Northern Trust Corp (NASDAQ:NTRS) stock rose 1.77% (As on April 17, 11:25:17 AM UTC-4, Source: Google Finance) after the company posted a 38% fall in first-quarter profit as a loss on the sale of some debt investments offset gains from higher fee income for servicing and managing client assets. The company had 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. Net income was $214.7 million, compared to $113.1 million in the prior quarter and $334.6 million in the prior-year quarter.

Moreover, 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. Equity markets have rallied in recent months amid hopes of a soft landing for the economy, resulting in assets under custody or administration jumping 16% to $16.47 trillion in the quarter. Rivals State Street and Bank of New York Mellon also saw client assets drive up their fee-based income higher. The company’s trust, investment, and other servicing fees rose 7% to $1.14 billion. Such fees, primarily determined by the market value of client assets managed and serviced, make up more than two-thirds of its total revenue. Foreign exchange trading income rose 8% to $57 million, driven by higher client volumes.

NTRS in the first quarter of FY 24 has reported the adjusted earnings per share of $1.70, beating the analysts’ estimates for the adjusted earnings per share of $1.47, according to the Zacks Consensus Estimate. The company had reported 5.6 percent fall in the adjusted revenue growth to $1.65 billion in the first quarter of FY 24, missing the analysts’ estimates for revenue by 7.91%.

Additionally, the Corporation repurchased 1,647,526 shares of common stock, including 373,623 withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $132.0 million ($80.11 average price per share). The Corporation also declared cash dividends totaling $16.2 million to preferred stockholders during the current quarter. Unrealized MTM loss on availablefor-sale securities of $710.5 million as of March 31, 2024. The company has completed sale of $2.2 billion of available-for-sale securities in January 2024.