State Street Q1 profit up 8 percent as equities markets improve
- Matthew L. Brown[1]
- Reporter- Boston Business Journal
- This email address is being protected from spambots. You need JavaScript enabled to view it.[2] | Twitter[3]
State Street Corp.[4] (NYSE: STT) says its first quarter profit jumped 8 percent as the stock markets strengthened.
The Boston-based custody bank and asset manager said it booked a $443 million profit on an operating basis, about 96 cents a share, for the quarter compared to $410 million in the same period a year ago. Revenue was $2.5 billion for the quarter, on an operating basis, a 2 percent increase from a year ago.
Assets under custody increased to $25 trillion from $23 trillion a year ago, boosted by a 12 percent rise in the Standard & Poor's 500 index over the same time.
State Street announced plans last month to repurchase $2.1 billion of its common stock, a 17 percent increase over the repurchase plan it announced a year ago. The boost comes after the company passed its Federal Reserve stress test.
The company said expenses were essentially flat in the latest quarter: $1.83 billion compared with $1.84 billion in the same quarter the prior year.
State Street CEO Jay Hooley and his management team have been under investor pressure to cut costs and improve returns. At the beginning of the year, the company cut 630 jobs. That was the third round of layoffs in two years for the company.
References
- ^ Matthew L. Brown (feeds.bizjournals.com)
- ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
- ^ Twitter (twitter.com)
- ^ State Street Corp. (www.bizjournals.com)