* EPS 62 cents vs Street view 69 cents
* Assets under custody, management climb
* Shares up 2.2 pct
(Adds details on earnings, share move)
NEW YORK, July 20 Northern Trust Corp's
(NTRS.O) second-quarter earnings fell 24 percent as stubbornly
low interest rates weighed on results at the third-largest U.S.
Net income dropped to $152.0 million, or 62 cents a share,
from $199.6 million, or 82 cents, a year earlier, missing the
Wall Street estimate of 69 cents a share.
But Nomura analyst Glenn Schorr wrote that earnings showed
an "OK quarter considering the environment as revenues and
Demand for the bank's products helped boost assets under
custody by 24 percent to $4.4 trillion, while assets under
management climbed 13 percent to $684.1 billion.
Northern Trust shares were up 2.2 percent to $44.60 in
morning trade on Wednesday.
The bank, which offers record-keeping and asset management
services to institutional investors such as pension funds, said
restructuring, acquisition and integration charges totaled
$22.6 million, cutting its earnings per share by 8 cents.
Noninterest income fell 4 percent to $698.7 million,
primarily due to reduced levels of foreign exchange trading
Like other trust banks, Chicago-based Northern Trust has
been forced to waive money market fees due to low interest
Bigger rivals State Street Corp (STT.N) and Bank of New
York Mellon (BK.N) posted higher earnings on Tuesday.
[ID:nN1E76I046] Both have grown in the past year, in part
through acquisitions, an area where Northern Trust has lagged
Northern Trust has often been named as potential takeover
target itself, although the company has steadfastly rejected
The company has vowed to cut costs, saying "we are actively
pursuing a wide array of productivity and expense management
State Street announced plans to cut another 850 jobs, while
Bank of New York Mellon said its would offer more specifics on
cost-cutting later this year.
(Reporting by Svea Herbst-Bayliss; editing by John Wallace)