Surge in State Street earnings put down to acquisition drive

State Street, one of the world’s largest institutional investors, reported a 19 per cent rise in first-quarter operating profit as improved financial markets and acquisitions boosted revenue.

The firm, which provides services such as record-keeping for mutual and hedge funds, said excluding special items, profits rose to $444m (£273m), up from $371m a year earlier.

Operating revenue climbed 10.1 per cent to $2.3bn.

Its revenues in the quarter were boosted by several acquisitions, including the assets management business from Bank of Ireland, which the company said was off to a good start. Assets under management (AUM) rose 7.7 per cent from last year to $2.1 trillion, rising five per cent from the final quarter of 2010, with investment management fees surging at the firm’s State Street Global Advisors unit.

Late last year the company took a charge to reposition its portfolio and cut jobs.