Northern Trust Valuation

In: Business and Management

Submitted By pinto41
Words 4795
Pages 20
U.S. Publicly Traded Bank Analysis
Northern Trust

MGMT 6340

Financial Markets & Institutions

2/20/08

Table of Contents

1.0 Introduction 1.1 Overview 3 1.2 Background 3 1.3 Corporate Structure 3 1.3.1 Corporate and Institutional Services 3 1.3.2 Personal Financial Services 4 1.3.3 Northern Trust Global Investments 4 1.3.4 Worldwide Operations and Technology 4 1.4 History 5 1.4.1 Recent History 5 1.5 Corporate Governance 6

2.0 Financials 2.1 Financial Highlights 7 2.2 Financial Ratios 9 2.3 Analysis of Revenues 12 2.4 Analysis of Balance Sheet 15 2.5 Asset Quality Risk Management 17 2.5.1 Interest Risk Mitigation 19

3.0 Analysis 3.1 Predicted Model 20 3.2 Valuation Model 22

4.0 Conclusion 23

References 25

1 Introduction

1.1 Overview “Northern Trust is a leading provider of global financial solutions for investment management, asset servicing, and banking needs of corporations, institutions, and affluent individuals. Northern Trust is exclusively focused on the custody, management, and servicing of client assets in two target market segments, affluent individuals through its Personal Financial Services (PFS) business unit and its institutional investors worldwide through its Corporate and Institutional Services (C&IS) business unit.” 1 pg3 Northern trust markets these two business units via a third business unit (NTGI) Northern Trust Global Investments which delivers investment management related services and products. The company is focused in using technology as a key strategic advantage for cost control and facilitation of operations. The Northern Trust Corp was founded in 1889 in Chicago Illinois and trades under the ticker symbol NTRS on the NASDAQ. The Trust is classified as…...

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