Northern Trust in Chicago reported a jump in second-quarter profit due to growth in assets under management and the sale of Visa common stock.
The $120 billion-asset company's net income rose 45% to $259.3 million, or $1.10 per share, from a year earlier. That's 14 cents better than the average estimate of analysts polled by Bloomberg.
Fee income, the biggest part of Northern Trust's business, rose 20% to $1 billion. Trust, investment and other servicing fees rose 7% to $756.8 billion. Northern Trust's assets under management, the largest contributor to trust, investment and other servicing fees, rose 2% to $945.6 billion
Fee income was also boosted by a one-time pretax gain of $100 million from the sale of Visa Class B stock.
Net interest income rose 1.9% to $251.2 million. Growth in earning assets was offset by a $17.8 million impairment on the residual value of aircraft under leveraged lease agreements. The net interest margin narrowed by seven basis points to 0.97%.
Noninterest expense rose 5% to $854.5 million. Employee compensation declined 3% to $361.9 million.