State Street net income flat, plans job cuts

[October 23, 2015]  BOSTON (Reuters) - State Street Corp said on Friday third-quarter net income was little changed as low equity values and interest rates hurt revenue, and said it plans staff cuts.

For the three months ended Sept. 30, the Boston-based custody bank reported net income of $543 million, or $1.32 per share, compared with net income of $542 million, or $1.26 a share, in the same period a year earlier.

On an operating basis, the company earned $1.16 per share in the quarter, lower than the $1.23 per share that analysts estimated on average according to Thomson Reuters I/B/E/S.

The results included $75 million of pre-tax severance costs, relating to plans to cut about 600 workers worldwide amid a "continued challenging environment," State Street Chief Executive Joseph Hooley said in a statement.

The company ultimately aims to save $500 million a year under an efficiency program, he said.

(Reporting by Ross Kerber; Editing by Bernadette Baum)

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