State Street Reports Higher Earnings, Introduces Expense Program

   By Robert Barba

State Street Corp.'s (STT) profit rose nearly 19% in the latest quarter and initiated a new program intended to trim its expense base.

The custody bank reported $439 million, or $1.04 per share, compared with $370 million, or 89 cents a share a year earlier. On an adjusted basis, the company reported $1.68 a share. Analysts polled by FactSet were expecting earning of $1.51 a share and an adjusted earnings of $1.67 a share.

Total expenses were $2.47 billion, up 16% from a year earlier. The expenses included a $223 million charge related to a new expense program intended to cut costs.

Total revenue increased 4.9% to $2.98 billion, ahead of analysts expectations of $2.97. Total fee revenue increased 2.6%, while fees from servicing fell 6.7%. Net interest income increased 13%.

The 2017 fourth quarter included $347 million in income tax expense.

Write to Robert Barba at robert.barba@wsj.com

(END) Dow Jones Newswires

January 18, 2019 08:17 ET (13:17 GMT)

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