SaltWire's Atlantic regional weather forecast for September 12, 2023 | SaltWireNEW YORK - Shares of Northern Trust Corp fell by more than 9% to their lowest level in nearly a month on Tuesday after the custodian and asset manager forecast a bigger-than-expected drop in net interest income in the third quarter.
Like many financial institutions in the current high interest rate environment, Northern Trust is confronting growing financing costs as tries to hold onto deposits. Northern Trust shares sank to $69.81, down more than 9%, to their lowest level since mid-July after Tyler's comments. The stock, which has now lost nearly 19% year-to-date, was last at $71.99.Asset and wealth managers, including Northern Trust and peer State Street Corp, are seeing a decline in NII as customers move deposits to higher yielding alternatives.