BOSTON (AP) -- Financial services company State Street Corp. said Wednesday that its fourth-quarter net income more than quadrupled from the same period a year ago, when the bank took charges for layoffs and repositioning its investment portfolio. But the bank's adjusted profit was still shy of Wall Street expectations and its revenue from fees slid.
The results sent shares down nearly 7 percent.
Boston-based State Street, which provides banking services to pension funds and other institutional investors, said its net income after paying preferred dividends for the quarter ended Dec. 31 was $371 million, or 76 cents per share. In the same period a year before, net income was $81 million, or 16 cents per share, which included hefty charges.
State Street said it earned 93 cents per share in the October-December period when excluding certain items, just below the 94 cents per share that analysts expected, according to a survey by FactSet.
The company took a pretax $120 million charge for costs related to layoffs and withdrawing from a fixed-income trading initiative in its most recent quarter, along with other charges.
Revenue for the quarter rose 13 percent to $2.32 billion from $2.04 billion in the prior-year period. Analysts expected $2.41 billion. State Street said revenue from fees fell 4 percent to $1.67 billion in the last three months of 2011, while net interest revenue fell 8 percent to $606 million.
State Street said cautious investors and volatile financial markets made the second half of 2011 more difficult. It has cut costs as record-low interest rates hurt its business, announcing 1,400 layoffs in late 2010 and 850 more in July.
For the full year, State Street reported net income after paying preferred dividends of $1.88 billion, or $3.79 per share, compared with $1.54 billion, or $3.09 per share, during the same period last year. Revenue for the year rose 7 percent to $9.59 billion from $8.95 billion in 2010.
Shares of State Street fell $2.80 to $39.95.
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