State Street Corp. fourth-quarter profit more than doubled as the institutional money-management firm's revenue from servicing and management fees strengthened.

The parent of State Street Global Advisors has seen business stabilize but has warned results would weaken in the second half of last year because of the slow pace of economic recovery and its trend of collecting fewer transaction fees.

Chairman and Chief Executive Ronald E. Logue, who is leaving the company in March, on Wednesday highlighted that the company's momentum of improvement in its core business continued, saying servicing fee and management fee revenue grew from the previous.

His successor, Chief Operating Officer Joseph L. Hooley, added the company is increasingly confident about increasing revenue this year because of the strength servicing and management, but he sees market-based revenue lagging.

Competitor Bank of New York Mellon Corp. earlier Wednesday reported a near-doubling in profit also, as moves to free itself from securities losses yielded big rewards.

State Street posted a profit of $498 million, or $1 a share, from $234 million, or 54 cents a share, a year earlier.

Analysts surveyed by Thomson Reuters expected a 97-cent profit.

Total operating-basis revenue shrank 13% to $2.31 billion.

Unrealized mark-to-market losses at State Street's investment portfolio dropped 64% from the previous quarter.

Tangible common equity ratio, which measures how much of a bank's hard assets it common shareholder actually own, was 6.6%, up two percentage points from a year earlier and one point from the previous quarter. Tier 1 capital ratio, a key measure of financial strength, fell to 18% from 20% a year earlier but increased from 15% in the previous quarter.

Total assets under management grew 32% to $1.91 billion from a year earlier and 10% from the third quarter.

State Street shares closed Tuesday at $43.20 and weren't active premarket.

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