Strong fee income and rising stock markets lifted Northern Trust (NTRS) in the first quarter.

Earnings at the nation's third-largest custody bank rose 2% from the same period a year earlier, to $164 million.

The company's earnings per share of 67 cents increased 1.5% year over year, but fell four cents short of estimates of analysts polled by Bloomberg.

Trust, investment and servicing fees, which account for 65% of revenue, rose 10% from the same period last year, to $630.7 million. The company attributed the increase to new business and the favorable impact of equity markets.

Fees from custody and fund administration rose 7% year over year, to $223.8 million. Income from foreign exchange trading fell 4% from a year earlier, to $59.5 million. Net interest income fell 12%, to $233.7 million, as a result of declining yields on loans and a lower level of demand deposits.

Based in Chicago, Northern Trust has $810.2 billion of assets under management and roughly $5 trillion of assets under custody.

Shares of Northern Trust were down 0.6% in trading Tuesday, to $53.48.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.