Northern Trust’s first-quarter profit slightly below estimates as fees plunge

(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)