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

State Street

21/04/2026 17:03

Updates with analyst comparisons throughout, adds CEO quote in paragraph 4, analyst comment in paragraph 10

By Utkarsh Shetti

April 21 (Reuters) - Asset and wealth manager Northern Trust NTRS.O 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 BK.N and State Street STT.N, 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)

 ((UtkarshUmesh.Shetti@thomsonreuters.com;))