State Street profit boosted by higher fees
State Street Corp said operating profit rose 5 percent in the second quarter, fueled by strong growth in its investment management and servicing business.
The asset management and custody firm said earnings on an operating basis climbed to $464 million from $441 million a year earlier, as earnings per share rose to 93 cents from 89 cents.
Servicing fees climbed 20 percent to $957 million, while management fees rose 12 percent to $217 million. On an operating basis, total revenue increased 6 percent to $2.16 billion.
Assets under management climbed 14.5 percent from a year earlier to $1.78 trillion but were down from $1.9 trillion in the first quarter. Assets under administration and custody stood at $19 trillion at the end of the second quarter.
In early July, State Street, the third-largest U.S. custody bank, previewed earnings and said it took a one-time charge of $251 million, or 50 cents a share, for an injection of money to support trust funds that its money management arm offers.
At June 30, the after-tax, unrealized mark-to-market losses in the investment portfolio, which had worried investors for some time, were $994 million, down 31 percent from the previous quarter and down 79 percent from a year ago.
(Reporting by Svea Herbst-Bayliss; editing by John Wallace)
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