State Street falls as earnings come up short

State Street's stock declines after earnings fall short of Wall Street expectations

Associated Press

Shares of State Street Corp. fell Friday after the bank's earnings came in below Wall Street expectations.

State Street Corp. reported Friday that its net income rose 16.4 percent in the fourth quarter. Boston-based State Street is the ninth-largest U.S. bank by assets.

Boston-based State Street's revenue edged up to $2.46 billion in the October-December period from $2.45 billion a year earlier, as stronger global stock markets and new business lifted its servicing fees 7.1 percent to $1.23 billion. Management fees rose 11.5 percent to $290 million.

Net income of $545 million, or $1.22 per share, took into account a $71 million income tax benefit. That compares with $468 million, or $1 per share, in the fourth quarter of 2012.

Excluding one-time items, State Street said it earned $1.15 per share in the fourth quarter, up from an adjusted $1.11 a share a year earlier. Analysts expected earnings of $1.19 per share.

State Street shares fell $2.99, or 4 percent, to $69.77 in afternoon trading.

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