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state street (New York Stock Exchange: STT) stock slipped 3.2% In a Friday pre-market trade, the depository bank’s second-quarter revenue fell short of the median analyst estimate as net interest income declined during the quarter, although earnings beat expectations as fee income increased. Up and down expenses.
Adjusted earnings per share in the second quarter of $2.17 was higher, beating expectations of $2.10, and up from $1.52 in the first quarter and from $1.91 in the prior-year quarter. Revenue was $3.11 billion, versus the $3.13 billion expected, ahead of $3.10 billion in the first quarter and from $2.95 billion a year earlier.
“We saw good fee momentum on a quarterly basis across a number of our businesses, and that helped us expedite the rapid preparation of the AUC/A pipeline to be installed, while we continued to invest and serve our customers,” said Ron O’Hanley, Chairman and Chief Executive Officer of Ron O’Hanley.
He added that during the quarter, State Street (STT) returned about $1.3 billion to shareholders through share buybacks and dividends, noting that the company intends to continue to obtain a share repurchase authorization of up to $4.5 billion this year.
Fee income of $2.42 billion increased 4% sequentially and 2% year-over-year.
Assets under custody or management were $39.6 trillion, up 5% from the previous quarter and 4% from the same period last year.
Net interest income was $691 million, compared to $766 million in the first quarter and $584 million in the second quarter of last year.
Total expenses of $2.21 billion were down from $2.37 billion in the first quarter and up from $2.11 billion a year earlier.