State Street sees income fall on lower fee revenues

US financial services firm State Street Corporation saw its profits slide during the first quarter, as fee revenues shrank.

Total revenues were off 4.1% year-on-year at $2.9bn. Within that, net interest income was ahead 4.7% to $673m while total fee revenues declined 6.4% to $2.3bn.

Net income meanwhile slumped 22.9% to $508m, while diluted earnings per share were off 27.2% at $1.18.

Ronald O’Hanley, president and chief executive, said the first-quarter's performance “reflects the continued challenging conditions in the industry as well as lower client activity.”

He continued: “We have seen this conditions before and know that focusing on what we can control, including better productivity, process re-engineering and greater resource discipline, while also strengthening client relationship, will deliver shareholder value and drive growth. The expense programme we initiated in the fourth quarter of 2018 is already delivering benefits.”

O’Hanley added that the company was “working to reignite servicing fee revenue growth through initiatives targeted at specific client segments and markets.”

Shares in State Street fell following the opening bell, trading down more than 4% to $66.81 by 1443 BST.