April 16 Reuters Asset and wealth manager Northern Trust posted a 38 fall in firstquarter profit on Tuesday as a loss on the sale of some debt investments offset gains from higher fee income for servicing and managing client assets.

The company 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.

Shares of Northern Trust fell 1.2 in premarket trading. They have dipped 0.8 so far this year, compared to a 3.3 fall and 5.8 rise for peers State Street and Bank of New York Mellon, respectively.

Northern Trust said the 135year old company39;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 feebased income higher.

The company39;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 twothirds of its total revenue.

Foreign exchange trading income…