Jan 17 (Reuters) - State Street reported a rise

in fourth-quarter profit on Friday, boosted by an increase in

fees earned from managing client assets, and also announced the

appointment of Mark R. Keating as interim CFO.

Keating will take over from Eric Aboaf, who is set to leave

the company in February and will join S&P Global ( SPGI ) as its

finance chief.

Investor sentiment improved on expectations of lower

corporate taxes and deregulation under U.S. President-elect

Donald Trump, sparking a market rally and boosting State

Street's assets under management and the corresponding fees.

State Street, which services and manages investments for

high-net-worth clients that include governments, institutions

and investment companies, posted a total revenue of $3.41

billion in the fourth quarter, compared with $3.04 billion a

year earlier.

The custodian bank's AUM rose 15% to $4.72 trillion and it

earned fee revenue of $2.66 billion in the quarter, up from

$2.37 billion a year earlier.

It reported a profit of $783 million, or $2.46 per share,

for the quarter, up from $210 million, or 55 cents, a year

earlier.

Close rival BNY had also reported a jump in its

fourth-quarter profit earlier this week, as it earned higher

investment services fees from its clients.

State Street's net interest income - the difference between

what it earns on assets and pays out on liabilities - jumped 10%

to $749 million.

It forecast 2025 fee revenue to grow between 3% and 5%, but

expects NII to be roughly flat in 2025.

The bank's shares gained nearly 26.7% in 2024, compared with

a 47.6% rise in BNY.