Northern Trust Corporation (Corporation) was organized as a bank holding company
in Delaware in 1971 to hold all of the outstanding capital stock, except directors'
qualifying shares, of The Northern Trust Company (Bank), an Illinois banking corporation
headquartered in the Chicago financial district and the Corporation's principal
subsidiary.
The Corporation also owns national bank subsidiaries with offices in Arizona,
California, Colorado, Florida and Texas, a federal savings bank subsidiary with
offices in Connecticut, Georgia, Massachusetts, Michigan, Missouri, Nevada,
New York, Ohio, Washington and Wisconsin, trust companies in New York and Connecticut
and various other nonbank subsidiaries, including an investment management company
owned through the Bank, a securities brokerage firm and an institutional investment
management company.
The Corporation expects that, although the operations of other banking and
non-banking subsidiaries will continue to be of increasing significance, the
Bank will in the foreseeable future continue to be the major source of the Corporation's
assets, revenues and net income.
The Bank currently has 18 banking offices in the Chicago area and the following
active wholly-owned subsidiaries. Northern Trust Investments, N.A., a registered
investment adviser (formerly known and conducting business as Northern Trust
Investments, Inc.), provides investment management services and products to
domestic and international institutional clients. Norlease, Inc. conducts leasing
and leasing-related lending activities. MFC Company, Inc. holds properties that
are received from the Bank in connection with certain problem loans.
NT Mortgage Holdings LLC, a real estate investment trust, holds a 100% participation
in a significant portion of the Bank's residential mortgage portfolio, and its
parent, NTG Services LLC, conducts market and other studies for the Bank's global
businesses. Nortrust Nominees Limited, located in London, is a United Kingdom
(U.K.) trust corporation organized to hold U. K. real estate and securities
for trust and agency accounts.
The Northern Trust Company U.K. Pension Plan Limited, located in London, was
established in connection with the pension plan for London-based employees.
Northern Trust Holdings Limited is the holding company for Northern Trust Global
Services Limited, a U.K. incorporated bank subsidiary established in the fourth
quarter 2003 with authority to conduct a broad range of banking and other activities
in the U.K. and, directly or indirectly through other subsidiaries or affiliates,
in member states of the European Economic Area.
The Northern Trust Company, Canada, located in Toronto, offers institutional
trust products and services to Canadian entities.
Also a subsidiary of the Bank, The Northern Trust International Banking Corporation,
located in New York, is an Edge Act corporation organized for the purpose of
conducting international business. Its business is conducted through the following
subsidiaries. Northern Trust (Ireland) Limited, through its three principal
subsidiaries, provides trust, custody, fund administration, fund accounting
and shareholder registration services to international fund sponsors offering
off-shore investment funds.
Northern Trust Fund Managers (Ireland) Limited facilitates the offering of
off-shore collective investment products to institutional clients. Northern
Trust Global Investments (Europe) Limited, a registered investment adviser,
provides investment management services to institutional clients in the U. K.
and continental Europe. The Northern Trust Company of Hong Kong Limited provides
securities lending and relationship servicing for large asset custody clients
in Asia and the Pacific Rim. Northern Trust Management Services Limited provides
management services to the Bank's London Branch, Northern Trust Global Services
Limited and other Northern Trust entities in the U. K. and continental Europe.
Northern Trust's principal business strategy is to provide quality financial
services to targeted markets in which it believes it has a competitive advantage
and favorable growth prospects. As part of this strategy, Northern Trust seeks
to deliver a level of service to its clients that distinguishes it from its
competitors. In addition, Northern Trust emphasizes the development and growth
of recurring sources of fee-based income and is one of a select group of major
bank holding companies in the United States that generates more revenues from
fee-based services than from net interest income.
Northern Trust seeks to develop and expand its recurring fee-based revenue
by identifying selected markets with good growth characteristics and providing
a high level of individualized service to its clients in those markets. Northern
Trust also seeks to preserve its asset quality through established credit review
procedures and to maintain a conservative balance sheet. Finally, Northern Trust
seeks to operate with a strong management team that includes senior officers
having broad experience and long tenure.