NEW YORK (AP) — State Street plans to cut 630 jobs, or about 2 percent of its worldwide workforce, as the custody bank continues to work on lowering expenses. The company also reported fourth-quarter results that beat Wall Street's expectations.
Its stock rose more than 6 percent in midday trading Friday, briefly touching its highest level in more than three years.
Like many other banks, State Street has been pressured by persistently low interest rates. The job cuts announced Friday will be spread around the globe. The company has 29,660 employees worldwide.
State Street Corp. provides money-handling services to pension funds, mutual funds, retirement plans and other institutional investors, and also manages investments, including the "SPDRs" family of exchange-traded funds.
For the period ended Dec. 31, net income climbed 26 percent to $468 million, or $1 per share. That compares with net income of $371 million, or 76 cents per share, a year earlier.
Excluding restructuring costs, acquisition costs and other items, adjusted earnings were $1.11 per share.
Analysts forecast earnings of $1.01 per share, according to a FactSet poll.
Revenue increased 6 percent to $2.45 billion from $2.32 billion, topping Wall Street's estimate of $2.37 billion.
The company's shares gained 32 cents to $50.70 before the market open.
State Street reported an increase in servicing fees and investment management fees during the quarter. Trading services revenue, which includes foreign-exchange trading revenue and brokerage and other fees, fell mostly because of foreign-exchange trading softness.
Assets under management, the value of the assets State Street invests for its customers, improved to $2.09 trillion at the end of the quarter from $1.85 trillion a year earlier.
The Boston company's full-year net income rose 7 percent to $2.02 billion, or $4.20 per share, from $1.88 billion, or $3.79 per share, in the prior year. Annual revenue climbed slightly to $9.65 billion from $9.59 billion.
State Street shares rose $3.07, or 6.1 percent, to $53.45 in midday trading after rising as high as $54.17 earlier in the session. FactSet says that was its highest level since August 2009.