By Robert Barba
State Street Corp. reported a nearly 24% drop in earnings in the third quarter as revenue fell and expenses increased.
The custodian banking firm posted a net income of $583 million, or $1.42 a share, in the quarter, compared with $764 million, or $1.87 a share, a year earlier. On an adjusted basis, the company reported earnings of $1.51 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 2.5% from a year earlier. Net interest income totaled $644 million, down 4.2% from a year earlier.
Total revenue of $2.9 billion was slightly ahead of the $2.86 billion analysts were expecting.
Total assets under custody and/or administration fell 3.2% to $32.9 trillion. Assets under management totaled $2.95 trillion, up 5.1%.
Expenses increased 4.3% to $2.18 billion. The company said it has achieved $275 million in total savings from the cost-cutting program it launched in January. That program is expected to hit $400 million in total cost cuts in 2019.
Shares of State Street rose 1.3% in premarket trading.
Write to Robert Barba at Robert.Barba@wsj.com
Corrections & Amplifications
This was corrected at 9:28 a.m. ET because the original version incorrectly listed that State Street had total assets under custody and/or administration of $32.9 billion and assets under management of $2.95 billion at the end of the third quarter. The correct figures are $32.9 trillion and $2.95 trillion, respectively.