State Street Corp. (SST) reported an 84% decline in fourth-quarter income, as restructuring charges for job cuts, portfolio changes and real estate consolidation hindered earnings. The bank earned $81 million, or 16 cents a share, for the three months ended Dec. 31, including charges of $156 million and a loss of $344 million on changes to the investment portfolio. For the year-ago period, State Street earned $498 million, or $1 a share, a year ago. Fourth-quarter revenue fell 10% to $2.04 billion from $2.28 billion a year earlier. The Boston-based firm said it cut jobs and changed its portfolio to increase efficiencies, accelerate growth and to provide greater capital flexibility. Chairman and CEO Joseph Hooley said the company plans to transform its operating model, including a comprehensive technology program. “Our capital levels are strong, significantly in excess of the current regulatory well capitalized requirements,” he said. “And we are well positioned for the implementation of Basel III capital requirements as we understand them, far ahead of their required implementation dates.” Hooley expects increased regulatory costs, lower interest revenue from the current interest-rate environment and the changes in the firm’s investment portfolio to weigh on 2011 results. Still he said the company is “well positioned to take advantage of global growth opportunities and, as the economy normalizes, we remain committed to our long-term financial goals.” For the full year, State Street earned $1.54 billion, or $3.09 a share, up from a loss of $2.04 billion, or $4.31 a share, for 2009, which included a loss of $3.68 billion, or $7.77 a share, from the consolidation of asset-backed commercial paper conduits. Revenue for the year rose 4% to nearly $9 billion from $8.64 billion a year earlier. Write to Jason Philyaw.