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BOSTON (

TheStreet

) --

State Street

(STT) - Get State Street Corporation Report

Tuesday reported third-quarter net income of $516 million, or $1.04 a share, matching the consensus estimate of analysts polled by Thomson Reuters.

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In comparison, the bank lost $3.2 billion, or $7.12 a share, the previous quarter, mainly from charges related to the consolidation of off-balance sheet commercial paper onto State Street's balance sheet. State Street earned $477 million in the third quarter of 2008, or $1.09 a share.

On an operating basis, State Street earned $1.05 a share for the third quarter on revenue of $2.3 billion, improving from $1.04 a share on revenue of $2.2 billion in the second quarter. In the year-earlier third quarter, the bank earned $1.24 a share on an operating basis on revenue of $2.5 billion.

CEO Ronald Logue, in a statement, said that while new business and improved equity markets led to increases in servicing and management fees during the third quarter, "the pace of the rebound is slow," and that the company would "continue to build our capital ratios, which today are among the strongest in the industry."

While Logue said the company's outlook for 2009 operating earnings had declined slightly to between $4.13 and $4.17 a share, State Street still expected an operating return on equity of between 14% and 17%.

Written by Philip van Doorn in Jupiter, Fla.

Philip W. van Doorn joined TheStreet.com Ratings., Inc., in February 2007. He is the senior analyst responsible for assigning financial strength ratings to banks and savings and loan institutions. He also comments on industry and regulatory trends. Mr. van Doorn has fifteen years experience, having served as a loan operations officer at Riverside National Bank in Fort Pierce, Florida, and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a Bachelor of Science in business administration from Long Island University.