CHICAGO -- Northern Trust Corp. said Wednesday that its third-quarter net income rose 5 percent due to higher fees from clients for managing their money.
The wealth management firm, which is based in Chicago, earned $178.8 million, or 73 cents per share, in the three months through Sept. 30, up from $170.4 million, or 70 cents per share, in the same quarter last year.
The profit fell a penny short of Wall Street predictions. Analysts, on average, expected earnings of 74 cents per share, according to a FactSet poll.
Northern Trust handles money for people, institutions and corporations and earns a fee on those funds. Non-interest income, which includes fees and makes up three-fourths of the company's revenue, rose 2 percent to $726.9 million. That included an 8 percent increase in fees for handling trusts and investments to $601.9 million. The gain came mostly from winning new business, as the company's assets under management grew 16 percent.
The company also provides some banking services, and its income from loans, or net interest income, fell 4 percent to $245.6 million. Low interest rates are hurting interest income at many financial companies.
Total revenue was flat at $972.5 million and fell short of average analysts' prediction of $987.5 million.
Shares of Northern Trust rose 76 cents, or 1.6 percent, to $48.29 in afternoon trading.