Northern Trust

"The Street knows we're not going to give them some crazy news that will skew the stock price," says Tucker. Price to book ratio has risen to 5-1/2, about twice that of most other banks worldwide. The Northern's anchored stance attributes in part to the fact that fully 70 percent of the bank's revenues derive from portfolio management fees, more than twice that of most other banks, which rely on net interest spreads.

Northern Trust adeptly follows changes in tacks taken by corporate and institutional money. While individual investment banking rings in at $82 billion and corporate and not-for-profit managed assets contribute another $181 billion, international corporate and institutional custody assets power along at $1.1 trillion, bringing the grand total value of assets under Northern Trust administration close to $1.4 trillion. The unusual combination of businesses uniquely positions the bank among its peers.

Basic corporate services range from traditional banking and commercial credit to trust and investment services to treasury management and supervision of corporate retirement plans.

According to Jim Seitz, senior vice president of marketing for Northern Trust of Southwest Florida, corporate business accounts for 10 to 15 percent of the bank's activity. Virtually all of it is tied to the personal assets of wealthy business owners.

Globally, Northern Trust is one of seven U.S. banks that control 85 percent of the worldwide custody business, meaning that they independently oversee and evaluate performance of money managers assigned responsibility for corporate benefit funds. Captains in the corporate custody business are few because of the steep technology costs. Northern's technology investment in 1999-2001, for example, tops $700 million, following on the heels of a $600 million investment in recent years.

Technology leadership on the private side of the banking business has propelled The Northern to institute a proprietary, individualized software program that allows a client to daily track his or her complete asset picture across institutions. It's called Private Passport.

Steering by its own lights, The Northern has fortuitously positioned itself to run with exceptionally rewarding opportunities. Named the last major independent bank based in the Windy City and the first major private bank serving Florida, The Northern Trust continues to invest in its own future as well as that of its clients. Career officers remain at the helm, planning for the long haul at Old Reliable.

S. Alison Chabonais is a freelance business writer and public relations consultant.