April 22 (Reuters) - Northern Trust NTRS.O reported an 83% rise in first-quarter profit on Tuesday, as the wealth manager was helped by higher fee income from servicing and managing client assets.

Economic uncertainty sparked by U.S. President Donald Trump's tariff announcements has contributed to market volatility, prompting investors to swiftly rebalance their portfolios in an effort to shield against potential losses.

Its a stark contrast to the optimism seen at the start of the year, when markets rallied on hopes of deregulation and lower taxes under the new business-friendly administration.

Fees earned from managing and servicing client assets are the biggest source of revenue for Northern Trust. It provides wealth management, asset management and banking services to institutions, affluent families and individuals.

The Chicago, Illinois-based asset manager's trust, investment and other servicing fees jumped 6% to $1.21 billion.

The company's assets under custody or administration rose 3% to $16.92 trillion.

In April, Northern's peers State Street STT.N and BNY BK.N also reported a rise in profit boosted by increased fee-based incomes earned from managing client assets.

On an adjusted basis, Northern's net interest income — the difference between what it earns on assets and pays out on liabilities — rose 7% to $573.7 million in the quarter, driven by higher deposits and lower funding costs.

Northern's income rose to $392 million, or $1.90 per share, in the three months ended March 31, from $214.7 million, or 96 cents per share, a year earlier.

The company had recorded a $189.4 million loss on the sale of certain debt securities in the prior-year quarter, making comparisons slightly more favorable.

Trust's foreign exchange trading income rose 3%, to $58.7 million.

So far this year, Northern Trust's shares have lost 15.3%, while peers State Street and BNY are down 17.9% and 3.6%, respectively.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Krishna Chandra Eluri)

((Prakhar.srivastava2@thomsonreuters.com;))