UPDATE 1-State Street's operating profit rises 14 percent
Oct 22 (Reuters) - State Street Corp, the world's second-largest standalone custody bank, said on Tuesday that third-quarter operating profit rose 14 percent on double-digit gains in revenue from servicing client assets and managing money.
Boston-based State Street also got a lift from trading foreign currencies and keeping a lid on compensation and employee benefit costs.
State Street manages cash for companies and handles back-office processing of securities and banking transaction for fund managers, among its other businesses, but does not have retail branches.
The company's operating profit was $537 million, or $1.19 a share, compared with $473 million, or 99 cents a share, a year earlier. That beat the analysts' average estimate by a penny, according to Thomson Reuters I/B/E/S.
Revenue at State Street's asset servicing business, the bank's largest, rose 10 percent to $1.21 billion. Foreign exchange revenue increased 28 percent to $147 million.
Compensation and employee benefit costs declined 1.4 percent to $903 million. In recent quarters, the bank has made improvements on the cost front, which had been a bone of contention with some large shareholders.