An improvement in fees collected for trust and investment services at Northern Trust contributed to an increase in first-quarter profit.
The Chicago custody bank said Tuesday that its net income rose 5% to $232 million from a year earlier. Earnings per share rose 7% to $1.01. Revenue rose 5% to $1.2 billion.
Assets under custody rose 2% to $6.2 trillion, while assets under management fell 6% to $900 billion. Corporate and institutional services, the largest segment of assets under management, fell 8% to $670 billion.
-
The custody bank's $485 million purchase of GE Asset Management is consistent with its plan to invest in higher-growth, higher-return business lines. But analysts say the deal won't move the needle enough to alleviate short-term pressure on top-line growth.
April 11 -
Bank of New York Mellon, Northern Trust and State Street have all pledged to cut costs as challenging global equity markets, low interest rates, a strengthening U.S dollar and heightened regulatory expectations continue to crimp revenue and profit margins.
January 28 -
Unfavorable equity markets and lower transaction volumes led Northern Trust Corp. to report a 2% drop in fourth-quarter profit.
January 20
Noninterest income rose 1% to $882 million. Trust, investment and servicing fees — the biggest segment of fee income for Northern Trust — rose 3% to $748 billion. Foreign-exchange trading income fell 15% to $61 million.
Net interest income rose 18% to $308 million because of an increase in earning assets and a higher net interest margin.
Noninterest expense rose 5% to $829 million, largely because of higher salaries and outside services.
