Northern Trust tops profit estimates as robust markets bump fee income; shares rise

By Utkarsh Shetti

April 21 (Reuters) – Asset and wealth manager Northern Trust beat Wall Street estimates for first-quarter profit on Tuesday, as strong markets boosted assets under custody and fee income, sending its shares up more than 5.5%.

The Chicago, Illinois-based firm services assets for institutional clients and benefits from heightened market activity and portfolio reshuffling.

The war in Iran has triggered sharp swings across asset classes, driving a surge in trading activity as investors hedge against potential losses and try to profit from broader market moves.

“This past quarter was a very constructive environment… the level of volatility is attractive for our capital markets business,” CEO Michael O’Grady said in a call with analysts.

The results mirrored those of peers BNY and State Street, both of which also reported higher profits, helped by volatile markets.

Northern Trust’s profit came in at $2.71 per share, surpassing analysts’ average estimate of $2.32, according to data compiled by LSEG.

Assets under custody and administration as of March 31 rose 10% to $18.55 trillion, while assets under management stood at $1.78 trillion. Fee income jumped 11% to $1.34 billion.

Net interest income — the difference between what the bank earns on assets and pays on liabilities — surged 15% in the quarter to $662 million.

Total revenue rose to $2.21 billion, beating expectations of $2.13 billion.

“All-in-all, a very strong quarter for the company,” said RBC Capital Markets analyst Gerard Cassidy.

Northern Trust’s shares have gained over 16% so far this year as of Monday’s close, after a more than 33% jump in 2025.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Diti Pujara)