STT State Street Corporation

By Lisa Beilfuss 

State Street Corp. overbilled certain clients over an 18-year period by roughly $200 million, the asset manager said Thursday, funds it intends to reimburse at the completion of its review.

The Boston-based bank said it has conducted a preliminary investigation of the period for which it has accessible records, covering about $400 million in invoices for asset-servicing clients primarily in the U.S.

Approximately $200 million or more of expenses may have been incorrectly invoiced, the company said, adding that it "deeply regrets this matter."

In State Street's most recent business year, the categories of expenses under review represented about 0.7% of the bank's total asset servicing fee revenue. Asset servicing fee revenue makes roughly half of the company's top line.

State Street said it would fully compensate affected clients, including interest, once its investigation is completed. The trust bank also said it would make any required improvements to its billing practices.

The bank said its December quarter's financial results are likely to include expenses stemming from the review and that it would provide additional information when it reports those results on Jan. 27.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

December 17, 2015 07:33 ET (12:33 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.