State Street loses $1 trillion in custody assets to JPMorgan

State Street Corp shares on Wednesday tumbled as much as 7.5 percent on a double dose of bad news: the bank reported a 3.4 percent drop in fourth quarter revenue and rival JPMorgan Chase & Co Inc announced poaching more than $1 trillion in custody assets.

Boston-based State Street is the world's No. 2 custody bank with $28.8 trillion in assets under custody and administration. But that figure could shrink more than 3 percent after JPMorgan announced on Wednesday that it was chosen by BlackRock Inc to be custodian for more than $1 trillion in assets.

The announcement came as State Street reported total revenue of $2.53 billion in the fourth quarter, a 3.4 percent decline from the year-earlier period.

State Street shares tumbled to $74.46 at the opening bell, a 7.5 percent drop from Tuesday's close of $80.52. But the stock recovered some of that lost ground, rising to $77.48.

(Reporting By Tim McLaughlin; Editing by Chizu Nomiyama)