* Q4 profit falls 22 pct to $157.1 mln from $200.3 mln
* EPS of 64 cents misses expectations of EPS 71 cents
(Adds detail on earnings, assets under management and
BOSTON Jan 19 Chicago trust bank Northern
Trust Corp (NTRS.O) said on Wednesday its fourth-quarter profit
fell 22 percent, citing low interest rates.
For the three months that ended Dec. 31, the asset
management and custody services company reported a profit of
$157.1 million, or 64 cents per share, compared with a profit
of $200.3 million, or 82 cents per share, in the same period a
The results for the quarter benefited from an after-tax
expense reduction of $12.9 million, or 5 cents per common
share, tied to the reduction of a liability related to Visa Inc
Analysts had expected Northern Trust to report a profit of
71 cents a share on revenue of $921.7 million in the most
recent quarter, according to analysts surveyed by Thomson
Reuters I/B/E/S. Revenue came in at $906.4 million, down from
$950.2 million a year earlier.
In a press release, Chief Executive Frederick Waddell said
the company's results "have been constrained by the persistent
low interest rate environment, which has had a negative impact
on net interest income and trust fee levels."
More than half of the bank's revenue comes from trust,
investment and servicing fees. These fell to $504.6 million in
the quarter, down 8 percent from a year ago, mainly due to
lower securities lending revenue, Northern Trust said.
The bank said total assets under management were $643.6
billion as of Dec. 31, down 2 percent from the quarter ended
Sept. 30. Total assets under custody were $4.08 trillion as of
Dec. 31, up 4 percent from the quarter ended Sept. 30.
(Reporting by Ross Kerber, editing by Maureen Bavdek, Dave