State Street (STT) stock rose 3%, hitting a record intraday high, on Friday after the asset manager reported an increase in profits, driven by strong fee growth.
In the first quarter, State Street generated adjusted earnings per share of $2.84 on revenue of $3.79 billion. That beat Wall Street estimates of earnings per share of $2.64 on revenue of $3.68 billion, according to S&P Global Market Intelligence.
Total fee revenue climbed 15% year over year, with a 29% increase in foreign exchange trading revenue leading fee growth.
CEO Ron O’Hanley said in the earnings release that State Street was “encouraged by our momentum” and “appropriately mindful of risks,” particularly in the current geopolitical environment.
“Reflecting that progress, we delivered record quarterly fee revenue, net interest income, and total revenue, generating meaningful year-over-year positive operating leverage and pretax margin expansion, excluding notable items,” O’Hanley said. “In a dynamic operating environment, the momentum across Investment Services, Investment Management, and Markets underscores the strength of our franchise.”
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