NEW YORK (AP) -- Higher income from managing money pushed Northern Trust Corp.'s net income up 18 percent in the second quarter.
The Chicago-based wealth management firm said Wednesday that the fees it charges for handling trusts and investments climbed to its highest level in four years.
But the results fell slightly short of Wall Street's expectations, and Northern Trust's stock dropped 1.8 percent Wednesday, losing 83 cents to close at $46.24.
Northern Trust reported second-quarter net income of $179.6 million, or 73 cents per share. That's up from $152 million, or 62 cents per share, in the same quarter of 2011.
Total revenue rose to $988.5 million from $944.8 million.
A restructuring charge knocked a penny from second-quarter earnings.
Analysts had forecast second-quarter earnings of 75 cents and revenue of $1 billion, according to the data provider FactSet.
Northern Trust handles money for people, institutions and corporations and takes a portion of those funds every year as fees. In the second quarter, trust and other servicing fees surged to $605.8 million, up 9 percent from the year before. That's mainly because assets under custody rose 3 percent to $4.5 trillion.
Those fees generate the majority of Northern Trust's revenue. The other major source comes from interest income. Net interest income rose to $254.1 million, up 3 percent over last year, the result of a sharp drop in interest expense.
- Northern Trust
- net income