Northern Trust profit falls on hit from debt investment sale

April 16 (Reuters) – Asset and wealth manager Northern Trust (NTRS.O), opens new tab posted a 38% fall in first-quarter profit on Tuesday as a loss on the sale of some debt investments offset gains from higher fee income for servicing and managing client assets.

The company incurred a $189.4 million loss on the sale of certain debt securities, as it repositioned its portfolio.

It also booked a $12.5 million expense tied to the replenishment of a government deposit insurance fund, which was drained after Silicon Valley Bank and Signature Bank failed last year.

Shares of Northern Trust fell 1.2% in premarket trading. They have dipped 0.8% so far this year, compared to a 3.3% fall and 5.8% rise for peers State Street (STT.N), opens new tab and Bank of New York Mellon (BK.N), opens new tab, respectively.

Northern Trust said the 135-year old company’s net interest income (NII) – the difference between what it earns on assets and pays on liabilities – fell 0.6% to $528.1 million due to higher deposits costs.

Source: REUTER