Driven by solid gains in both interest and noninterest income, Northern Trust Corp. in Chicago reported a profit of $234.6 million in the third quarter, up 15% from the same period in 2014. Earnings per share climbed 14%, to 96 cents, in line with the estimates of analysts polled by Bloomberg.
The results, though, masked an overall decline in assets under custody and management.
Net interest income at the $120 billion-asset company increased 8% year over year, to $269 million, due to a combination of higher balances in its securities and loan portfolios and sharply lower interest expenses. Noninterest income rose 7%, driven by a 4% gain in trust, investment and servicing fees, to $749.1 million, a 36% jump in foreign exchange income, to $62.9 million, and a 44% increase in securities commissions and trading income, to $20.4 million.
Overall revenues climbed 7%, to $1.15 billion.
The company's noninterest expenses rose 5% year over year, to $812 million, as a result of modestly higher employee compensation, increased regulatory costs and continued investments in new technology.
Assets under custody were up 1% year over year, to $6 trillion, but down 4% from just three months earlier. Assets under management were down 4% year over year and 6% from the prior quarter, to $887 billion.
In early trading Wednesday, Northern Trust's shares were down 3%, to $67.48.