July 23 (Reuters) - Northern Trust's ( NTRS ) CEO said

on Wednesday that he has not entertained sale discussions and

does not intend to, after the wealth and asset manager reported

a second-quarter profit that beat estimates.

The Wall Street Journal reported last month that BNY

had approached the company about a potential merger. Northern

Trust ( NTRS ), which has a market cap of about $24.6 billion, later said

it was fully committed to remaining independent.

Shares in the company were last down 3%, which analysts

at Truist attributed to the CEO's denial that the company is up

for sale.

"Contrary to recent speculation, during my tenure as

CEO, we have never entertained discussions regarding the sale of

the company with any financial institution, nor do we intend

to," CEO Mike O'Grady told analysts during a post-earnings

conference call.

"We believe that strategy of independence is what will

produce the best returns for our shareholders ultimately."

While dealmaking in the broader banking sector is expected

to pick up this year on hopes of looser regulation under the

Trump administration, Senator Elizabeth Warren warned BNY that

its reported interest in a merger with Northern Trust ( NTRS ) could

violate federal banking laws.

The comments follow a strong second quarter for Northern

Trust ( NTRS ), where its assets under custody and administration climbed

9% to $18.1 trillion.

Major U.S. indexes received a boost from a late-quarter

rebound, fueled by optimism around potential interest-rate cuts

and progress on trade negotiations.

Markets had been rattled earlier in the quarter by changing

U.S. tariff strategies and rising geopolitical strain.

Assets under management rose 11% during the same period.

Meanwhile, net interest income rose 16% in the reported

quarter. Trust, investment and other servicing fees increased

6%.

Northern Trust ( NTRS ) posted a profit of $2.13 in the three months

ended June 30. Analysts on average had expected $2.05 per share,

according to estimates compiled by LSEG.