By Ben Fox Rubin
State Street Corp.'s (STT) adjusted earnings rose sharply in the
third quarter as the trust bank boosted its servicing- and
trading-fee revenue.
State Street, one of the country's largest trust banks, has
taken a hard line on expenses despite improving business trends.
The company's cost-control measures have included withdrawing from
its fixed-income-trading initiative and staff cuts, actions it has
said will better align expenses with its 2013 business outlook.
The company reported a profit of $531 million, or $1.17 a share,
down from $654 million, or $1.36 a share, a year earlier. The
year-ago quarter included a gain of 35 cents a share, primarily for
claims associated with the 2008 Lehman Brothers bankruptcy.
Adjusted per-share earnings rose to $1.19 from 99 cents.
Revenue grew 3% to $2.43 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $1.18 a share on revenue of $2.51 billion.
Servicing fees rose 10% to $1.21 billion. Trading-services
revenue, which includes foreign-exchange trading revenue and
brokerage and other fees, grew 10% to $256 million. Management fees
were up 10% to $276 million.
Assets under management at the end of the quarter rose 8.5% to
$2.24 trillion from a year ago, while assets under custody and
administration increased 11% to $26.03 trillion.
State Street shares closed Monday at $69.81 and were inactive
premarket. The stock is up 49% so far this year.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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