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State Street 3Q net income falls 19 percent

BOSTON (AP) -- NEWS: Custody bank State Street said Tuesday its net income fell 19 percent in the third quarter, absent a large gain from a claim against Lehman Brothers recorded last year.

DETAILS: State Street said its revenue rose 3 percent in the third quarter as servicing fees improved. Its net income decreased because a year ago it recorded a $362 million benefit related to claims associated with the 2008 bankruptcy of Lehman Brothers.

Management fees rose 10 percent to $276 million, but trading services revenue, which includes foreign exchange trading revenue and brokerage and other fees, fell 10 percent to $256 million.

NUMBERS: By standard accounting measures the company said its net income fell to $531 million, or $1.17 per share, from $654 million, or $1.36 per share. Revenue rose to $2.43 billion from $2.36 billion, with servicing fee revenue up 10 percent from last year to $1.21 billion.

Excluding one-time items, the company said it earned $1.19 per share in the third quarter, up from an adjusted 99 cents per share a year ago.

Analysts expected State Street to report net income of $1.18 per share and $2.52 billion in revenue, according to FactSet.

STOCK: State Street Corp. shares slid $1.95, or 2.8 percent, to $67.89 in trading after the opening bell.