April 25 (Reuters) - Wealth manager Northern Trust Corp reported lower-than-expected first-quarter profit on
Tuesday, as lower asset management fees dragged down gains from
higher interest rates.
The results come close on the heels of two of the biggest
bank failures in U.S. history that dampened hopes of an economic
recovery and shook global markets.
Market volatility spurred by rate hikes and aggravated by
the banking crisis last month dented the Chicago-based wealth
manager's fees as investors withdrew funds held by the company.
A 40% jump in net interest income was dragged down by a 9%
drop in trust, investment and other servicing fees.
Northern Trust's profit dropped 15% from a year earlier to
$315.2 million, or $1.51 per share, for the three months ended
March 31, a cent below analysts' average estimate, according to
Refinitiv data.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna
Chandra Eluri)
