State Street Corp., the third- largest U.S. custody bank, said third-quarter earnings rose 33 percent as volatile financial markets increased record- keeping and trading fees.

Net income climbed to $477 million, or $1.09 a share, from $358 million, or 91 cents, a year earlier, the Boston-based company said today in a statement. Earnings included costs of 28 cents a share related to potential losses on loan collateral from Lehman Brothers Holdings Inc., which filed for bankruptcy last month.