State Street’s assets under management for the first quarter rose by nearly 20 per cent helping it post an increase in fees earned from managing clients, the company said on Friday, sending its shares up nearly 1.6 per cent.
State Street services and manages investments for high-net-worth clients that include governments, institutions and investment companies. The bank had record $4.3 trillion (€4 trillion) in assets under management (AUM) at the end of the March quarter, up from $3.6 trillion last year.
Its quarterly revenue rose 1.2 per cent to $3.14 billion from a year earlier, beating analysts’ estimates of $3.06 billion, according to LSEG data.
However, its quarterly profit fell nearly 16 per cent to $463 million, or $1.37 per share, due to a 6 per cent rise in its expenses, including $130 million to replenish the Federal Deposit Insurance Corporation’s insurance fund.
In line with broader industry trends, State Street’s net interest income (NII) in the quarter declined 6.5 per cent to $716 million, from a year earlier.
Chief executive Ron O’Hanley said the bank’s fee revenue growth reflected robust performance across its global advisers and front office solutions businesses, which, along with growth in servicing fees, more than offset lower trading revenues as volatility remained muted. – Reuters
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