October 18, 2019 / 11:54 AM / 2 months ago

State Street beats profit as assets hold up in an uncertain environment

(Reuters) - State Street Corp (STT.N) on Friday beat analysts’ estimates for third-quarter profit, as the custodian bank’s assets under custody and management held up against macroeconomic uncertainty.

The Boston-based bank managed $32.9 trillion in assets under custody and administration, up 0.4% from the prior quarter. Assets under management rose 1.2% to $2.95 trillion.

The bank’s results come against the backdrop of uncertainty over a protracted U.S.-China trade war and fears of a slowing U.S. economy, which have made investment management clients cautious.

State Street’s bigger rival Bank of New York Mellon Corp (BK.N) on Wednesday reported weakness in its investment management business, but beat estimates through cost management.

Fee revenue at State Street fell 2.5% to $2.26 billion from a year earlier, leading to a 2.9% drop in total revenue at $2.9 billion.

Net income fell to $583 million, or $1.42 per share, in the quarter ended Sept. 30 from $764 million, or $1.87 per share, a year earlier. (reut.rs/2BpbF4I)

Excluding items, the company earned a profit of $1.51 per share, while analysts expected a profit of $1.39 per share, according to IBES data from Refinitiv.

Reporting by Bharath Manjesh in Bengaluru; Editing by Aditya Soni and Shailesh Kuber

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