State Street Profit Up on Servicing, Management Fees

By Dow Jones Business News, 
A A A
Share |


By Anna Prior

State Street Corp. said fourth-quarter earnings rose 16% on higher servicing and management fees.

State Street, one of the country's largest trust banks, has taken a hard line on expenses despite improving business trends. The company's cost-control measures have included withdrawing from its fixed-income-trading initiative and staff cuts, actions it has said will better align expenses with its business outlook.

The company reported a profit of $545 million, or $1.22 a share, up from $468 million, or $1 a share, a year earlier. The latest quarter included an out-of-period income tax benefit of $71 million, or 16 cents a share, related to the completion of a multiyear data-enhancement process in connection with the company's deferred income-tax accounts. Per-share earnings also included pretax provisions of $45 million, or six cents a share, related to previously disclosed litigation and non-U.S. regulatory matters.

Adjusted per-share earnings rose to $1.15 from $1.11.

Revenue edged up 0.4% to $2.46 billion, while operating revenue rose 2.8% to $2.53 billion.

Analysts polled by Thomson Reuters forecast earnings of $1.19 a share on revenue of $2.5 billion.

State Street shares recently fell 3.2% to $72.76 in premarket trading.

Servicing fees rose 7.1% to $1.23 billion. Trading-services revenue, which includes foreign-exchange trading revenue and brokerage and other fees, fell 6.2% to $228 million. Management fees added 12% to $290 million.

Assets under management at the end of the quarter rose 12% to $2.35 trillion from a year earlier, while assets under custody and administration climbed 13% to $27.43 trillion.

Write to Anna Prior at anna.prior@wsj.com

Order free Annual Report for State Street Corp.

Visit http://djnweurope.ar.wilink.com/?ticker=US8574771031 or call +44 (0)208 391 6028

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


  (END) Dow Jones Newswires
  01-24-140813ET
  Copyright (c) 2014 Dow Jones & Company, Inc.


This article appears in: News Headlines

Referenced Stocks: STT

Dow Jones Business News


More from Dow Jones Business News:

Related Videos

Stocks

Referenced

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM