Northern Trust Corp.'s fourth-quarter earnings fell 17% on restructuring and integration-related charges, though the trust-and-custody bank's revenue improved with a boost from acquisitions.
Results missed expectations.
Northern Trust has seen stronger fee revenue and new business recently despite volatile markets and Europe's credit crisis. In the latest period, trust, investment and other servicing fees--which represent more than half of its revenue--were up 7% after rising by the same percentage in the third quarter.
Northern Trust, which provides investment management and other services to affluent people and institutions, reported a profit of $130.2 million, or 53 cents a share, down from $157.1 million, or 64 cents a share, a year earlier. Excluding benefits related to a settlement with Visa in both periods, earnings declined to 50 cents from 59 cents. The latest period also included restructuring, acquisition and integration-related charges of 17 cents.
Revenue increased 6.6% to $955.6 million, including $38.4 million from acquisitions.
Analysts polled by Thomson Reuters most recently projected earnings of 68 cents on revenue of $970 million.
Foreign-exchange trading revenue declined 27% to $71.7 million.
Total assets under management were up at $662.9 billion from $643.6 billion a year earlier and $644.2 billion in the third quarter. The provision for credit losses fell to $12.5 million from $40 million a year earlier and $17.5 million in the third quarter.
