Lehman Conference Slides

Integrity

Expertise

Service

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 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 2007 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.

Integrity

Expertise

Service

Challenging Market Environment

COMPLEXITY

UNCERTAINTY

S&P 500: 37 notable daily moves from August 1, 2007 through

August 31, 2008

Global

banks

and

brokerage

firms

continue

writedowns

securities, raising capital and evaluating business models

“Now that U.S. imports are contracting in real terms…the

developed economies are, at the very least, teetering on

recession …

[and] growth in developing economies is being

adversely affected.”

”When the U.S. ‘Catches a Cold,’

So Does the Rest of

the World.”

Northern Trust Global Economic Research, August 15, 2008

“The European Central Bank remains concerned that high

inflation rates will become entrenched and US inflation data this

week showed consumer prices rising at the fastest rate since

January 1991.”

“Surge for the Dollar as Global Fears Rise.”

Financial Times.

August 15, 2008

The environment beginning in the summer of 2007 and continuing

today has been characterized by uncertainty, complexity and

volatility.

VOLATILITY

Integrity

Expertise

Service

Challenging Market Environment Continued in 2Q 2008

Second

Quarter

2008

YTD

June

2008

S&P 500

EAFE*

KBW50

-3.2%

-2.1%

-24.9%

-12.8%

-17.3%

-32.4%

June 30

Year-over-

Year

-14.9%

-22.4%

-46.9%

*In terms of Local Currency, not US$. **Source: Haver

Analytics

Operating Earnings Per Share of S&P 500 Companies declined 29%

in Second Quarter 2008 vs Second Quarter 2007.**

Integrity

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Service

NTRS: Strong Performance in Second Quarter 2008

Northern

Trust:

*Excludes the impact of leveraged lease items recorded in Second

Quarter 2008. Please refer to the 2Q08 10Q for details.

Record

revenues*, up 27% vs Second Quarter 2007

Record

net income*, up 46% vs Second Quarter 2007

Completed

consecutive

quarter

double-digit,

year-over-year

growth

earnings

per

share*

Completed

consecutive

quarter

growth

common

equity

Exceptional

credit

quality:

nonperforming

assets

and

reserve

ratios

improved

versus

Second

Quarter

2007

Exceptional

securities

quality:

92%

securities

portfolio

rated

triple-A

securities

leveraged

loan

write-downs

Assets

under

custody

declined

versus

Second

Quarter

2007,

compared

with

14.9%

decline

the

S&P

500

Assets

under

management

declined

versus

Second

Quarter

2007

Integrity

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Service

Revenue Growth

8% -

10%

Positive

Operating Leverage

EPS Growth

10% -

12%

Return on Equity

16% -

18%

Annual Target

Met All Long-Term, Strategic Financial Targets in 2Q08

Qtr

2008**

27.3%

+11.5

46.7%

24.8%

Qtr

2007

11.4%

-1.4

21.1%

20.2%

Qtr

2007

19.1%

+0.3

25.7%

19.5%

Qtr

2007*

25.4%

+2.5

26.0%

19.9%

*Excludes all VISA related items. Please refer to the 2007 Annual Report and 10K and 1Q08 10Q for details.

**Excludes leasing charges. Please refer to the 2Q08 Form 10Q for details.

Qtr

2008*

18.7%

+2.5

22.6%

19.9%

Integrity

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Growth in Client Assets Consistently Outperforms the Market

Assets Under Custody

$4.0 Trillion

-0.5%

-0.7%

+16.7%

Global Custody Assets

$2.0 Trillion

+0.2%

+4.6%

+28.9%

Assets Under Management

$751 Billion

-3.5%

-2.0%

+12.1%

Assets at

5 Year

June 30, 2008

Last Qtr

Last Yr

CAGR

% Change Vs.

Equity Market Indices:

S&P 500

-3.2%

-14.9%

+5.6%

EAFE (local currency)

-2.1%

-22.4%

+8.6%

Whether considered on a quarterly, annual or 5-year basis,

our asset accumulation rates consistently outperform the market.

Integrity

Expertise

Service

NTRS: 10

Largest Bank in the U.S. as of August 31, 2008

Ranked by Market Capitalization

253.7

217.0

165.5

118.1

98.1

57.3

31.4

30.6

24.7

23.0

14.1

10.

15.

Citigroup

Bank of America

JPMorgan Chase

Wells Fargo

Wachovia

US Bancorp

Bank of New York

SunTrust

PNC Bank

State Street

Northern Trust

($ Bn)

As of June 30, 2007

177.9

104.1

79.3

49.6

47.2

42.6

40.6

33.8

25.5

17.7

7.7

10.

19.

Citigroup

Bank of America

Wells Fargo

Wachovia

JPMorgan Chase

Bank One

US Bancorp

Fifth Third

FleetBoston

BB&T

Northern Trust

($ Bn)

As of Dec 31, 2002

138.7

134.0

103.4

100.0

55.5

39.6

33.5

29.3

24.9

17.7

10.

Bank of America

JPMorgan Chase

Citigroup

Wells Fargo

US Bancorp

Bank of NY Mellon

Wachovia

State Street

PNC Bank

Northern Trust

($ Bn)

As of August 31, 2008

Integrity

Expertise

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Top 20 Bank Source: FR Y-9C reports and SNL Financial

Revenue Stream

–

Dominated by Fee Income

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

Top 20 Bank average equaled 48%.

Differentiated, Conservative Business Model

Securities Portfolio

–

High Quality and Short Duration

92% of Northern Trust’s total securities portfolio was composed of triple-A rated

securities as of June 30, 2008.

91% of Asset-Backed Securities rated triple-A

Exposure to subprime Asset Backed Securities relative to the overall portfolio was

minimal at ~2%

Total gross unrealized losses on the securities portfolio were $176 million

79% of Earning Assets and 75% of Interest-Bearing Deposit Liabilities re-price or

mature within one year as of June 30, 2008.

Top 20 Bank average equals 52% and 45%, respectively.

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

Integrity

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Outstanding, Consistent Credit Quality

Top-tier credit quality.

Notably better than peer averages in each category.

*Peer group consists of the 20 largest U.S. Bank Holding Companies in terms of total balance sheet assets.

Source: SNL Financial

Peer*

Average

NTRS

0.12%

501%

0.07%

1.47%

168%

1.43%

Non-Performing Assets

as a % of Loans

Loan Loss Reserve as a

% of Non-Performing Assets

Net Charge-Offs to

Average Loans

As of June 30, 2008

Integrity

Expertise

Service

Strong Capital Ratios Consistently Exceed…

9.7%

9.8%

9.7%

9.8%

11.0%

2004

2005

2006

2007

2Q08

…Regulatory

“Well

Capitalized”

Guidelines.

13.3%

12.3%

11.9%

11.7%

2004

2005

2006

2007

2Q08

6.9%

6.8%

6.7%

7.1%

7.6%

2004

2005

2006

2007

2Q08

Tier 1 Capital Ratio

Well Capitalized Guideline = 6%

Leverage Ratio

Well Capitalized Guideline = 5%

Total Risk Based Ratio

Well Capitalized Guideline = 10%

Integrity

Expertise

Service

Strong, Consistent Capital is a Differentiator

*Reflects legacy Bank of New York through Second Quarter 2007

Source: Based on Total Common Equity as reported by SNL Financial

Second Quarter 2008 was the 81

consecutive quarter

–

or 20+ years –

of increasing common equity dating back to 1988

Quarterly Change in Common Equity

Quarterly Increase

Quarterly Decline

Northern Trust

2008

1999

2000

2001

2002

2003

2004

2005

2006

1988

Bank of NY Mellon*

Bank of America

Citigroup

Fifth Third

JPMorgan Chase

Mellon (legacy)

State Street

Wells Fargo

2007

Integrity

Expertise

Service

Client-centric and Highly Focused Business Model

Our Clients

Worldwide Operations & Technology

Government

Agencies

Taft-Hartley

Foundations /

Endowments /

Healthcare

Individuals

Privately

Held

Businesses

Pension Funds

Large Corporations

Investment

Management Firms

Insurance Companies

Families

Family

Foundations

Family Offices

Personal

Financial

Services

Corporate &

Institutional

Services

Northern Trust Global Investments

Integrity

Expertise

Service

Resisting the Temptation to Change Our Business Model

Credit Cards

Retail Banking

Consumer Finance

Venture Capital

Stock Transfer

DC Record Keeping

Investment Banking

Sub-Prime Mortgage Underwriting

Asset Backed Commercial Paper Conduits

Private Equity Bridge Financing

Discount Brokerage

American Depositary Receipts

While we do adjust our actions to align with prevailing conditions,

Northern Trust has resisted the temptation to change our business

model or risk profile to capitalize on temporarily shifting cycles.

Businesses Northern Trust is NOT in:

Integrity

Expertise

Service

Personal Financial Services

Extensive Reach in High Growth Affluent Market

PFS

Offices

States

Over 50% of the U.S. millionaire market resides

within a 45-minute drive of Northern Trust offices.

Arizona

(8)

Florida

(25)

Illinois

(19)

Illinois

(19)

Colorado

(1)

Colorado

(1)

Nevada

(1)

Nevada

(1)

Missouri

(1)

Missouri

(1)

Washington

(1)

Michigan

(3)

Texas

(7)

California

(11)

New York (1)

Connecticut (1)

Delaware (1)

Georgia

(1)

Georgia

(1)

Wisconsin

(1)

Wisconsin

(1)

Ohio

(1)

Ohio

(1)

Minnesota

(1)

Minnesota

(1)

Projected

Annual

Household Growth Rates

2007 -

2012 by Household

Asset Size

7.1%

11.3%

15.5%

$1 -

$5 -

200

$200+

Source: Claritas

Massachusetts (1)

Integrity

Expertise

Service

Personal Financial Services

Addressing Clients’

Complex Financial Goals

Integrated approach and comprehensive capabilities.

Grow Assets

Proprietary and Third-party

Investment Managers

Active Index Strategies

Alternative Investments

Manage Risk

Asset Diversification

Single-stock Concentration

Hedging Strategies

Stock Option Planning

Tax Liability Management

Tax Sensitive Investing

Tax Loss Harvesting

Investment Vehicle Selection

Liquidity Management

Deposit Services

Custom Lending

Short Term Cash

Management Vehicles

Building and

Managing Wealth

Protecting and

Transferring Wealth

Protect and Preserve Wealth

Wealth Transfer Planning

Customized Trust Solutions

Transition Wealth

Estate Settlement Services

Guardianship Services

Plan for Special Assets

Family Business

Manage Non-Financial Assets

Creating a Legacy

Reinforce Family Values

Family Education

Family Mission Statement

Advanced Wealth Transfer

Strategies

Establish a Charitable

Giving Tradition

Implement a Tailored

Philanthropic Strategy

Balance Charitable Giving with

the Financial Needs of the Family

Ensure Tax-Efficiency of

Philanthropic Vehicles

Integrity

Expertise

Service

Private Client Revenues

As a Percentage of Total Company Revenues,

Full Year 2007

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

35%

30%

16%

12%

10%

42%

Northern

Trust

Wachovia

Citigroup

Wilmington

Trust

Bank of

America

JP Morgan

Chase

Merrill

Lynch*

Goldman

Sachs

Bank of

Mellon

Personal Financial Services

Our Focus on the Affluent Market is Unmatched

Integrity

Expertise

Service

Personal Financial Services

Significant Success in Growing Client Assets

$59

$73

$92

$98

$94

$88

$104

$110

$117

$135

$143

$148

$96

$121

$148

$163

$160

$151

$185

$209

$226

$282

$326

$332

PFS

Assets Under Management

($ Billions)

PFS

Assets Under Custody

($ Billions)

AUM CAGR:

S&P 500 CAGR:

AUC CAGR:

12%

S&P 500:

Integrity

Expertise

Service

Corporate & Institutional Services

Asset Servicing Solutions

Full array of capabilities to meet the needs of

sophisticated institutional investors.

Fund accounting

Transfer agency

Corporate secretarial

Trustee

Investment operations

outsourcing

Safekeeping

Settlement

Derivatives processing

Income collection

Corporate actions

Tax reclamation

Active

Quantitative

Investment outsourcing

Liability driven investing

Manager of managers

Hedge funds

Private equity

Transition management

Investment accounting

Reporting and valuation

Performance analytics

Risk monitoring and reporting

Trade execution analysis

Data warehouse

Cross-border pooling

Trade execution

Cash management

Securities lending

Foreign exchange

Commission management

Asset

Administration

Asset Processing

Asset Reporting

Asset

Enhancement

Asset

Management

Integrity

Expertise

Service

Corporate & Institutional Services

Strategically Positioned to Succeed in Three Dynamic Regions

North America

Europe,

Middle East & Africa

Asia Pacific

Abu Dhabi

Dublin

Toronto

London

Limerick

Amsterdam

Luxembourg

Guernsey

Melbourne

Singapore

Hong Kong

Bangalore

Beijing

Tokyo

Jersey

Chicago

Integrity

Expertise

Service

Corporate & Institutional Services

Strong Presence in Target Institutional Segments

Source: Pensions and Investments 21 January 2008 (US Pensions), 24 December 2007 (Foundations & Endowments),

28 May 2007 (Asset Managers); Pension Funds and Their Advisors, 2007 (UK Funds); Money Market Directory, 2007

(Healthcare Funds); Lipper Fitzrovia Dublin Fund Encyclopaedia, Administrators, 2006/2007; Lipper Fitzrovia Guernsey

Fund Encyclopaedia, Administrators, 2006/2007.

Fund Administration

Serves 27% of the Top 200 Asset

Managers in the world

#1 Provider of Offshore Private

Equity Fund Administration services

in Europe

Fund Administrator for more funds

in Ireland and Guernsey than any

other provider

Pension Plans

100 U.S. Corporate Plans

40%

200 U.S. Funds

40%

200 U.K. Funds

29%

Northern

Serves

Of the Top

Public Funds / Taft-Hartley

Northern

Serves

Of the Top

25 Taft-Hartley Funds

40%

100 U.S. Public Funds

37%

U.K. Local Authority

30%

Foundations, Endowments,

and Healthcare

50 U.S. Foundations

30%

50 U.S. Endowments

26%

50 U.S. Healthcare Funds

36%

Northern

Serves

Of the Top

Integrity

Expertise

Service

Corporate & Institutional Services

Significant Success in Growing Client Assets

C&IS

Assets Under Custody

($ Trillions)

C&IS

Global Custody Assets

($ Trillions)

AUC CAGR:

13%

S&P 500:

GCA CAGR:

28%

EAFE CAGR:

$1.0

$1.1

$1.4

$1.5

$1.3

$1.9

$2.3

$2.7

$3.3

$3.8

$3.6

$0.1

$0.2

$0.3

$0.4

$0.5

$0.7

$1.0

$1.2

$1.7

$2.1

$2.0

Integrity

Expertise

Service

Northern Trust Global Investments

Top Tier Investment Manager

Source:

Pensions

Investments

2008

Special

Report

Asset

Managers,

data

December

31,

2007.

*Multi-manager

Ranking

Source:

Cerulli

Associates,

2005

Largest Manager

Worldwide Institutional Assets

Largest Manager

U.S. Institutional Tax-Exempt Assets

Largest Manager

Defined Benefit Assets

Largest Manager

Multi-Manager -

U.S. Institutional Assets*

Markets

Served

Rankings

Largest Manager

Passive Domestic Indexed Equity

Largest Manager

Passive Domestic Indexed Bonds

Largest Manager

Passive International Indexed Securities

Investment

Strategy

Integrity

Expertise

Service

Northern Trust Global Investments

A World Class Investment Manager

$751.4 Billion

Assets Under Management as of June 30, 2008

A Diversified Asset Manager

$434 Billion

(58%)

Active

$276 Billion

(37%)

Quantitative

$41 Billion

(5%)

Manager of Managers

Across Asset Classes

Across Client Segments

$609 Billion

Institutional

$143 Billion

Personal

Across Styles

Equities

$294 Billion

(39%)

Fixed Income

$96 Billion

(13%)

Short

Duration

$350 Billion

(47%)

Other

$11 Billion

(1%)

Integrity

Expertise

Service

Northern Trust Global Investments

Positioned for Global Growth

Netherlands

United

Kingdom

United States

(85 PFS Offices)

Japan

RBS/

Mitsubishi/

Resona

Trust

Ireland

Pensco

Hong

Kong

Nordics

Nordea

Singapore

China

France

Groupama

Northern Trust Offices

Institutional Distribution Agreements

Thailand

Bangkok

Bank

Canada

Scotia

McLeod

United States

Investment Only

(10 Distributors)

Extensive presence through worldwide

client base and distribution relationships.

Taiwan

New York

Melbourne

Abu

Dhabi

Integrity

Expertise

Service

Northern Trust Global Investments

Significant Success in Growing Client Assets

$197

$233

$292

$326

$320

$303

$479

$572

$618

$697

$757

$751

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

6/30/08

Assets Under Management

($ Billions)

12/31/97 to 6/30/08

CAGR

Northern Trust

14%

S&P 500

Acquired $75 of

Index Assets