State Street said first-quarter profit rose 5.9 per cent on higher fee revenue and income from foreign exchange trading.

Net income increased to $377 million, or 90 cents a share, from $356 million, or 81 cents, a year earlier. Earnings were reduced by 36 cents per share as the firm set aside money for legal claims related to its foreign exchange business.

State Street chief executive Joseph Hooley has relied on a combination of cost-savings and stock market gains to overcome the impact of low interest rates, which affected income from lending and investing.

Money set aside for legal expenses related to litigation in its foreign exchange business reduced earnings by $150 million on a net after-tax basis. Operating earnings of $491 million, or $1.17 a share, beat the $1.05 share estimated by analysts. – (Bloomberg)