Boston
27 April 2017
Reporter: Stephanie Palmer

State Street reports double-digit custody and administration growth


State Street has seen a 10.7 percent increase in assets under administration and custody, ending Q1 2017 with just shy of $30 trillion.

In its Q1 results, State Street revealed assets under custody and administration of $29.83 trillion, up 10.7 percent on Q1 2016, which reach a total of $26.94 trillion.

This also represents a 3.7 percent on the bank’s Q4 2016 results, which reported assets under custody and administration of $28.77 trillion.

The total figure includes assets under custody of $22.51 trillion, marking an increase from $20.79 trillion in the same quarter last year, and from $21.73 trillion in Q4 2016.

According to Joseph Hooley, State Street’s chairman and CEO, these results reflect “stronger markets, improved client flows and the contribution of our new business wins over the past year, which benefited from our investments in solutions for clients’ most complex needs”.

Asset servicing fees also saw a slight increase, totalling $1.3 billion, up 4.3 percent on Q1 last year, which saw fees of $1.24 billion. This is also a marginal 0.5 percent increase on asset servicing fees recorded in Q4 2016, which totalled $1.29 billion.

State Street attributed the 4.3 percent increase primarily to higher global equity markets and net new business, however this was offset by hedge fund outflows and the negative effects of a stronger US dollar.

Securities finance revenues did not see the same success, however, reaching $133 million in Q1 2017, marking a very slight decrease of 0.7 percent compared to Q1 2016, which saw revenues of $134 million.

This is also a 2.2 percent decrease compared to $136 million in securities finance revenues taken in Q4 2016.

State Street attributed this slight decline to lower short interest in equity markets in Q1 2017.

The bank’s assets under management increased in Q1 2017, totalling $2.56 trillion at the end of the quarter, 11.5 percent more than the $2.3 trillion recorded at the same time in 2016.

This is also up 3.8 percent on Q4 2016, which closed with assets under management of $2.47 trillion.

Of the total assets under management at the end of Q1 2017, $1.56 trillion were equity products. Fixed-income assets made up $381 billion and cash assets made up $335 billion.

Multi-asset class solutions and alternative investments accounted for $132 billion and $154 billion, respectively.

More Industry news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Firms remain open to exposures from manual processes
13 December 2017 | New York | Reporter: Becky Butcher
Only 2 percent of capital markets companies have a fully automated compliance support programme, leaving firms open to risk from manual processes, according to a survey by Aite Group and Cordium
Cyber attacks and Brexit among concerns for 2018, according to DTCC survey
12 December 2017 | New York | Reporter: Jenna Lomax
Cyber risk remains the number one threat to financial stability in 2018, according to a new survey published by the Depository Trust & Clearing Corporation
BACS has the need for speed, according to global custody audience
07 December 2017 | London | Reporter: Jenna Lomax
There needs to be more of a collaboration and a sense of partnership between global custodians, according to panellists at this year’s Global Custody Forum
GCF: Emerging markets continue to play important role globally
06 December 2017 | London | Reporter: Becky Butcher
Emerging markets are playing an increasingly important role in the global economic system, according to Global Custody Forum keynote speaker Rohinton Mewawala
SmartStream expands India operations
06 December 2017 | Jaipur | Reporter: Stephanie Palmer
SmartStream has opened a new office in Jaipur, India, initially to serve a particular tier-one investment bank
Canadian deals abound for Broadridge
05 December 2017 | Toronto | Reporter: Stephanie Palmer
Broadridge Financial Solutions has been selected to provide its suite of wealth and fund management technology solutions to Worldsource Financial Management, and partnered up with Wealthsimple on automated investment management
FRS expands to Asia
01 December 2017 | Hong Kong | Reporter: Stephanie Palmer
Financial Risk Solutions has opened its first two offices outside of Europe, in Hong Kong and Malaysia
More Industry news