State Street Reports 24% Drop in Earnings
October 18 2019 - 7:28AM
Dow Jones News
By Robert Barba
State Street Corp. reported a nearly 24% drop in earnings in the
third quarter as revenue fell and expenses increased.
The custodian banking firm posted a net income of $583 million,
or $1.42 a share, in the quarter, compared with $764 million, or
$1.87 a share, a year earlier. On an adjusted basis, the company
reported earnings of $1.51 a share.
Analysts polled by FactSet expected earnings of $1.36 a share
and adjusted earnings of $1.39 a share.
Fee income was $2.26 billion, down 2.5% from a year earlier. Net
interest income totaled $644 million, down 4.2% from a year
earlier.
Total revenue of $2.9 billion was slightly ahead of the $2.86
billion analysts were expecting.
Total assets under custody and/or administration fell 3.2% to
$32.9 billion. Assets under management totaled $2.95 billion, up
5.1%.
Expenses increased 4.3% to $2.18 billion. The company said it
has achieved $275 million in total savings from the cost-cutting
program it launched in January. That program is expected to hit
$400 million in total cost cuts in 2019.
Shares of State Street rose 1.3% in premarket trading.
Write to Robert Barba at Robert.Barba@wsj.com
(END) Dow Jones Newswires
October 18, 2019 08:13 ET (12:13 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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