State Street Corp.'s first-quarter profit slid 5.3% as one-time items gave a lesser lift to the bottom line but adjusted earnings and revenue topped Wall Street's views as managed assets rose.
The institutional money manager has seen core earnings climb lately, even as it faces pressure from historically low interest rates. It has said it expects to benefit from recent efforts to reposition its portfolio, as well as reduce its work force and consolidate its real estate.
Rival Bank of New York Mellon Corp. earlier Tuesday reported earnings increased amid higher fee revenue, and results from Northern Trust Corp. are expected later in the day.
State Street reported a profit of $466 million, or 93 cents a share, down from $492 million, or 99 cents a share, a year earlier. Excluding items such as discount accretion related to former conduit securities, earnings rose to 88 cents from 75 cents. Revenue rose 2.8% to $2.36 billion and was up 10% at $2.33 billion on an operating basis.
Analysts polled by Thomson Reuters most recently forecast a profit of 86 cents on $2.29 billion in operating revenue.
Assets under management ended the period at $2.12 trillion, up 7.7% from a year earlier and 5.5% from the prior period.
Shares closed Monday at $44.67 and were inactive in recent premarket trading. The stock is down 3.6% so far this year as of Monday's close.
