Northern Trust Corp.'s third-quarter earnings fell 17% absent a prior-year benefit as the trust-and-custody bank's revenue fell despite improved assets under management as loan-loss provisions fell sharply.

The results missed analysts' expectations and shares were down 1.4% at $48.23 in recent premarket trading. The stock through Wednesday's close was down 6.6% this year.

Performance improved in the latest quarter at peers State Street Corp. and Bank of New York Mellon Corp., though signs emerged that the nation's typically quiet trust banks are struggling against low interest rates and quieter foreign-currency markets.

Northern Trust, which provides investment management and other services to affluent people and institutions, reported a profit of $155.6 million, or 64 cents a share, down from $187.9 million, or 77 cents a share, a year earlier. The prior year included a 5-cent gain. Revenue decreased 3% to $899 million.

Analysts polled by Thomson Reuters most recently forecast earnings of 71 cents on revenue of $924 million.

Fees from trust and investment services--its core business--fell 1%.

Amid recent stock market gains, assets under management rose to $657.2 billion from $610.5 billion a year earlier and $603 billion in the second quarter.

Credit-loss provisions dropped 50% from a year earlier and was flat with the second quarter. Nonperforming loans as a percentage of total loans and leases increased to 1.17% from 1.04% a year earlier but were down from 1.21% in the second quarter.

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