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 - Get Report)  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.