Shares of State Street Corp. fell nearly 5 percent on Tuesday after the company said second-quarter net income had declined 4 percent on lower foreign exchange volume and weakness in international stock markets.

Separately, State Street said it would buy Goldman Sachs Group Inc.’s hedge fund administration business for $550 million in cash.

Boston-based State Street’s net income declined to $480 million, or 98 cents a share, from $502 million, or $1 a share, a year earlier.

The results include a $46 million loss the company took on the sale of Greek investment securities.

Excluding items, State Street’s per-share profit was $1.01, beating the analysts’ average estimate of 97 cents, according to Thomson Reuters I/B/E/S.

Revenue slipped to $2.42 billion from $2.49 billion. At the same time, State Street trimmed year-over-year employee compensation and benefit costs by nearly 7 percent. Those costs had worried investors and analysts when the company reported first-quarter results in April.

Services fees generated from $22.4 trillion in assets under custody and administration dropped three percent to $1.09 billion from a year earlier.

Trading services revenue, which mostly includes foreign exchange activity, fell 18 percent to $255 million.

Shares of State Street were down 4.8 percent at $42 before regular trading began.