State Street disappointed investors on Tuesday after the trust bank warned it would be challenging for it to increase revenue faster than expenses this year.

Shares fell 0.7% in recent trading as State Street's chief executive Joseph L. Hooley on a conference call said it would be "more challenging for us to achieve our goal of positive operating leverage for 2014 unless we experience an improvement and market-driven revenues". He added that State Street now expects 2014 regulatory costs to be higher than previously expected. The firm had previously laid out a range of $30 million and $40 million for these.