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Northern Trust: Shares up despite profits diving

NORTHERN Trust yesterday reported a 41 per cent decline in fourth-quarter profit as low interest rates pummeled the bank’s net interest income, but the results were better than analysts had expected.

Shares of the Chicago-based bank, which offers private banking, investment management and custody services, closed 5.7 per cent up at $55.44.

Net income fell to $200.3m (£123m), or 82 cents per share, from $342.3m, or $1.47 per share, a year earlier. Analysts had expected earnings per share of 67 cents.

Revenue fell 17 per cent to $950.2m, but exceeded analysts’ expectations of $923m. Net interest income declined 30 per cent to $244m.

Assets under custody increased 22 per cent to $3.7 trillion while assets under management rose 12 per cent to $627.2bn.

For the full year, Northern Trust said it earned $753.1m, or $3.16 per share.

The company said 2009 earnings included a charge of 47 cents per share because of its repayment of bailout money from the US government.