Jan 16 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
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
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
The bank reported $57.38 billion in total interest-bearing
deposits at the end of December, a rise of 2 percent from
Northern Trust shares closed at $52.81 on Tuesday on the