State Street Corporation (NYSE:STT) delivered 2Q earnings that came in ahead of estimates, but its stock was punished on Friday as fickle traders digested its results.
The US financial institution posted 2Q earnings of $2.17 a share, beating estimates of around $2.08, but topline revenue missed the mark at $3.11 billion.
Analysts had pegged State Street’s 2Q revenue at around $3.13 billion, according to consensus.
That sent State Street stock lower on Friday, losing over 10% in New York by midday.
Net interest revenue (NIR) reached $691 million, marking an 18.3% increase compared to the previous year, driven by higher short-term and long-term interest rates, but partially offset by lower average deposits. The net interest margin also rose by 25 basis points to 1.19%.
Total fee revenues showed a positive trend, increasing by 2.1% to $2.42 billion, primarily fueled by higher revenues from securities finance, software and processing fees, and other fee-based activities.
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