State Street’s profit climbed to $3.69 per share from $2.78 a year prior, narrowly edging past the $3.68 consensus forecast from FactSet analysts. Revenue grew 13% to $4 billion, though this figure trailed the $4.03 billion expectation set by Wall Street. Fee revenue, the core driver of the company’s performance, rose 11% during the quarter.
In section Market Quotes
State Street Shares Dip Despite Record Fee Revenue
A 6.1% drop in premarket trading greeted State Street’s third-quarter results on Wednesday, even as the firm reported $1.09 billion in profit. While record servicing and management fees bolstered the bottom line, rising compensation costs and a slight miss on total revenue estimates soured investor sentiment.
Chief Executive Ron O'Hanley attributed the growth to record levels in management and servicing fees, alongside high volumes in foreign exchange trading. However, these gains were partially offset by an 8% surge in total expenses. The firm cited increased spending on compensation, employee benefits, and information systems as primary factors behind the rising costs. Net interest income also provided a lift, climbing 21% to reach $864 million.
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