State Street 2nd-quarter profit, revenue climb

State Street 2nd-quarter profit, revenue top analysts' estimates as equity markets improve

Associated Press

BOSTON (AP) -- State Street's second-quarter net income rose 19 percent, bolstered by new business and improving equity markets.

The custody bank earned $571 million, or $1.24 per share, for the period ended June 30. That was up from earned $480 million, or 98 cents per share.

The performance topped the $1.19 per share, on average, predicted by analysts, according to FactSet.

Chairman, President and CEO Joseph Hooley said in a statement on Friday that seasonal factors and increased market volatility helped its securities finance and foreign exchange businesses. Cost-control efforts also continued to help, he added.

Revenue for the Boston company climbed 6 percent to $2.56 billion from $2.42 billion. Wall Street expected $2.54 billion.

Servicing fees rose 11 percent, mostly on stronger global equity markets, new business and the acquisition of the Goldman Sachs administration services business. Management fees climbed 13 percent on new business and stronger global equity markets.

Trading services revenue, which includes foreign exchange trading revenue and brokerage and other fees, increased 16 percent on more foreign exchange trading.

Shares of State Street Corp. fell 36 cents to $69.74 in morning trading, after slumping as low as $68.50 following the market opening. The broader market dropped on weak earnings from big technology companies including Google Inc. and Microsoft Corp.

View Comments (0)