Northern Trust Corp reported a 17 percent decline in third-quarter profit, falling short of Wall Street forecasts, as the financial services group earned less for loaning out securities.
The Chicago-based company said net income was $155.6 million, or 64 cents per share, down from $187.9 million, or 77 cents, a year earlier. Analysts had expected 71 cents a share, according to Thomson Reuters I/B/E/S.
Like rival trust banks, Northern Trust felt the sluggish economy weigh on its normally lucrative business of lending securities. It said trust, investment and other servicing fees, which make up more than half of total revenue, slipped 1 percent to $518.7 million.
Overall revenue fell 3 percent to $899 million.
Assets under custody increased 10 percent to $3.9 trillion, while assets under management rose 8 percent to $657.2 billion.
