S&P 500 Index component
|Founder||Byron Laflin Smith|
|Headquarters||Chicago, Illinois, U.S.|
Frederick H. Waddell|
Michael G. O'Grady
(President and CEO)
|Revenue||$5.38 billion (2017)|
|$1.20 billion (2017)|
|AUM||$1.161 trillion (2017)|
|Total assets||$138.590 billion (2017)|
|Total equity||$10.216 billion (2017)|
Number of employees
Footnotes / references|
Northern Trust Corporation is a financial services company organized in Delaware and headquartered in Chicago, Illinois that caters to corporations, institutional investors, and high net worth individuals. The company has 85 offices in 18 US states and 20 countries. It is on the list of largest banks in the United States and the list of oldest banks in continuous operation. It is ranked 486th on the Fortune 1000.
During its history of over 130 years, the company has only had 10 chief executive officers.
The company strives to give approximately 1.5% of its pre-tax profits to charities every year. In the 10 years preceding 2014, the company gave over $120 million in support of non-profit organizations.
Corporate and Institutional Services (C&IS)
C&IS is a global provider of custodian bank, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefits services, securities lending, foreign exchange market, treasury management, brokerage firm services,; transition management services, banking, and cash management services to corporate and public pension funds, foundations, financial endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors.
Over 20% of the wealthiest families in the United States are clients of the company's wealth management division. It provides personal trust, investment management, custodian bank, and philanthropic services; financial consulting; guardianship and estate administration; qualified retirement plans; and private and business banking. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses in its target markets with assets typically exceeding $75 million. Wealth Management services are delivered through a network of 85 offices in 18 U.S. states as well as offices in London, Guernsey, and Abu Dhabi.
Northern Trust Asset Management (NTAM)
Northern Trust Asset Management provides investment management services. Clients include institutional and individual separately managed accounts, bank common and collective funds, registered investment companies, non-U.S. collective investment funds and unregistered private investment funds. It offers both active management and passive management strategies for equity and fixed income investing, as well as alternative asset classes such as private equity and hedge funds and multi-manager products and services.
Northern Trust was founded in 1889 by Byron Laflin Smith in a one-room office in the Rookery Building in The Loop, Chicago, with a focus on providing trust and banking services for the city's prosperous citizens. It opened on Aug.12, 1889 with 7 accounts and $137,981.25 in deposits. Smith provided 40% of the bank's original capitalization of $1 million, and the original 27 shareholders included such businessmen and civic leaders as Marshall Field, Martin A. Ryerson, and Philip D. Armour.
In March 1914, Byron Laflin Smith died and his son, Solomon Albert Smith, took over the bank.
By 1941, nearly half of all the bank's commercial accounts were drawn from outside the Chicago metropolitan area. During World War II, the company took part in the government's war bond drives and provided loans for manufacturing war materials under special government programs. The war created more opportunities for the bank; all sectors of its business expanded.
During the 1950s, Northern spent heavily to develop automated banking services, including the first fully automated financial statements for trust clients.
In October 1963, Solomon A. Smith died. Solomon Byron Smith became chairman of the executive committee and his brother, Edward Byron Smith, became chairman.
In 1986, the bank acquired First Lake Forest Corporation for $61 million in cash.
In 1984, Weston Christopherson, former CEO of Jewel, took the helm. He is credited with guiding the bank through a difficult period when sour loans to Latin American countries were hurting profits. When oil prices dropped suddenly in the early 1980s, many South American nations realized they could not pay off their enormous bank loans. The bank suffered uncharacteristically high losses. Aggressive management, loan reserves, and write-offs enabled the bank to restore its asset quality. During Christopherson's six years at Northern Trust, profits rose from $34 million to $113 million. At the time of his retirement in 1990, the company was the 11th most profitable of the 100 largest banks in the United States.
In 1990, company veteran David W. Fox became the 7th CEO of the ocmpany.
In November 2008, the United States Department of the Treasury invested $1.5 billion in the company as part of the Troubled Asset Relief Program and in June 2009, the company repurchased the investment from the Treasury. The company had been criticized for heavy spending on parties during a golf tournament that it sponsored, despite receiving government funds.
On October 2, 2017, Northern Trust acquired UBS Asset Management’s fund administration servicing units in Switzerland and Luxembourg.
Effective January 1, 2018, Michael O'Grady became chief executive officer of the company.
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- "Northern Trust Completes Strategic Acquisition of UBS Asset Management's Fund Services Units in Luxembourg and Switzerland" (Press release). Business Wire. October 2, 2017.
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