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State Street (STT) 4Q Earnings Top Consensus, Expenses Rise

 January 18, 2013 08:06 AM
 

(By Balachander S) State Street Corp. (NYSE: STT) reported higher fourth-quarter earnings, beating Wall Street projections, on revenue growth.

Non-GAAP EPS were $1.11, up 19 percent from $0.93 in the year-ago quarter. In the previous quarter, STT earned $0.99 a share.

GAAP net income available to common shareholders was $468 million, up 26 percent from the year-ago period and down 28 percent from the prior quarter.

Total revenue rose 7 percent to $2.46 billion. On a sequential basis, revenue gained 3.2 percent.

"The fourth-quarter...results reflect continued resilience across our asset servicing and asset management businesses," commented CEO Joseph  Hooley. "We experienced strong demand for our solutions as evidenced by $649 billion in asset servicing wins and a continued strong pipeline."

Wall Street analysts, on average, expected earnings of $1.00 per share on revenue of $2.36 billion.

Net interest margin dropped to 1.36 percent from 1.40 percent in the same period of last year and $1.44 percent in the third quarter.

Total expenses were $1.71 billion, up 4.8 percent and 3 percent from the year-ago quarter and previous quarter, respectively.

STT shares, which have been trading between $38.21 and $51.33 in the past 52 weeks, closed Thursday's regular trading at $50.38.


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