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.