State Street Corp.'s first-quarter profit rose 4% on one-time gains as the institutional money-management firm benefits from strong fee revenue.
But President and Chief Executive Joseph Hooley noted, "Net customer cash flows, including customer wins and losses, were modestly negative. This decline, however, was more than offset by appreciation of assets under management." Hooley succeeded Ronald E. Logue, who left the company in March after spending more than two decades with the money manager.
Competitor Bank of New York Mellon Corp. earlier Tuesday reported its first-quarter profit increased 74% as markets recover.
State Street posted a profit of $495 million, or 99 cents a share, up from $476 million, or $1.02 a share, a year earlier. Shares outstanding rose 14%. The latest quarter included 24 cents a share in gains.
Revenue increased 15% to $2.3 billion.
Analysts surveyed by Thomson Reuters expected a profit of 75 cents a share on revenue of $2.18 billion.
Unrealized mark-to-market losses at State Street's investment portfolio dropped 37% from the previous quarter.
Tangible common equity ratio, which measures how much of a bank's hard assets its common shareholder actually own, was 7.5%, up 1.6 percentage points from a year earlier and 0.9 point from the previous quarter. Tier 1 capital ratio, a key measure of financial strength, was 18.1%, compared with 19.1% and 17.7%, respectively.
Total assets under management grew 38% to $1.93 trillion from a year earlier and 0.9% from the fourth quarter.
State Street shares closed Monday at $47.25 and weren't active premarket.