(Reuters) - Asset and wealth manager Northern Trust (NASDAQ:NTRS) on Wednesday posted a smaller-than-expected drop in third-quarter profit as a rise in fee-based income cushioned the hit from a drop in its interest income.
Rising interest rates have dented economic stability and, with recession fears lingering, kept investor confidence in check.
Profit allocated to the bank's common shares was $308.5 million, or $1.49 per share, for the three months ended Sept. 30, compared with $375.4 million, or $1.80 per share, a year earlier.
Analysts on an average expected a profit of $1.47 per share, according to LSEG data.
The bank's trust, Investment and Other Servicing Fees for the quarter rose 3%, to $1.11 billion, compared with a year earlier, offsetting the drag from an 11% decrease in its net interest income.
Total assets under the custody or administration of Northern Trust increased 10.5%, to $14.16 trillion, from the same quarter last year.
The wealth manager's total revenue fell 1.6%, to $1.74 billion in the quarter.