State Street Corporation announced 2004 fourth-quarter reported earnings per share of $0.55, or net income of $184 million on revenue of $1.27 billion. These results compare to earnings of $1.33 per share, or net income of $447 million on revenue of $1.51 billion in the fourth quarter of 2003.
Fourth-quarter operating results for 2004 included $0.02 earnings per share, after finance charges, on revenue of $141 million and expenses of $118 million, which includes “out-of-scope” GSS business, State Street said in their release.
For the twelve months ended December 31, 2004, operating earnings per share totaled $0.10 on revenue of $606 million. Merger and integration costs for the fourth quarter were $12 million and totaled $62 million in 2004.
Also higher during the last three months of 2004, securities lending revenue was $58 million in the quarter, compared to $53 million in the year-ago quarter, an increase of 9%. The increase reflects higher volumes of 16%, offset by reduced spreads. Brokerage fees were $43 million in the quarter, compared to $37 million in the year-ago quarter, up 16% due to increases in transition management, State Street said.
On the downside, foreign exchange trading revenue of $111 million in the quarter, declined 3%, or $4 million from $115 million in the year-ago quarter because the fourth quarter of 2003 included the $18 million FX contract settlement with Deutsche Bank. This decrease was partially offset by increased volumes and volatility in the fourth quarter of 2004.
Commenting on the performance, Ronald E. Logue, State Street’s chairman and chief executive officer, said, “In 2004 State Street again demonstrated its ability to grow its operating revenue–up 14% from 2003, with strength across the company, particularly in servicing and management fees. We also saw strong business growth in both Europe and Asia Pacific fueled in part by the expanded footprint we gained from the successful GSS acquisition and increased customer demand in those regions for an integrated bundle of investment services. At the same time, operating earnings per share increased 8% year-over-year and, in the second half of the year, we made progress toward more efficiently managing expenses and allocating resources.”