State Street Corp. Sinks On Lower Quarterly Earnings, Below Street View

(RTTNews) - Shares of State Street Corporation (STT) are falling more than 15% Monday morning after reporting first-quarter results, below analysts' view.

Profit for the first quarter decreased to $549 million or $1.52 per share from $604 million or $1.57 per share a year ago, on higher expenses. 16 analysts polled by Thomson-Reuters expected the company to report earnings of $1.64 per share.

Quarterly revenue, however, increased to $3.101 billion from $3.081 billion last year. The consensus estimate was for $3.12 billion.

The company said its net interest income increased 50% year-on-year to $766 million, primarily due to higher short-term market rates from global central bank hikes, an increase in long-term interest rates and balance sheet positioning.

Provision for credit losses was $44 million for the first quarter, compared with nil last year.

STT, currently at $67.33, has traded in the range of $58.62-$94.74 in the last 1 year.