top 20 Bank average equals 14%.*

Well Positioned Income Statement

Equity Market Impact

A 10% rise or fall in overall equity markets causes an approximate, corresponding 4%

increase or decrease in Trust, Investment & Other Servicing Fees, and an

approximate, corresponding 2% increase or decrease in Total Revenues

Equities Compose ~One-Third of Assets Under Management

37% of total Assets Under Management were invested in Equities at December 31, 2007.

46% of Personal Financial Services’

Assets Under Management were invested in Equities at

December 31, 2007.

35% of Corporate & Institutional Services’

Assets Under Management were invested in

Equities at December 31, 2007.

Giving Our Clients the Freedom to Focus on What Really Matters

*As of September 30, 2007; Sources: FR Y-9C reports & SNL Financial.

Securities Portfolio –

High Quality and Short Duration

93% of Northern Trust’s total securities portfolio was composed of triple-A rated

securities as of December 31, 2007.

75% of Earning Assets reprice or mature within one year.

Top 20 Bank average equals 50%.*

78% of Interest-Bearing Deposit liabilities reprice or mature within one year.

Top 20 Bank average equals 48%.*

Prudent Balance Sheet Management

Loan Portfolio –

High Quality

Nonperforming

assets

represented

only

0.12%

total

outstanding

loans

December

31, 2007.

Top 20 Bank average equaled 0.68%.*

Nonperforming

loans

were

covered

6.4x

credit

loss

reserves

December

31,

2007.

Top 20 Bank average equaled 2.0x.*

Northern Trust does not underwrite mortgage loans to sub-prime borrowers, does not

lend directly to hedge funds, does not provide bridge financing to private equity deals,

and does not offer an off-balance sheet commercial paper conduit for client liquidity.

Giving Our Clients the Freedom to Focus on What Really Matters

Consistent Leadership and Management Philosophy

Northern Trust

Industry

Rick Waddell

President & CEO

32 Years

Sherry Barrat

President –

PFS

17 Years

37 Years

Steve Fradkin

EVP & Chief Financial Officer

22 Years

Tim Moen

EVP –

Human Resources & Admin. 6 Years

32 Years

Bill Morrison

President –

PFS

11 Years

34 Years

Steve Potter

EVP –

EMEA

25 Years

Joyce St. Clair

EVP –

Corp. Risk Management 15 Years

26 Years

Jana Schreuder

President –

WWOT

27 Years

Tim Theriault

President –

C&IS

25 Years

27 Years

Kelly Welsh

EVP & General Counsel

7 Years

29 Years