Northern Trust, an asset and wealth management firm, has revealed a third-quarter profit that exceeded expectations, thanks to robust fee-based income that offset the impact of reduced interest income.
The bank reported a profit of $308.5 million, or $1.49 per share, for the three months ending September 30, compared to $375.4 million, or $1.80 per share, during the same period the previous year. Analysts, based on LSEG data, had anticipated a profit of $1.47 per share on average.
For the quarter, the bank’s Trust, Investment, and Other Servicing Fees increased by 3% compared to the prior year, reaching $1.11 billion, which helped offset the decline in net interest income, down by 11%.
Despite the challenges of rising interest rates and economic instability, Northern Trust managed to increase total assets under custody or administration by 10.5% to $14.16 trillion compared to the same quarter last year. The bank’s total revenue for the quarter declined by 1.6%, reaching $1.74 billion.