State Street Corporation (NYSE: STT) announced Tuesday that first net income grew 11 percent as revenue and assets under management rose.
The financial institution said it earned $496 million or 99 cents a share in the first quarter, compared to $446 million or $1.02 a share in the same period a year ago. Per share earnings or not comparable since State Street had 498.1 million shares outstanding at the end of the quarter, compared to 435.1 million in the same period a year earlier.
Total revenue in the first quarter reached $2.3 billion, up from $2 billion in the same quarter last year. Servicing fees helped drive revenue growth, up 15 percent to $880 million, from $766 million last year.
Trading service revenue sagged on results a bit, down 1.2 percent to $242 million from $245 million.
“In the quarter, our asset servicing business added $164 billion in assets to be serviced. Within asset management, net customer cash flows, including customer wins and losses, were modestly negative,” said President and CEO Joseph L. Hooley.
Total assets under management grew in the first quarter to $1.93 trillion, up from $1.4 trillion last year.
The firm continued to cut the risk in its investment portfolio, with unrealized losses dipping to $1.44 billion, compared to $2.29 billion last year.
Expenses in the first quarter cut into profit, rising 21 percent to $1.56 billion as compensation and benefits costs rose.
Looking ahead, State Street expects to grow revenue 8 to 12 percent annually, leading to operating earnings per share growth of 10 to 15 percent.
