CEO Joseph Hooley: "We are responding to the challenges presented by low interest rates and conservative investor risk appetite by realigning our staffing to support our goal of positive operating leverage for the full year."
About 6.1M shares repurchased during quarter for a total cost of $420M, completing $2.1B buyback plan begun in March 2013. $1.7B buyback approved for the year beginning April 1 (boost in the quarterly dividend to $0.30 per share is also expected).
Net income of $433M fell from $443M one year ago on revenue of $2.56B up from $2.47B. Net interest reveneu of $572M vs. $577M. Net interest margin of 1.24% is off 6 basis points from a year ago.
Expenses of $1.92B rose from $1.81B. Q1 results include $72M of severance costs related to staff reductions expected to save about $40M per year beginning in 2015.
Previously: State Street misses by $0.01, beats on revenue
STT no trades premarket