Shares of State Street Corp. slumped 4.7% in morning trading Wednesday, to extend their pullback from a near four-year high, after the trust and banking services company reported fourth-quarter revenue that came up shy of expectations, as net interest income fell more than forecast (NII). Net income rose to $697 million, or $1.78 a share, from $537 million, or $1.39 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.88, while the bank said EPS excluding “notable” items, such as acquisition and restructuring costs and deferred compensation expense acceleration, came in at $2.00. Total revenue rose 4.7% to $3.05 billion, below the FactSet consensus of $3.01 billion, as net interest income fell 3.0% to $484 million to miss expectations of $486.4 million. Total expenses rose 1.4% to $2.16 billion, as compensation and employee benefits costs grew 4.6% to $1.18 billion. The stock has now dropped 7.3% since it closed Friday at the highest level since April 2018. It has lost 0.9% over the past three months while the S&P 500 has gained 1.5%.
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