Norther Trust Moves To 3Q Profit On Fee Gains

CHICAGO (AP) — Northern Trust Corp. said Wednesday it moved to a third-quarter profit as growth in fees offset a drop in revenue from foreign exchange trading.

However, results missed analyst estimates, and shares fell in morning trading.

The Chicago-based custody bank and asset manager reported quarterly net income of $187.9 million, or 77 cents per share. In the same period of 2008, the company posted a loss of $148.3 million, or 66 cents per share, due in part to charges of $561.5 million amid a credit crunch that left banks scrambling to shore up balance sheets.

Excluding one-time items in the latest quarter, Northern Trust posted operating earnings of $176.7 million, or 72 cents per share.

Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, forecast an operating profit of 84 cents per share.

Revenue dipped 1 percent to $927.6 million from $938.5 million in the year-ago quarter. Analysts had forecast revenue of $984.6 million for the latest quarter.