Shares of State Street Corp. were sinking on Friday, Oct. 19, despite recording higher profits and revenue in the third quarter. Jay Hooley, CEO, however, called performance 'solid.'

Shares of State Street Corp. (STT)  fell about 8% on Friday, Oct. 19, after the financial services company released third quarter results that fell short of analysts' expectations.

A 13-percent rise in profits led to a gain in earnings per share to $1.87, less than the $1.89 a share expected by analysts polled by Refinitiv.

Total revenue rose by 3.7 percent over the same quarter last year to $2.95 billion.

Earnings rose to $709 million, compared with $629 million in the third quarter of 2017.

The company's tax rate fell to 11.8% in the third quarter compared with 16.7% in the same quarter last year. The decline was attributed to changes in tax laws as well as State Street's "mix of earnings."

Yet, at the same time other expenses were up - though workers' pay and benefit costs were "controlled." Expenses increased by $58 million - or 3 percent - over the same quarter last year, said the bank.

CEO Jay Hooley, called the performance "solid" and touted efforts to "digitize" operations. 

More from Markets

How Vulnerable the U.S. Economy Is -- Recession Watch

How Vulnerable the U.S. Economy Is -- Recession Watch

China GDP Slows To Weakest Pace Since 1990 as Trump Trade War Bites Beijing

China GDP Slows To Weakest Pace Since 1990 as Trump Trade War Bites Beijing

Why Bankrate's CFA Expects Two More Rate Hikes in 2019

Why Bankrate's CFA Expects Two More Rate Hikes in 2019

16 Stocks Jim Cramer Says Could Win from a U.S.-Chinese Trade Deal

16 Stocks Jim Cramer Says Could Win from a U.S.-Chinese Trade Deal

Trump Counters Claims of China Tariff Rollback, Reports Reuters

Trump Counters Claims of China Tariff Rollback, Reports Reuters