State Street's profit rises on robust fee income

April 17 (Reuters) - State ‌Street reported ​a ​rise in first-quarter profit on Friday, as market volatility lifted the custody bank's ‌client activity and fee revenue.

Shares of State ⁠Street were up 1.5% in premarket trading.

The Boston, Massachusetts-based ‌firm primarily serves institutional ‌investors such as asset managers and pension funds in holding and servicing assets.

Global markets have ​been roiled by sharp swings driven by the Iran war and a broad selloff ⁠in AI-exposed software stocks, prompting investors and asset managers to rebalance ​portfolios.

"Looking ahead, how the macro and geopolitical environment will evolve is uncertain," CEO ​Ron O'Hanley said in a ‌statement.

State Street posted a net income of $764 million, or $2.49 per share, for ⁠the three months ended March 31, compared with $644 million, or $2.04 per share, a year earlier.

Total revenue rose ⁠16% to $3.8 billion from a year earlier, boosted by ​a 15% jump in total fee revenue and a 17% rise in net interest income.

Assets under custody and ‌administration stood at $54.52 trillion as of March 31, up 17%, while assets under ‌management were $5.62 trillion.

The results mirror those of ⁠larger peer BNY, which ‌on Thursday reported ​a jump in first-quarter profit.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Leroy ‌Leo)

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