State Street Corp. posted increases in assets under custody and administration, as market appreciation and growth in U.S. asset managers and electronically traded fund flows were partially offset by continued outflows from hedge funds.
Last month, State Street begin pushing big companies to put more women on their boards by demanding change at firms without any female directors. The company was also responsible for placing the now-viral "Fearless Girl" statue of a young girl facing Wall Street's iconic bronze bull.
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The company is also developing a tool for asset managers, pensions and endowments that lets them screen investments for environmental, social and governance risks, aimed at capitalizing on the appetite for responsible investing.
The company said it had first-quarter net outflows of $11 billion with $12 billion in exchange-traded funds inflows being offset by a net $26 billion institutional outflow.
In all for the quarter, the Boston-based trust bank reported earnings of $446 million, or $1.15 a share, up from $319 million, or 79 cents a share, a year before. On an operating basis, earnings were $1.21 a share. Revenue grew 7.4% to $2.67 billion.
Analysts polled by Thomson Reuters had expected $1.10 a share in earnings on $2.74 billion in revenue.
Assets under custody and administration increased 11% to $29.83 trillion from a year prior and 3.7 from the previous quarter.
Assets under management increased 12% to $2.56 trillion and 3.8% from the fourth quarter.
Fees, which represent about 80% of the bank's top line, grew 9.1% to $2.2 billion. Expenses increased 1.8% from a year earlier to $2.09 billion on higher compensation costs.
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(END) Dow Jones Newswires
April 26, 2017 08:16 ET (12:16 GMT)