PRESS DIGEST - Wall Street Journal - May 26
May 26 The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.
* 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 custody)
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 year earlier.
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 (V.N).
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 Zimmerman)
(Adds details on mutual funds and ETFs, analyst quote, table, byline) By Trevor Hunnicutt NEW YORK, May 25 U.S. fund investors offered a skeptical perspective on sky-high equity prices, yanking cash from U.S.-based stock funds for the fourth straight week, Lipper data showed on Thursday. The funds recorded $10.1 billion in withdrawals during the week that ended May 24, the second-largest outflows of the year, offering little support to an equity market that has nonethele
NEW YORK, May 25 A San Francisco investment fund manager pleaded guilty on Thursday to conspiring to defraud investors by fabricating an impressive investing track record, New York federal prosecutors announced.