By Dean Seal
State Street reported a big gain in earnings for the first quarter as fee revenue climbed across its divisions.
The financial-services provider for institutional investors said its profit jumped 39% from a year ago to $644 million. Earnings were $2.04 a share, 4 cents higher than the consensus estimate of analysts surveyed by FactSet.
Total revenue rose 5% to $3.28 billion, missing analyst projections for $3.32 billion, according to FactSet.
Fee revenue, its biggest top line contributor, was up 6% at $2.57 billion, but analysts had been looking for a slightly higher climb to $3.6 billion. Servicing fees and management fees got a boost from higher average market levels as well as new clients and inflows.
Net interest income came in about flat year-over-year at $714 million.
The company's total costs meanwhile fell by 3% to $2.45 billion due to the absence of a notable FDIC special assessment from the year-earlier quarter. Excluding that expense, costs would've been 3% higher on an increase in business investments.
Shares slid 3% to $77.26 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
April 17, 2025 08:40 ET (12:40 GMT)
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