UPDATE 1-Northern Trust profit, revenue miss on lower forex income
Jan 16 (Reuters) - Northern Trust Corp's profit and revenue for the fourth quarter missed Wall Street estimates as the custody bank reported much lower foreign-exchange trading income and pressure on its net interest margin continued.
Foreign-exchange trading income fell 40 percent to $40.8 million, mainly due to reduced currency market volatility. Net interest income dropped 13 percent.
Northern Trust, like its competitors, has experienced a sharp decline in foreign-exchange trading revenue over the past few quarters.
Larger rival Bank of New York Mellon Corp reported a 42 percent drop in foreign exchange revenue in its fourth quarter, but higher investment management fees helped it boost earnings.
Northern Trust's net income for the quarter ended Dec. 31 rose to 69 cents from 53 cents per share a year earlier, but still missed analysts' average estimate of 75 cents, according to Thomson Reuters I/B/E/S.
Total revenue climbed 1 percent to $969.7 million, but was below expectations of $985.1 million.
Custody and administration fees rose 9 percent to $224.7 million, while assets under custody increased 13 percent to $4.80 trillion.
The bank reported $57.38 billion in total interest-bearing deposits at the end of December, a rise of 2 percent from year-earlier levels.
Northern Trust shares closed at $52.81 on Tuesday on the Nasdaq.
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