Despite a surge in profits from two of its larger competitors, Northern Trust Corp. reported that its second quarter results tumbled as a result of declines in fee revenue and some nonperforming loans.
Northern Trust reported a profit of $199.6 million, or 82 cents a share, down 36% from a year earlier. Revenue declined 7% to $973.8 million. The results beat analyst estimate by eight centers, according to Thomson Reuters.
Northern Trust reported Wednesday that troubled loans increased for the second consecutive quarter and fees from the Chicago-based custodial bank’s trust and investment services business declined 10%.
Despite the difficult quarter, the company’s top executive remained upbeat. Frederick H. Waddell, its chairman and chief executive officer, said in a press release that they were pleased with their results, “despite the low interest rate environment and prolonged economic recovery.”
“We continue to invest in our businesses in order to serve our clients now and into the future,” he said. “We are confident that ongoing economic challenges will ultimately give way to a recovery, benefiting our clients, our people and our shareholders.”