Northern Trust rejigs funding as deposit costs rise
Net interest income drops 10.5%, cash at central banks falls by a quarter
Northern Trust’s funding was in flux in the third quarter, with the custodian offloading Federal Home Loan Bank (FHLB) advances and federal funds while doubling long-term debt.
The Chicago-based bank also saw deposits decline in number and rise in cost, driving down net interest income more than expected and eating into cash held at central banks.
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