State Street boasts profits hit highpoint

State Street Corp. posted an 11% increase in net income on stronger servicing and investment management fees, which boosted revenue to a record level. The Boston-based institutional asset manager said first quarter net income was $314 million, or 93 cents per share, compared with $292 million, or 87 cents during the year-ago period. Analysts surveyed by Reuters and Thomson Financial anticipated earnings of 93 cents per share and 91 cents per share, respectively. Revenue increased more than 11% to $1.7 billion, compared to $1.52 billion during the year-ago period. "Our ability to control expenses and achieve positive operating leverage contributed to this result, while revenue from investment servicing and securities finance increased significantly," said Ronald E. Logue, State Street's chairman and chief executive, according to a statement. Revenue from servicing fees increased 9% to $718 million, from $657 million during the year-ago period. Management fees from its State Street Global Advisors unit increased 19% to $261 million, compared to $220 million in the year-ago period. The company manages $1.85 trillion in assets, up 20% from $1.54 trillion during the first quarter of 2006. Assets under custody rose 15% to $12.33 trillion from $10.74 trillion during the year-ago period.