Northern Trust Profit Rises, Beats Estimates
Financial services company Northern Trust said Wednesday third-quarter profit rose a stronger than expected 27 percent as assets under management increased despite this summer's credit market woes.
Northern Trust, which offers private banking, investment management and global custody services, said net income increased to $208.3 million, or 93 cents per share, from $163.7 million, or 74 cents per share, a year earlier.
Wall Street analysts had expected the company to earn 87 cents a share, according to Reuters Estimates.
Like its rival State Street , which reported a 29 percent jump in net income Tuesday, Northern Trust benefited from recent market turmoil which helped the company earn more in fees charged for currency trading among other services.
Revenue climbed 19 percent to $892.5 million, as foreign exchange trading income surged 74 percent to $91.9 million and trust, investment and other servicing fees rose 16 percent to $508.8 million.
Client assets also grew strongly with assets under custody increasing 24 percent to $4.1 trillion, global custody assets growing 31 percent to $2 trillion, and assets under management increasing 14 percent to $761.4 billion, Northern Trust said.
Northern Trust like other asset managers has benefited as financial markets have risen over the last year.