(Adds revenue on a operating basis, updated stock price, in the
fourth and seventh paragraphs.)
DOW JONES NEWSWIRES
State Street Corp. (STT) rebounded from a year-earlier loss
caused by mortgage-backed securities as the institutional
money-management company this time reported stronger fees and
assets under management.
It had turned in lackluster results in the first quarter as
trading revenue dropped 10%. The decline came while some big Wall
Street banks posted frothy increases as investors returned to stock
and bond markets.
For the second quarter, State Street reported a profit of $432
million, or 87 cents a share, compared with a prior-year loss of
$3.31 billion, or $7.12 a share. On an operating basis, which
excludes investment and other impacts, earnings rose to 93 cents
from 89 cents.
Total revenue increased 9% to $2.3 billion as total fee revenue
jumped 12% and net interest revenue was up 13%. On an operating
basis, the increase was 2.2% to $2.16 billion as trading revenue
jumped 35%.
On an operating basis, the company earlier this month projected
earnings of 93 cents on $2.2 billion in revenue.
Assets under management rose 15% to $1.782 trillion but fell
7.6% during the quarter amid the falling stock market.
Shares were recently up 2.1% at $38.13 amid a broadly lower
market. The stock is down 12% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com