State Street hit by restructuring costs

STATE Street, one of the world’s largest institutional investors, said quarterly earnings dropped due to costs of repositioning its portfolio and cutting jobs.

The company, which also earns fees for services like record-keeping to mutual and hedge funds, said that net income fell to $81m (£50m), or 16 cents a share, from $498m, or $1 a share, a year earlier.

Excluding special items, earnings rose to 87 cents a share from 71 cents, beating analysts’ expectations by one cent.

Revenue rose 9.6 per cent to $2.28bn. Fee revenue increased 10 per cent to $1.7bn, fuelled by a dramatic jump in processing fees and servicing fees.

Assets under custody and administration climbed 15 per cent to $21.5 trillion. Assets under management rose three per cent to $2.01trillion