State Street Reports 20% Earnings Drop

The Fearless Girl statue stands before a State Street Global Advisors banner at the New York Stock Exchange.


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State Street

STT 6.73%

reported a nearly 20% drop in earnings in the second quarter as income from fees and net interest fell.

The custodian banking firm reported net income of $587 million, or $1.42 a share, in the latest quarter, compared with $733 million, or $1.88 a share, a year earlier. On an adjusted basis, the company reported earnings of $1.45 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 5.6% from a year earlier. Net interest income totaled $613 million, down 7% from a year earlier.

Total revenue of $2.87 billion was in line with analysts expectations.

Total assets under custody and/or administration fell 3.3% to $32.75 billion. Assets under management totaled $2.91 billion, up 7.2%.

Expenses fell 0.7% to $2.15 billion. The company said it has achieved $175 million in total savings from the cost-cutting program it launched in January.

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