BK Bank of New York Mellon Corporation

State Street Corp. reported a decline in fourth quarter revenue as weaker global equity markets dented the fees generated by the trust bank.

The New York-based bank reported earnings of $547 million, or $1.34 a share, up from $469 million, or $1.11 a share, a year earlier. Excluding certain one-time items, per-share profit fell to $1.21 from $1.36.

Revenue declined 4.8% to $2.59 billion. Analysts projected $1.18 in per-share earnings on $2.64 billion in revenue, according to Thomson Reuters.

Chief Executive Joseph Hooley said the bank's performance during the fourth quarter reflected challenging global equity markets, particularly in emerging markets.

Declines across global equity markets, which have extended into the new year, drove down the bank's assets, with assets under custody and administration slipping 2.4% to $27.51 trillion and assets under management dropping 8.3% to $2.25 trillion. Fellow trust banks Bank of New York Mellon Corp. and Northern Trust Corp. similarly reported drops in assets under management during the fourth quarter.

Lower assets, coupled with more cautious risk sentiment, cut into fee revenue. Fees, which represent most of the bank's top line, slipped 0.3% from a year earlier and 2.8% sequentially.

In light of the pressure on revenue, Mr. Hooley said State Street has focused on managing expenses. Late last year, State Street said it was accelerating its cost-cutting plan as it grappled with a challenging environment. The bank said Wednesday that layoffs and other measures announced in the third quarter would result in about $550 million in cost savings by 2020, up from an earlier target of $500 million.

Total expenses in the fourth quarter fell 9.7% from a year earlier and 5.4% sequentially, to $1.86 billion.

State Street shares, down 17% since the start of the year, were inactive premarket.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

January 27, 2016 08:15 ET (13:15 GMT)

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