Northern Trust Corp said Wednesday second-quarter net income surged 18 percent on higher custody and fund administration fees.
But the Chicago-based custody bank's profit and revenue fell short of Wall Street expectations.
Continue Reading Below
Net income was $179.6 million, or 73 cents a share, from $152 million, or 62 cents a share, in the year-ago period. Analysts, on average, expected the bank to earn 75 cents a share, according to Thomson Reuters I/B/E/S.
Revenue was $988.5 million, up from $945 million in the year-ago period, but just shy of the $1 billion estimate of analysts.
Custody and administration fees rose 13 percent to $215 million in the quarter while total assets under custody rose 3 percent to $4.56 trillion.
And similar to larger peers Bank of New York Mellon Corp and State Street Corp, Northern Trust experienced a sharp decline in foreign exchange trading revenue.
Forex revenue was $59.4 million in the quarter, a 27 percent decline from year-earlier levels. All of the banks in the sector cited on weak capital market activity and decreased volatility.