Northern Trust Corp. fourth-quarter profit fell a less-than-projected 41% as the company reported "significant" new business from personal and institutional clients for the year.
Shares rose 3% premarket to $54.
Northern Trust, which provides investment management and other services to individuals and institutions, said trust and investment fees that accounted for half of fourth-quarter revenue increased 12% to $548.6 million. In total, fee-related income increased 12% to $706.2 million, or 74% of total revenue.
Northern Trust reported a profit of $200.3 million, or 82 cents a share, down from $342.3 million, or $1.47 a share, a year earlier. Revenue decreased 17% to $950.2 million.
Analysts surveyed by Thomson Reuters expected earnings of 66 cents a share on revenue of $924 million.
The company said it saw strong growth in client assets, with assets under custody increasing 22% and assets under management rising 16%, excluding securities lending collateral. Net interest income for the company decreased 30% to $244 million, while foreign exchange trading income decreased 63% to $147.2 million.
Meanwhile, total operating costs rose 12% and credit-loss provisions fell one-third to $40 million.
