By Chelsey Dulaney
State Street Corp. posted better-than-expected profit in its
first quarter, driven by a surge in foreign-exchange trading and
stronger fee revenue.
Chief Executive Joseph L. Hooley said in a news release that
foreign-exchange trading volume has benefited from diverging
interest rate expectations for the U.S. relative to most other
major economies, as well as by actions taken by central banks
around the world to increase quantitative easing. He added that the
Boston-based bank was able to offset the impact of a strong dollar
through cost cuts.
For the first quarter, State Street reported earnings of $377
million, up from $356 million a year ago. On a per-share basis,
earnings rose to 90 cents from 81 cents a year earlier.
The results included a $150 million charge to increase legal
accrual related to indirect foreign exchange.
On an operating basis, profit was $1.17 a share.
Revenue improved to $2.61 billion from $2.49 billion a year
ago.
Analysts polled by Thomson Reuters estimated an operating profit
of $1.05 a share and revenue of $2.67 billion.
The firm said it had $2.44 trillion in assets under management,
compared with $2.38 trillion a year ago.
Servicing fees grew 2.8% to $1.27 billion. Management fees were
up 3.1% to $301 million.
In its trading-services business, revenue grew 28%, driven by a
52% surge in foreign-exchange trading.
Peers Northern Trust Corp. and Bank of New York Mellon Corp.
both reported better-than-expected first quarter earnings earlier
this week.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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