State Street's operating profit rises 14 percent

Reuters

Oct 22 (Reuters) - State Street Corp, the world'ssecond-largest standalone custody bank, said on Tuesday thatthird-quarter operating profit rose 14 percent on double-digitgains in revenue from servicing client assets and managingmoney.

Boston-based State Street also got a lift from tradingforeign currencies and keeping a lid on compensation andemployee benefit costs.

State Street manages cash for companies and handlesback-office processing of securities and banking transaction forfund managers, among its other businesses, but does not haveretail branches.

The company's operating profit was $537 million, or $1.19 ashare, compared with $473 million, or 99 cents a share, a yearearlier. That beat the analysts' average estimate by a penny,according to Thomson Reuters I/B/E/S.

Revenue at State Street's asset servicing business, thebank's largest, rose 10 percent to $1.21 billion. Foreignexchange revenue increased 28 percent to $147 million.

Compensation and employee benefit costs declined 1.4 percentto $903 million. In recent quarters, the bank has madeimprovements on the cost front, which had been a bone ofcontention with some large shareholders.

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