State Street’s Q1 2013 results saw slightly dipped revenue of $2.44 billion: down just one percent from Q4 2012, and up one percent from Q1 2012.
The firm was awarded $223 billion in asset servicing mandates, and had $5 billion in net new assets to be managed at State Street Global Advisors.
Assets under custody and administration were recorded at $25.4 trillion for Q1 2013, an increase of 9.5 percent from Q1 2012 ($23.2 billion).
Servicing fees increased 2.2 percent to $1.2 billion in the Q1 2013 from Q4 2012, due to stronger global equity markets and higher transaction volumes.
Compared to Q1 2012, servicing fees increased 9 percent, due to stronger global equity markets, net new business, and the acquired Goldman Sachs Administration Services business.
Management fees increased to $263 million in the first quarter of 2013 from $260 million in the fourth quarter of 2012, again due to stronger global equity markets and net new business partially offset by lower performance fees. Compared to the first quarter of 2012, management fees increased 11.4 percent.
Trading services revenue, which includes foreign-exchange trading revenue, brokerage and other fees, was $281 million in Q1 2013, up 15.6 percent from Q4 2012 due to strength in foreign-exchange and electronic trading.
Foreign-exchange revenue increased 23.7 percent from Q4 2012 due to higher volumes and volatilities, but decreased 2 percent from Q1 2012. Brokerage and other fees increased 8 percent to $135 million from Q4 2012 due to increased electronic trading.
Securities finance revenue was $78 million in Q1 2013, an increase of 5.4 percent from Q4 2012 due to slightly higher volumes. Securities finance revenue decreased 19.6 percent Q1 2012 due to lower spreads and volumes.
Joseph Hooley, State Street's chairman, president and CEO, said, “The first-quarter results reflect good performance and our continued commitment to delivering value-added solutions to our clients across our asset servicing and asset management businesses. The strength in the equity markets, combined with higher volumes and increased volatility in foreign-exchange trading, supported our fee revenue."
"Overall, the environment continues to show signs of gradual improvement as reflected by investors shifting into equities. However, given the ongoing fragile state of the global markets, we continue to remain cautious for 2013.”
