State Street Corporation announced earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, on GAAP basis, the company reported diluted earnings per share of $0.89 against $1.43 a year ago. Return on average common equity was 6.9% against 12.1% a year ago. Total revenue was $2,846 million against $2,530 million a year ago. Net income available to common shareholders was $334 million against $557 million a year ago. Return on tangible common equity was 16.7% against 17.7% a year ago. On operating basis, diluted earnings per share were $1.83 against $1.48 a year ago, driven by strength in servicing and management fees and higher net interest income. Return on average common equity was 14.1% against 12.5% a year ago. Total revenue was $2,984 million against $2,749 million a year ago. Net income available to common shareholders was $687 million against $577 million a year ago. Return on tangible common equity was 20.4% against 18.8% a year ago. Total fee revenue increased 6% from fourth quarter of 2016, driven by strength in asset servicing, asset management and securities finance fees.

For full year 2017, EPS increased 25% to $6.41 a share, supported by fee revenue growth of 8% and NII growth of 14%. ROE increased 2.1 percentage points to 12.9%.

The company expects the GAAP basis tax rate to be approximately 16% in 2018. The company expects NII to grow within a range of 10% to 13%, reflecting higher expected interest rates in the U.S. Balance sheet growth in 2018 will largely depend on new business and related client deposit activity. On a GAAP basis, considering the gains on sale, the company expects 2018 fee revenue to increase 7% to 8%.